The herald., 1897-12-17

same amount Of notes, treasury notes Of
1890. silver certificates deposited by ma
tional banks, and the bonds so issued
and substituted shall be charged to tho
respective national bank associations
and be accounted for by them, at such
prices, not less than par, as shall repre-
sent the market value Of such bonds and
the United States notes, treasury notes
Of 1890 and silver certificates released as
herein provided shall become part Of
the general redemption fund and the
secretary Of the treasury Is hereby au-
thorized to exchange any of the treasury
notes Of 1890 and said silver notes for a
like amount Of United States notes; pro-
vided, that the amount Of bonds issued
under the authority Of this section shall
not exceed the sum Of 2OO,OO0,OOO.
Section when any national bank
now existing or hereafter organized shall
have deposited such United States
bonds, United States notes, treasury
notes Of 1890 or silver certificates of an
amount not less than so per cent Of its
capital, 1t shall be entitled to receive
from the comptroller Of the currency,
and to issue, national bank notes in ad-
dition to the fifty per cent thus provided
to the amount of rs per cent Of such de-
posits; but the circulation issued by any
national banking association shall never
be in excess of. its paid up capital stock
and the additional notes SO issued shall
not be secured by said deposit but shall
constitute q first lien upon all tho re-
naming assets Of the association issu-
ing such notes. Upon the failure of any
~ ito nj ,1ok i,,r
notes above provided, whether the same
are issued against deposited security or
general assets, the same shall be
promptly redeemed by the treasurer of
the United States. To secure the United
States against any loss arising from it's
guaranty to pay and redeem such addi-
tional circulating notes 1t shall be the
duty Of the comptroller of the currency
to levy upon and collect from every ma
tional banking association issuing such
unsecured circulation tax at the rate
of per cent per annum on such unse-
cured circulation, which said tax of 2
per cent per annum shall be paid to the
treasurer of the United States in equal
semi payments in May and July
of each year, and when so collected it
shall constitute a safety fund out Of
which the United States shall be re-
imbursed for the redemption Of said cir
culation. as herein provided. This safe
ty fund thus created shall be invested
by the secretary of the treasury in such
government bonds as he may consider
advisable. Said tax Of per cent per
annum shall be held in addition to the
tax Of one-half of one per cent per an
mum on circulating notes hereinafter
authorized.
Section 8-That each national banking
association shall deposit and maintain
In the treasury Of the United States a
sum of money aggregating 10 per cent
Of the aggregate circulation, such sum
to be in lieu Of the per cent fund re-
duction now required by section Of the
act approved June 20. 1874. to be main
tanned and to be subject to all the pro-
visions of existing laws respecting said
redemption fund not In conflict with the
provisions Of this act. And on the con-
sideration Of the deposits Of bonds,
United States notes, treasury notes Of
1890 and silver certificates and the tax Of
per cent on the unsecured circulating
notes Of National banking associations
and Of the deposit Of lawful money pro-
vided In this section the faith Of the