The Topeka state journal., 1897-12-16
GOLD BONDS.
Secretary of Treasury Gage
Presents His Bill
For the Revision of the Curren-
cy System.
INCLUDES REFUNDING.
Would Redeem Outstanding
Government Securities
With New Gold Bonds Running
Fifty Years.
NATIONAL BANKNOTES
Circulation of the Banks to Be
Largely Increased,
The Government to Undertake
the Work of Redemption.
Would Redeem Outstanding
Government Securities
With New Gold Bonds Running
Fifty Years.
NATIONAL BANK NOTES
Circulation of the Banks to Be
Largely Increased,
The Government to Undertake
the Work of Redemption.

Washington. D c., Dec. 16.-Secreta-
~ Cages financial bill, submitted to-
day to the committee on banking and
currency Of the house of representa-
tves. is as follows;
A bill to provide for the refunding of
the national debt, for establishing
redemption fund and a division of is
sue and redemption in the treasury
of the United States and to modify
existing laws respecting national
banks and for other purposes.
Be it enacted, etc, that there shall
be established in the treasury depart
ment as a part of the office of the
treasurer of the United States to be
designated and known as the division
of issue and redemption, to which shall
be assigned under such regulations as
the secretary of the treasury may ap-
prove all records and accounts relating
to the issue, redemption and exchange
as hereinafter provided of the several
classes of the United States paper
There shall be transferred from the
general fund in the treasury of the
United States and taken upon the
books of said division as a redemption
fund the sum of S125, co., 600 in United
States gold coin and bullion and such
further sums of standard silver dollars
and silver bullion purchased under the
as shall equal the silver certificates
outside the treasury and treasury notes
OF 1890 outstanding on the date when
this act shall take effect.
And thereafter the gold and silver
coins and bullion hereby transferred
from the general fund in the treasury
as herein provided shall be increased
or diminished as the case may be in ac-
cordance with the provisions of this
act, and in no other way.
Sec. 2.-That all United States notes.
tificates presented for redemption shall
be redeemed from the redemption fund
herein provided in accordance with the
terms of existing laws, but the notes
and certificates so redeemed shall be
held in and constitute a part of said
fund ar shall not be Withdrawn from
said fund nor disbursed except in ex-
change for an equivalent amount OF
the coin in which said notes or certifi-
Gates We're redeemed; but to enable
the secretary of the treasury more
thoroughly to carry out the provisions
contained in this act he is hereby au-
thOTized to exchange any of the funds
in the division of issue and redemption
for any other funds which may be in the
general fund in the treasury depart
ment.
Provided, that nothing in this act
shall be construed as repeating that
provision of the act approved July IA
1880, which provides that there shall be
outstanding at any time no more and
no less of the treasury notes author
ized by said act than the silver bullion
and standard silver dollars coined
therefrom then held in the treasury
purchased with said notes.
Sec. 3.-That the secretary of the
treasury be and he is hereby authoriz-
ed to receive at the treasury any of
the outstanding bonds known as the
5 percentum bond of 1904 and per-
Centum consOls of 1907. issued respect
lively under the act approved January
a, 1873. and the acts approved July Il,
1870. and January 20, 1871, and to issue
in exchange therefor coupon bonds of
the United States in such form as he
may prescribe in denominations of so
dollars or some multiple of that sum
bearing interest a the rate of 215 per
centum per annum. payable semi-an-
nually and redeen1able at the pleasure
of the United States after ten years
from the date of their issue; and the
bonds hereby authorized shall be pay
able, principal and interest, in United
States gold coin OF the present stand
ard value and shall be exempt from all
taxation by or under state, municipal
or local authority:
Provided. that none of the Outstand-
Ing bonds shall be received at a valua-
tion greater than their present worth
to yield an income of ~ percentum
and that the bonds hereby authorized
shall be issued at no les than par.
Sec. THAT the bonds authorized
by this act and any other bonds of the
United States may be deposited with
the treasurer of the United states as
security for the circulating notes
of national banking associations, and
any national banking association which
may deposit the bonds herein author
lied to be deposited as security for its
circulating notes, shall be entitled to
receive from the comptroller of the
currency and to issue such notes to
the amount equal to the face value of
such bonds:
Provided. that the aggregate amount
of bonds deposited by any national
banking association under this act
shall not exceed the amount of it's capi-
tai; and provided further, that nothing
herein contained shall be construed to
modify or repeal the provisions of sec
tion 5.167 and section 5.171 of the re
vfsed statutes authorizing the comp
troller of the currency to require ad-
ditfonaI deposit of bonds or of law
flll money in case the market value of
the bonds held to secure the ciTculat-
ing notes shall fall below the par value
of circulating notes outstanding for
which such bonds may be deposited as
security.
Section 5-That any national banking
association whose deposit of bonds is
less than the amount of it's capital may
5eDosit with the treasurer of the United
States under such regulations as the
secretary Of the treasury may approve,