The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1897-12-17

IN MS discretion, DOnQS OF the same
class and character as those described
in the third section of this act, and
shall substitute the same with the treas
urer of the United Strtes for equal
amounts of the United States notes,
treasury notes of 1890 and silver Ger.
tificatcs deposited by national banking
associations, and the bonds SO issued
and substituted shall be charged to the
respective national banking associa.
tions and be accounted for by them, at
such prices, not less than par, as shall
represent the market value of such
bonds, and the United States notes,
treasury notes of 1890, and silver GER
titicates released as herein provided,
shall become q part of the general re-
demption fund; and the secretary of
the treasury is hereby authorized to ex.
change any Of the said treasury notes
of 1890 and said silver certificates for a
like amount of United States notes;
provided, that the amount of bonds is
Eued under the authority of this sec.
tion shall not exceed the sum of $780,
WI, 900.
St ction :. 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, to
all amount of not less than 80 per
centum of it's capital, it shall be en-.
titled to receive from the comptroller
of the currency, and to issue national
bank notes, in addition to the 80 per
centum thus provided, to the amount
of rs per centum of such deposits; but
the circulation issued by 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 con.
stitute a first lien upon all the remaining
assets OF the association issuing such
notes Upon the failure of any associ-
alton to redeem its circulation notes
above provided, wheth the same are
issued against deposited security or
against 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 its guaranty to pay and redeem
such additional circulation notes, it
shall be the duty of the comptroller OF
the currency to levy upon and coll
lect from every national banking asso-
citation issuing such unsecured circula.
ton tax at the rate of two per centum
per annum on such unsecured circula.
ton; which said tax of two per centum
per annum shall be paid to the treas
urer of the United States in equal semi
annual payments in January and July
of each year, and when so collected it
shall constitute safety fund out of
which the United States shall be reim.
bursed for any redemption of said un.
secured circulation it may make a.
herein provided. The safety fund thus
created shall be invested by the secre.
tary of the treasury in such govern.
nent bonds as he may consider advis'
able. Said tax of two per centum per
annum shall be in addition to the tax OF
one-half of one per centum per annum
On circulating notes hereinafter author
lied.
Section provides for deposit equal
70 10 per cent of the circulation OF any
national bank in addition to other de-
posits, and pledges the government to
redeem all national bank notes.
Sections 8, 10, IL and IL provide that
no bank notes Of less than $40 shall be
Issued; that notes shall be redeemed at
New York or other sub.treasuries; that
that the circulation tax shall be one
quarter of one per cent, and that banks
with capital Of $40, 900 may be estab-
lished in cities of less than 1900 popu'
lation.