The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1897-12-21
FINANCIAL BILL.
The Measure Prepared by Secretary
Gage Introduced in the House.
Provisions for Refunding the National Debt
To Establish Redemption Fund and
Division of Issue and Redemption
I'm the Treasury Department..

bill framed by Secretary Gage was in
troduced in the house Thursday by
Chairman Walker, of the banking and
currency committee. 1t is as follows:
BE 1T ENACTED etc., That there be estab-
hshed IN the treasury department,as part of the
Office of the treasurer of the United States a
division TO be designated and known as the di-
vision OF issue and redemption, to which will
be assigned, under such regulations as the Sec
Rotary OF the treasury may approve all records
and accounts relating to the issue, redemption
and exchange, as hereinafter provided, of the
several classes of United States paper money.
There shall be transferred from the general
fund IN the treasury of the United States, and
taken up the books OF said division as a
redemption fund, the sum of 1925, OOOO 900 in
United States gold coin and bullion. and such
further sums of standard silver dollars and
silver bullion purchased under the act of con-
greSS, approved July IA, 1890, 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 treas
ury as herein provided shall be increased or
diminished, as the case may be, in accordance
with the provisions of this act, and in no other
way.
Sec. 2 That all United States notes, treasury
notes of 1890 and silver certificates presented
demptlon fund herein provided, in accordance
with the terms of existing Jaw; but the notes
and certificates so redeemed shall be held in
and constitute part of said fund and shall
not be withdrawn from said fund nor disburSed,
except in exchange for an equivalent amount
OF the coin in which said notes or certificates
were redeemed; but to enable the secretary Of
the treasury more thoroughly 10 carry out the
provisions contained in this act he is hereby
authorized TO exchange any Of the funds in the
division of issue and redemption for any other
funds which may be in the general fund of the
treasury department: Provided, that nothing
IN this act shall be construed as repeating that
provision of the act approved July A. 1890,
which provides that there shall be outstanding
at any time no more and no less Of the treasury
notes authorized by said act than the silver
bullion and standard silver dollars coined there
from, then held in the treasury, purchased with
said notes.
Sec. 8. That the secretary of the treasury be
and he is hereby authorized to receive at the
treasury any of the outstanding bonds known
as the five per centum bonds of 1904 and the
four per centum cOnsOlS of 1907. issued respect
lively under the act approved January IA. 1885,
and the acts approved July IA, 1870, and Janu-
airy 20. 1871, and to issue in exchange therefor
coupon or registered bonds of the United
States. in such form as he may prescribe in
denominations of fifty dollars, or some multi
pie of that sum. bearing interest at the rate of
two and one-half per centum per annum, pay
able semi-annually. and redeemable at the
pleasure of the United States after ten years
after their issue; and the bonds hereby author
lied shall be payable. principal and interest, in
United States gold coin of the present standard
value, and shall be exempt from all taxation
by or under state municipal or local authority:
Provided that none of the outstanding bonds
shall be received at a valuation greater than
their present worth to yield an income of two
and one-half per centum per annum. and that
the bonds hereby authorized shall be issued at
not less than par
Sec. T. 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 ma
tional banking association which may deposit
the bonds herein authorized to be deposited as
security for its circulating notes shall be en-
titled to receive from the controller of the cur
rency and TO issue such notes to an amount
equal TO the face value of such bonds; pro-
Vlded, that the aggregate amount of bonds de-
posted by any national banking association
under any law, shall not exceed the amount of
its capital: and provided further, that nothing
herein contained shall be construed to modify
or repeal the provisions of section 5I67 and sec
tion 5l71 of the revised statutes, authorizing
the controller of the currency to require addi-
tlonal deposit of bonds, or of lawful money in
case the market value of the bonds held to Sc
cure the circulating notes shall fall below the
par value of the circulating notes outstanding
for which such bonds may be deposited as
security
Sec. 5. That any national banking associa-
ticn whose deposit of bonds is less than the
amount of its capital may deposit with the
treasurer of the United States, under such
regulations as the secretary of the treasury
may approve, United States notes. treasury
notes of 1890 and silver certificates, and shall
be entitled to receive from tie controller of
the currency and to issue an equal amount of
its circulating notes; but the aggregate amount
of bonds, United States notes. treasury notes
of 1890 and silver certificates deposited by any
national banking association shall not exceed
the amount of its capital; provided, that the
total amount of United States notes, treasury
notes of 1890 and silver certificates deposited
with the treasurer of the United States under
authority of this section shall not exceed the
sum Of 5000, 100000
See e. That the secretary of the treasury
shall issue from time to time, in his discretion,
bonds OF the same class and character as those
described in the third section of this act and
shall substitute the same with the treasurer of
the United States for equal amounts of the
United States notes. treasury notes of 1890 and
silver certificates deposited by national bank
ing associations, and the bonds so issued and
substituted shall be charged TO The respective
national banking associations and be accounted
for oy them at such prices, not less than par
a. SfA11 represent inc market value OF Such
bonds; and the United States notes, treasury
notes Of 1890 and silver certificates released as
herein provided shall become Il part of the
general redemption fund; and the secretary of
the treasury is hereby authorized to exchange
any of said treasury notes of 1890 and said sill
Yer certificates for like amount of United
States notes: Provided. that the amount of
bonds issued under the authority of this sec
tion shall not exceed the sum of 5000 0e9 600 of
collars.
Sec {. 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
amount of not less than fifty per centum of its
capital, ii shall be entitled to receive from the
controller of the currency and issue national
bank notes. in addition to the fifty per oentum
thus provided. to the amount OF twenty-five
per centum of such deposits; but the eircula-
ton issued by any national bank
ing association shall never be in ex-
cess of its paid up capital stock
and the additional notes so issued shall not be
secured by said deposit but shall constitute a
first lien upon all the remaining assets of the
association issuing such notes. Upon the fail
ure of any association to redeem its circulat-
ing notes above provided whether the same
are issued against deposited security or against
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