The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1897-12-18


full money in case the market value of
the bonds held to secure the circulating
notes shall fall below the par value OF
circulating notes outstanding for which
such bonds may be deposited as Sc
curity.
Section THAT any national banking
association 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 1880 and silver certificates, and
shall be entitled TO receive from the
comptroller of the currency 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 the
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 ex-
eeed the sum of two hundreds of mill
ions of dollars.
Section 6-That the secretary Of the
treasury shall issue from time TO time
in his discretion, bonds OF the same
class and character as there described
in the third section of this act, and
shall substitute the same with the
treasurer Of the United States for equal
amounts of notes, treasury notes of
1880. and silver certificates deposited
by national banking associations. and
the bonds SO issued and substituted
shall be charged to the respective ma
tional bank associations. and be ac-
counted Tor by them at such prices, hot
less than par, us shall represent the
ni tI.f1
United States notes. treasury notes OF
1880 and silver certificates released as
herein provided, shall become d part or
the general redemption fund and the
secretary OF the treasury is hereby au-
thorlzed TO exchange any of the treas
ury notes of 1890 and said silver notes
for like amount of Ufilted States
bonds. provided: That the amount OF
bonds issued under the authority OF this
section shall not exceed the sum of
500, 00e.00G.
Section When any national bank
note existing or hereafter organized
snail have deposited such United states
bonds. United States notes, treasury
notes OF 1880. or silver certificates of an
amount not less than 80 per centum of
it's capital, it shall be entitled to re-
ceive from the comptroller of the cur
rency and To issue national bank notes
IN addition to the so per centum thus
provided To the amount of IS per cent.
OF such deposits. but the circulation
issued by any national banking associ-
alton snail never be in excess of its
paid-up capital stock and the addition
al notes so issued shall not be secured
by said deposit. but shall constitute a
first lien upon all the assets of such
notes. Upon the failure OF any instItu-
ton To redeem its circulating notes
as above provided, whether the same
are issued against deposited security or
.
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 circulating notes, IL
shall be the duty of the comptroller OF
the currency to levy upon and collect
from every national banking associa
ton issuing such unsecured circulation
tax at the rate of = per cent. per
annum ON such unsecured circulation,
which said tax OF per cent. per an
mum shall be paid to the treasurer of
the United States in equal semi-annual
payments IN January and July Of each
year, and when 50 collected it shall
constitute a safety fund out of which
the United States shall be reimbursed
for the redemption OF said circulation.
as herein provided. This safety fund
thus created shall be invested by the
secretary OF the treasury IN such gov
eminent bonds as he may consider adj
Visabe. said tax of per cent. per an
mum shall be held In addition to the
tax of one-half OF one per eentum on
circulating notes hereinafter author
lied.
Section S-That each national bank
association shall deposit and maintain
in the treasury of the United States
sum OF money aggregating 10 POI cent.
of the aggregate circulation such sum
to be in lieu of the per centum fund
reduction now required by section OF
the act approved June 20, 1874, to be
maintained and 10 be subject To all the
provisions of existing law respecting
said redemption fund not inconsistent
with the provisions of this act. And on
the consideration of the deposit OF
bonds, United States treasury notes OF
1890 and silver certificates and the tax
or . per centum on the unsecured cir
culating notes of national banking as
sociations and of the deposit OF lawful
money provided in this section, the
faith of the United States is hereby
pledged to the redemption in lawful
money of the United States equal to the
circulating notes of said national bank
ing associations.
Section 9--That the comptroller OF
the currency shall not issue 10 any ma
tional banking association, after the
date when this act shall take place, any
of the circulating notes of such associ-
alton OF less denomination than SO;
and whenever any circulating notes
of less denomination than $40 shall be
redeemed into the treasury OF the
United States they shall be cancelled
and destroyed and other notes of law
full denominations shall be issued in
their place.
Section 1o-That on and after the
date when this act shall take effect the
circulating notes of the national bank
ing associations shall be redeemed at
the office of the assistant treasurer in
the city of New York and also at other
sub-treasurN offices us may be desiR-