Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1897-12-23

ISOLATION, whose deposit of bonds is less
| than the amount OF its capital, may de-
post with the treasurer Of the United
rotary Of the treasury may approve United
States notes. treasury notes Of 1880 and
receive from the comptroller of the cur
rency and to issue an equal amount of its
circulating, notes notes; but the aggregato
treasury notes of 1880 and Silver certificates
deposited by any national banking as.
sociation shall not exceed the amount Of
of United States notes, treasury notes Of
1890 and silver certifieates deposited with
the sum of $2OO0O0,000
Issue of Bonds.
Sec. 6. That the secretary of the treas
ury 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
sued and substituted Shall be Charged to
lions 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 certificates re-
leased as herein provided shall become
part of the general redemption fund, and
the secretary of the treasury is hereby au-
notes of 1890 and said silver certificates
for like amount Of United States notes,
provided that the amount of bonds issued
under the authority OF this section shall
not exceed the sum of $500, 900, 900.
Redemption by the Government.
Sec. Z. When any national bank now
existing or hereafter organized shall have
deposited such United States bonds, United
States notes, treasury notes OF lSyU, Sill
Yer certificates, to an amount Of not less
than 50 per centum of it's capital, it shall
be entitled 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 70 per centum of
such deposits; 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 first lien upon all the re-
naming assets Of the association issuing
such notes. Upon the failure of any associ-
alton to redeem its circulating notes above
provided, whether the same are issued
eral assets, the same shall be promptly re-
deemed 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 additional circulating
notes, 1t shall be the duty OF the comptroller
of the currency to levy upon and collect
from every national banking association
issuing such unsecured circulation tax at
the rate of two per centum per annum on
Sucn unsecured WHICH Sdlu lax
Of two per centum per annum SHAH be paid
to the treasurer of the United States in
equal semi annual payments In January
and July of each year, and when so col
lected it shall constitute a safety fund out
of which the United States shall be reim-
bursed for any redemption of said unse-
cured circulation it may make as herein
provided. The safety fund thus created
shall be invested by the secretary of the
may consider advisable. Said tax of two
per centum per annum shall be in addi-
ton to the tax of one-half Of one per
centum per annum on circulating notes
hereinafter authorized.
Sec, s. That each national banking as
ISOLATION shall deposit s nf and s mflaan in
of lawful money equal to ten per centum
of its aggregate circulation, said sum to
fund now required by section of the act
approved June 20, 1874, to be maintained
and to be subject to all the provisions of
fund not inconsistent with the provisions
of this act, and in consideration of the
of a6d sves cep
Gates, and the tax of two percentum on
the unsecured circulating notes of national
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 of all the circulat-
ing notes of said national banking associa-
tionS.
Withdrawal of Small Notes.
"Sec. 9. That the comptroller of the cur
rency shall not issue to any national bank
ing association, on and after the date when
this act shall take effect, any Of the circu-
lating notes of such association Of less de-
nomination than ten dollars; and whenever
any circulating notes of less denomination
than ten dollars shall be redeemed or re-
States, they shall be Cancelled and de-
stroyed, and other notes Of lawful denom-
TO- Fiat PC and ar he when
this act shall take effect, the circulating
notes of the national banking associations
shall be redeemed at the office of the United
States assistant treasurer, in the city of
New York, and at such other sub-treas-
ury offices as may be designated by the
prevail of the secretary Of the treasury:
And the circulating notes of which NATIONAL
charged to the ten per centum redemption
fund of such associations under such regu-
lations as may be prescribed by the comp.
troller Of the currency with the approval OF
the secretary of the treasury.
Tax of National Banks.
Sec IL That in lieu Of all existing taxes
every national banking association Issuing
United States in the months of January
and July of each year a tax OF one-fourth
Of one percentum for each n half year upon
culation, provided, however, that during
ali the period of time Intervening between
ury notes and silver certificates, and the
substitution of bonds by the secretary of
the treasury, as In TINS act, proVlueQ the
circulating notes specifically issued there
for and secured by said United States
notes, treasury notes, or silver certificates
shall be exempt from taxation under the
provisions of this act.
Capital of National Banks.
Sec II. Section 513S of the Revised Stat
utes shall be amended to read as follows:
mo association shall be organized with
less capital than 100000. except
that banks with capital Of not less
than $4,000 may, with the approval OF the
secretary OF the treasury, be organized in
any place. the population of which does
not exceed 5000 inhabitants, and except
that banks with a capital of not less than
$25, 900 may. with the approval of the sec
rotary Of the treasury. be organized In any
exceed 1000 Inhabitants. No associa ton
shall be organized in a city the population
of which exceeds $4,000 persons. with less
capital than 100000.
This act shall take effect on and after
the day Oils; and all acts and parts
of acts inconsistent with the provisions
of this act are hereby repealed"