The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-17
authority of this section shah not exceed
the sum of 5000 GOO

Sec. {. When any national bank now ex-
listing or hereafter organized shall have de-
posted such United States bonds, United
States notes, treasury notes of 1890 or silver
certificates to an amount of not less than
90 per centum of its capital, it shall be en-
titled to receive from the controller of the
currency, and to issue national bank notes,
in addition to the 50 per centum thus pro-
vided, to the amount of % per centum of
such deposits, but the circulation issued
by any national banking association shall
never be in excess of it's paid-up capital
stock and the additional notes so issued
shall not be secured by said deposit, but
snall constitute first lien on all the re-
naming assets of the association issuing
SUCH notes. Upon the failure of any associa-
ton TO redeem its circulating notes as
above provided whether 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
10 pay and redeem such additional circulate
ing notes it shall be the duty of the con-
troller of the currency to levy on and COL
lect from every national banking associa-
ton issuing such unsecured circulating tax
tax at the rate of ? per centum on such
unsecured circulation, which said tax of 2
per centum per annum shall be paid to the
treasurer 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 reimbursed for any
redemption of said unsecured circulation it
may make, as herein provided. The safety
fund thus created shall be invested by the
secretary of the treasury in such govern
ment bonds as he may consider advisable.
Said tax OF per centum per annum shall
be, in addition to the tax of ~ of / per
centum per annum on circulating notes
hereinafter authorized.
Sec. s. That each national banking asso-
citation shall deposit and maintain in the
treasury of the United States sum of law
ful money equal to 10 per centum of it's
aggregate circulation. said sum to be in lieu
OF the per centum redemption fund now re-
quired by Section of the act approved June
20, 1874, to be maintained. and to be subject
to all the provisions of existing law respect
ing said redemption fund not inconsistent
with the provisions of this act. And in con-
sideration of the deposits of bonds, United
states notes, treasury notes of 1890 and sill
yer certificates and the tax of per centun
on the unsecured circulating notes of ma
tional banking associations, and of the de
post of lawful money provided in this Sec
tion. the faith of the United States is here
by pledged to the redemption in lawful
money of the United States of all the cir.
culating notes of said national banking as
sociations.
NO NOTES LESS THAN 80
Sec. 8. That the controller of the currency
shall not issue to any national banking
association on and after the date when this
act shall take effect any of the circulating
notes of such association of less denomina.
ton than $40; and whenever any circulating
notes of less denomination than $40 shall be
redeemed or received into the treasury OF
the United States. they shall be Cancelled
and destroyed, and other notes of lawful de-
nominations shall be issued in their place.
Sec. 10. That on and after this date, wher
this act shall take effect, the circulation
notes of 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 Subtreasury offices
as may be designated by the controller o.
the currency, with the approval of the Sec
retary of the treasury; and the circulating
notes of each national banking association
so redeemed shall be charged to the 10 pei
centum redemption fund of such associa-
tlons, under such regulations as may be pre-
Scribed by the controller of the currency
with the approval of the secretary of the
treasury.
Sec. IL. That in lieu of all existing taxes
every national banking association issuing
notes shall pay to the treasurer of the
United States, in the months of January
and July of each year, a tax of one-fourth
of L per centum for each half year upon
the average amount of its notes in 'circula-
ton; provided, however. that during all the
period of time Intervening between the de-
posit of United States notes, treasury notes
and silver certificates, and the substitution
of bonds by the secretary of the treasury
as in this act provided, the circulating notes
SpeclncalIy issued therefor and secured by
said United States notes, treasury notes OF
silver certificates, shall be exempt from tax
alton under the provisions of this act.
Sec. u. Section 513S of the Revised Statutes
shall be amended to read as follows: mo
association shall be organized with a less
capital than $4,000 except that banks with
a capital 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 six thousand inhabt-
ants; and except that banks with a capital
of not less than $4,000 may, with the APP
proval of the secretary of the treasury be
organized in any place the population OF
which does not exceed two thousand inhab-
itants. No association shall be organized
in city the population of which exceeds
fifty thousand persons with a less capital
than $200, ,000
This act shall take effect on and after the
- day of -, 1S9-, and all acts and parts
of acts inconsistent with the provisions of
this act are hereby repealed.