The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1897-12-21

authorized 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 au-
thority; Provided, that lone OF the out |
standing bonds shall he received at a
valuation greater than their present
worth to yield an income of 212 per
centum per annum and that the bonds
hereby authorized shall be issued at
not less than par.
Sec. 4. That the bonds authorized by
this act, and any other bonds Of rhe
United States, may be deposited with
the treasurer Of the United States as
security for the circulating notes Of
national banking associations; and n
national banking association which
my deposit the bonds herein authorized
to be deposited as security for its cir
culating notes shall be entitled to re-
ceive from the comptroller of the cur
rency and to issue such notes to an
amount equal to the face value Of such
bonds: Provided, That the aggregate
amount of bonds deposited by any ma
tional banking association, under any
law, shall not exceed the amount of
its capital: And Further Provided,
That nothing herein contained shall be
construed to modify or repeal the pro-
, visions of section 5167 and section 5171,
Of the Revised Statutes, authorizing
the comptroller Of the currency to re-
quire additional deposit of bonds or of
lawful money, in case the market value
of the bonds held to ecu the circula-
ting notes shall fall below the par val
ue of the circulating notes outstand-
ing, for which bonds may be deposited
as security
Sec. 5. 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 1890, and silver certificates,
and shall be entitled to receive from
the comptroller Of the currency and to
Secure an equal amount of circulating
notes; but the aggregate amount OF
| bonds, United States notes, treasury
notes of 1890 and silver certificates de-
posted by any ma vi banking as
ISOLATION shall not exceed the amount
of it's capital: Provided, that the total
amount of United States notes, treas
ury notes of 1890 and silver certificates
deposited with the treasury of the
United States under authority of this
section shall not exceed the sum of
5000, 900, 900.
Sec. 6. That the secretary of the
treasury hall 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 is
sued and substituted shall be charged
to the respective national banking as
sociations 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 released as herein provided,
shall become a part of the general re-
demption und and the secretary of
the treasury is hereby authorized to
exchange any of the said treasury notes
of 1890 and silver certificates for a like
amount of United States notes: Pro-
vided, that the of bonds issued
under the authority CT this section
! shall not exceed the sum of 5000, 000, 600.
Sec. z. When any national bank now
existing or hereafter organized shal
have deposited such United States
bonds, United States notes, treasury
notes of 1890, or silver certificates, to
| an amount of not less than so per
SCuldI1 VI L Capital, IL Shall ne en-
| titled to receive from the comptroller
Of the currency and to issue national
bank notes, in addition to the so per
centum thus provided, to the amount
| of 25 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 shall
constitute a first lien upon all the re-
! naming assets of the association iSSu-
! ing such notes. Upon the failure of
! any association to redeem it's %circulat-
ing notes above provided, whether the
same are issued against deposited Sc
cQrity 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 it's guaranty to pay
and redeem such additional circulating
notes it shall be the duty of the comp
troller Of the currency to levy upon
and collect from every national bank
ing association such unsecured .circu-
lation a tax at the ate of 2 per centum
per annurl On such unsecured circula-
ton; which said tax of 2 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 coll
| iecteO IL snail constitute a SAFETY fund
out of which the United States h
de 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 gov
eminent bonds as he may consider ad-
visable Said tax of 2 per centum per
annuna shall be in addition to the tax
Of " per cetum per annum on circulaf-
ing notes hereinafter authorized.
Sec 8. Tha each national banking
association snail deposit and maintain
in the treasury of the United States a
sum OF lawful money equal to 10 per
centum Of its aggregate circulation,
said sum to be in lieu OF the 5 percentum
! redemption und now required by Sec
l fion 8 az the act annuoved .Iuue 76 1874