The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-17

thQriZed to be deposited as security for its
circulating notes shall be entitled to receive
from the comptroller Of the currency and to
issue such notes equal to the face value of
such bonds: Provided, that the aggregate
amount Of bonds deposited by any national
banking association under any law, shall not
exceed the amount of its capital; and, provid-
ed further, that nothing herein contained
shall be construed to modify or repeal the
provisions of section 5167 and section 5171 of
the revised statutes, authorizing the comp
troller or the currency to require additional
deposit Of bonds held to secure the circuiat-
ing notes shall fall below the par value of the
circulating notes outstanding for which such
bonds may be deposited as security.
Section THAT any national banking asso-
citation, 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 issue an equal amount of
its circulating notes; but the aggregate
amount Of the bonds, United States notes,
treasury notes Of 1890, and silver certificates
deposited by any naional banking association
shall not exceed the amount of It's capital
Provided, that the total amount of United
States notes, treasury notes of $780, and silver
certificates deposited with the treasurer Of
the United States, under authority Of this
section, shall not exceed the sum OF $500, 900, =
coo.
Section 6-That the secretary Of the treasury
shall issue from time to time, in his discre-
ton, bonds of the same class and character as
those described in the third section of this act
and shall substitute the same with the treas
urer of the United States for equal amounts of
the United States notes. treasury notes Of 1880
and silver certificates deposited by national
banking associations, and the bonds 30 issued
and substitutes shall be charged to the respect
I've national banking associations and be ac-
counted 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 $780, and silver certificates
released as herein provided, shall become a
secretary of the treasury is hereby authorized
to exchange any Of said treasury notes Of
1890, and said silver certificates for like
amount of United States notes. Provided, that
the amount Of bonds issued under the author
ity Of this section shall not exceed the sum
Of two hundred millions Of dollars.
NOTE ISSUES
Section when any national bank, now
existing hereafter organized, shall have
deposited such United States bonds, United
certificates to an amount Of not less than
fifty per centum Of Its capital. 1t shall be en-
titled to receive from the comptroller of the
in addition to the 30 per centum thus pro-
vided, to the amount of % per centum of
such deposits; but the circulation issued by
be in excess of its paid-up capital stock and
not be secured by said deposit, but
s shall constitute a first lien upon al
the remaining assets OF the association
issuing such notes. Upon the failure of any
association to redeem its circulation notes
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 against any loss
arising from its guaranty to pay and redeem
such additional circulation 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 a tax at the rate Of two per-
centum per nnnum on such unsecured cir
culation which said tax of two per centum
per annum shall be paid to the treasurer of
the United States in equal semi annual pay
ments in January and July Of each year, and
when collected 1t shall constitute safety
fund out OF which the United States shall be
cured circulation it may make as herein pro-
vided. The safety fund thus created shall be
invested by the secretary Of the treasury in
such government bonds as he may consider
advisable. Said tax of 2 per centum per an
mum shall be in addition to the tax Of one half
of one per centum per annum on circulating
notes hereinafter authorized
Sec. 8. That each additional banking asso-
citation shall deposit and maintain In the
treasury of the United States sum of lawful
money equal to 10 per centum OF Its aggregate
8 per centum redemption fund now required
by section of this act, approved June 20,
1874, to be maintained, and to be subject to
all the provisions of existing laws respecting
said redemption fund not inconsistent with
the provisions of this act; and in considera-
ton of the deposits Of bonds, United States
notes. treasury notes Of 1880 and silver GER
tificates, and the tax of per centum on
the unsecured circulating notes Of national
banking associations, 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 Of all the circulating notes of
said national banking associations.
NO 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 cir
culating notes of such association of less
denomination than $40, and whenever any
circulating notes of less denomination than
so shall be redeemed or received into the
treasury of the United States they shall be
Cancelled and destroyed, and other notes
OF lawful denominations shall be issued In
their place
Sec 10. That on and after the date 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-treasury offices
as may be designated by the comptroller of
the currency with the approval of the secre-
tary Of the treasury; and the circulating
notes of such national banking associations
centum redemption fund of such associa-
tons, under such regulations may be
prescribed by the comptroller OF the cur
rency, with the approval Of the secretary Of
the treasury.
Section 11-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 cent,
for each half year upon the average amount
of its notes in circulation;
Provided, however, that during all the
period Of time intervening between the de-
post of United States notes. treasury notes
and silver certificates, and the substitution
of bonds by the secretary Of the treasury, as
specifically issued therefor and secured by
said United States notes. treasury notes or
silver certificates, shall be exempt from taxa
ton under the provision Of this act.
Section 12Section 5138 Of the Revised
Statutes shall be amended to read as follows:
No association shall be organized with less
capital than 100000, except that banks with
a 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 capital of not less
than $25, 900 may, with the approval Of the sec
rotary of the treasury, be organized in any
place, the population Of which does not ex-
coed 1000 inhabitants. No association shall
be organized In city, the population OF which
exceeds LOCO persons, with a less capital than
$780, 600.
This act shall take effect on any time after
the : day of =, eighteen hundred and ninety
=; and all acts and parts Of acts inconsistent
with the provisions Of this act are hereby re-
pealed.
GENERAL DEBATE.
A wide range Of discussion occurred
on section~2 of the secretary's bill. In
answer to inquiries he said It's general
purpose was the same as that set forth
by the president. Mr.. Gage said the
only purpose of the bond section was
to refund outstanding bonds for low in
terest bonds payable in gold. This
would not reduce the gross amount OF
l,.t Il mould la q win o.