The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-12-17
CAGES -FOUR OBJECTS
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(CO0CQueQ from Page ID
IA, 1875, and the acts approved July IA,
1870 and Jan 20, 1878, and to issue in
exchange therefor coupon and regis
tered bonds of the United States in such
form as he may describe, in denom-
nations of $50 or some multiple of that
sum, bearing interest at the rate of
212 per centum per annum, PAYABLE
semi-annually and redeemable after
ten years, at the treasury, at the pleas
ure of the United States; and the bonds
hereby 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
authority, provided
That none OF the outstanding bonds
shall be received at a valuation greater
than their present worth to yield an in
! come of % per centum, and that the
bonds hereby authorized shall be issued
at not less than par.
Section /. That the bonds authorized
| by this act and other bonds of the Unit
ed States may be deposited with the
treasurer of the United States as Sc
curity for the circulation notes OF ma
tional banking associations, and any
national bank in which he may deposit
the bonds herein authorized to be de-
posted as security for it's circulating
notes, shall be entitled to receive from
the comptroller of the currency, and
to issue such notes to an amount equal
to the face value of such bonds; pro-
yiGed, that the aggregate amount Of
bonds deposited by any national bank
ing association, under any law, shall
not exceed the amount OF its capital.
Provided further. That nothing here
in contained shall be construed to mod
ify or repeal the provisions of section
5,l67 and section ST of the REVISED stat
uteS, authorizing the comptroller of the
currency to require additional deposits
Of bonds or of lawful money in case
the market value of the bonds held to
secure the circulating notes shall fail
below the par value of circulating notes
outstanding, for which such bonds may
be deposited as security.
Section ). That amy national banking
association whose deposit of bonds is
less than the amount of it's capital may
deposit with the treasurer of the Unit
ed 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 bonds, United
States notes. treasury notes of 1880
and silver certificates deposited by any
national banking association shall not
exceed the amount of it's capital: pro-
vided. 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 exceed the sum of $200,000000.
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 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 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 national
bank associations 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 fund. and the secretary of
the treasury is hereby authorized to
exchange any of the treasury notes of
1890 and said silver notes for like
amount of United States.
issued under the authority of this sec
ton shall not exceed the sum of $780,
900, 900.
Section Z. When any national bank,
not existing or hereafter organized.
shall have deposited such United States
bonds, United States notes, treasury
notes of 1890 OIL. silver certificates of an
amount not less than 50 percentum of
its capital, it shall be entitled to re-
1aiI no of 1oo
rency and to issue national bank notes
in addition to the so percentum thus
provided to the amount of 25 per cent
of such deposits; but the circulation is
sued by any national banking associa-
ton shall 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
an institution issuing such notes. Upon
the failure of any institution to redeem
its circulating notes above provided.
whether the same are issued against
deposited security or 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 circu-
lating notes, it shall be the duty of the
comptroller of the currency to levy
upon and collect from every national
banking association issuing such unse-
cured circulation a tax at the rate of
2 per cent per annum on such unse-
cured circulation, which said tax of 2
per cent per annum shall be paid to
the treasurer of the United States in
equal semi-annual payments in Jan
uary and July of each year, and when
so 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 treas