The age-herald., 1897-12-17

take effect: and thereafter the gold and silver coins and bullion hedeby transferred from the general fund in the treasury as herein provided, shall be increased or di- unfinished, as the case may be, in accordance with the provisions of this act and in no other way.
 Redeem Treasury Notes
 Section 9 That all United States notes, treasury notes of 1890 and silver certificates presented for redemption, shall be redeem ed from the redemption fund herein pro- vided. in accordance with the terms of existing laws, but the notes and certificates so redeemed shall be held in and eonsti- tute part of said fund and shall not be withdrawn from said fund nor disbursed, except in exchange for an equivalent amount of the coin in which said notes or certificates were redeemed, but to enable the secretary of the treasury more thor oughly to carry out the provisions con tained in this act, he is hereby authorized to exchange any of the funds in the divi- sion of issue and redemption for any other funds which may be in the general fund of the treasury department.
 Provided, that nothing in this act shall be construed as repeating that provision of the act approved July 14 1s9o which provides that there shall be outstanding at any time no more and no less of the treasury notes authorized by said act than the silver bullion and standard silver dol lars coined therefrom, then held in the treasury purchased with said notes.
 Issue Registered Bonds
 Section g. That the secretary of the treasury be and is hereby authorized to receive at the treasury any of the out standing bonds known as the per cent bonds of 1906 and the per cent consols of 1907, issued respectively under the act approved Jan. 14 1875, and the acts ap- proved July IA, 1870, and Jan. 20, 1871, and to issue ill exchange therefor coupon or registered bonds of the United States in such form as he may prescribe in de- nominations of $50 or some multiple of that sum, bearing interest at the rate of 21h per cent per annum, payable sem-annuaI- ly, and redeemable at the pleasure of the United States after ten years after their issue, 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 value greater than their worth to yield an income of 21a per cent per annum, and that the bonds hereby authorized shall be issued at not less than par.
 Security For Notes
 Section 4.-That the bonds authorized by this act and any other bonds of the United States may be deposited with the treasurer of the United States as security for the circulating notes of any national banking association, which may deposit the bonds herein authorized to be deposited as security for its circulating notes shall be entitled to receive from the comptroller of the currency and to issue to an amount equal to the face value of the bonds.
 Provided, that the aggregate amount of bonds deposited by any national banking association under any law w>shall not exceed the amount of it's capital, and
 Provided, further, that nothing herein contained shall be construed to modify or repeal the provisions of section 5167 and section 5.1n of the revised statutes, author izng the comptroller of the currency to ItQuiIS duulllOlldl dtpOSltS Ol JULIUS UT Ol lawful money in case the market value of the bonds held to secure the circulating notes shall fall below the par value of the circulating notes outstanding for which such bonds may be deposited as security.
 May Deposit With Treasurer
 Section 5.-That any national banking as- sociation whose deposit is less than 50 per cent of its capital may deposit with the treasury of the United States under such regulations as the secretary of the treasury may approve, United States notes, treas ury notes of 1890 and silver certificates and shall be entitled to receive from the comp- troller 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 1890 and silver certificates deposited by any national bank ing association shall not exceed the amount of its capital
 Provided, that the total amount of United States notes, treasury notes of 1890 and sil- yer certificates deposited with the treasury of the United States under authority of this section shall not exceed the sum of $200,O00,0 900.
 Issue of Bonds
 SectlOn b. IndL Ln6 secretary Ol 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 the United States notes of 1890, and silver notes de- posited by national banking associations, and bonds issued and substituted shall be charged to the respective national banking 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 redemption fund.
 And the secretary of the treasury Is hereby authorized to exchange any of said