The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-12-17
GOLD BASIS PLAN OF GAGE.
tContinued from as 20

lars coined therefrom. then held in the
treasury, purchased with said notes
Sec. 3. That the Secretary of the
Treasury be, and he is hereby authorized
to receive at the treasury any Of the out
standing bonds known as the 8 per cent
bonds of 1904 and the 4 per cent. consois
of 1907, issued respectively under the act
approved Jan. IA. 1879, ana the acts APP
proved July IA, 1870 and Jan. 20. 1871 ana
10 issue in exchange therefor coupon or
registered bonds of the United States in
such form as he may prescribe, in de
nominations of fifty dollars, or some null
tiple of that sum, bearing interest at the
rate Of 2ia per cent. per aunum, payable
semi-annually, and redeemaole az the
pleasure of the United States after ten
years after their issue; and the bonds
hereby authorized shall be payable princi-
pal 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 value greater
than their worth 20 yield an income OF 2l2
per cent. per annum. and that the bonds
hereby authorized shall be issued at not
less than par.
"Sec. T. That the bonds authorized by
this act. and any other bonds of the Unit
ed States. may be deposited with the treas
urer of the United States as security Tor
the circulating notes of national banking
associa tons and any national banking as
ISOLATION which may deposit the bonds
herein authorized TO he deposited as Sc
curity for its circulating notes shall be
entitled to receive from the controller Of
the currency and to issue TO an amount
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 eX-
coed the amount Of its capital
And provided, further, That nothing
herein contained shall be construed to
modify or repeal the provisions of section
5l67 and section Sill of the Revised Stat
utes, authorizing the controller of the cur
rency to require additional deposits OF
bonds or lawful money, in case the market
value of the bonds held to secure the cir
culating notes shall fall below the par
value Of the circulating notes outstanding
for which such bonds may be deposited as
security.
Sec s. That any national banking as
ISOLATION whose deposit is less than %
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. treasury notes of 1880 and silver
certificates and shall be entitled to receive
from the controller of the currency ma
TO issue an equal amount of its circulating
notes; but the aggregate amount OF BONDS,
and silver certificates deposited by any ma
tjonal banking association shall not eX-
coed the amount of its capital. provided
that the total amount of United states
notes treasury notes of 1880 and SILVER
certificates deposited with the treasurer
of the United States, under authority OF
this section, shall not exceed the sum OF
$20O.0O0,O00.
Sec. 6. That the Secretary of the Treas
ury shall issue from time to time, in his
discretion, bonds of the same class and
character as those described in the thlrd
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-
posted by national banking associations,
and the bonds so issued and substituted
shall be charged to the respective ma
tional banking associations and be ac-
counted for by them at such prices, not
less than par, as shall represent the mar
ket value of such bonds; and the United
States notes. treasury notes of 1890 and
silver certificates released as herein pro-
vided, shall become a part of the general
redemption fund; and the Secretary Of the
Treasury is hereby authorized 10 exchange
any of said treasury notes OF 1890 and said
certificates for a like amount of United
States notes: Provided, that the amount
OF bonds issued under the authority of this
section shall not exceed the sum of $780,
10000.
Sec Z. When any national bank now
existing, or hereafter organized, shall
have deposited such United States bonds,
United States notes, treasury notes of 1880,
or silver certificates to an amount of not
less than 50 per cent. of its capital, II shall
be entitled to receive from the controller
of the currency and to issue national bank
notes, in addition to the 50 per cent. thus
provided, TO the amount of 25 per cent. of
such deposits; but the circulation issued
by any national banking association shall
never be in excess of its 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
remaining assets of the association issu-
ing such notes. Upon the fall
ure of any association to re-
deem it's circulating notes above
provided whether the same are issued
against deposited security or against gem
eral assets the same shall be promptly re-
deemed 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 circulating
notes. it shall be the duty of the controller
of the currency TO levy upon and collect
from every national banking association
issuing such unsecured circulation a tax
at the rate of 2 per cent per annum, which
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 a 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 Gre
ated shall be vested by the Secretary of
the Treasury in such government bonds
as he may consider advisable. Said tax
of per cent per annum shall be in ad-
dition to the tax of one-half of per cent.
per annum on circulating notes as herein
after authorized.
Sec s. That each national banking
association shall deposit and maintain in
the treasury of the United States a sum
of lawful money equal TO 10 per cent. of
its aggregate circulation, said sum to be
In lieu of the per cent. redemption fund
now required by section of the act ap-
proved June 20, 1874, TO be maintained, and
TO be subject to all the provisions of the
existing law, respecting said redemption
fund not inconsistent with the provisions
Of the act; and in consideration of the de-
posits of bonds, United States notes. treas
ury notes of 1890, and silver certificates
and the tax of per cent. on the unsecured
circulating notes of national banking as