Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-12-17
SECRETARY GAGE
Continued from page ~

- ----
after the gold and silver coins and bui~
lion hereby transferred from the gen
eral fund in the treasury as hereih
provided shall be increased or dimin-
ished. as the case may be. in accord
ance with the provisions of this act.
and in no other way.
Section . That all United States
notes, treasury notes. notes Of 1890 and
silver certificates presented for re-
demption shall be redeemed from the
redemption herein provided, in accord
ance With the terms of existing laws,
but the notes and certificates so re-
deemed shall he held in and constitute
a part of said fund. and shall not lee
Withdrawn from said fund nor dis
huyscd, except in exchange tor an
equivalent amount Of the coin in which
said notes or certificates were redeem
Cd but to enable thcs secretary OF the
treasury more thoroughly 10 carry uu'
the provisions contained in this act, he
is hereby authorized to exchange any
Of the funds to division of issue and
redemption for any ether funds which
may he in the general fund of tn"
treasury department.
Provided. that nothing in this act
shall be construed as repeating that
provision of the act approved July ii,
1890, which provides that there snail he
outstanding at any time no more and
no less of the treasury notes authot-
lied by said act than the silver bullion
and standard silver dollars coined
therefrom then held in the treasury
purchased with said notes.
Section g. That the secretary of thu
treasury be and hereby is authorized
to receive at the treasury any of the
outstanding bonds known as the five
per centum bonds of 1904 and the four
per centum consols Of 1907, issued re-
spectively under the act approved Jan.
IA, 1875. and the acts approved July ii.
1870. and Jan. 30, 1871. and to issue in
exchange therefor coupons or register
ed bonds of the United States, in such
form as he may prescribe. in demon
nations of fifty dollars, or some multi
pie of that sum, bearing interest at the
rate of two and one-half per centum
per annum, payable semi-annually and
redeemable at the pleasure of the
United States after ten years from the
date Of 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 a valuation
greater than their present worth to yield
an income of 2l2 per centum per annum.
and that the bonds hereby shall be issued
at not less than par.
Section 4-That the bands 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 national
banking associations; and any national
banking association which NAV deposit
the bonds herein authorized to be depos-
tied 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:
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
5i67 and section Sill of the Revised Stat
utes. authorizing the comptroller of the
Z
tinnal deposit of bonds. or of lawful
money. IN case the market value of the
bonds held to secure the circulating notes
shall fall below par value of the circu-
lating notes outstanding for which such
bonds may be deposited as security.
Section THAT any national building
association. whose deposit of bonds IS less
than the amount of its capital. may de
post with the treasurer of the United
States under such regulations at the sec
I of the treasury JnnroNg
| United States notes, treasury notes Of 1890
and silver certificates. and shall be en-
1 titled to receive from the comptroller of
| the currency and to issue an equal
amount of it's circulating notes. but the
aggregate amount of bonds, United States
notes, treasury notes of 1890. and silver
certificates deposited by any national
banking association shall not exceed the
| amount of its capital.
| Provided. that the total amount of
| United States notes. treasury notes Of 1895
and silver certificates deposited with the
| treasurer Of the United States under au
| thority of this section. shall not exceed
| the sum of 5000 600 coo.
Section G-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 tho
| third section of this act, and shall sub
stitute the same with the treasurer of the
! United States for equal amounts of the
United States notes. reasury notes of 1885
| and silver certificates deposited by ma
tiona banking associations. and the bonds
so issued and substituted shall be
charged to the respective national bank,
ing 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. treas
ury notes of 1890 and silver certificates re-
leased as herein provided. shall become a
part of the general redemption fund
And the secretary of the treasury IL
hereby authorized to exchange said treas
ury notes of 1890 and said silver certifi-
Gates for like amount of United States
| notes:
Provided. that the amount of bonds is
suet under the authority of this section
shall not exceed the sum of 100000, OO0
Section When any national bank now
existing. or hereafter organized, shall
have deposited such United States bonds.
| United states notes. treasury notes of 1890
| or silver certificates. to an amount of not
less than 80 per centum of it's capital. it
shall be entitled to receive from the
comptroller of the currency. and to issue
national bank notes, in addition to the 30
per centum thus provided. the amount of
3 per cent of such deposits; but the cir
culation issued by any national banking
association shall never he in eycacS IF ite,