The record-union., 1897-12-17

| the general redemption fund and the
Secretary Of the Treasury is hereby au-
tllorized TO exchange any of the treas :
ury notes of 1896 and said silver notes
! 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
$500, ,000, 600
| 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 of
| an amcrnt 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 to the amount of % per
| cent cf such deposits; but the circula-
| ton issued by any national banking
association shall never be in excess of
| its paid up capital stock, and the ad-
ditional notes so issued shall not be
| secured by said deposit, but shall con-
stitute first lien upon all the remain
| ing assets of the association issuing
| such notes. Upon the failure of any
association to redeem its circulating
notes above provided, whether the same
are issued against deposited securities
/, of 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 circulating notes. it
shall be the duty of the Comptroller
of the Currency to levy upon and COL
lect from every national banking asso-
citation issuing such unsecured circu-
| lation a tax at the rate of per cent.
per annum on such unsecured circula-
ton, which said tax of per cent. per
annum shall be paid to the Treasurer
of the United States in equal semi-an-
nual payments in May 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 Treasury in such Gov
ernment bonds as he may consider ad-
visable. Said tax of per cent per
annun shall be held in addition to the
tax Of one-half of / per centum per
|
| authorized.
Section S-That each national. bank
ing association shall deposit and main
tain in tie treasury of the United States
a sum of money aggregating 10 per
cent Of the aggregate circulation, such
sum to be in lieu of the 5 per centum
fund reduction now required by Sec
ton 3 of the Act approved June 20,
IS. x+,.x.
| ject to all the provisions of existing
law respecting said redemption fund
not Inconsistent with the provisions of
| this Act. And on the consideration
of the deposits of bonds, United States
notes, treasury notes of 1890 and sill
Yer certificates. and the tax of 2 per
centr1n on the unsecured circulating
notes of national banking associations,
and of the deposit of lawful money pro-
vided in this section, the faith of the
| United States is hereby pledged to the
redemption in lawful money of the
| United States equal to the circulating
notes Of said national banking asso-
Citations.
| Section 9-That the Comptroller of
| the Treasury shall not issue to any
national banking association, after the
| date when this Act shall take effect
any of the circulating notes of such as
| sociaticn Of less denomination than
! Sl0; 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 denomination shall be
issued in their place
| Section 10-That on and after the
| date when this Act shall take effect the
circulating notes Of the national bank
| ing associations shall be redeemed at
| the office of the Assistant Treasurer in
| the City of New York, and also at
| such other sub treasury offices as may
| be designated by the Comptroller Of
| the Currency, with the approval Of the
Secretary of the Treasury, and the cir
| culating notes of national bank asso-
| ciarions SO redeemed shall be charged
/ to the 10 per centum redemption of the
association, under such rules as NAV
be prescribed by the Comptroller Of the
Currency, with the approval Of the Sec
retary of the Treasury.
Section 11-That in lieu Of all exist
ing taxes every national banking asso-
citation 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
centum for each half year upon the
average amount of it's notes in circuIa-
tion; provided, however that during
all the period Of time Intervening be-
tween the deposits of United States
notes treasury notes and silver and
the substitution of bonds by the Secre-
tary of the Treasury as in this Act
provided, the circulating notes specific
ally issued therefor and secured by said
United States notes, treasury notes or
silver certificates shall be exempt from
taxation under the provisions of this
Act
Section 12-Section 573S of the Re-
vised Statutes shall be amended to read
as follows: No association shall be or
ganized with less capital than $780,
000 except that banks with a capital
Of not less than $4,000 may. with the
approval of the Secretary of the Treas
ury be organized in any place. the pop
ulation of which does not exceed 6.0O0
inhabitants. and excepting banks with
capital Of not less than S25. 900 NAV
with the approval of the Secretary Of
the Treasury, be organized in any place
the population Of which does not exceed
., 600 inhabitants. No association shall
be organized in a city the population
Of which exceeds 10000 persons with
less capital than 100000.
COMMERCIAL.