Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-12-17


vded, when the same are issued against
deposited security or against general as
| sets. the same shall be promptly re-
deemed by the treasurer OF the United
states. TO secure the united states
| against any loss arising from it's guaran-
tee to pay and redeem such additional
circulating notes. 1t shall be the DUTY or
the comptroller of the currency to levy
| upon and collect from every nat'onal
banking association issuing such unse-
cured circulation, a tax at the rate OF 2
per cent. per annum on such unsecured
circulation: which said tax of per cent.
per annum shall be paid to the treasurer
of the United States in equal semi-annual
payments IN January ana july OF each
year, and when so collected It snail con-
sttute safety fund out OF winch the
United States shall be reimbursed for any
redemption of said unsecured circulation
ii may make as herein provided. The
safety fund thus created shall be invest
ed by the secretary of the treasury IN
such government bonds as he may con-
slider advisable. Said tax of per cent.
per annum shall be in addition to the tax
of y of | per cent. per annum on circu-
lating notes hereinafter authorized.
Section SHAT 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
it's aggregate circulation. said sum to be
lieu of the per cent. redemption fund
now required by section of the act APP
proved June 20, 1874, to be maintained
and to be subject to all the provisions of
existing law respecting said redemption
fund not inconsistent with the provisions
of this act. And in consideration of the
deposits of bonds, United States notes.
treasury notes of 1890 and silver certin-
Gates and the tax Of 2 per cent. on the
unsecured circulating notes of national
| banking associations, and OF the deposit
of lawful money provided in THIS section,
the faith of the United States is hereby
pledged to the redemption in lawful money
OF the United States all the circulation
notes OF said national banking associa-
lions.
Section 9-That the comptroller of the
currency shall not issue to any national
banking association. on and after the
date when this act shall take effect any
of the circulating notes OF such aSSocia-
ton of less denomination than $40. ana
whenever any circulating notes of less
denomination than so dollars shall be re
deemed or received into the treasury Of
the United States, they shall be cancelled
and destroyed and other notes of lawful
denominations shall be issued in their
place.
Section f0-rhat on and after the date
when this act shall take effect, the cir
culating notes of the national banking
associations shall be redeemed at the Of
flee of the United States assistant treas
| urer in the city Of New York ana at such
other Sub-treaSury Offices as may be
designated by the comptroller of the cur
rrncy with the approval of the secretary
of the treasury. And the circulating notes
Of such national banking association so
redeemed, shall he charged to the 10 per
cent. redemption fund of such associa-
tons under such regulations as may be
prescribed by the comptroller of the cur
| rency with the approval OF the secretary
of the treasury.
Section I1-That in lieu of all existing
taxes. every national banking association
issuing notes, shall pay to the treasurer
of the United States In the months of
| I. a,t-. nj nf 81 N
I, of ! per cent. for each half year. upon
the average amount OF its notes in circu-
iation. provided. however. that during
all the period of time intervening between
the deposit of United States notes. treas
ury notes and silver certificates, and the
substitution of bonds by the secretary OF
the treasury. as in this act provided. the
circulation notes specifically issued there
for and secured by said United States
notes. treasury notes or silver certih-
Gates. shall be exempt from taxation I'M
der the provisions of this act.
Section 12-Section 5l3S of the Revised
Statutes shall be amended to read as fol-
lows: No association shall be organized
with less capital than 100000 dollars.
except that banks with a capital OF not
less than $4,000 may. with the approval
of the secretary of the treasury, be or
sanized in any place the population OF
which does not exceed 6tp0 inhabitants
and except that banks with a capital of
not less than $4,000 may. with the APP
prevail of the secretary of the treasury, be
organized in any place. the population of
which does not exceed 1000 inhabitants.
No association shall be organized in a
city. the population of which exceeds
30 600, with a less capital than $500 Geo.
This act shall take effect on and after
| the--day Of. eighteen hundred and
ninety. and all acts and parts of acts
inconsistent with the provisions of this
act are hereby repealed.
a wide range of discussion occurred on
section of the bill In answer to in
quiries Mr. Gage said its general pur
pose was the same as that set forth by
the President. He also said in answer t.
Il query from Mr. Cox of Tennessee, that
there was no probability that the parity
| between gold and silver would be dis
turbed by the provisions for exchanging
treasury notes and silver certificates. ac-
cumulated in the redemption fund, for
coin. meaning gold.
| In the bond section Mr. Gage changed
the bill, so as to make the interest pay
able quarterly. He said the only pur-
pose Of the section was to refund out
| standing bonds. for low interest bonds
| payable in gold. This would not reduce
| the gross of the debt but it would make
a saving on interest which the secretary
| roughly calculated at $l0.00o 900 annually.
At present the government paid high
| rates on some of its bond issues. He
| thought it possible that these could be
| taken up in time at rate of interest
! even below > per cent but this proposed
! 2ie per cent rate was at the least a step
| toward reduction of the interest. Mr.
| Gage said he had excluded from his re-
| funding nlan bonds issued in 1895, al
| though in his recommendation to Cor
| gress these bonds Were enormously in
| Guided. lie said he preferred to let these
| bonds alone. as a question had been
raised ut the time of their issue as TO
| their payment in gold. and he did not
| wish to enter upon that question.
| In reply to Mr. Johnson of Indiana. Mr..
| Gage said the bill would exclude ri tho