The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-04-07

of the gold reserve in the division of issue
the aforesaid division subject to sale at the
discretion of the secretary Of the treasury
for the benefit OF the said reserve in the
said division OF issue and redemption, and
not for any other purpose.
THE NEW NOTES
Sec IL That no United States note or
treasury note issued under the act of July
II. 1890, of a denomination less than SO shall
hereafter be issued, and silver certificates
shall hereafter be issued or paid out only
in denominations OF 81, 81 and s. against
silver dollars deposited in the division Of
issue and redemption, or in exchange for
silver certificates Of denominations exceed
ing s..
Sec II. That the circulating notes pro-
vided for in this act shall consist of two
classes. namely, national reserve notes and
national currency notes. The words ma
tonal reserve notes." when used in this
act, shall be understood 10 mean notes IS
sued to a national banking association in
exchange for United States notes, and for
whose current redemption the banking as
ISOLATION receiving the same shall be made
Immediately liable, and whose u
t timste payment shall be by the
That the words national i currency
notes." when used In this act, shall be un-
derstood to mean notes issued upon the as
sets Of a national banking association,
whether secured by deposited United States
bonds or otherwise and constituting a d.
rect and ultimate liability Of the said bank
ing association, as provided in this act
Sec. IL. That any national banking asso-
cation, on complying with the provisions
OF this act, shall. if it's capital be wholly
paid up and unimpared, be entitled to re-
ceive from the controller of the currency
national currency notes of different denomi-
nations hereinafter provided (none how
ever, being less than $1O) in blank, regis
tered and countersgned. as provided by
law, to the amounts and in the manner fol-
lo%idng and on the following terms ana ana
capital:
Subdivision A-That upon deposits by ma
tional banking associations of United
States bonds, bearing interest as provided
by law. under the provisions of Sections
associations shall be entitled to receive
from the controller of the currency nation
al currency notes of different denomina-
lions in blank, as provided by this act,
equal in amount to the par value of the
bonds SO deposited, and national banking
associations now having bonds on deposit
for the security of circulating notes less in
amount than the par value of the bonds,
or which may hereafter have such bonds
on oeposlt, shall be entitled to receive, i'm
medately upon their reorganization under
this act, national currency notes to an
amount which will increase to the mar value
OF me bonds the aggregate amount of cir
culatlng notes held by such associations in
consequence of the deposit of such bonds
anu Wnen from time to time the circulating
notes or any association issued prior to the
passage or this act are received by the
division of issue and redemption and it
shall be the duty of every national banking
assoclatlon TO present them to said division
as rapidly as possible. they shall be can
celed, and said association shall be entitled
70 receive In lieu thereof an equivalent
amount of the national currency notes pro-
v1ded for in this act: Provided that moth
ing herein contained shall be construed to
modlIy or repeal the provisions OF Sections
hi6I and 5l71 Of the Revised Statutes. au-
n he 40,
require additional deposits of bonds or of
.awful money in case the market value of
Inc DondS held to secure the circulating
notes shall fall below the par value of the
circulating notes outstanding for which said
oonos may be deposited as security.
RESERVE AND CURRENCY.
subdivision B-That'an any national banking
association may deposit with the treasurer
OF the United States, under such regula-
uohs as the secretary Of the treasury may
approve, United States notes, and shall
then be entitled to receive in exchange
therefor from the controller of the currency
an equal amount Of national reserve notes
OF uhe kind and denominations described in
section IA of this act, and to receive and
issue IN addition thereto an amount of ma
tional currency notes equal to the amount
or national reserve notes received as afore-
said: Provided however, that when any ma
e,Ctiaa Danklns association shall have taken
Out an amount of national reserve notes
equal to 80 per centum of its capital dt shall
not be required to take out any further
amount or national reserve notes in order to
De entitled to receive and issue national
currency notes to the full amount of its
paid-up and unimpaired capital as author
lied in this section. That from and after
three years after the passage of this act
no national banking association shall be
granted an extension or renewal of its char
ter, and from and after the passage of this
act no national banking association shall
pc granted certificate of organization un-
less such association shall take out in the
manner prescribed herein an amount of ma
uonal reserve notes equal to at least 20 per
centum of its capital, subject to the exelnp-
tons provided in Section IS of this act
United States notes received into the di-
vision of issue and redemption in exchange
for national reserve notes shall be can
celed as received.
Subdivision C-That the national currency
notes constitute a paramount lien upon the
bonds deposited to secure circulation and
upon all the other assets of the association
Issuing such notes
DESCRIPTION OF NOTES.
Sec. a. That in order to furnish suitable
notes for circulation the controller of the
currency shall, under the direction of the
secretary of the treasury, cause plates and
cles to be engraved in the best manner to
guard against counterfeiting and fraudulent
alterations, and shall have printed there
from and numbered such quantity of circu-
lating notes in blank of the denominations
OF So $40, $50, 500, $500. $1,000 and $4,000
as may be required to supply the associa-
tons entitled to receive the same
Each national currency note shall express
upon It's race the promise of the associa-
ton receiving and issuing the same to paw
the specified amount on demand attested nv
the signatures of the president or vice presi-
dent and tho cashier of such association 1t
snail also bear upon it's face the statement
That 1T is issued in accordance with the
provisions OF this act, which statement shall
be attested by the written or engraved sig
nature of the controller of the currency and
shall bear such devices and other state
ments and be in such form as the secretary
of the treasury SHALL by regulation, direct.
Each national reserve note shall be in the
same form and contain the same statements
as the present United States legal-tenCier
notes, and in addition thereto shall express
upon Its back or reverse side the promise
of the national banking association receiv-
ing the same to pay ON demand the sum
specified on its face, which statement shall
be atteSted by the signatures of the presi-
dent or vice president and cashier of such
association. No circulating notes shall be
issued to any national banking association
other than those described in this act
Sec. 10. That national reserve notes issued
to any national banking association, as de-
fined in this act, shall be a full legal tender
at their face value for all debts. public and
private, except duties on imports and in
terest on the public debt, and shall be avail
able for use in the reserves of any national
banking association; but no national bank
ing association shall count or report any of
its own notes as a part of its cash or cash
assets.
Sec 16. That each year after the expira-
ton of one year from the passage of this
act the secretary of the treasury may from
time to time and at such times as to him
be prescribed by him, decrease the de-
DoSifs of the United States bonds