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

/ GIg8nlZEU IILIneUIaTe-
~ after the passage of this act.
Sec. is. That after so many United
States notes have been Cancelled and de-
stroyed as herein provided, that in the
judgment of the secretary of the treasury
no more of sucn notes are available for use
as g basis for the issue of circulating notes,
the deposit of such United States notes as
provided in section thirteen Of this act shall
no longer be required, but treasury notes
issued under the act of July IA. 1890. may
Lhen be accepted in lieu of United States
notes; and when in the judgment of the
secretary of the treasury no more of such
treasury notes are available for use as a
basis for the issue of circulating notes, the
deposit of such notes shall no longer be
required, and national banking associa tons
shall then be entitled to receive national
currency notes to the amount which they
would have been entitled to receive if such
United States notes or treasury notes were
available for such use.
Sec. 10. That any national banking as
ISOLATION desiring to reduce the volume OF
its nat ional currency notes many do so by
deemed notes to the controller OF the cur
rency, with the request that they be cam
may carry to the credit of any national
banking association, or reimburse to it, the
excess of either the bank-note redemption
fund or the bank-note guaranty fund, or
both. above the amount required by this
act to be held against outstanding circu-
lation.
GUARANTY FUND.
Sec. 20. That every national banking
have on deposit with the division of
issue and redemption for the purpose
hereinafter specified a sum in gold
coin equal to per centum of it's
outstanding circulation of national currency
notes not secured by United States bonds.
The amount so kept on deposit shall con-
stitute fund to be known IS the bank
note guaranty fund" which fund shall be
he following
other. namely:
Whenever the controller of the currency
shall have become satisfied by the protest
or the waiver and admission specified in
Section 1926, or by the report provided for in
Section 1927 of the Revised Statutes of the
United States that any association has re-
fused to pay any of its circulating notes on
demand, he shall direct the redemption of
its national currency notes from the bank
note guaranty fund aforesaid, and the re-
demption in gold coin of the United States
of the national reserve notes issued to it
from the reserve fund in the division of is
sue and redemption, and such notes shall
thereupon be redeemed. After the failure
of any national banking association to re-
deem any of said notes shall have been
with the treasurer of the United States
shall be sold as provided by law and the
proceeds of such sale shall be paid into
the bank note guaranty fund.
The controller of the currency shall forth
with collect, for the benefit of said bank
note guaranty fund, from the assets OF the
cording to their liability declared by this
act such sum as with the bank balance
in the bank note guaranty fund as atore-
said, shall equal the amount or It's national
currency notes outstanding. And for this
purpose the United States SHALL on beha4r
of the bank note guaranty fund, nave a
paramount lien upon al the asSeIs OF .fie
good out of such assets in preference to any
and all other claims whatsoever, except the
necessary costs and expenses OF administer
ing, the same.
All national reserve notes so redeemed
shall be Cancelled and destroyed and all ma
tional currency notes SO sf fb de De
vision of issue and redemption until the
conclusion of the proceedings OF liquidation
OF said bank and shall thereupon pe can
The provisions of Sections 5226, 5227, 522S,
5229 1894 and 5237 of the Revised Statutes
shall be applicable In the case OF tng 70
redeem in compliance with law the natlohd4
reserve notes issued to 1T.
PROVIDING FOR DEFICIENCY.
Sec. 81. That whenever the controller OF
the currency shall ascertain what dehclen-
CIV. If any, exists between the aggregate
collection for the benefit Of the bank note
guaranty fund in the case OF any falled
bank and the amount of it's national cur
rency notes redeemed and to be redeemed
from the said fund.- he shall assess such
deficiency upon all the national banks IN
proportion to their national currency notes
not secured by United States bonds out
standing at the time of the failure or such
bank; said assessment, however, not TO
exceed in any one year one per cetnuh, OF
the amount of such circulation or the sew
eral banking associations, respectively.
Sec. %. That the secretary or the treas
ury be- and he is hereby authorized IN his
discretion to cause to be lnvesteo IN pot nos
of the United States any portion or the
guaranty fund hereinbefore PROVIDED tor
and such bonds shall be held and disposed
of for the benefit of such fund.
Sec g. That all interest accruing from
the investment of any portion of the afore-
said guaranty fund. and all funds received
in payment of the duties on circulation pro-
vided for in this actS shall be held in the
division of issue and redemption in gold coin
or in United States bonds, in the discre-
ton of the secretary of the treasury, and
shall be a fund supplementary to the guar
anty fund to be used only in case said
guaranty fund shall ever become INSULT
cient to redeem any national currency notes
issued under the provisions of this act, ana
it shall not be taken into account In esti-
mating the amount of assessments neces-
sary to replenish said guaranty fund or III
repayment to banks of their contributions
to the guaranty fund.
Sec. a. That the fund of 5 per centum
of outstanding circulating notes required to
be kept on deposit by every national bank
ing association for the current redemption
of the circulating notes of such association
shall be required to be equal to per
centum of all the national reserve notes is
sued to it and of its national currency
notes outstanding, and shall be in gold coin
of the United States, and the controller Of
the currency shall, with the approval of
the secretary of the treasury, have author
ity to provide for the redemption of said
notes at any or all of the SubtreaSurieS
of the United States and said notes shall
be paid in gold coin Of the United States.
NATIONAL LIABILITY.
Sec. Is. That so much of Section of the
act of June 20, 1874, entitled IAN act fixing
the amount of United States notes, provid-
ing for a redistribution of the national bank
currency, and for other purposes as reads
And when the circulating notes of any
such associations assorted or unasscrted,
shall be presented for redemption in sums
of $1,000 or any multiple thereof, to the
treasurer of the United States the same
shall be redeemed in United States notes."
be amended to read: "And when the cir
sorted or unasSorted, shah be presented fer
redemption in sums of 81 600 or any null
tiple thereof, at the treasury, or at such
SubtreaSur1eS or other redemption agencies
the currency, the same shall be redeemed
in gold coin of the United States, and au-
thOr1ty IS hereby given to the controller,
with the approval of the secretary of the
treasury, to establish such other redemp-
ton agencies. But nothing in this act con-
tanned shall be construed to impose upon
the United States any liability for the re-
dempton of the notes of any national bank
ing association, other than the national re-
serve notes. beyond the proper application
posted with the division OF issue and re-
demption and the enforcement of the rem
edies by this act provided
Sec 26. That at least one-fourth of the