The herald and news. [volume] (Newberry S.C.) 1903-1937, 1908-06-16


slue, but not in excess Of the par
Fs(ue Of any bonds so deposited, such
earket@ value to be ascertained and
determined under the direction Of
he secretary Of the treasury
The treasurer of the United States,
With the approval of the secretary Of
the treasury, shall accept as security
Tor the additional circulating notes
provided for in this section, bonds or
other interest-bearing obligations Of
any State of the United States, or
kany legally authorized bonds issue by
any city, town, county, or other
constituted municipality or
|a5saistrict in the United States which
|ST0r period Of ten years previous to
Ysnch deposit has not dcfaultcd in the
ERayment Of any part of either princi-
Spal or interest Of any funded debt all
v&h0rized to be contracted by it, and
Sghose net funded indebtedness does
not exceed ten per centum of the val
Salation Of its taxable property, to be
E55isccrtaincd by the last preceding
valuation Of property for the assess
ment Of taxes. ,Ihc treasurer of the
united States, with the approval Of
he secretary of the treasury, shall
cccpt, for the purpose Of this Sec
ion, securities herein enumerated in
uch proportions as he may from time
time determine, and he may with
1ch approval at any time require the
eposit OF additional securities or re-
uire any association to change the
haracter Of the securities already on
eposit.
Sec. 4. That The legal title Of all
Nnds, whether coupon or Registered
hposited to secure circulating notes
issued in accordance vfth the terms or
section 3 of this act shall be trans
4ferrcd to the treasurer of the United
States in trust for the association de-
aositing them, under regulations to
Y prescribed by the secretary of the
easury. A receipt shall be given to
e association by ,rc treasurer or
v assistant treasurer Of the United
ties, stating that such bond is held
trust for the association on whose
alf the transfer is made, and as
tWgrity for the redemption and pay
amt Of any circulating notes that
}nse been or may be delivered to such
D&ciation. No assignment or trans
QlAf any such bont. by the treasurer
M be deemed valid unless counter
Ed by the comptroller Of the
D8rney. The provisions of sections
,@pl64, 5165, 51G6 and 51G7 and
q 4 Ms 1894 to 5234,inclusive, of the
4, @,sed statutes respecting United
1 States bonds deposited to secure cir
culating notes shall, except as herein
modified, be applicable to all bonds
deposited under the terms OF section
3 of this act.
Sec. 5. That the additional circu.
lating notes issued under this act
shall be used, held. and treated in the
same way as circulating notes Of ma
tional banking associations hereto
4 fore issued and secured by a de-
post of United States bonds. and shall
be subject to all the provisions of
law affecting such notes except as
j herein expressly modified: Provided,
That the total amount Of circulating
notes outstanding of any national
banking assosiation, including notes
secured by United States bonds as
now provided by law, and notes Sc
cured otherwise than by dobosit of
such bonds, shall noe at any time ex-
cced the amount of its unimpaircd
capital and surplus: And provided
further, That there shall not be out,
standing at any time circulating
/ notes issued under the provisions of
this act to an amount Of more than
\ $500, 100000.
See. 6. That whenever and so long
has any national banking association
khas outstanding any OF the additional
Scircnlating notes authorized to be is
$ued by the provis .ons Of this act
5t shall keep on deposit in the traa.
Esury of the United States, in addition
Ro the redemption fund required b,
Rection of the act OF June Goth
MP74, an additional sum equal to five
Mcr centum of such additional circu
Mtion at any time outstanding, sucl
additional five per centum to be treat
50, held, and used in all respects il
>Nhc same manner as the original re
exemption fund provided for by sale
Esction 3 Of The act of June Goth