Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1908-06-04
BONDS AS SECURITY.


The treasurer of the United States with
the approval Of the secretary of the
treasury, shall accept as security for
the additional circulating notes provided
for in this section bonds or other interest
United States, or any legally authorized
bonds issued by any city. town, county,
or other legally constituted municipal
ity or district in the United States which
has been in existence for a period Of ten
years, and which for a period of ten
years previous to such deposit has not
dcfaulted in the payment OF any part
of either principal or interest of any
funded debt authorized to be contracted
by it, and whose net funded Indebtedness
does not exceed 10 per centum of the
valuation of its taxable property, to be
ascertained by the last precedino valua-
tion of property for the assessment of
taxes.
Sec. 6, That whenever and so long as
any national banking association has
outstanding any of the additional cir
culating notes authorized to be issued
by the provisions of this act It shall keep
on deposit in the treasury Of the United
States. in addition to the redemption
fund required by Sec. OF the act of
June 20. 1874. an additional sum equal to
per centum of such additional circua
ton at any time outstanding. such addi-
tional : per centum to be treated. held.
and used in all respects in the same
manner as the original redemption fund
provided for by said Sec. of the act
of June 20, 1874.
Sec J. In order that the distribution
of notes to be issued under the provi-
sions of this act shall be made as equit
able and practicable between the various
sections of the country, the secretary
of the treasury shall not approve appi
cations from associations in any State
in excess Of the amount to which such
state would he entitled of the additional
notes herein authorized on the basis of
the proportion which the unmpaired cap
ital and surplus of the national banking
associations in such State bears to the
total amount OF unmpaired capital and
surplus of the national banking assoCia-
tons OF the United States; provided. how
ever, that IN case the applications from
associations in any State shall not be
equal 10 the amount which the associa-
lions of such state would be entitled to
under this method of distribution. the
secretary of the treasury may. in his
discretion. TO meet an emergency, assign
the amount not thus applied for to any
applying association or associations In
States In the same section OF the country
+ National banking associations having
circulating notes secured otherwise than
by bonds of the United States shall pay
for the first month a tax at the rate of
per centum per annum upon the aver
age amount of such of their notes In cir
culation as are based upon the deposit
OF such securities. and afterward an
additional tax Of / per centum per annum
for each month until a tax of 10 per
centum per annum is reached, and there
after such tax of 10 per centum per an
mum upon the average amount OF such
NATIONAL MONETARY COMMISSION
Section Il. That commission is here
by created to b. called the National
Monetary Commission" to be composed
of nine members of the Senate. to be
appointed by the presiding officer there
of, and nine members of the House of
Representatives. to be appointed by the
speaker thereof. and any vacancy on the
commission shall be filed in the same
manner as the original appointment.
/ Sec IS. That 1t shall be the duty OF
this commission to inquire into and re-
port to Congress at the earliest date
practicable what changes are necessary
or desira BILE in the monetary system of
the United States, or in the laws relat-
ing to banking and currency, and for this