The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1908-01-08
NEW FINANCIAL BILL Is.
PRESENTED BY ALDRlCH
CONTINUED FROM PAGE ~


amount of such additional circulating
notes delivered at any time, to any asso-
citation, shall not in any case exceed the
limit fixed for such issue by the comp
troller of the currency, and provided, fur
Their. that the total amount of circulating
notes outstanding of any national bank
ing association secured by United States
bonds or otherwise shall not any time
exceed the amount of its unimpaired cap
ital and surplus; and provided further,
THAT there shall not be outstanding at any
time circulating notes issued under the
provisions of this act to an amount of
more than $25o,oOo. 900; and provided, fur
tiief that all acts and orders of the
comptroller of the currency and the
treasurer of the United States authorized
by this section shall have the approval of
the Secretary of the Treasury.
Kind of Security.
Sec. 2. That the treasurer of the
United States, with the approval of tile
Secretary of the Treasury, may accept
as security for the additional cireu-
lating notes provided for in the pre-
teding section, bonds or other interest
bearing obligations OF any state of the
United States any legally authorized
bonds issued for municipal purposes by
any city or county for a period of Is
years and which for a period of ten years
previous to such deposit has not de-
faulted in the payment of any part of
either principal or interest or any fund
ed debt authorized to be contracted by it
and which at such date more than 20 900
inhabitants as established by the last CEN
sus and whose net Indebtedness does not
exceed. 10 per cent of the valuation OF
the taxable property therein, to be as
,certained by the last preceding valuation
of property for the assessment of taxes;
Ap 1nH fret mn tcuor dc nf INV rail
road company, not including street rail-
way bonds, which has paid dividends of
not less than per cent annually, con-
tinually and on its entire capital stock
for a period of not less than five years
previous to the deposit of the bonds.
The treasurer of the United States, with
the approval of the Secretary, may ac-
cept for the purpose of this act, secur-
tiles herein enumerated in such proper
tons as he may from time to time de-
termine, and he may at any time re-
quire the deposit of additional security
or require any association to change the
character of the security already on
deposit
Bonds Held In Trust.
"Sec. 8. That all bonds deposited to
secure circulating notes issued in accord
ance with the terms of this act shall
be transferred to the treasurer, author
ICED by him for that purpose stating
that such bond is held in trust for the
association on whose behalf the trans
fer is made and as security for the re-
demption and payment of any circulat-
Ing notes that have been or may have
been delivered to such association No
assignment or transfer of any such bond
by the treasurer shall be valid unless
countersigned by the comptroller of the
currency The provisions of sections 516S.
bl64, 5165, 5166 and 5157 of the revised stat
ntes respecting United States bonds de-
posted to secure circulating notes shall
except as herein modified be applicable
to all bonds deposited under the terms
Of this act
The remaining portions of the bill con-
sist of additions to the existing law.