Payette enterprise. (Payette, Canyon Co., Idaho) 1909-1935, 1912-02-08
NATIONAL RESERVE LAW |
(Continued from last week.,


Continued from last week.
provided, its own notes as fast
as the outstanding notes secured by
such bonds so held shall be present
ed for redemption, and may issue
other notes from time to time to
meet business requirements, it be-
ing the policy of the United States
to retire as rapidly as possible, con-
sistent with the public interests,
circulation and to sub
stitute therefor notes of the Nation
al Reserve Association of a char
acter and secured and redeemed in
the manner provided for in this Act.
81. All provisions of law requir-
ing national banks to hold or to
transfer and deliver to the Treasur-
CT Of the United States, United Stat
es bonds other than those required
to secure outstanding circulating not
&C and Government deposits shall
be repealed,
GS. All note issues of the Nation
al Reserve Association must be coy
cred to the extent of at least one
third by gold or other lawful mon
ey, and the remaining portion by
bankable commercial paper as here
in defined or obligations of the
United States, but no notes shall be
:~sued whenever the lawful money
so held shall fall below one third
CT the notes outstanding.
60. Any notes of the Reserve AS
sociation in circulation at any time
in excess of 5000, 100000 which are
not covered by an equal amount Of
lawful money held by the association
shall pay a special tax at the rate
of / IL per cent per annum, and
any notes in excess Of $4,2eO,09O 600
not SO covered shall pay special
tax at the rate of per cent per
annum.
70. The notes are to constitute a
first lien upon all the assets of the
National Reserve Association, and
shall be redeemable in lawful money
on presentation at the head office O.
the National Reserve Association or
any Of its branches.
n. The notes of the National Re
serve Association shall be reeei' ed
at par in payment Of all taxes, ex-
cises, and ether dues to the United
States. and for all salaries and eth'
er debts and demands owing by
the United States to individuals, cor
porations, or associations, except OBJ
legations of the Government which
are by their terms specifically paya-
BILE in gold, and for all debts due
from or by one bank to another, and
for all obligations due to bank.
70. The National Reserve As5ocia-
ton and its branches shall at once,
upon application and without charge
fer transportation, forward its circu-
lating notes to any depositing bank
against it's credit balance.
United States Bonds.
\ 70. Upon the application of the
National Reserve Association the
/ Secretary CT the Treasury shall ex-
change the 2 per cent bonds bear
ing the circulation privilege pur-
chased from the banks for 3 per
cent bonds without the circulation
privilege, payable after fifty years
from the date OF issder
"A. The National Reserve Associa-
ton shall pay to the Government a
special franchise tax of l IL per
cent annually during the pericd of
it's charter upen an amount equal
to the par value of such bonds trans
ferred to it by the subscribing banks.
70. The Reser7e Association shall
agree to hold the per cent bonds
so issued during the period CT its
corporate existence, provided that
after five years the Secretary of the
Treasury may at his option permit
the Reserve Association to sell not
more than fifty millions of such
bonds annually; and provided further
that the United States reserves the
right at any time to pay any Of
such bonds before maturity, or b
purchase any Of them at par for
the trustees of the postal savings
or otherwise.
(The effect of this exchange and
agreement will be to enable the I'm
tied States to provide permanently
fer large part of the public debt
at a net interest charge Of / 1-2 per
cent?
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