Bisbee daily review., 1918-04-28

the product of mines situated in the United States and of reduction works so located, an amount of silver equal to three hundred and seventy-one and twenty-five hundredths grains of pure silver in respect of every standard silver dollar so melted or broken up and sold as bullion. Such purchases shall be made in accordance with the then existing regulations of the Mint and at the fixed price of $1 per ounce Of silver one thousand fine, delivered at the option of the Director of the Mint at New York, Philadelphia, Den yer or San Francisco. Such silver so purchased may be resold for any of the purposes hereinafter specified in section three of this Act, under rules and regulations to be established by the Secretary of the Treasury, and any excess of such silver so purchased over and above the requirements, for such purposes, shall be coined into standard silver dollars or held for the purpose of such coinage, and silver certificates shall be issued to the amount of such coinage. The net amount of silver so purchased, after making allowance for all resales, shall not exceed at any one time the amount needed to coin an aggregate number of standard silver dollars equal to the aggregate of standard silver dollars heretofore melted or broken up and sold as bullion under the provisions of this Act, but such purchases of sil- yer shall continue until the net amount of silver so purchased, after making allowance for all resales, shall be sufficient to coin therefrom an az gregate number of standard silver dol lars equal to the aggregate number of standard silver dollars heretofore so melted or broken up and sold as bull lion.
 SEC. 3. That sales of silver bullion under authority of this Act may be made for the purpose of conserving the existing stock of gold in the Unit ed States, of facilitating the settle ment in silver of trade balances ad- verse to the United States, of provid- ing silver for subsidiary coinage and for commercial use, and of assisting foreign governments at war with the enemies of the United States. The allccatiOn of any silver to the Direc- tor of the Mint for subsidiary coinage shall, for the purpose of this Act, be regarded as a sale or resale.
 SEC f. That the Secretary of the Treasury is authorized from any mon- eys in the Treasury not otherwise ap- propriated. to reimburse the Treasury of the United States for the difference between the nominal or face value of all standard silver dollars so melted or broken up and the value of the sil- yer bullion, at S1 per ounce of silver one thousand fine. resulting froni-the melting or breaking up of such stand ard silver dollars.
 SEC. ,. That iH order to prevent contraction Of the currency, the Fed eral reserve banks may be either per mitted or required by the Federal Re serve Board, at the request of the Secretary of the Treasury, to issue Federal reserve bank notes, in any denominations Gncluding denomina- tiCns of S1 and S2) authorized by the Federal Reserve Board, in an aggre- gate amount not exceeding the amount of standard silver dollars melted CT broken up and sold as bull lion under authority of this Act, upon deposit as provided by law with the Treasurer of the United States as se- curity therefore, of United States cer- tificates of indebtedness, or of United States one-yeaT gold notes. The Sec retary of the Treasury may, at his op- tiOn, extend the time of payment of any maturing United States certifi- cates of indebtedness deposited as security for such Federal reserve bank notes for any period not exceeding one year at any one extension and may at his option, pay such certificates of indebtedness prior to maturity, wheth- CT or not so extended. The deposit of United States certificates of in debtedness by Federal reserve banks as security for Federal reserve bank notes under authority of this Act shall be deemed to constitute an agreement on the part of the Federal reserve bank making such deposit that the Secretary of the Treasury may so eX- tend the time of payment of such cer- tifiCates of indebtedness beyond the original maturity date or beyond any maturity date to which such certifi- cates of indebtedness may have been extended, and that the Secretary of the Treasury may pay such certifi- cates in advance of maturity, whether or not so extended.
 SEC. 6. That as and when stand ard silver dollars shall be coined out of bullion purchased under authority Of this Act, the Federal reserve banks shall be required by the Federal Re- serve Board to retire Federal reserve bank notes issued under authority of section five of this Act if then out standing in an amount equal to the amount of standard silver dollars so coined, and the Secretary of the Treasury shall pay off and cancel any United States certificates of indebted ness deposited as security for Federal reserve bank notes so retired
 SEC. '. That the Tax on any Fed cral reserve bank notes issued under auth ority of this Act, secured by Sle deposit of United States certificates of indebtedness or United States one year notes shall be SO adjusted that the net return Cn such certificates Of indebtedness. or such one-year gold notes, calculated on the face value therefor, shall be equal Go the net re- turn on United States two per cent