Year: 1867

and maturing debt, and one-half
the tax received as aforesaid, shall
amonnt to - millions of dollars au-
nually, which sum during each fiscal
year shall be applied to the reduction
of the public debt in such manner as
mag be determined by the Secretary of
after direct, and such reduction shall be
in lieu of the sinking fund contemplate
ed by the fifth section Of the act enti-
tied "An Act to authorize the Issue of
United States notes, and for the re-
demptiOn or funding thereof, and for
funding the floating debt of the United
States, approved the 25th of February,
1852"


SECTION A. That the several bonds
ofthe United States bearing interest at
the rate of six per centum per annum
and redeemable at the pleasure of the
United States after five years from their
date, commonly known as five-twenty
bonds, shall, after the expiration of five
years from their date, at the option of
the holder thereof be exchanged for
bonds authorized by this act and such
as are now redeemable shall be present
ed for exchange on or before the the 1st
day OF November next, and not there
after, and the residue to be presented
on or before the expiration of five years
from their date and not thereafter, and
such exchange shall be made at such
places and under such rnles and regula-
tions as the Secretary Of tie Treasury
may prescribe.


SECTION 5. That the holder of any
lawful money of the United States, to
the amount of one hundred dollars, or
multiples of one hundred dollars, may
convert the same into bond, fer an
equal amount authorized by the first
section, under such rules and regula-
tons as the Secretary of the Treasury
ceiyed shall be held in the Treasury as
part of the reserve herein provided for,
and any holder of 500 bonds, or of
bonds provided for, in the first section
may present the same 20 the Treasurer
and demand lawful money of the Uni
ted States for the principal and accru-
ing interest thereof, and the Treasurer
shall redeem the same in lawful money,
unless the amount of United States
notes then outstanding shall be equal
to four hundred millions of dollars; and
such bonds shall not be so redeemable
after the United States have resumed
the payment of coin for their notes; and
to enable the Secretary of the Treasury
to execute the provisions of this section
he is hereby authorized and required to
maintain in the Treasury reserve of
not less than fifty millions of dollars of
lawful money, similar in all respects to
the United States notes authorized by
law, provided that the amount outstand-
ing shall not at any time exceed four
hundred millions of dollars.


SECTION 6.-That to enable the Secre-
tary of the Treasury to redeem any por
tion of the securities of the United
States held beyond the jurisdiction of
the United States, he is hereby author
lied to issue registered bonds of the
United States in such form and in such
denomination as he may prescribe, pay
able, principal and interest, all in coin,
in Frankfort and Landon, and bearing
interest at the rate of four and half
per centum per annum, payable semi
annually, at rate of exchange equiv
alent to Ave francs for one dollar, to be
payable i'll forty years from date and to
be redeemable in coin at the pleasure of
the United States after twenty years,
at like rate of exchange, and to be
issued to an amount not exceeding five
hundred millions of dollars; and to be
exchanged for an equal amount of
seven-thirty-bonds, or to be disposed of
in such manner and on such terms not
less than par. in lawful money. or its
equivalent in coin, as the Secretary of
War or of the Treasury may deem best
for the Government but the expenses
of the sale or exchange of such bonds
shall not exceed the difference between
said rate of exchange on London or
Frankfort.