Year: 1870

Representative Garfield to-day submit


ted to the House the report Of the CON-


mittee of conference on the currency


bill. The bill provides for the issue OF


forty-five millions of national bank


notes to banks in addition to the three


hundred millions authorized by the act


of 1864, the amount so provided to be


to be furnished banking associations in


States and Territories having less than


their apportionment as contemplated in


the apportionment act of 1865. The


securities for such circulation deposited


with the Treasurer of the United States


shall be any description of bonds of the


United States bearing coin interest Az


plications for this circulation shall be


made within one year after the passage


of this act, aud the comptroller shall


issue it to banks making application, Civ


ing preference to those States and terri


tories having the greatest deficiency.


No bank organized under this act shall


have circulation exceeding half mil


lion dollars. A new account OF in
creased circulation shall be made as


soon as practicable, based upon the


census of 1870. The comptroller, at


the end Of each month, is required to


report to the Secretary of the Treasury


the amount Of circulating notes issued


during the previous month, whereupon


the Secretary of the Treasury shall re-


deem and cancel like amount of three


per cent. certificates issued under the


acts of March 2, 1867, and July


%, 1868, by giving notice to the


holders thereof that interest shall
cease after the day designated


in the notice, and that said certif-
Gates shall no longer be available as


banking resources. Upon deposit Of
any gold interest hearing bonds in the
Treasury of the United States in the
manner prescribed in the nineteenth
and twentieth sections of the National
Currency act 1t shall be lawful for
the Comptroller to issue to the bank
making such deposit circulating notes
Of different denominations, not less than
five dollars, not exceeding in amount
eighty per cent OF the par value of the
bonds deposited, which notes shall bear
upon their face the promise of the asso-
citation by which they are issued to pay
upon presentation at the office Of the
association in gold coin of the United
States, and shall be rcdeemable upon
such presentation in such coin. The
capital Of any such banking associ-
alton is limited to a million dollars
Banks organized under preceding sec
tions are required to keep on hand at
all times not less than twenty-five per
cent of their circulation in coin, and
shall receive at par in payment
of debts the gold notes of every
such bank which is at the time redeem
ing notes in coin. The limit of circula-
tion to three hundred millions in the
currency act, and the requirement that
the banks in San Francisco must re-
deem notes at par in New York are re-
moved The term lawful money in the
currency act, as applicable to banks
then organized on gold basis, shall be
to mean gold coin of the
United States The bill further pro-
vides for the withdrawal from
banking associations, having cir
culation exceeding that contemplated in
the act of March Sd, 1865, s25, 100000,
This circulation is to be withdrawn
with banks having a cir
exceeding Sl,000,0OO in States
having an excess Of circulation, and
then proceeding pro rsta with banks
having Il circulation exceeding 100000
in States having the largest excess OF
and reducing the circula-
ton of such banks in States having
the greatest proportion in excess, lcav-
Ing undisturbed the banks in the States
having a smaller proportion, until those
in greater excess are reduced To the
same grade, and continuing thus to
make reductions provided for
hv this act until the further amount Of
so, 100000 shall he withdrawn, and
the circulation so withdrawn be dis
tributcd among the States and terrific
ries having less than their proportion.
4 provision is made, where banks fail
to return the circulation required with
in one wear, for the sale of their bonds
deposited with the Treasurer Of the
United States for their circulation. No
circulation is to be withdrawn until the
$45, 600, 600 granted in the first section
shall be taken up. A bank located in
a State having more than its proper
ton, may remove to a State having less
than lis proportion.