to the Treasurer a certificate setting forth the different kinds and the amounts thereof, and that the same are in the possession and custody of the Treasurer at the date of the certificate. Such examination shall be made at such time or times, during the ordinary business hours, as the Treasurer and the Comptroller, respectively, may select, and may be made by an officer or agent of such association, duly appointed in writing for that purpose; and his certificate before mentioned shall be of like force and validity as if executed by the president or cashier. A duplicate of such certificate, signed by the Treasurer, shall be retained by the association.

held to

secure

collected.

depreciate, deposit to be

increased.

(SEC. 5167.) The bonds transferred to and deposited Bonds to be with the Treasurer of the United States, by any association, for the security of its circulating notes, shall be circulation. held exclusively for that purpose, until such notes are redeemed, except as provided in this Title. The Comp- Interest on troller of the Currency shall give to any such association bonds, how powers of attorney to receive and appropriate to its own use the interest on the bonds which it has so transferred to the Treasurer; but such powers shall become inoperative whenever such association fails to redeem its circulating notes. Whenever the market or cash value of any If bonds bonds thus deposited with the Treasurer is reduced below the amount of the circulation issued for the same, the Comptroller may demand and receive the amount of such depreciation in other United States bonds at cash value, or in money, from the association, to be deposited with the Treasurer as long as such depreciation continues. And the Comptroller, upon the terms prescribed by the Secretary of the Treasury, may permit an exchange to be made of any of the bonds deposited with the Treasurer by any association, for other bonds of the United States authorized to be received as security for circulating notes, if he is of opinion that such an exchange can be made without prejudice to the United States; and he may direct the return of any bonds to the association which transferred the same, in sums of not less than one thousand dollars, upon the surrender to him and the cancellation of a proportionate amount of such circulating notes: Provided, That the remaining bonds which shall

Exchange of bonds.

Delivery of

have been transferred by the association offering to surrender circulating notes are equal to the amount required for the circulating notes not surrendered by such association, and that the amount of bonds in the hands of the Treasurer is not diminished below the amount required to be kept on deposit with him, and that there has been no failure by the association to redeem its circulating notes, nor any other violation by it of the provisions of this Title, and that the market or cash value of the remaining bonds is not below the amount required for the circulation issued for the same.

(SEC. 5171.) Upon a deposit of bonds as prescribed by circulating sections fifty-one hundred and fifty-nine and fifty-one sociations. hundred and sixty, the association making the same shall

Ratio to capital of circulating

notes issued.

Form, denominations and

printing of circulating

be entitled to receive from the Comptroller of the Currency circulating notes of different denominations, in blank, registered and countersigned as hereinafter provided, equal in amount to ninety per centum of the current market value of the United States bonds so transferred and delivered, but not exceeding ninety per centum of the amount of the bonds at the par value thereof, if bearing interest at a rate not less than five per centum per annum: Provided, That the amount of circulating notes to be furnished to each association shall be in proportion to its paid-up capital, as follows, and no more:

First. To each association whose capital does not exceed five hundred thousand dollars, ninety per centum of such capital.

Second. To each association whose capital exceeds five hundred thousand dollars, but does not exceed one million of dollars, eighty per centum of such capital.

Third. To each association whose capital exceeds one million of dollars, but does not exceed three million[s] of dollars, seventy-five per centum of such capital.

Fourth. To each association whose capital exceeds three millions of dollars, sixty per centum of such capital.

(SEC. 5172.) In order to furnish suitable notes for circulation, the Comptroller of the Currency shall, under the direction of the Secretary of the Treasury, cause plates and dies to be engraved, in the best manner to

guard against counterfeiting and fraudulent alterations, and shall have printed therefrom, and numbered, such quantity of circulating notes, in blank, of the denominations of one dollar, two dollars, three dollars, five dollars, ten dollars, twenty dollars, fifty dollars, one hundred dollars, five hundred dollars, and one thousand dollars, as may be required to supply the associations entitled to receive the same. Such notes shall express upon their face that they are secured by United States bonds, deposited with the Treasurer of the United States, by the written or engraved signatures of the Treasurer and Register, and by the imprint of the seal of the Treasury; and shall also express upon their face the promise of the association receiving the same to pay on demand, attested by the signatures of the president or vice-president and cashier; and shall bear such devices and such other statements, and shall be in such form, as the Secretary of the Treasury shall, by regulation, direct. That the Comptroller of the Currency shall, under such rules and regulations as the Secretary of the Treasury may prescribe, cause the charter numbers of the association to be printed upon all national-bank notes which may be hereafter issued by him.

(SEC. 5173.) The plates and special dies to be procured by the Comptroller of the Currency for the printing of such circulating notes shall remain under his control and direction, and the expenses necessarily incurred in executing the laws respecting the procuring of such notes, and all other expenses of the Bureau of the Currency, shall be paid out of the proceeds of the taxes or duties assessed and collected on the circulation of national banking associations under this Title.

Annual tion of plates, dies,

(SEC. 5174.) The Comptroller of the Currency shall cause to be examined, each year, the plates, dies, butpieces [bed-pieces], and other material from which the national-bank circulation is printed, in whole or in part, and file in his office annually a correct list of the same. Such material as shall have been used in the printing of Certain the notes of associations which are in liquidation, or praterial printing have closed business, shall be destroyed under such to be destroyed. regulations as shall be prescribed by the Comptroller of

Issue of notes under

limited.

the Currency and approved by the Secretary of the Treasury. The expenses of any such examination or destruction shall be paid out of any appropriation made by Congress for the special examination of national banks and bank-note plates.

(SEC. 5175.) Not more than one-sixth part of the five dollars, notes furnished to any association shall be of a less denomination than five dollars. After specie payments are resumed no association shall be furnished with notes of a less denomination than five dollars.

Circulation of certain banks limited to $500,000.

June 20,
1874.
Repeal
of limita-
tion of

(SEC. 5176.) No banking association organized subsequent to the twelfth day of July, eighteen hundred and seventy, shall have a circulation in excess of five hundred thousand dollars.

* That section five thousand one hundred and seventyseven of the Revised Statutes, limiting the aggregate

amount of circulating notes of national banking associaaggregate tions, be and is hereby repealed; and each existing circulating banking association may increase its circulating notes in

amount of

notes.

Redemp

accordance with existing law without respect to said aggregate limit; and new banking associations may be organized in accordance with existing law without

respect to said aggregate limit. And whenever, and so

legal-tender often, as circulating notes shall be issued to any such notes in banking association, so increasing its capital or circulatproportion to the issue ing notes, or so newly organized as aforesaid, it shall be of national- the duty of the Secretary of the Treasury to redeem the

bank notes.

Legal

legal-tender United States notes in excess only of three hundred million of dollars, to the amount of eighty per centum of the sum of national-bank notes so issued to

any such banking association as aforesaid, and to contenders not tinue such redemption as such circulating notes are issued until there shall be outstanding the sum of three $300,000,000. hundred million dollars of such legal-tender United

to be reduced below

States notes, and no more.

That the amount of United States notes outstanding and to be used as a part of the circulating medium shall not exceed the sum of three hundred and eighty-two million dollars, which said sum shall appear in each

monthly statement of the public debt, and no part thereof shall be held or used as a reserve.

notes, when

demands

(SEC. 5182.) After any association receiving circu- Circulating lating notes under this Title has caused its promise to may be pay such notes on demand to be signed by the president issued. or vice-president and cashier thereof, in such manner as to make them obligatory promissory notes, payable on demand, at its place of business, such association may issue and circulate the same as money. And the same shall be received at par in all parts of the United States in payment of taxes, excises, public lands, and all other dues to the United States, except duties on imports; and also for all salaries and other debts and demands owing by the United States to individuals, corporations and associations within the United States, except interest on the public debt, and in redemption of the national currency.

(SEC. 5183.) No national banking association shall issue post-notes or any other notes to circulate as money than such as are authorized by the provisions of this

Title.

For what shall be received.

Issue of prohibited. Act of Feb.

other notes

18, 1875, correcting Rev. Stat.

Merchants' State Bank, 10 Wall. 604.

Bank vs.

and

and muti

lated notes.

(SEC. 5184.) It shall be the duty of the Comptroller of the Currency to receive worn-out or mutilated circulating notes issued by any banking association, and also, on due proof of the destruction of any such circulating notes, to deliver in place thereof to the association other blank circulating notes to an equal amount. Such worn-out or Destroying mutilated notes, after a memorandum has been entered replacing in the proper books, in accordance with such regulations worn-out as may be established by the Comptroller, as well as all circulating notes which shall have been paid or surrendered to be canceled, shall be destroyed by maceration instead of burning to ashes in presence of four persons, one to be appointed by the Secretary of the Treasury, Act of June one by the Comptroller of the Currency, one by the 23, 1874. Treasurer of the United States, and one by the association, under such regulations as the Secretary of the Treasury may prescribe. A certificate of such maceration, signed by the parties so appointed, shall be made in the books of the Comptroller, and a duplicate thereof forwarded to the association whose notes are thus canceled.