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Fixing the amount of United States notes, providing for a redistribution of national-bank currency, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the act entitled "An act to provide a national currency secured by a pledge of United States bonds, and to provide for the circulation and redemption thereof," approved June third, eighteen hundred and sixty-four, shall hereafter be known as the "National-Bank Act."

"The NationalBank Act."

Lawful-money reserve on ciren

except as to na


SEC. 2. That section thirty-one of the "national-bank act" be so amended that the several associations therein pro-lation abolished, vided for shall not hereafter be required to keep on hand tional gold any amount of money whatever by reason of the amount of See sec. 5191, their respective circulations; but the moneys required by said section to be kept at all times on hand shall be determined by the amount of deposits in all respects, as provided for in the said section.

page 25.


as lawful reserve.

SEC. 3. That every association organized, or to be organ- Redemption fund to be depos. ized, under the provisions of the said act, and of the several ited with Treas acts amendatory thereof, shall at all times keep and have on deposit in the Treasury of the United States, in lawful money of the United States, a sum equal to five per centum of its circulation, to be held and used for the redemption of such circulation; which sum shall be counted as a part of May be counted its lawful reserve, as provided in section two of this act; and when the circulating notes of any such associations, Provisions rel assorted or unassorted, shall be presented for redemption, rion of notes by in sums of one thousand dollars or any multiple thereof, to the Treasurer of the United States, the same shall be redeemed in United States notes. All notes so redeemed shall be charged by the Treasurer of the United States to the respective associations issuing the same, and he shall notify them severally, on the first day of each month, or oftener, at his discretion, of the amount of such redemp. tions; and whenever such redemptions for any association



shall amount to the sum of five hundred dollars, such asso. ciation so notified shall forthwith deposit with the Treas urer of the United States a sum in United States notes equal Mutilated notes to the amount of its circulating notes so redeemed. And all to be returned by assistant treas- notes of national banks, worn, defaced, mutilated, or other


Associations to

wise unfit for circulation, shall, when received by any assistant treasurer, or at any designated depositary of the United States, be forwarded to the Treasurer of the United States for redemption as provided herein. And when such redemptions have been so reimbursed, the circulating notes so redeemed shall be forwarded to the respective associa tions by which they were issued; but if any of such notes are worn, mutilated, defaced, or rendered otherwise unfit for use, they shall be forwarded to the Comptroller of the Currency and destroyed, and replaced as now provided by reimburse the law: Provided, That each of said associations shall reimTreasury for cost burse to the Treasury the charges for transportation, and the new plates, etc. costs for assorting such notes; and the associations hereafter organized shall also severally reimburse to the Treasury See act July 12, 1882, sec. 8, page the cost of engraving such plates as shall be ordered by each association respectively; and the amount assessed upon each association shall be in proportion to the circulation redeemed, and be charged to the fund on deposit with Redemption the Treasurer: And provided further, That so much of secablished. tion thirty-two of said national-bank act requiring or perSCs. 5192 mitting the redemption of its circulating notes elsewhere pages 25, 26, and than at its own counter, except as provided for in this sec tion, is hereby repealed.

of redemption,


agents in cities

5195, and 5226,


Provisions for

tion and with

page 18.

1882, sec. 9, page


retiring circula. SEC. 4. That any association organized under this act, or drawing bonds. any of the acts of which this is an amendment, desiring to Seo Sec. 5167, withdraw its circulating notes, in whole or in part, may, upon the deposit of lawful money with the Treasurer of the United States in sums of not less than nine thousand dol See act July 12, lars, take up the bonds which said association has on deposit with the Treasurer for the security of such circulating notes, which bonds shall be assigned to the bank in the manner specified in the nineteenth section of the nationalbank act; and the outstanding notes of said association, to an amount equal to the legal-tender notes deposited, shall be redeemed at the Treasury of the United States, and dedrawal of bonds. Stroyed as now provided by law : Provided, That the amount See sccs. 5159, of the bonds on deposit for circulation shall not be reduced pages 16, 17, and below fifty thousand dollars.

Limit of with

5160, and 5167,


The charter

number of banks

SEC. 5. That the Comptroller of the Currency shall, under to be printed up. Such rules and regulations as the Secretary of the Treasury on their notes. may prescribe, cause the charter numbers of the associations

to be printed upon all national-bank notes which may be

hereafter issued by him.

amount of U. S.


SEC. 6. That the amount of United States notes outstand- Maximum ing and to be used as a part of the circulating medium shall notes outstand 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.

000,000 of circu

page 21.

act of Jan. 14,


SEC. 7. That so much of the act entitled "An act to pro- Provisions relative to withvide for the redemption of the three per cent. temporary drawal of $55. loan certificates, and for an increase of national-bank notes," lation. as provides that no circulation shall be withdrawn under See sec. 5179, the provisions of section six of said act, until after the fiftyfour millions granted in section one of said act shall have been taken up, is hereby repealed; and it shall be the duty Superseded by of the Comptroller of the Currency, under the direction of 1875, sec. 3, page the Secretary of the Treasury, to proceed forthwith, and he is hereby authorized and required, from time to time, as applications shall be duly made therefor, and until the full amount of fifty-five million dollars shall be withdrawn, to make requisitions upon each of the national banks described in said section, and in the manner therein provided, organized in States having an excess of circulation, to withdraw and return so much of their circulation as by said act may be apportioned to be withdrawn from them, or, in lieu thereof, to deposit in the Treasury of the United States lawful money sufficient to redeem such circulation; and upon the return of Bonds to be the circulation required, or the deposit of lawful money, as ciation in proporherein provided, a proportionate amount of the bonds held tion withdrawn. to secure the circulation of such association as shall make such return or deposit shall be surrendered to it.

returned to asso

tion to circula

Bonds to be

turn circulation.

act of Jan. 14,


page 37.

SEC. 8. That upon the failure of the national banks upon sold on failure of which requisition for circulation shall be made, or of any association to reof them, to return the amount required, or to deposit in the Superseded by Treasury lawful money to redeem the circulation required 1875, sec. 3, page within thirty days, the Comptroller of the Currency shall at once sell, as provided in section forty-nine of the national- See sec. 5231, currency act, approved June third, eighteen hundred and sixty-four, bonds held to secure the redemption of the circulation of the association or associations which shall so fail, to an amount sufficient to redeem the circulation required of such association or associations, and with the proceeds, which shall be deposited in the Treasury of the United States, so much of the circulation of such association or associations shall be redeemed as will equal the amount required and not returned; and if there be an excess of

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