EXTRACTS FROM THE LAWS
OF THE
IUNITED  STATES
RELATING TO
CURRENCY AND FINANCE;
CAMBRIDGE:
CHIARLE S W. SEVER,
UNIVERSITY BOOKSTORE.
1876.








EXTRACTS FROM THE LAWS
OF THE
IUNITED STATES
RELATING TO
CURRENCY AND FINANCE.
CAMBRIDGE:
CHIARLES W. SEVER,
UNIVERSITY BOOKSTORE.
1876.




Entered according to Act of Congress, in the year 1875, by
C. W. SEVER,
In the Office of the Librarian of Congress, at Washington.
Cambridge:
Press of 7ohn Wilson &, Son.




PREFATORY NOTE.
THIS compilation has been made for the purpose of bringing
the recent legislation of the United States on the subjects of
Currency and Finance within the easy reach of students of political economy.  The compiler has selected the leading Acts of
Congress which are necessary for an un(lerstanding  of our financial history since 1860; and has sought, by the omission of such
parts as seemed unimportant for the present object and by
the condensation of others, to blring into stronger relief thle
provisions which determine the character of the legislation.
Presented thus in their chronological relation, the acts and
resolutions of Congress are, it is believed, the best guide in
studying  the grave economical questions which have come up
in the United States during the last fourteen years.
D.
IIARVArD COLLEGE, March, 1875.








LEGISLATION
ON
CUPRRENCY AND FINANCE.
I.... August, 1846.- An Act to provide for the better Organization of the Treasury, and for the collection, Sctfe-keeping,
Transfer, and.Disbursement of the public Revenue.
Whereas, by the fourth section of the act entitled " An Act to
establish the Treasury Department," approved September two,
seventeen hundred and eighty-nine, it was provided that it shoulcd
be the duty of the Treasurer to receive and keep the moneys
of the United States, and to disburse the same lupon warrants
drawn by the Secretary of the Treasury, countersigned by
the Comptroller, and recorded by the Register, and not otherwise; and whereas it is found necessary to make further provisions to enable the Treasurer the better to carry into effect
the intent of the said section in relation to the receiving and
disbursing the moneys of the United States: Therefore,
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That the
rooms prepared and provided in the new treasury building
at the seat of government for the use of the Treasurer of the
United States, his assistants and clerks, and occupied by them,
and also the fire-proof vaults and safes erected in said rooms for
the keeping of the public moneys in the possession and under the
immediate control of said Treasurer, and such other apartments
as are provided for in this act as places of deposit of the public
money, are hereby constituted and declared to be the Treasury




6                INDEPENDENT TREASURY ACT.                  [1846.
of the United States.  And  ill moneys paid into the same shall
be. subject to the draft of the Treasurer, drawn agreeably to
appropriations made by law.
[By sections 2, 3, and 4, and by subsequent acts, the Mint at.Philadelphia, and the Branch Mints, the Assay Office at New York, the
offices of the Assistant Treasurers at New York, Boston, Philadelphia,
Baltimore, Charleston, New Orleans, Cincinnati, Clicago, St. Louis, and
San Francisco, and the Depositaries at Bufalo, Pittsburgh, Louisville,
Galveston, Santa Fe, and Tucson, are made "places of deposit."]
SEC. 6. And be it furtxher enacted, That the Treasurer of the
United States, the Treasurer of the Mint of the United States,
the treasurers, and those acting as such, of the various branch
mints, all collectors of the customs, all surveyors of the customs
actin(r also as collectors, all assistant treasurers, all receivers of
public moneys at the several land offices, all postmasters, and all
public officers of whatsoever character, be, and they are hereby,
required  to  keep safely, without loaning, using', depositing( in
banks, or excllaning for other funds than as allowed by this
act, all the public money collected by them, or otherwise at any
time placed in their possession and custody, till the same is
ordered, by the proper department or officer of the government,
to be transferred or paid out; and when such orders for transfer
or payment are received, faithfully and promptly to make the
samle as directedl....
[Section 9 requires that all collectors and receivers of public moneys
shall pay over the same, as often as may be directed by the Secretary of
the Treasury or the Postmaster-General, to the Treasurer, assistant
treasurer or depositary in their respective cities; and it is made the duty
of the Secretary of the Treasury and of the Post'master-General to
direct such payments to be made as often as once in every week.]
SEC. 18. And be it furtiher enacted, That on the first day of
January, in the year one thousand eight hundred and forty-seven,
and thereafter, all duties, taxes, sales of public lands, debts, and
sums of money accruing or becoming due to thle United States,
and also all sums due, for postages or otherwise, to the general
post-office department, shall be paid in gold and silver coin only,
or in treasury notes issued under the authority of thle United
States: Provided, That the Secretary of the Treasury shall.




1861.]                 NATIONAL LOAN.                          7
publish, monthly, in two newspapers at the city of Washington,
the amount of specie at the several places of deposit, the amount
of treasury notes or drafts issued, and the amount outstanding on
the last day of each month.
SEc. 19. And be it farther enacted, That on the first day of
April, one thousand eight hundred and forty-seven, and thereafter, every officer or agent engaged in making disbursements on
account of the United States, or of the general post-office, shall
make all payments in gold and silver coin, or in treasury notes,
if the creditor agree to receive said notes in payment....
[By the Act of March 3, 1857, every officer or agent having money of
the United States intrusted to him for disbursement, is required to deposit the same wvith the Treasurer. or with some Assistant Treasurer or
depositary, and to draw for it only in favor of the persons to whom payment is to be made; but money required for payment in sums under
twenty dollars can be drawn for by such officer or agent in his own name.
11 Statutes at Large, 249.]
[Approved, August 6, 1846. 9 Statutes at Large, 59.]
[I... July, 181z.- An Act to authorize a National Loan, and
for other Purposes.
Be it enacted,... That the Secretary of the Treasury be
and he is hereby, authorized to borrow  on the credit of the
United States, within twelve months from  the passage of this
act, a sum  not exceeding two hundred and fifty millions of
dollars, or so much thereof as he may deem  necessary for the
public service, for which  he is authorized to issue coupon
bonds, or registered bonds, or treasury notes, in such proportions of each as he may deem  advisable; the bonds to bear
interest not exceeding seven per centum  per annum, payable
semi-annually, irredeemable for twenty years, and after that
period redeemable at the pleasure of the United States; and
the treasury notes to be of any denomination fixed by the
Secretary  of the Treasury, not less than fifty dollars, and
to be payable three years after date, with interest at the
rate of seven and three tenths per centumn   per annum, payable
semi-annually.  And the Secretary of the Treasury may also
issue in exchange for coin, and as part of the above loan, or may
pay for salaries or other dues from  the United States, treasury




8                       DEMAND NOTES.                      [1861.
notes of a less denomination than fifty dollars, not bearing interest, but payable on demand by the Assistant Treasurers of the
United States at Philadelphia, New York, or Boston, or treasury notes bearing interest at the rate of three and sixty-five
hundredths per centum, payable in one year from  date, and exchangeable at any time for treasury notes for fifty dollars, and
upwards, issuable under the authority of this act, and bearing
interest as specified above: Provided, That no exchange of such
notes in any less amount than one hundred dollars shall be made
at any one time: And providedfurther, That no treasury notes
shall be issued of a less denomination than ten dollars, and that
the whole amount of treasury notes, not bearing interest, issued
under the authority of this act, shall not exceed fifty millions of
dollars.
[Section 3 authorizes the Secretary of the Treasury to open books for
subscriptions for the treasury notes, at such places as he may select; and,
if he thinks expedient, before opening such books, to pay out for public
dues, or for coin, or for the public debt, any amount of said treasury
notes not exceeding one hundred millions of dollars.
Section 4 provides for the issue of proposals in the United States for
such portion of the loan in bonds as the Secretary may determine, " Provided, That no offer shall be accepted at less than par."
Section 5 authorizes the Secretary of the Treasury to negotiate any
part of the loan, not exceeding one hundred millions of dollars, in any
foreign country; to make the principal and interest payable either in
the United States or in Europe; and to fix the rate of exchange at which
the principal shall be received, which rate shall also be the rate of exchange for the payment of the principal and interest in Europe.]
SIEC. 6. And be itfurther enacted, That whenever any treasury notes of a denomination less than fifty dollars, authorized to
be issued by this act, shall have been redeemed, the Secretary
of the Treasury may reissue the same. or may cancel them  and
issue new notes to an equal amount: Provided, That the aggregate amounts of bonds and  treasury notes issued under the
foregoing  provisions of this act shall never exceed  the full
amount authorized by the first section of this act; and the power
to issue or reissue such notes shall cease and determine after the
th-irty-first of December, eighteen hundred and sixty-two.
SEC. 7. And be it further enacted, That the Secretary of the
Treasury is hereby authorized, whenever he shall deem  it expe



1861.]          DEPOSIT OF PUBLIC MONEYS.                    9
dient, to issue in exchange for coin, or in payment for public
dues, treasury notes of any of the denominations hereinbefore
specified, bearing interest not exceeding six per centum per annum,
and payable at any time not exceeding twelve months from date,
provided that the amount of'notes so issued, or paid, shall at no
time exceed twenty millions of dollars.
[Approved, July 17, 1861. 12 Statutes at Large, 259.J
III.... August, 1861. - An Act supplementary to an Act entitled
"An Act to authorize a National Loan, andfjbr other Purposes."
[Section 1 authorizes the Secretary of the Treasury to issue bonds
bearing interest at six per cent. per annum, and payable at the pleasure
of the United States after twenty years from date, to be given in exchange for such treasury notes, bearing interest at seven and three-tenths
per cent., issued under the act of July 17, 1861, as the holders may present
for exchange before or at the maturity thereof. Any part of the treasury
notes payable on demand, authorized by said act, may be made payable
by the Assistant Treasurer at St. Louis, or the depositary at Cincinnati.]
SEC. 3. And be it further enacted, That so much of the act
to which this is supplementary as limits the denomination of a
portion of the treasury notes authorized by said act at not less
than ten dollars, be and is so modified as to authorize the Secretary of the Treasury to fix the denomination of said notes at
not less than five dollars.
SEC. 5. And be it further enacted, That the treasury notes
authorized by the act to which this is supplementary, of a less
denomination than fifty dollars, payable on demand without interest, and not exceeding in amount the sum of fifty millions of
dollars, shall be receivable in payment of public dues.
SEC. 6. And be itfurther enacted, That the provisions of the
act entitled 6 "An act to provide for the better organization of
the Treasury, and for the collection, safe-keeping, transfer,
and disbursements of the public revenue," passed August six,
eighteen hundred and forty-six, be and the same are hereby
suspended, so far as to allow the Secretary of the Treasury to
deposit any of the moneys obtained on any of the loans now
authorized by law, to the credit of the Treasurer of the United
States, in such solvent specie-paying banks as he may select;




10              FIRST LEGAL TENDER ACT.               [1862.
and the said moneys, so deposited, may be withdrawn from  such
deposit for deposit with the regular authorized depositaries, or
for the payment of public dues, or paid. in redemption of the
notes authorized to be issued under this act, or the act to which
this is supplementary, payable on demand, as may seem expedient
to, or be directed by, the Secretary of the Treasury.
SEC. 7. And be it further enacted, That the Secretary of the
Treasury may sell or negotiate, for any portion of the loan provided for in the act to which this is supplementary, bonds payable not more than twenty years from date, and bearing interest
not exceeding six per centurm per annum, payable semi-annually,
at any rate not less than the equivalent of par, for the bonds
bearing seven per centum interest, authorized by said act.
[Approved, August 5, 1861. 12 Statutes at Large, 313.1
IV.... February, 1862.-An Act to authorize an additional
Issue of Uizited States Notes.
Be it enacted,... That the Secretary of the Treasury, in
addition to the fifty millions of notes payable on demand of denominations not less than five dollars, heretofore authorized by
the acts of July seventeenth and August fifth, eighteen hundred
and sixty-one, be, and he is hereby, authorized to issue like
notes, and for like purposes, to the amount of ten millions of
dollars, and said notes shall be deemed part of the loan of two
hundred and fifty millions of dollars authorized by said acts.
[Approved, February 12, 1862. 12 Statutes at Large, 338.]
V....,. February, 1862.- An Act to authorize the Issue of United
States Notes, and for the Redemption or lFtnding thereof,
and for Funding thle Floating Debt of the United States.
Be it enacted,... That the Secretary of the Treasury is
hereby authorized to issue, on the credit of the United States, one
hundred and fifty millions of dollars of United States notes, not
bearing interest, payable. to bearer, at the Treasury of the United
States, and of such denominations as he may deem  expedient,
not less than five dollars each: Provided, however, That fifty
millions of said notes shall be in lieu of the demand treasury




1862.]        FIRST ISSUE OF FIVE-TWENTIES.               11
notes authorized to be issued by the act of July seventeen, eighteen hundred and sixty-one; which said demand notes shall be
taken up as rapidly as practicable, and the notes herein provided
for substituted for them: And provided further, That the amount
of the two kinds of notes together shall at no time exceed the
sum of one hundred and fifty millions of dollars, and such notes
herein authorized shall be receivable in payment of all taxes,
internal duties, excises, debts, and demands of every kind due to
the United States, except duties on imports, and of all claims and
demands against the United States of every kind whatsoever,
except for interest upon bonds and notes, which shall be paid in
coin, and shall also be lawful money and a legal tender in payment of all debts, public and private, within the United States,
except duties on imports and interest as aforesaid. And any
holders of said United States notes depositing any sum not less
than fifty dollars, or some multiple of fifty dollars, with the
Treasurer of the United States, or either of the Assistant Treasurers, shall receive in exchange therefor duplicate certificates of
deposit, one of which may be transmitted to the Secretary of the
Treasury, who shall thereupon issue to the holder an equal
amount of bonds of the United States, coupon or registered, as
may by said holder be desired. bearing interest at the rate of six
per centum per annum, payable semi-annually, and redeemable
at the pleasure of the United States after five years. and payable
twenty years from  the date thereof. And such United States
notes shall be received the same as coin, at their par value, in
payment for any loans that may be hereafter sold or negotiated
by the Secretary of the Treasury, and may be re-issued friom time
to time as the exigencies of the public interests shall require.
SEC. 2. And be it tfi/rter enacted, That to enable the Secretary of the Treasury to fund the treasury notes and floating
debt of the United States, he is hereby authorized to issue, on
the credit of the United States, coupon bonds, or registered bonds,
to an amount not exceeding five hundred millions of dollars,
redeemable at the pleasure of the United States after five years,
and payable twenty years from date, and bearing interest at the
rate of six per centum per annum, payable semi-annually.  And
the bonds herein authorized shall be of such denominations, not




12        TEMPORARY DEPOSITS: SINKING FUND.    [18G02
less than fifty dollars, as may be determined upon by the Secretary of the Treasury.  And the Secretary of the Treasury may
dispose of such bonds at any time, at the market value thereof,
for the coin of the United States, or for any of the treasury notes
that have been or may hereafter be issued under any former act
of Congress, or for United States notes that may be issued under
the provisions of this act; and all stocks, bonds, and other securities of the United States held by individuals, corporations, or
associations, within the United States, shall be exempt from
taxation by or under State authority.
SEC. 4. And be itfiurther enacted, That the Secretary of the
Treasury may receive from any person or persons, or any corporation, United States notes on deposit for not less than thirty
clays, in sums of not less than one hundred dollars, with ally of
the Assistant Treasurers or designated depositaries of the United
States authorized by the Secretary of the Treasury to receive
them, who shall issue therefor certificates of deposit, made in
such form as the Secretary of the Treasury shall prescribe, and
said certificates of deposit shall bear interest at the rate of five
per centum per annum; and any amount of United States notes
so deposited may be withdrawn from deposit at any time after
ten days' notice on the return of said certificates:  Provided,
That the interest on all such deposits shall cease and determine
at the pleasure of the Secretary of the Treasury: And provided
further, That the aggregate of such deposit shall at no time
exceed the amount of twenty-five millions of dollars.
SEC. 5. And be it further enacted, That all duties on imported goods shall be paid in coin, or in notes payable on
demand heretofore authorized to be issued and by law receivable
in payment of public dues, and the coin so paid shall be set apart
as a special fund, and shall be applied as follows:
First. To the payment in coin of the interest on the bonds
and notes of the United States.
Second. To the purchase or payment of one per centum of
the entire debt of the United States, to be made within each
fiscal year after the first day of July, eighteen hundred and sixtytwo, which is to be set apart as a sinking fund, and the interest
of which shall in like manner be applied to the purchase or pay



1862.]       CERTIFICATES OF INDEBTEDNESS.                13
m ent of the public debt as the Secretary of the Treasury shall
firon time to time direct.
Third. The residue thereof to be paid into the Treasury of the
United States.
[Approved, February 25, 1862. 12 Statutes at Large, 345.1
VI.... March, 1832. - An Act to authlorize the Secretary of the
Treasury to issue CertJficates of Inidebtedness to Public
Creditors.
Be it enacted,... That the Secretary of the Treasury
be, and lie is hereby authorized, to cause to be issued to any
public creditor who may be desirous to receive the same, upon
requisition of the head of the proper department in satisfaction
of audited and settled demands against the United States, certificates for the whole amount due or parts thereof not less than
one thousand dollars, signed by the Treasurer of the United
States, and countersigned as may be directed by the Secretary
of the Treasury; which certificates shall be payable. in one year
from date or earlier, at the option of the Government, and shall
bear interest at the rate of six per centum per annum.
[Approved, Marcih 1, 1862. 12 Statutes at Large, 352.]
VII.... March, 1862.- An Act to autlhorize the Purchase of
Uoin, and for other Purposes.
Be it enacted,...   That the Secretary of the Treasury
may purchase coin with any of the bonds or notes of the United
States, authorized by law, at such rates and upon such terms as
he may deem most advantageous to the public interest; and may
issue, under such rules and regulations as he may prescribe, certificates of indebtedness, such as are authorized by an act entitled "6 An act to authorize the Secretary of the Treasury to
issue certificates of indebtedness to public creditors," approved
AMarch first, eighteen hundred and sixty-two, to such creditors as
may desire to receive the same, in discharge of checks drawn by
disbursing officers upon sums placed to their credit on the books
of the Treasurer, upon requisitions of the proper departments,
as well as in discharge of audited and settled accounts, as provided by said act.




14             SECOND LEGAL TENDERB ACT.              [1862.
SEc. 2. And be it further enacted, That the demand-notes
authorized by the act of July seventeenth, eighteen hundred and
sixty-one, and by the act of February twelfth, eighteen hundred
and sixty-two, shall, in addition. to being receivable in payment
of duties on imports, be receivable, and shall be lawful money
and a legal tender, in like manner, and for the same purposes,
and to the same extent, as the notes authorized by an act entitled "'An act to authorize the issue of United States notes,
and for the redemption or funding thereof, and for funding the
floating debt of the United States," approved February twentyfifth, eighteen hundred and sixty-two.
SEc. 3. And be it farther enacted, That the limitation upon
temporary deposits of United States notes with any Assistant
Treasurers or designated depositaries, authorized by the Secretary of the Treasury to receive such deposits, at five per cent.
interest, to twenty-five millions of dollars, shall be so far modified as to authorize the Secretary of the Treasury to receive
such deposits to an amount not exceeding fifty millions of dollars,
and that the rates of interest shall be prescribed by the Secretary of the Treasury not exceeding the annual rate of five per
centum.
[Approved, March 17, 1862. 12 Statutes at Large, 370.]
VIII.... July, 1.62. —A  Act to authorize an additional Issue
of United States Notes, and for other Purposes.
Be it enacted,... That the Secretary of the Treasury
is hereby authorized to issue, in addition to the amounts heretofore authorized, on the credit of the United States, one hundred
and fifty millions of dollars of United States notes, not bearing
interest, payable to bearer at the Treasury of the United States,
and of such denominations as he may deem expedient: Provided,
That no note shall be issued for the fractional part of a dollar,
and not more than thirty-five millions shall be of lower denominations than five dollars; and such notes shall be receivable
in payment of all loans made to the United States, and of all
taxes, internal duties, excises, debts, and demands of every kind
due to the United States, except duties on imports and interest,




1862.]     INCREASE OF TEMPORARY DEPOSITS,                15
and of all claims and demands against the United States, except
for interest upon bonds, notes, and certificates of debt or deposit;
and shall also be lawful money and a legal tender in payment of
all debts, public and private, within the United States, except
duties on imports and interest, as aforesaid. And any holder of
said United States notes depositing any sum not less than fifty
dollars, or some multiple of fifty dollars, with the Treasurer of
the United States, or either of the assistant treasurers, shall receive in exchange therefor duplicate certificates of deposit, one
of which may be transmitted to the Secretary of the Treasury,
who shall thereupon issue to the holder an equal amount of bonds
of the United States, coupon or registered, as may by said holder
be desired, bearing interest at the rate of six per centum per annum, payable semi-annually, and redeemable at the pleasure of
the United States after five years, and payable twenty years
from the date thereof: Provided, however, That any notes issued
under this act may be paid in coin, instead of being received in
exchange for certificates of deposit as above specified, at the
direction of the Secretary of the Treasury. And the Secretary
of the Treasury may exchange for such notes, on such terms as
he shall think most beneficial to the public interest, any bonds of
the United States bearing six per centum interest, and redeemable after five and payable in twenty years, which have been or
may be lawfully issued under the provisions of any existing act;
may reissue the notes so received in exchange; may receive
and cancel any notes heretofore lawfully issued under any act of
Congress, and in lieu thereof issue an equal amount in notes
such as are authorized by this act; and may purchase, at rates
not exceeding that of the current market, and cost of purchase not
exceeding one-eighth of one per centum, any bonds or certificates of debt of the United States as he may deem advisable.
SEC. 3. And be it further enacted, That the limitation upon
temporary deposits of United' States notes with any Assistant
Treasurer or designated depositary authorized by the Secretary
of the Treasury to receive such deposits, to fifty millions of dollars be, and is hereby, repealed; and the Secretary of the Treasury is authorized to receive such deposits, under such regulations
as he may prescribe, to such amount as he may deem expedient,




16                  POSTAGE CURRENCY.                 [1862.
not exceeding one hundred millions of dollars, for not less than
thirty days, in sums not less than one hundred dollars, at a rate
of interest not exceeding five per centum per annum; and any
amount so deposited may be withdrawn from deposit, at any time
after ten days' notice, on the return of the certificate of deposit.
And of the amount of United States notes authorized by this act,
not less than fifty millions of dollars shall be reserved for the
purpose of securing prompt payment of such deposits when demanded, and shall be issued and used only when, in the judgment
of the Secretary of the Treasury, the same or any part thereof
may be needed for that purpose. And certificates of deposit
and of indebtedness issued under this or former acts may be received on the same terms as United States notes in payment for
bonds redeemable after five and payable in twenty years.
SEC. 4. And be it further enacted, That the Secretary of the
Treasury may, at any time until otherwise ordered by Congress,
and under the restrictions imposed by the " Act to authorize a
national loan, and for other purposes," borrow, on the credit of
the United States, such part of the sum of two hundred and
fifty millions mentioned in said act as may not have been borrowed, under the provisions of the same, within twelve months
from the passage thereof.
SEc. 6. And be it farther enacted, That all the provisions of
the act entitled " An act to authorize the issue of United States
notes, and for the redemption or funding thereof, and for funding
the floating  debt of the United States," approved February
twenty-five, eighteen hundred and sixty-two, so far as the same
can or may be applied to the provisions of this act, and not inconsistent therewith, shall apply to the notes hereby authorized
to be issued.
[Approved, July 11, 1862. 12 Statutes at Large, p. 532.]
IX.... July, 1862. - An Act to authorize Payments in Stamps,
and to prohibit Circulation of Notes of less Denomination
than One -Dollar.
Be it enacted,..   That the Secretary of the Treasury
be, and he is hereby directed to furnish to the Assistant Treasirers, and such designated depositaries of the United States as




1862.]          LEGAL TENDER RESOLUTION.                  17
may be by him selected, in such sums as he may deem expedient,
the postage and other stamps of the United States, to be exchanged by them, on application, for United States notes; and
from and after the first day of August next such stamps shall be
receivable in payment of all dues to the United States less than
five dollars, and' shall be received in exchange for United States
notes when presented to any Assistant Treasurer or any designated depositary selected as aforesaid in sums not less than five
dollars.
SEIc. 2. And be it further enacted, That from  and after the
first day of August, eighteen hundred and sixty-two, no private
corporation, banking association, firm, or individual shall make,
issue, circulate, or pay any note, check, memorandum, token, or
other obligation, for a less sum than one dollar, intended to circulate as money or to be received or used in lieu of lawful
money of the United States.
[Approved, July 17, 1862. 12 Statutes at Large, 592.]
X.... January, 1863.- Joint Resolution to provide for the irmmediate Payment of th/e Army and Navy of the Uniited
States.
Whereas it is deemed expedient to make immediate provision for
the payment of the army and navy: therefore,
Be it resolved,...  That the Secretary of the Treasury be,
and he is hereby, authorized, if required by the exigencies of
the public service, to issue on the credit of the United States
the sum of one hundred millions of dollars of United States
notes, in such form as he may deem  expedient, not bearing interest, payable to bearer on demand, and of such denominations not less than one dollar, as he may prescribe, which notes
so issued shall be lawful money and a legal tender, like the
similar notes heretofore authorized in payment of all debts,
public and private, within the United States, except for duties on
imports and interest on the public debt; and the notes so issued
shall be part of the amount provided for in any bill now pending
for the issue of treasury notes, or that may be passed hereafter
by this Congress.
[Approved, January 17, 1863. 12 Statutes at Large, p. 822.]
2




18 NATIONAL BANKS. NINE HUNDRED MILLION LOAN. [1863.
XI.... February, 1853. - An Act to provide a National Currency, secured by a Pledge of Unzited States Stocks, and to
provide for the Circulation and Redemption thereof.
[This act was repealed and superseded by the act of similar title approved June 3, 1864. For the principal points of difference between the
two acts, see tle note on p. 34.]
[Approved, February 25, 1863. 12 Statutes at Large, 665.]
XII....  March, 1853.- An Act to provide Ways and Means for
the Support of the Government.
Be it enacted,.. That the Secretary of the Treasury
be, and he is hereby, authorized to borrow, from time to time, on
the credit of the United States, a sum not exceeding three
hundred millions of dollars for the current fiscal year, and six
hundred millions for the next fiscal year, and to issue therefor
coupon or registered bonds, payable at the pleasure of the government after such periods as may be fixed by the Secretary,
not less than ten nor more than forty years from date, in coin,
and of such denominations not less than fifty dollars, as he may
deem expedient, bearing interest at a rate not exceeding six per
centum per annum, payable on bonds not exceeding one hundred
dollars, annually, and on all other bonds semi-annually, in coin;
and he may in his discretion dispose of such bonds at any time,
upon such terms as he may deem  most advisable, for lawful
money of thie United States, or for any of the certificates of indebtedness or deposit that may at any time be unpaid, or for any
of the treasury notes heretofore issued or which may be issued
under the provisions of this act. And all the bonds and treasury notes or United States notes issued under the provisions of
this act shall be exempt from taxation by or under State or municipal authority: Provided, That there shall be outstanding of
bonds, treasury notes, and United States notes, at any time.
issued under the provisions of this act, no greater amount alto.
gether than the sum of nine hundred millions of dollars.
SEc. 2. And be it further enacted, That the Secretary of the
Treasury be, and he is hereby, authorized to issue, on the credit
of the United States, four hundred millions of dollars in treasury notes, payable at the pleasure of the United States, or at




1863.]          THIRD LEGAL TENDER ACT.                   19
such time or times not exceeding three years from date, as may
be found most beneficial to the public interest, and bearing inlterest at a rate not exceeding six per centum per annum, payable
at periods expressed on the face of said treasury notes; and the
interest on the said treasury notes and on certificates of indebtedness and deposit hereafter issued, shall be paid in lawful money.
Thle treasury notes thus issued shall be of such denomination
as the Secretary may direct, not less than ten dollars, and may
be disposed of on the best terms that can be obtained, or may
be paid to any creditor of the United States willing to receive
the same at par. And said treasury notes may be made a legal
tender to the same extent as United States notes, for their face
value excu:lding interest; or they may,be made exchangeable
under reu,.ations prescribed by the Secretary of the Treasury,
by the holder thereof, at the Treasury in the city of Washington,
or at the office of any Assistant Treasurer or depositary designated
for that purpose, for United States notes equal in amount to the
treasury notes offered for exchange, together with the interest
accrued and due thereon at the date of interest payment next
preceding such exchange. And in lieu of any amount of said
treasury notes thus exchanged, or redeemed or paid at maturity,
the Secretary may issue an equal amount of other treasury
notes; and the treasury notes so exchanged, redeemed, or paid,
shall be cancelled and destroyed as the Secretary may direct.
In order to secure certain and prompt exchanges of TUnited
States notes for treasury notes, when required as above provided, the Secretary shall have power to issue United States
notes to the amount of one hundred and fifty millions of dollars,
which may be used if necessary for such exchanges; but no
part of the United States notes authorized by this section sliall
be issued for or applied to any other purposes than said exchanges; and whenever any amount shall have been so issued
and applied, the same shall be replaced as soon as practicable
from the sales of treasury notes for United States notes.
SEic. 3. And be itfurt/zer enacted, That the Secretary of tile
Treasury be, and he is hereby, authorized, if required by the exigencies of the public service, for the payment of the army and
navy, and other creditors of the government, to issue on the




20                FRACTIONAL CURRENCY.                [1863.
credit of the United States the sum of one hundred and fifty
millions of dollars of United States notes, including the amount of
such notes heretofore authorized by the joint resolution approved
January seventeen, eighteen hundred and sixty-three, in such
form as he may deem expedient, not bearing interest, payable to
bearer, and of such denominations, not less than one dollar, as
he may prescribe, which notes so issued shall be lawful money
and a legal tender in payment of all debts, public and private,
within the United States, except for duties on imports and interest on the public debt; and any of the said notes, when returned to the Treasury, may be re-issued from time to time as
the exigencies of the public service may require.  And in lieu
of any of said notes, or any other United States notes, returned
to the Treasury, and cancelled or destroyed, there may be issued
equal amounts of United States notes, such as are authorized
by this act. And so much of the act to authorize the issue of
United States notes, and for other purposes, approved February twenty-five, eighteen hundred and sixty-two, and of the
act to authorize an additional issue of United States notes, and
for other purposes, approved July eleven, eighteen hundred and
sixty-two, as restricts the negotiation of bonds to market value,
is hereby repealed.  And the holders of United States notes,
issued under and by virtue of said acts, shall present the same
for the purpose of exchanging the same for bonds, as therein provided, on or before the first day of July, eighteen hundred and
sixty-three, and thereafter the right so to exchange the same
shall cease and determine.
SEC. 4. And be it fmurther enacted, That iri lieu of postage and
revenue stamps for fractional currency, and of fractional notes,
commonly called postage currency, issued or to be issued, the
Secretary of the Treasury may issue fractional notes of like
amounts in such form as he may deem expedient, and may provide for the engraving, preparation and issue thereof, in the
Treasury Department building. And all such notes issued shall
be exchangeable by the Assistant Treasurers and designated depositaries for United States notes, in sums not less than three
dollars, and shall be receivable for postage and revenue stamps,
and also in payment of any dues to the United States less than




1863.]        TEMPORARY DEPOSITS OF GOLD.                   21
five dollars, except duties on imports, and shall be redeemed oi
presentation at the Treasury of the United States in such sums
and under such regulations as the Secretary of the Treasury
shall prescribe: Provided, That the whole amount of fractional
currency issued, including postage and revenue stamps issued as
currency, shall not exceed fifty millions of dollars.
SmIc. 5. AnJd be it furt]her enacted, That the Secretary of thle
Treasury is hereby authorized to receive deposits of gold coin
and bullion with the Tre;isurer or any Assistant Treasurer of the
United States, in sums not less than twenty dollars, and to issue
certificates therefor, in denominations of not less than twenty
dollars each, corresponding with the denominations of the United
States notes. The coin and bullion deposited for or representing
the certificates of deposit shall be retained in the Treasury for
the payment of the same on demand. And certificates representing coin in the Treasury may be issued in payment of interest on the public debt, which certificates, together with those
issued for coin and bullion deposited, shall not at any time exceed twenty per centum beyond the amount of coin and bullion
in the Treasury; and the certificates for coin or bullion in the
Treasury shall be received at par in payment for duties on
imports.
[Section 7, after providing for taxes to be laid upon the c'rculation of
all banks andl corporations, whether established under state laws or under
the act of February 25, 1863, directs that all banks, corporations, or individuals issuing notes for any fractional part of a dollar after April 1,
1863, shall be teaxed ten per cent. per annum upon the amount of such
fractional notes.]
[Approved, March 3, 1863. 12 Statutes at Large, 709.]
XIII.... March, 1864. - An Act supplementary to an Act entitled
"An Act to provide JWays and Means for the Support of t/he
Government," approved March third, eighteen hundred and
sixty-three.
[Section 1 provides that in lieu of so much of the loan authorized
by the Act of March 3, 1863, the Secretary of the Treasury may issue
not exceeding two hundred millions of dollars of coupon or registered
bonds, redeemable not less than live years and payable not more than
forty years from date in coin, with the same provisions as to denom'nation, interest, method of disposal, and exemption from taxation a, in
section 1 of the Act of March 3, 1863.




22             BANK ACT: THE COMPTROLLER.                [1864.
Section 2 authorizes tile Secretary of the Treasury to issue bonds
under the Act of February 25, 1862, in excess of five hundred millions of
dollars, to the amount of eleven millions, to such persons as subscribed
for them on or before January 21, 1864, and have paid for them.]
[Approved, March 3, 1864. 13 Statutes at Large, 13]
XIVT.... March, 184. - Joint Resolution to authorize the Secretary of the Treasury to anticipate the Payment of Interest
on the Public Debt, and for other Purposes.
Be it resolved,...  That the Secretary of the Treasury be
authorized to anticipate the Ipayment of interest on the public
debt, by a period not exceeding one year, from time to time,
either with or without a rebate of interest upon the coupons, as
to him may seem expedient; and he is hereby authorized to dispose of any gold in the Treasury of the United States not necessary for the payment of interest of the public debt: Provided,
That the obligation to create the sinking fund according to the
Act of February twenty-fifth, eighteen hundred and sixty-two,
shall not be impaired thereby.
[Approved, March 17, 1864. 13 Statutes at Large, 404.]
XV.... June, 1864. -  Anz  Act to provide a National Currency,
secured by a Pledge of Unzited States ]Bonds, and to provide
for the Circulatioon and Redemnption thereof.
IBe it enacted,...  That there shall be established in the
Treasury Department a separate bureau, which shall be charged
with the execution of this and all other laws that may be passed
by Congress respecting the issue and regulation of a national
currency secured by United States bonds. The chief officer of
the said bureau shall be denominated the Comptroller of the
Currency, and shall be under the general direction of the Secretary of the Treasury.  Ile shall be appointed by the President,
on the recommendation of the Secretary of the Treasury, by
and with the advice and consent of the Senate, and shall hold
his office for the term of five years unless sooner removed by
the President, upon reasons to be communicated by him  to the
Senate; he shall receive an annual salary of five thousand
dollars..
[He shall give a bond in the penalty of $100,000 for the faithlful discharge of his duties; shall have a competent deputy, who shall give a




1864.]              BANK ACT: CAPITAL.                       23
like bond for $50,000; and neither the Comptroller nor the DeputyComptroller shall "be interested" in any association issuing currency
under the provisions of this act.
Section 5 provides that an association for carrying on the business ot
banking may be formed by any number of persons not less than five,
who shall enter into articles stating the object of the association and
containing provisions for regulating its business not inconsistent with
this act. A copy of these articles must be forwarded to the Comptroller,
together with a certificate of organization, specifying the name of the
association, whlich shall be subject to the approval of the Comptroller,
the place where it is located, the amount of its capital, and the names
and residences of its stockholders. But the association shall not begin
the business of banking until it is authorized by the Comptroller. It
shall be a body-corporate from the date of its organization-certificate,
and shall continue for twenty years unless sooner dissolved under the
provisions of this act, and shall have all such incidental powers as are
necessary to carry on the business of banking, by discounting, receiving
deposits, lending money on personal security, buying and selling exchange, coin and bullion, and issuing and circulating notes under the
provisions of this act.]
SEC. 7. And be itfurther enacted, That no association shall
be organized under this act, with a less capital than one hundred
thousand dollars, nor in a city whose population exceeds fifty
thousand persons, with a less capital than two hundred thousand
dollars: Provided, That banks with a capital of not less than
fifty thousand dollars may, with the approval of the Secretary
of the Treasury, be organized in any place the population of
which does not exceed six thousand inhabitants.
[Every association is to be managed by not less than five directors,
one of whom shall be its president; every director must own at least ten
shares of the capital stock in his own right and in no way pledged for
any debt; all elections of directors, after the first, are to be held annually in the month of January; every shareholder is to have one vote
for every share of the stock owned by him; but no shareholder whose
liability is past due and unpaid is to be allowed to vote.]
SEC. 12. And be it further enacted, That the capital stock of
any association formed under this act shall be divided into shares
of one hundred dollars each, and be deemed personal property
and transferable on the books of the association in such manner
as may be prescribed in the by-laws or articles of association.
1.. The shareholders of each association formed under the provisions of this act, and of each existing bank or banking asso



24            BANK ACT: DEPOSIT OF BONDS.               [1864.
ciation that may accept the provisions of this act, shall be held
individually responsible, equally and ratably, and not one for
another, for all contracts, debts, and engagements of such association to the extent of the amount of their stock therein at the
par value thereof, in addition to'the amount invested in such
shares.. 
[But shareholders of any banking association now existing under
State laws, having inot less than five millions of capital and a surplus of
twenty per cent. on hand, shall be liable only to the amount invested in
their shares; but said surplus shall be in addition to that elsewhere required by this act, and shall be kept undiminished.
Section 13 provides that any association may increase its capital or
may diminish the same, subject to the approval of the Comptroller.]
SEC. 14. And be it.further enacted, That at least fifty per
centuma of the capital stock of every association shall be paid in
before it shall be authorized to commence business; and the remainder of the capital stock of such association shall be paid in
instalments of at least ten per centum each on the whole amount
of the capital as firequently as one instalment at the end of each
succeeding month from the time it shall be authorized by the
Comptroller to commence business; and the payment of each
instalment shall be certified to the Comptroller, under oath, by
the president or cashier of the association.
SEc. 16. And be it further enacted, That every associationi,
after having complied with the provisions of this act, preliminary
to the commencement of banking business, under its provisions,
and before it shall be authorized to commence business, shall transfer and deliver to the Treasurer of the United States any United
States registered bonds bearing interest to an amount not less
than thirty thousand dollars nor less than one third of the capital
stock paid in, which bonds shall be deposited with the Treasurer
of the United States and by him safely kept in his office until the
same shall be otherwise disposed of, in pursuance of the provisions of this act.... And the deposit of bonds shall be, by every
association, increased as its capital may be paid up or increased, so
that every association shall at all times have on deposit with the
Treasurer registered United States bonds to the amount of at
least one third of its capital stock actually paid in: Provided,




1864.]       BANK ACT: CIRCULATING NOTES.                  25
That nothing in this section shall prevent an association that
may desire to reduce its capital or to close up its business and
dissolve its organization from taking up its bonds upon returning
to the Comptroller its circulating notes in the proportion hereinafter named in this act, nor from  taking up any excess of
bonds beyond one third of its capital stock and upon which no
circulating notes have been delivered.
SEc. 21. And be it further enacted, That upon the transfer
and delivery of bonds to the Treasurer, as provided in the foregoing section, the association making the same shall 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 said bonds at the par value thereof, if
bearing interest at a rate not less than five per centum  per annum; and at no time shall the total amount of such notes, issued
to any such association, exceed the amount at such time actually
paid in of its capital stock.
SEc. 22. And be it further enacted, That the entire amount
of notes for circulation to be issued under this act shall not exceed three hundred millions of dollars. In order to furnish
suitable notes for circulation, the Comptroller of the Currency
is hereby authorized and required, under the direction of the
Secretary of the Treasury, to cause plates and dies to be engraved, in the best manner to guard against counterfeiting and
fraudulent alterations, and to 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, under this act, the associations entitled to receive the
same; which 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 Regrister, and by the imprint of the seal of
the Treasury; and shall also express upon their face the prom



26         BANK ACT: NOTES TO BE RECEIVABLE.    [1864.
ise of the association receiving the same to pay on demand, attested by the signatures of the president or vice-president and
cashier.  And the said notes shall bear such devices and such
other statements, and shall be in such form, as the Secretary
of the Treasury  shall, by regulation, direct: Provided, That
not more than one-sixth part of the notes furnished to an association shall be of a less denomination than five dollars, and
that after specie payments shall be resumed no association
shall be furnished with notes of a less denomination than five
dollars.
SEc. 23. And be it further enacted, That after any such association shall have caused its promise to pay such notes on demand to be signed by the president 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 is hereby authorized to 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 for 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. And no such association shall issue post notes or any other notes to circulate as
money than such as are authorized by the foregoing provisions
of this act.
[Section 24 provides that the Comptroller shall receive the worn-out
or mutilated notes of any association, and shall deliver to it fresh notes
in place thereof, and that the worn-out or mutilated notes shall be burned
in presence of four persons, appointed by the Secretary of the Treasury,
the Comptroller, the Treasurer of the United States and the association,
respectively.]
SEC. 26. And be it further enacted, That the bonds transferred
to and deposited with the Treasurer of the United States, as
hereinbefore provided, by any banking association for the security of its circulating notes, shall be held exclusively for that
purpose, until such notes shall be redeemed, except as provided
in this act; but the Comptroller of the Currency shall give to




1864.]        BANK ACT: RATE OF INTEREST.                    27
any such banking association powers of attorney to receive and
appropriate to its own use the interest on the bonds which it
shall have so transferred to the Treasurer; but such powers
shall become inoperative whenever such banking association shall
fail to redeem  its circulating notes as aforesaid.  Whenever
the market or cash value of any bonds deposited with the Treasurer of the United States, as aforesaid, shall be reduced below
the amount of the circulation issued for the same, the Comptroller of the Currency is hereby authorized to demand and receive the amount of such depreciation in other United States
bonds at cash value, or in money, fiom the association receiving
said bills, to be deposited with the Treasurer of the United
States as long as such depreciation continues.
[And the Comptroller may permit the exchange of any of the bonds
so deposited for other bonds of the United States, or the return of any
of them upon the surrender and cancellation of a proportionate amount
of the circulating notes; providded, the remaining bonds are sufficient for
the requirements of this act, and the association has not failed to redeem
its circulating notes.
Section 28 forbids any association to hold real estate, except such as
may be necessary for its accommodation in its business, or may be mort-.gaged to it as security for debts previously contracted, or conveyed to it
in satisfaction thereof, or may be purchased by it in order to secure debts
due to it; or to hold possession under a mortgage, or to retain real
estate purchased to secure debts, for more than five years.]
SEC. 29. And be it further enacted, That the total liabilities
to any association, of any person, or of any company, corporation, or firm for money borrowed, including in the liabilities of a
company or firm the liabilities of the several members thereof,
shall at no time exceed one tenth part of the amount of the
capital stock of such association actually paid in: Provided,
that the discount of boni fide bills of exchange drawn against
actually existing values, and the discount of commercial or
business paper actually owned by the person or persons, corporation, or firm negotiating the same shall not be considered as
money borrowed.
[Section 30 authorizes every association to charge upon loans or discounts made by it the rate of interest which the law of the State where
it is established allows banks, organized under State laws, to charge;
and, where no rate is fixed by the law of the State, to charge a rate not




28                 BANK ACT: RESERVES.                 [1864.
exceeding seven per cent, But the purchase or sale of a bonafide bill of
exchange, payable at another place, at not more than the current rate of
exchange in addition to the interest, shall not be considered as taking a
greater rate of interest.]
SEC. 31. And be itfurther enacted, That every association in
the cities hereinafter named shall, at all times, have on hand, in
lawful money of the United States, an amount equal to at least
twenty-five per centum of the aggregate amount of its notes in
circulation and its deposits; and every other association shall,
at all times, have on hand, in laswful money of the United States,
anl amount equal to'at least fifteen per centunu of the aggreogate
amount of its notes in circulation, and of its deposits. And whenever the lawful money of any association in any of the cities
hereinafter named shall be below the amount of twenty-five per
centurn of its circulation and deposits, and whenever the lawful
money of any other association shall be below fifteen per centum  of its circulation and deposits, such association shall not
increase its liabilities by making any new  loans or discounts
otherwise than by discounting or purchasing bills of exchange
payable at sight, nor make any dividend of its profits until the
required proportion between the aggregate amount of its outstanding notes of circulation and deposits and its lawful money
of the United States shall be restored: Provided, That three
fifths of said fifteen per centum  may consist of balances due to
an association available for the redemption of its circulating
notes fiom associations approved by the Comptroller of the
Currency, organized under this act, in the cities of Saint Louis,
Louisville, Chicago, Detroit, Milwaukie, New  Orleans, Cincinnati, Cleveland, Pittsburg, Baltimore, Philadelphia, Boston, New
York, Albany, Leavenworth, San Francisco, and Washington
City: Provided, also, That clearing-house certificates, representing specie or lawful money specially deposited for the purpose
of any clearing-house association, shall be deemed to be lawful
money in the possession of any association belonging to such
clearing-house holding and owning such certificate, and shall be
considered to be a part of the lawful money which such association is required to have under the foregoing provisions of this
section: Provided, That the cities of Charleston and Richmond




1864.]      BANK ACT: REDEMPTION OF NOTES.                 29
may be added to the list of cities in the national associations of
which other associations may keep three fifths of their lawful
money, whenever, in the opinion of the Comptroller of the
Currency, the condition of the Southern States will warrant it.
And it shall be competent for the Comptroller of the Currency
to notify any association, whose lawful money reserve as aforesaid shall be below the amount to be kept on hand as aforesaid,
to make good such reserve; and if such association shall fail for
thirty days thereafter so to make good its reserve of lawfil
money of the United States, the Comptroller may, with the concurrence of the Secretary of the Treasury, appoint a receiver
to wind up the business of such association, as provided in this
act.
SEc. 32. And be it further enacted, That each association organized in any of the cities named in the foregoing section shall
select, subject to the approval of the Comptroller of the Currency, an association in the city of New York, at which it will
redeem its circulating notes at par. And each of such associations may keep one half of its lawful money reserve in cash
deposits in the city of New York. And each association not
organized within the cities named in the preceding section shall
select, subject to the approval of the Comptroller of the Currency, an association in either of the cities named in the preceding section at which it will redeem its circulating notes at par,
and the Comptroller shall give public notice of the names of the
associations so selected at which redemptions are to be made by
the respective associations, and of any change that may be made
of the association at which the notes of any association are redeemed.  If any association shall fail either to make the selection or to redeem its notes as aforesaid, the Comptroller of the
Currency may, upon receiving satisfactory evidence thereof,
appoint a receiver, in the manner provided for in this act, to
wind up its affairs: Provided, That nothing in this section shall
relieve any association from its liability to redeem  its circulating
notes at its own counter, at par, in lawful money, on demand:
And provided, further, That every association formed or existing
under the provisions of this act shall take and receive at par, for
any debt or liability to said association, any and all notes or bills




30           BANK ACT: SURPLUS.: LIABILITIES.              [1864.
issued by any association existing under and by virtue of this
act.
SEC. 33. And be it further enacted, That the directors of any
association may, semi-annually, each year, declare a dividend of
so much of the net profits of the association as they shall judge
expedient; but each association shall, before the declaration of a
dividend, carry one tenth part of its net profits of the preceding half year to its surplus fund until the same shall amount to
twenty per centum of its capital stock.
[Section 34 provides for quarterly reports of the condition of every
association, to be made by its officers to the Comptroller and publislied
by him, and also for monthly reports to be made to him. This section
was superseded by the Act of March 3, 1869, which directs that every
association shall make at least five reports annually of its resources and
liabilities on any past day specified by the Comptroller, and shall publish
the same in a newspaper in the place where the association is established; and that every association shall also report to the Comptroller
the amount of its net earnings and dividends, and make such further
special reports as he may call for. 15 Statutes at Large, 326.]
SEC. 35. And be it further enacted, That no association shall
make any loan or discount on the security of the shares of its
own capital stock, nor be the purchaser or holder of any such
shares, unless such security or purchase shall be necessary to
prevent loss upon a debt previously contracted in good faith;
and stock so purchased or acquired shall, within six months from
the time of its purchase, be sold or disposed of at public or
private sale, in default of which a receiver may be appointed to
close up the business of the association, according to the provisions of this act.
SEC. 36. And be itfurther enacted, That no association shall
at any time be indebted, or in any way liable, to an amount exceeding the amount of its capital stock at such time actually
paid in and remaining undiminished by losses or otherwise, except
on the following accounts, that is to say:
First. On account of its notes of circulation.
Second. On account of moneys deposited with, or collected
by, such association.
Third. On account of bills of exchange or drafts drawn




1864.1  BANK ACT: EXPENSES OF BUREAU: TAXES.                31
against money actually on deposit to the credit of such association, or due thereto.
Fourth. On account of liabilities to its stockholders for dividends and reserved profits.
SEc. 37. And be itfurther enacted, That no association shall,
either directly or indirectly, pledge or hypothecate any of its
notes of circulation, for the purpose of procuring money to be
paid in on its capital stock, or to be used in its banking operations, or otherwise; nor shall any association use its circulating
notes, or any part thereof, in any manner or form, to create or
increase its capital stock.
[Section 38 forbids any association, while continuing its business, to
withdraw or permit to be withdrawn any of its capital, except as provided in section 13, or to make any dividend to an amount exceeding its
net profits then on hand, deducting therefrom its losses and bad debts;
and for this purpose all debts on which interest is past due and unpaid
for six months, unless they are well secured and in process of collection,
are to be held bad.
Section 39 forbids any association to pay out or put in circulation the
notes of any bank or association which are not at the time receivable at
par by the association paying them out; or to pay out or put in circulation the notes of any bank or association which is not redeeming its
notes in lawful money.]
SEc. 41. And be itfurther enacted, That 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 provisions of this act respecting the procuring of
such notes, and all other expenses of the bureau, shall be paid
out of the proceeds of the taxes or duties now or hereafter to
be assessed on the circulation, and collected from associations
organized under this act.
[It is then provided that every association shall pay to the United
States a tax of one per cent. per annum on the average amount of its
notes in circulation, one half of one per cent. on the average amount of
its deposits, and one half of one per cent. on its capital stock beyond the
amount invested in United States bonds. But the shares of any association may be taxed as personal property by the State in which it is
located, and not elsewhere, at a rate not greater than is imposed upon
other moneyed capital in the hands of the citizens of the State, or upon




32       EBANK ACT: DEPOSITS OF PUBLIC MONEY.   [1864.
the shares of banks organized under the authority of the State; and the
real estate of associations shall be subject to State, county, and municipal taxes to the same extent as other real estate.
Section 42 provides for the closing of any association upon the vote
of shareholders owning two thirds of its capital, and for calling in its
notes. Under this section, as modified by tile Act of July 14, 1870, any
association thus voting to close its affairs must within six months pay to
the Treasurer of the United States the amount of its outstanding notes
in lawful money; whereupon the bonds pledged as security for its circulation shall be returned to it, and its notes shall from that time be redeemed at the Treasury and destroyed, and the association discharged
from all liability therefor. 16 Statutes at Large, 274.
Section 44 provides that any bank established under the laws of any
State may -by vote of the owners of two thirds of its capital stock be
reorganized as an association under this act, without change of stockholders or directors or in the amount of its shares, provided that its
capital shall not be less than is prescribed for associations under this
act.]
SEC. 45. And be it further enacted, That all associations
under this act, when designated for that purpose by the Secretary of the Treasury, shall be depositaries of public money, except receipts from customs, under such regulations as may be
prescribed by the Secretary; and they may also be employed as
financial agents of the government; and they shall perform all
such reasonable duties, as depositaries of public moneys and
financial agents of the government, as may be required of them.
And the Secretary of the Treasury shall require of the associations thus designated satisfactory security, by the deposit of'United States bonds and otherwise, for the safe-keeping and
prompt payment of the public money deposited with theml, and
for the faithful performance of their duties as financial agents of
the government: Provided, that every association which shall
be selected and designated as receiver or depositary of the public money shall take and receive at par all of the national currency bills, by whatever association issued, which have been
paid in to the government for internal revenue, or for loans or
stocks.
[Section 46 et seq. provides that if any association shall fail to redeem
in lawful money any of its circulating notes, when payment thereof is
demanded at the proper place during the usual hours of business, the
holder of such notes may cause them  to be protested and notify the




1864.]    BANK ACT: FAILURE TO REDEEM  NOTES.                  33
Comptroller of the failure. The Comptroller, if satisfied that the association has refused to pay its notes and is in default, shall declare the
bonds pledged by the association to be forfeited to the United States and
shall notifyv the holders of its notes to present them for payment at the
Treasury. And for the notes thus paid at the Treasury, the Comptroller
may either cancel an amount of the bonds equal at the market rate, not
exceeding par, to the notes so paid, or may cause the necessary amount
of the bonds to be sold by public auction in the city of New York, or
may sell the necessary amount by private sale, provided that they shall
not be sold by private sale for less than the market rate nor less than
par. And if the proceeds of the bonds pledged by the association are
insufficient to reimburse the amount expended in payment of its notes,
the United States shall have a first and paramount lien for the deficiency
upon all the assets of the association, to be made good in preference to
all other claims.
Section 50 authorizes the Comptroller, when satisfied that any association has refused to pay its circulating notes and is in default, to appoint a receiver, who shall take charge of all the books and assets of the
association and collect all debts and property belonging to it, and, if necessary, enforce the individual liability of the shareholders under section
12 of this act. And the Comptroller, after reimbursing to the United
States, from the fund thus collected, any deficiency due* from the association for the redemption of its notes, shall nmake a ratable payment of
the debts of the association, and the remainder of the fund, if any, after
payment of these debts, he shall pay over to the shareholders, in proportion to the stock held by each.]
SEc. 54. And bve it farther enacted, That the Comptroller of
the Currency, with  the approbation of the Secretary of the
Treasury, as often as shall be deemed necessary or proper, shall
appoint a suitable person or persons to make an examination of
the affairs of every banking association, which person shall not
be a director or other officer in any association whose affairs he
shall be appointed to examine, and who shall have power to
make a thorough examination into all the affairs of the association, and, in doing so, to examine. any of the officers and agents
thereof on oath; and shall make a full and detailed report of
the condition of the association to the Comptroller.
[Succeeding sections provide penalties for embezzlement by the officers
of any association for the mutilation or disfigurement of notes with the
intent to make them unfit for reissue, and for counterfeiting, passing
counterfeit notes, or having in possession such notes or the engraved
plates or paper for making such notes, with intent to use.
8




34      BANK ACT: COMPARED WITH ACT OF 1863.  [1864.
Section 61 requires the Comptroller to report annually to Congress
the condition of every association as shown by its reports, with abstract
statements of the total amount of liabilities, resources, and reserves, the
amount of circulation redeemed and outstanding for associations which
have closed their business during the year, and finally such changes in
the laws relative to banking as may improve the system and increase its
security.
Section 62 repeals the Act of February 25, 1863, but provides that the
repeal shall not affect organizations or proceedings begun or had under
said act, and that circulation issued by any association organized under
it shall be deemed a part of the circulation authorized by the present
act. And it is further provided that any association established or organizing under the former act may change its name, with the approval
of the Comptroller.]
SEC. 63. And be it further enacted, That persons holding
stock as executors, administrators, guardians, and trustees, shall
not be personally subject to any liabilities as stockholders; but
the estates and funds in their hands shall be liable in like manner and to the same extent as the testator, intestate, ward, or
person interested in said trust-funds would be if they were respectively living and competent to act and hold the stock in
their names.
SEC. 64. And be it further enacted, That Congress may at
any time amend, alter, or repeal this act.
[By the Act of March 1, 1872, Leavenworth is struck out from the
list of redemption cities in section 31 above. 17 Statutes at Large, 32.
The use of the word "national," as a part of the name of any bank
not organized under the national currency act above, is forbidden by the
Act of March 3, 1873. 17 Statutes at Large, 603.]
[Approved, June 3, 1864. 13 Statutes at Large, 99.]
NOTE. - The above act is in substance a revision of that of February
25, 1863, with only such changes as experience had shown to be necessary
for the trial of the system. Some of the principal points of difference
between the two acts are the following:The Act of 1863 made no provision for the redemption of the circulation by the banks of the principal cities, such as is contained in sections 31 and 32 of the Act of 1864; but simply required that every bank
should redeem its circulation at its own counter, and that it should have
for that and other purposes a reserve equal to twenty-five per cent. of its
circulation and deposits, of which reserve three-fifths might be deposited
with associations in nine principal cities named in the act.
The prohibition of the issue of circulating notes of a less denomina.




1864.]                "THE GOLD BILL."                       35
tion than five dollars, contained in the Act of 1863, is removed by the
Act of 1864.
The bonds deposited to secure the circulation under the Act of 1863,
might be either coupon or registered, but by the Act of 1864 must be registered.
The Act of 1863 required a smaller minimum of capital for a new
bank than the Act of 1864, required a small proportion to be paid in
before beginning business, and allowed a longer time for the payment of
the remainder.
The Act of 1864 makes more complete provision than that of 1863
for the conversion of State banks into national associations, permitting
the retention of the former name of a bank after conversion, and in section 12 exempting the stockholders of such banks from personal liability
under certain conditions, which were intended to meet the case of the
Bankl of Commerce in the city of New York. A section of the Act of
1863, authorizing any State bank holding United States bonds to the
amount of one-half of its capital to issue circulating notes upon pledge
and transfer of the bonds, is omitted in the Act of 1864.
The Act of 1863 failed to provide as to the taxation of shares by State
authority.
The Act of 1863 required the apportionment of the total circulation
among the States and Territories, one-half according to representative
population and one-half having due regard to the existing banking capital and resources. This provision was omitted in the Act of 1864, but
was revived in substance by the Act of March 3, 1865.
XVI.... June, 1864, - An Act to prohibit certain Sales of Gold
and.Foreign Exchange.
Be it enacted,... That it shall be unlawful to make any
contract for the purchase or sale and delivery of any gold coin
or bullion to be delivered on any day subsequent to the day of
making such contract, or for the payment of any sum, either
fixed or contingent, in defLult of the delivery of any gold coin
or bullion, or to make such contract upon any other terms than
the actual delivery of such gold coin or bullion, and the payment
in full of the agreed price thereof, on the day on which such
contract is made, in United States notes or national currency, and
not otherwise; or to make any contract for the purchase or sale
and delivery of any foreign exchange to be delivered at any time
beyond ten days subsequent to the making of such contract; or
for the payment of any sum, either fixed or contingent, in de



36                  "THE GOLD BILL." [91864.
fault of the delivery of any foreign exchange, or upon any other
terms than the actual delivery of such foreign exchange within
ten days from  the making of such contract, and the immediate
payment in full of the agreed price thereof on the day of dlelivery in United States notes or national currency; or to make
any contract whatever for the sale and delivery of any gold coin
or bullion of which the person making such contract shall not,
at the time of making the same, be in actual possession.  And
it shall be unlawful to make any loan of money or currency not
being in coin to be repaid in coin or bullion, or to make any
loan of coin or bullion to be repaid in money or currency other
than coin.
SEC. 2. And be it further enacted, That it shall be further
unlawful for any banker, broker, or other person, to make any
purchase or sale of any gold coin or bullion, or of any foreign
exchange, or any contract for any such purchase or sale, at any
other place than the ordinary place of business of either the
seller or purchaser, owned or hired, and occupied by him individually, or by a partnership of which he is a member.
SEC. 3. And be it further enacted, That all contracts made in
violation of this act shall be absolutely void.
SEC. 4. And be it further enacted, That any person who shall
violate any provisions of this act shall be held guilty of a misdemeanor, and, on conviction thereof, be fined in any sum not
less than one thousand dollars, nor more than ten thousand dollars, or be imprisoned for a period not less than three months, nor
longer than one year, or both, at the discretion of the court, and
shall likewise be subject to a penalty of one thousand dollars for
each offence.
SEC. 5. And be it further enacted, That the penalties imposed
by the fourth section of this act may be recovered in an action
at law in any court of record of the United States, or any court
of competent jurisdiction, which action may be brought in the
name of the United States by any person who will sue for said
penalty, one half for the use of the United States, and the other
half for the use of the person bringing such action.  And the
recovery and satisfaction of a judgment in any such action shall
be a bar to the imposition of any fine for the same oftence in




1864.]   ISSUE OF BONDS AND TREASURY NOTES.                37
any prosecution instituted subsequent to the recovery of such
judgnmet, but shall not be a bar to the infliction of punishment
by imprisonment, as provided by said fourth section.
S;ic. 6. -And be it further enacted, That all acts and parts of
acts inconsistent with the provisions of this act are hereby repealed.
[Approved; June 17, 1864. 13 Statutes at Large, 132.1
NOTE.  The above act was repealed by the Act approved July 2,
1864. See 13 Statutes at Large, 344.
XVII.... June, 1864. -An Act to provide Fays and AMeans Jbr
the Support of the Government, and for other Purposes.
Be it enacted,... That the Secretary of the Treasury be, and
he is hereby, authorized to borrow, from time to time, on the credit
of the United States, four hundred millions of dollars, and to issue
therefor coupon or registered bonds of the United States, redeemable at the pleasure of the government, after any period not less
than five, nor more than thirty, years, or, if deemed expedient,
made payable at any period not more than forty years from date.
And said bonds shall be of such denominations as the Secretary
of the Treasury shall direct, not less than fifty dollars, and bear
an annual interest not exceeding six per centurn, payable semiannually in coin.  And the Secretary of the Treasury may dispose of such bonds, or any part thereof, and of any bonds
commonly known as five-twenties remaining unsold, in the
United States, or, if he shall find it expedient, in Europe, at
any time, on such terms as he may deem most advisable, for lawful money of the United States, or, at his discretion, for treasury
notes, certificates of indebtedness, or certificates of deposit issued
under any act of CongDress. And all bonds, treasury notes, and
other obligations of the United States shall be exempt from
taxation by or under State or municipal authority.
S c. 2. And be it further enacted, That the Secretary of the
Treasury may issue on the credit of the United States, and ia
lieu of an equal amount of bonds authorized by the, preceding
section, and as a part of said loan, not exceeding two hundred
millions of dollals, in treasury notes of any denomination not
less than ten dollars, payable at any time not exceeding three




38       ISSUE OF LEGAL TENDER NOTES LIMITED.   [1864.
years from date, or, if thought more expedient, redeemable at
any time after three years from  date, and bearing interest not
exceeding the rate of seven and three-ternths per centum, payable
in lawful money at maturity, or, at the discretion of the Secretary, semi-annually. And the said treasury notes may be disposed of by the Secretary of the Treasury, on the best terms
that canI be obtained, for lawful money; and such of them  as
shall be made payable, principal and interest, at maturity, shall
be a legal tender to the same extent as United States notes for
their face value, excluding interest, and may be paid to any
creditor of the United States at their face value, excluding
interest, or to any creditor willing to receive them at par,
including interest; and any treasury notes issued under the
authority of this act may be made convertible, at the discre.tion of the Secretary of the Treasury, into any bonds issued
under the authority of this act. And the Secretary of the
Treasury may redeem, and cause to be cancelled and destroyed,
any treasury notes or United States notes heretofore issued
under authority of previous acts of Congress, and substitute,
in lieu thereof, an equal amount of treasury notes such as are
authorized by this act, or of other United States notes: Provided, Th'llat the total amount of bonds and treasury notes authorized by the first and second sections of this act shall not exceed
four hundred millions of dollars, in addition to the amounts
heretofore issued; nor shall the total amount of United States
notes, issued or to be issued, ever exceed four hundred millions
of dollars, and such additional sum, not exceeding fifty millions
of dollars, as may be temporarily irequired for the redemption of
temporary loan; nor shall any treasury note bearing interest,
issued under this act, be a legal tender in payment or redemption
of any notes issued by any bank, banking association, or banker,
calculated or intended to circulate as money.
[Section 3 authorizes the Secretary of the Treasury to exchange bonds
heretofore issued on which tihe interest is payable annually, for others
bearing interest payable semi-annually. Thle treasury notes heretofore
issued, bearing seven and three-tenths per cent. interest, may be exchanged
for the six per cent. bonds heretofore authorized, at any time within three
months after notice of redemption given by the Secretary, after which
interest on such notes shall cease; and the interest on such notes after




1864.]  FURTHER INCREASE OF TESIPORARY DEPOSITS.   39
maturity shall be paid in lawful money. So much of the Act of Ma.rch
3, 1864, as limits the loan therein authorized to the current fiscal year, is
repealed. The authority to issue bonds or notes, conferred by section 1
of the Act of March 3, 1863, is to cease on the passage of this act, except
so far as it may affect seventy-five millions of bonds already advertised.!
SEC. 4. 4And be itfifrther enacted, That the Secretary of the
Treasury may authorize the receipt, as a temporary loan, of
United. States notes, or the notes of national banking associations,
on deposit for not less than thirty days, in sums of not less than
fifty dollars, by any of the Assistant Treasurers of the United
States, or depositaries designated for that purpose, other than
national banking associations, who shall issue certificates of deposit in such form  as the Secretary of the Treasury shall prescribe, bearing interest not exceeding six per centumr annually,
and payable at any time after the term  of deposit, and after ten
days' subsequent notice, unless time and notice be waived by the
Secretary of the Treasury; and the Secretary of the Treasury
may increase the interest on deposits at less than six per centum
to that rate, or, on ten days' notice to depositors, may diminish
the rate of interest as the public interest may require; but the
aggregate of such deposits shall not exceed one hundred and
fifty millions of dollars; and the Secretary of the Treasury may
issue, and shall hold in reserve for payment of such deposits,
United States notes not exceeding fifty millions of dollars, including the amount already applied in such payment; and the United
States notes, so held in reserve, shall be used only when needed,
in his judgment, for the prompt payment of such deposits on
demand, and shall be withdrawn and placed again in reserve as the
amount of deposits shall again increase.
[Section 5 authorizes the Secretary of the Treasury to issue "notes
of tile fractions of a dollar as now used for currency," and to provide
for their redemption when mutilated or defaced, and for their receipt in
payment of debts to the United States, except for customs, in sums not over
five dollars; and laws applicable to the fractional notes now authorized
are made applicable to all fractional notes, postage currency, or postage
stamps issued as currency, heretofore authorized; but the whole amount
of all notes or stamps less than one dollar issued as currency shall not
exceed fifty millions of dollars.]
[Approved, June 30, 1864. 13 Statutes at Large, 218.]




40              LAST LEGAL TENDER ACT.               [18G5.
XVIII.... January, 1865. - -An Act to amend an Act elntitled
s" An Act to provide Ways and Means for the Support of tlhe
Government, and for other Purposes," approved Jeune thirtieth, eighteen hundred and sixty-four.
Be it enacted,... That in lieu of any bonds authorized to be
issued by the first section of the act entitled " An act to provide
ways and means for the support of the government," applrovcd
June thirtieth, eighteen hundred and sixty-four, that may remain
unsold at the date of this act, the Secretary of the Treasury
may issue, under the authority of said act, treasury notes of the
description and character authorized by the second section of
said act: Provided, That the whole amount of bonds authorized
as aforesaid, and treasury notes issued and to be issued in lieu
thereof, shall not exceed the sum of four hundred millions of
dollars; and such treasury notes may be disposed of for lawful
money, or for ally other treasury notes or certificates of indebtedness or certificates of deposit issued under any previous act of
Congress; and such notes shall be exempt from taxation by or
under State or municipal authority.
SEC. 2. And be it further enacted, That any bonds known as
five-twenties, issued under the act of twenty-fifth February,
eighteen hundred and sixty-two, remaining unsold to an amount
not exceeding four millions of dollars, may be disposed of by the
Secretary of the Treasury in the United States, or, if he shall
find it expedient, in Europe, at any time, on such terms as he
may deem most advisable: Provided, That this act shall not be
so construed as to give any authority for the issue of any legal
tender notes, in any form, beyond the balance unissued of the
amount authorized by the second section of the act to which this
is an amendment.
[Approved, January 28, 1865. 13 Statutes at Large, 425.]
XIX.... March, 1865. - An Act to provide Ways and Mlieans
for the Support of the Government.
Be it enacted,... That the Secretary of the Treasury be, and
he is hereby, authorized to borrow, from time to time, on the credit
of the United States, in addition to the amounts heretofore




1865.]         FUNDING OF FLOATING DEBT.                  41
authorized, any sums not exceeding in the aggregate six hundred
millions of dollars, and to issue therefor bonds or treasurv notes
of the United States, in such form as he may prescribe; and so
much thereof as may be issued in bonds shall be of denominations not less than fifty dollars, and may be made payable at any
period not more than forty years from date of issue, or may be
made redeemable at the pleasure of the government, at or after
any period not less than. five years nor more than forty years
from date, or may be made redeemable and payable as aforesaid,
as may be expressed upon their face; and so much thereof as may
be issued in treasury notes may be made convertible into any
bonds authorized by this act, and may be of such denominations
- not less than fifty dollars - and bear such dates, and be made
redeemable or payable at such periods as in the opinion of the
Secretary of the Treasury may be deemed expedient.  And the
interest on such bonds shall be payable semi-annually; and on
treasury notes authorized by this act the interest may be made
payable semi-annually, or annually, or at maturity thereof; and
the principal, or interest, or both, may be made payable in coin
or in other lawful money: Provided, That the rate of interest on
any such bonds orltreasury notes, when payable in coin, shall not
exceed six per centurn per annum; and when not payable in coin
shall not exceed seven and three-tenths per centum per annum;
an(l the rate and character of interest shall be expressed on all
such bonds or treasury notes: And provided, further, That the
act entitled "' An act to provide ways and means for the support
of'the government, and for other purposes," approved June thirtieth, eighteen hundred and sixty-four, shall be so construed as to
authorize the issue of bonds of any description authorized by this
act. And any treasury notes or other obligations bearing interest, issued under any act of Congress, may, at the discretion of
the Secretary of the Treasury, and with the consent of the
holder, be converted into any description of bonds authorized by
this act; and no bonds so authorized shall be considered a part
of the amount of six hundred millions hereinbefore authorized.
[Section 2 authorizes the Secretary of the Treasury to dispose of any
of the obligations issued under this act, where and under such condition,
and at such rates as he thinks best, for coin or other lawful money,




42            TAX ON NOTES OF STATE BANKS.                 [1865.
treasury notes, or certificates of indebtedness or of deposit, and the like;
and to issue bonds or treasury notes authorized by this act in payment of
requisitions for materials or supplies, on receiving notice that the owner
of the claim for which any requisition is made desires to subscribe for a
portion of the loan; "and all bonds or other obligations issued under this
act shall be exempt from  taxation by or under state or municipal
authority."
Section 3 contains a proviso, "That nothing herein contained shall be
construed as authorizing the issue of legal-tender notes in any form."]
[Approved, March 3, 1865. 13 Statutes at Large, 468.]
X....     March, 1855.-  An Act to amend an Act entitled "An
Act to provide I3ternal Rlevenue to support the Government, to pay Interest on the Public Debt, and for other
Purposes," approved June thirtieth, eighteen hundred and
sixty-four.
SEC. 6. And be itfurther enacted, That every national bankinn' association, State bank, or State banking association, shall
pay a tax of ten per centum  on the amount of notes of any
State bank or State banking association, paid out by them  after
the first day of July, eighteen hundred and sixty-six.
[Section 9 of the act to reduce internal taxation, approved July 13,
1866, includes the notes "of any person " among those to be taxed as
above. 13 Statutes at Large, 146.
Section 2 of "' An act to exempt wrapping paper, made from wood or
cornstalks, from internal tax, and for other purposes," approved, March
26, 1867, includes also the notes of any town, city, or municipal corporation among those to be taxed as above. 15 Statutes at Large, 6.]
SEC. 7. And be it further enacted, That any existing bank
organized under the laws of any State, having a paid-up capital
of not less than seventy-five thousand dollars, which shall apply
before the first day of July next for authority to become a national bank under 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, and shall comply
with all the requirements of said act, shall, if such bank be found
by the Comptroller of the Currency to be in good standing and
credit, receive such authority in preference to new associations
applying for the same....
[Approved, March 3, 1865. 13 Statutes at Large, 4G9.]




1865.]      B1ANK CIrCULATION APPORTIONED.                 43
XXI.... March, 1865. - An Act to amend an Act entitled "1 An
Act to provide a National Currency, secured by a Pledge of
United States Bonds, and to provide for the Circulation and
Redemption thereof."
Be it enacted,... That section twenty-one of said act be so
amended that said section shall read as follows:
[In lieu of the concluding sentence of said section "and at no time
shall the total amount of such notes. exceed the amount,.. of its
capital stock" the following is substituted:]...and the amount of said circulating  notes to be furnished
to each association shall be in proportion to its paid-up capital
as follows, and no more: To each association whose capital shall
not exceed five hundred thousand dollars, ninety per centum of
such capital; to each association whose capital exceeds five hundred thousand dollars,.but does not exceed one million dollars,
eighty per centum of such capital; to each association whose
capital exceeds one million dollars, but does not exceed three
millions of dollars, seventy-five per centum  of such capital; to
each association whose capital exceeds three millions of dollars,
sixty per centum of such capital. And that one hundred and fifty
millions of dollars of the entire amount of circulating notes
authorized to be issued shall be apportioned to associations in
the States, in the District of Columbia, and in the Territories,
according to representative population, and the remainder shall
be apportioned by the Secretary of the Treasury among associations formed in the several States, in the District of Columbia,
and in the Territories, having due regard to the existing banking capital, resources, and business of such States, District, and
Territories.
[Approved, March 3, 1865. 13 Statutes at Large, 498.]
XXII.... April, 1866. - An Act to amend an Act entitled" IAn
Act to provide Ways and Aileans to support the Government," approved llarch third, eighteen hundred and sixtyfive.
Be it enacted,... That the act entitled " An act to provide
ways and means to support the Government," approved March




44:          REDUCTION  OF CURRENCY LIM1ITED.              [1866.
third, eighteen hundred and sixty-five, shall be extended and
construed to authorize the Secretary of the Treasury, at his discretion, to receive any treasury notes or other obligations issued
under any act of Congress, whether bearing interest or not, in
exchange for any description of bonds authorized by the act to
which this is an amendment; and also to dispose of any description of bonds authorized by said act, either in the United States
or elsewhere, to such an amount, in such manner, and at such
rates as he may think advisable, for lawful money of the United
States, or for any treasury notes, certificates of indebtedness, or
certificates of deposit, or other representatives of value, which
have been or which may be issued under any act of Congress,
the proceeds thereof to be used only for retiring treasury notes
or other obligations issued under any  act of Congress; but
nothing herein contained shall be construed to authorize any increase of the public debt: Provided, That of United  States
notes not more than ten millions of dollars may be retired and
cancelled within six months from the passage of this act, and
thereafter not more than four millions of dollars in any one
month: And provided further,. That the act to which this is an
amendment shall continue in full force in all its provisions, except as modified by this act.
[Approved, April 12, 1866. 14 Statutes at Large, 31.]
NOTE. - The following resolution was adopted by the House of Representatives, December 18, 1865: —
"R6esolved, That this House cordially concurs in the views of the
Secretary of the Treasury in relation to the necessity of a contraction of
the currency with a view to as early a resumption of specie payments as
the business interests of the country will permit; and we hereby pledge
cooperative action to this end as speedily as possible."
[Congressional Globe, December, 1865, p. 75.]
XXIII.... March, 1867. -An Act to provide Ways and leans
for the Payment of Compound ]interest Notes.
[This act directs the Secretary of the Treasury, for the purpose of
redeeming any outstanding compound interest notcs, to issue temporary
loan certificates as prescribed by section 4 of the act of February 25,
1862, bearing interest not exceeding three per cent. per annum, and principal and interest payable in lawful money on demand; the amount of
certificates at any time outstanding not to exceed fifty millions of dollars.




1868.]      REDUCTION OF CURRENCY SUSPENWDED.                  45
And said certificates may be held by any national bank as part of the
reserve required by sections 31 and 32 of tile National Currency Act of
June 3, 1864; but not less than two-fiftlls of the entire reserve of such
bank shall consist of lawful money.]
[ApproveJ, March 2, 1867. 14 Statutes at Large, 558.]
XXIV.... February, 1868. -  An Act to suspendfutrther Reduction of the Currency.
Be it enacted,..   That from  and after the passage of this
act, the authority of the Secretary of the Treasury to make any
reduction of the currency, by retiring or cancelling United
States notes, shall be, and is hereby, suspended; but nothing
herein contained shall preve nt the cancellation and destruction
of mutilated United States notes, and the replacing of the same
with notes of the same character and amount.
NOTE. - The above act having been presented to the President of the
United States for his approval, and not lhaving been returned by him to
the House of Congress in which it originated witlhin the time prescribed
by the Constitution, became a law without his approval, Flebruary 4,
1868.
[15 Statutes at Large, 34.]
XX..... July, 1833.-  An Act to provide for a further Issue
of temporary Loan Certifjcates, for t/e Putipose of redeeming and retiring the Remainder of the outstanding Compound Interest Notes.
[For the sole purpose of redeeming the remainder of the compound
interest notes, this act adds twenty-five millions of dollars to the amount
of three per cent. temporary loan certificates authorized by the act of
March 2, 1867.]
[Approved, July 25, 1868. 15 Statutes at Large, 183.]
XXVI... February, 1869. -  An Act to prevent loaning Money
upon United States Notes.
Be it enacted,... That no national banking association shall
hereafter offer or receive United States notes or national bank
notes as security or as collateral security for any loan of money,
or for a consideration shall agree to w-ithhold the same from
use, or shall offer or receive the custody or promise of custody




46       FAITIIh OF THE UNITED STATES PLEDGED.   [1869.
of such notes as security, or as collateral security, or consideration for any loan of money....
[Approved, February 19, 1869. 15 Statutes at Large, 270.]
XXVII.... March, 1869. - An Act to strengthen the Public
Credit.
Be it enacted,.... That in order to remove any doubt as to
the purpose of the government to discharge all just obligations
to the public creditors, and to settle conflicting questions and interpretations of the laws by virtue of which such obligations
have been contracted, it is hereby provided and declared that
the faith of the United States is solemnly pledged to the payment in coin or its equivalent of all the obligations of the United
States not bearing interest, known as United States notes, and
of all the interest-bearing obligations of the United States, except in cases where the law authorizing the issue of any such
obligation has expressly provided that the same may be paid in
lawful money or other currency than gold or silver.  But nole
of said interest-bearing obligations not already due shall be redeemed or paid before maturity unless at such time United
States notes shall be convertible into coin at the option of the
holder, or unless at such time bonds of the United States bearin( a lower rate of interest than the bonds to be redeemed can.
be sold at par in coin. And the United States also solemnly
pledges its faith to make provision at the earliest practicable
period for the redemption of the United States notes in coin.
[Approved, March 18, 1869. 16 Statutes at Large, 1.]
XXVIII.... July, 1870. - An Act to provide for the Redemption
of the three per cent. temporary Loan Certifcates, and for
an Increase of VNational Bank Notes.
Be it enacted,... That fifty-four millions of dollars in notes
for circulation may be issued to national banking associations,
in addition to the three hundred millions of dollars authorized
by the twenty-second section of the "6 Act to provide a national
currency, secured by a pledge of United States bonds, and to
provide fo; the circulation and redemption thereof," approved




1870.]       INCREASE OF BANK CIRCULATION.                 47
June three, eighteen hundred and sixty-four; and the amount
of notes so provided shall be furnished to banking associations
organized or to l)e organized in those States and Territories
having less than their proportion under the apportionment contemplated by the provisions of the " Act to amend 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 March three, eighteen hundred and sixtyfive, and the bonds deposited with the Treasurer of the United
States, to secure the additional circulating notes herein authorized, shall be of any description of bonds of the United States
bearing interest in coin, but a new  apportionment of the increased circulation herein provided for shall be made as soon as
practicable, based upon the census of eighteen hundred and seventy: Provided, That if applications for the circulation herein
authorized shall not be made within one year after the passage
of this act by banking associations organized or to be organized
in States having less than their proportion, it shall be lawful for
the Comptroller of the Currency to issue such circulation to
banking associations applying for the same in other States or
Territories having less than their proportion, giving the preference to such as have the greatest deficiency: And provided
further, That no banking association hereafter organized shall
have a circulation in excess of five hundred thousand dollars.
[Section 2. provides that at the end of every month the Secretary of
the Treasury shall call in and redeem an amount of the three per cent.
temporary loan certificates issued under the Acts of March 2, 1867, and
July 25, 1868, not less than the amount of circulating notes issued to national banking associations under the preceding section during the previous month.]
SEC. 3. And be it Jfrther enacted, That upon the deposit of
any United States bonds, bearing interest payable in gold, with
the Treasurer of the United States, in the manner prescribed in
the nineteenth and twentieth sections of the national currency
act, it shall be lawful for the Comptroller of the Currency to
issue to the association making the same, circulating notes of
different denominations, not less than five dollars, not exceeding
in amount eighty per centum of the par value of the bonds de



48                      GOLD BANKS.                    [1870.
posited, which notes shall bear upon their face the promise of
the association to which they are issued to pay them, upon presentation at the office of the association, in gold coin of the
United States, and shall be redeemable upon such presentation
in such coin: Provided, That no banking association organized
under this section shall have a circulation ill excess of one million of dollars.
SEc. 4. And be it further enacted, That every national banking association formed under the provisions of the preceding
section of this act shall at all times keep on hand not less than
twenty-five per centum of its outstanding circulation in gold or
silver coin of the United States, and shall receive at par in the
payment of debts the gold notes of every other such banking
association which at the time of such payments shall be redeeming its circulating notes in gold coin of the United States.
SEC. 5. And be it fitrt/her enacted, That every association organized for the purpose of issuing gold notes as provided in this
act shall be subject to all the requirements and provisions of the
national currency act, except the first clause of section twenty-.
two, which limits the circulation of national banking associations
to three hundred millions of dollars; the first clause of section
thirty-two, whiclh, taken in coirnection with the preceding section,
would require national banking associations organized in the
city of San Francisco to redeem  their circulating notes at par
in the city of New York; and the last clause of section thirtytwo, which requires every national banking association to receive in payment of debts the notes of every other national
banking association at par: Provided, That in applying the provisions and requirements of said act to the banking associations
herein provided for, the terms "lawful money," and "lawful
money of the United States," shall be held and construed to
mean gold or silver coin of the United States.
SEc. 6. And be it fitrther enacted, That to secure a more
equitable distribution of the national banking currency there
may be issued circulating notes to banking associations organized
in States and Territories having less than their proportion as
herein set forth.  And the amounts of circulation in this sec(tion
authorized shall, under the direction of the Secretary of the




1870.]                 FUNDING LOAN.                        49
Treasury, as it may be required for this purpose, be withdrawn,
as herein provided, from banking associations organized in States
having a circulation exceeding that provided for by the act entitled "Art act to amend an act entitled' An act to provide for
a national banking currency, secured by pledge of United States
bonds, and to provide for the circulation and redemption
thereof,'"  approved March three, eighteen hundred and sixtyfive, but the amount so withdrawn shall not exceed twenty-five
million dollars.
[It is then provided that the redistribution shall be made, when required, by withdrawing from banks having a circulation exceeding one
million dollars such excess, in States having more than their proportion;
and then from banks having a circulation exceeding three hundred thousand dollars their excess over that amount, beginning with States having
the largest proportion in excess, and proceeding, if necessary, to those
halving a smaller proportion. Upon the failure of any association to retire the amount of its circulation required as above, the Comptroller of
the Currency is authorized to sell the necessary amount of its bonds and
to redeem its notes to the amount required. But no circulation is to be
withdrawn under this section until the fifty-four millions granted in section 1 shall have been taken up.
Section 7 provides that after six months from the passage of this act
any association may be removed from any State having more than its
proportion of circulation to any State having less than its proportion;
but the amount of the issue of said association shall not be deducted
from the new issue herein provided for.]
[Approved, July 12, 1870. 16 Statutes at Large, 251.]1
XXIX.... July, 1870.-  An Act to autharize the Refunding of
the National Debt.
Be it enacted,... That the Secretary of the Treasury is
hereby authorized to issue, in a sum or sums not exceeding in
the aggregate two hundred million dollars, coupon or registered
bonds of the United States, in such form as he may prescribe,
and of denominations of fifty dollars, or some multiple of that
sum, redeemable in coin of the present standard value) at the
pleasure of the United States, after ten years from the date of
their issue, and bearing interest, payable semi-annually in such
coin, at the rate of five per cent. per annum; also a sum or sums
not exceeding in the aggregate three hundred million dollars of
4




50                     FUNDING LOAN.                    [1870.
like bonds, the same in all respects, but payable at the pleasure.
of the United States, after fifteen years from the date of their
issue, and bearing interest at the rate of fobur and a half per
cent. per annum; also a sum  or sums not exceeding in the
aggregate one thousand million dollars of like bonds, the samr
in all respects, but payable at the pleasure of the United States,
after thirty years from the date of their issue; and bearing interest at the rate of four per cent. per annum; all of which said
several classes of bonds and the interest thereon shall be exempt from  the payment of all taxes or duties of the United
States, as well as from taxation in any form by or under
State, municipal, or local authority; and the said bonds shall
have set forth and expressed upon their face the above-specified
conditions, and shall, with their coupons, be made payable at the
Treasury of the United States.  Isut nothing in this act, or in
any other law now in force, shall be construed to authorize any
increase whatever of the bonded debt of the United States.
[By the amendatory Act of January 20, 1871, the amount of bonds
to be issued bearing interest at five per cent. is increased to five hundred
millions of dollars, but without any increase of the total amount of bonds
provided for above; and the Secretary of the Treasury is authorized to
make the interest of any of the bonds so provided for payable quarteryearly. 16 Statutes at Large, 899.]
SEC. 2. And be it further enacted, That the Secretary of the
Treasury is hereby authorized to sell and dispose of any of the
bonds issued under this act, at not less than. their par value for
coin, and to apply the proceeds thereof to the redemption of any
of the bonds of' the United States outstanding, and known as fivetwenty bonds, at their par value, or he may exchange the same
for such five-twenty bonds, par for par; but the bonds hereby
authorized shall be used for no other purpose whatsoever.  And
a sum  not exceeding one-half of one per cent. of the bonds
herein authorized is hereby appropriated to pay the expense of
preparing, issuing, advertising, and disposing of the same.
[Section 4 authorizes the Secretary of the Treasury, with any coin
that is lawfully applicable, to pay at par and cancel any of the fivetwenty bonds that may become redeemable by the terms of their issue;
the particular bonds so to be paid to be called for by public notice speci



1870.]      DEPOSITS OF GOLD.  SINKING FUND.              51
fying their class, date and number, and interest on them to cease in
three months after the date of such notice.]
SEc. 5. And be it further enacted, That the Secretary of the
Treasury is hereby authorized, at any time within two years
from the passage of this act, to receive gold coin of the United
States on deposit for not less than thirty days, in sums of not
less than one hundred dollars, with the Treasurer, or any Assistant Treasurer of the United States authorized by the Secretary
of the Treasury to receive the same, who shall issue therefor
certificates of deposit, made in such form as the Secretary of the
Treasury shall prescribe, and said certificates of deposit shall
bear interest at a rate not exceeding two and a half per cent.
per annum; and any amount of gold coin so deposited may be
withdrawn from deposit at any time after thirty days firom the
date of deposit, and after ten days' notice and on the return of
said certificates: Provided, That the interest on all such deposits shall cease and determine at the pleasure of the Secretary
of the Treasury.  And not less than twenty-five per cent. of the
coin deposited for or represented by said certificates of deposits
shall be retained in the treasury for the payment of said certificates; and the excess beyond twenty-five per cent. may be applied at the discretion of the Secretary of the Trealsury to the
payment or redemption of such outstanding bonds of the United
States heretofore issued and known as the five-twenty bonds, as
he may designate under the provisions of the fourth section of
this act; and any certificates of deposit issued as aforesaid,
may be received at par with the interest accrued thereon in payment for any bonds authorized to be issued by this act.
SEC. 6. And be it further enacted, That the United States
bonds purchased and now held in the treasury in accordance
with the provisions relating to a sinking fund, of section five of
the act entitled " An act to authorize the issue of United States
notes, and for the redemption or funding thereof, and for funding,
the floating debt of the United States," approved February
twenty-fifth, eighteen hundred and sixty-two, and all other
United States bonds which have been purchased by the Secre-.
tary of the Treasury with surplus funds in the treasury, and now
held in the Treasury of the United States, shall be cancelled




52              CERTIFICATES OF DEPOSIT.              [1872.
and destroyed, a detailed record of such bonds so cancelled and
destroyed to be first made in the books of the Treasury Department.  Any bonds hereafter applied to said sinking fund, and
all other United States bonds redeemed or paid hereafter by the
United States, shall also in like manner be recorded, cancelled
and destroyed, and the amount of the bonds of each class that
have been cancelled and destroyed shall be deducted respectively
firom the amount of each class of the outstanding debt of the
United States. In addition to other amounts that may be applied
to the redemption or payment of the public debt, an amount equal
to the interest on all bonds belonging to the aforesaid sinking
fund shall be applied, as the Secretary of the Treasury shall from
time to time direct, to the payment of the public debt as provided for in section five of the act aforesaid. And the amount
so to be applied is hereby appropriated annually for that purpose, out of the receipts for duties on imported goods.
[Approved, July 14, 1870. 16 Statutes at Large, 272.]
XXX.... June, 1872. - An Act for the better Security of Bank
Reserves, and to facilitate Bank Clearing-house Exchanges.
Be it enacted,...  That the Secretary of the Treasury is
hereby authorized to receive United States notes on deposit,
withotlt interest, from national banking associations, in sums not
less than ten thousand dollars, and to issue certificates therefor
in such form as the secretary may prescribe, in denominations
of not less than five thousand dollars; which certificate shall be
payable on demand in United States notes, at the place where
the deposits were made.
SEC. 2. That the United States notes so deposited in the
Treasury of the United States shall not be counted as part of
the legal reserve; but the certificates issued therefor may bs
held and counted by national banks as part of their legal reserve, and may be accepted in the settlement of clearing-house
balances at the places where the deposits therefor were made.
SEC. 3. That nothing contained in this act shall be construed
to authorize any expansion or contraction of the currency; and
the United States notes for which such certificates are issued, or
other United States notes of like amount, shall be held as spe



1874.]   FIVE PER CENT. RESERVE FOR BANK NOTES.    53
cial deposits in the treasury, and used only for the redemption
of such certificates.
[Approved, June 8, 1872. 17 Statutes at Large, 336.]
XXXI..... June, 1874. - An Act fxing the Amount of United
States Notes, providing for a Redistribution of the 2National
Bank, Currency, and for other Purposes.
Be it enacted,... 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 be
hereafter known as " the national bank act."
SEC. 2. That section thirty-one of the " national bank act" be
so amended that the several associations therein provided for shall
not hereafter be required to keep on hand any amount of money
whatever, by reason of the amount of 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.
SEC. 3. That every association organized, or to be organized,
under the provisions of the said act, and of the several 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 its lawful reserve, as
provided in section two of this act; and when the circulating
notes of any such associations, assorted or unassorted, shall be
presented for redemption, in sums of one tlousand 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 redemptions; and whenever such redemptions for any association shall amount to the
sum of five hundred dollars, such association so notified shall




54             REDEMPTION OF BANK NOTES.              [1874.
forthwith deposit with the Treasurer of the United States a sum
in United States notes equal to the amount of its circulating
notes so redeemed.  And all notes of national banks worn, defaced, mutilated, or otherwise unfit for circulation shall, when
received by any Assistant Treasurer or at any designated depository 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 associations 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 law: Provided, That
each of said' associations shall reimburse to the treasury the
charges for transportation, and the costs for assorting such notes;
and the associations hereafter organized shall also severally reimburse to the treasury 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
the Treasurer: Arnd provided further, That so much of section
thirty-two of said national bank act requiring or permitting the redemption of its circulating notes elsewhere than at its own counter,
except as provided for in this section, is hereby repealed.
SEc. 4. That any association organized under this act, or any
of the acts of which this is an amendment, desiring to 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 dollars, 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 national bank 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
destroyed as now provided by law:' Provided, That the amount
of the bonds on deposit for circulation shall not be reduced below fifty thousand dollars,




1874.]    NEW LIMIT OF LEGAL TENDER NOTES.                55
SEc. 5. 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. 6. 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 eighlty.-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.
SEC. 7. That so much of the act entitled " An act to provide for the redemption of the three per centum temporary loan
certificates, and for an increase of national bank notes," as provides that no circulation shall be withdrawn under the provisions
of section six of said act, until after the fifty-four millions
granted in section one of said act shall have been taken up, is
hereby repealed; and it shall be the duty of the Comptroller of
the Currency, under the direction of 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 the circulation required, or the deposit of lawful money, as
herein provided, a proportionate amount of the bonds held to
secure the circulation of such association as shall make such return or deposit shall be surrendered to it.
Sec. 8. That upon the failure of the national banks upon
which requisition for circulation shall be made, or of any of
them, to return the amount required, or to deposit in the Treasury
lawful money to redeem the circulation required, within thirty
(lays, the Comptroller of the Currency shall at once sell as pro.




56        REDISTRIBUTION OF BANK CIRCULATION.   [1874.
vided in section forty-nine of the national 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 sufflicient 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 any excess of proceeds over
the amount required for such redemption, it shall be'returned to
the association or-associations whose bonds shall have been sold.
And it shall be- the duty of the Treasurer, Assistant Treasurers,
designated depositaries, and national bank depositaries of the
United States, who shall be kept informed by the Comptroller
of the Currency of such associations as shall fail to return circulation as required, to assort and return to the Treasury for redemption the notes of such associations as shall come into their hands
until the amount required shall be redeemed, and in like' manner
to assort and return to the Treasury, for redemption, the notes
of such national banks as have failed, or gone into voluntary
liquidation for the purpose of winding up their affairs, and of
such as shall hereafter so fail or go into liquidation.
SEC. 9. That from and after the passage of this act it shall
be lawful for the Comptroller of the Currency, and he is hereby
required, to issue circulating notes, without delay, as applications
therefor are made, not to exceed the sum of fifty-five million
dollars, to associations organized, or to be organized, in those
States and Territories having less than their proportion.of circulation, under an apportionment made on the basis of population
and of wealth, as shown by the returns of the census of eighteen
hundred and seventy; and every association hereafter organized
shall be subject to, and be governed by the rules, restrictions,
and limitations, and possess the rights, privileges, and franchises,
now or hereafter to be prescribed by law as to national banking
associations, with the same power to amend, alter, and repeal
provided by "the national bank act:" Provided, That the whole
amount of circulation withdrawn and redeemed from banks transacting business shall not exceed fifty-five million dollars, and




1875.]       SILVER COINAGE. FREE BANKING.                 57
that such circulation shall be withdrawn and redeemed as it shall
be necessary to supply the circulation previously issued to the
banks in those States having less than their apportionment: And
provided further, That not more than thirty million dollars shall
be withdrawn and redeemed as herein contemplated during the
fiscal year ending June thirtieth, eighteen hundred and seventyfive.
[Approved, June 20, 1874. 18 Statutes at Large, 123.]
XXXII... January, 1875. - An Act to provide for the 2?esurnption of Specie Payments.
Be it enacted,. o  That the Secretary of the Treasury is
hereby authorized and required, as rapidly as practicable, to
cau'se to be coined at the mints of the United States, silver coins
of the denominations of ten, twenty-five, and fifty cents, of
standard value, and to issue them  in redemption of an equal
number and amount of fractional currency of similar denominations, or, at his discretion, he may issue such silver coins through
the mints, the subtreasuries, public depositaries, and post-ollices
of the United States; and, upon such issue, he is hereby authorized and required to redeem an equal amount of such fractional
currency, until the whole amount of such fractional currency
outstanding shall be redeemed.
SEc. 2. That so much of section three thousand five hundred and twenty-four of the Revised Statutes of the "United
States as provides for a charge of one-fifth of one per centum
for converting standard gold bullion into coin is hereby repealed,
and hereafter no charge shall be made for that service.
SEc. 3. That section five thousand one hundred and seventyseven of the Revised Statutes of the United States, limiting the
aggregate amount of circulating notes of national banking associations, be, and is hereby, repealed; and each existing banking
association may increase its circulating notes in 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 the provisions of
law for the withdrawal *and redistribution of national bank carrency among the several States and Territories are hereby re



58       LEGAL TENDER NOTES.  SPECIE PAYMENTS.  [1875.
pealed. And whenever, and so often, as circulating notes shall be
issued to any such banking association, so increasing its capital
or circulating notes, or so newly organized as aforesaid, it shall be
the duty of the Secretary of the Treasury to redeem the legal tender United States notes in excess only of three hundred millions 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 continue such redemption as such circulating notes are issued
until there shall be outstanding the sum of three hundred million dollars of such legal tender United States notes, and no
more.  And on and after the first day of January, anno Domini
eighteen hundred, and seventy-nine, the Secretary of the Treasury shall redeem, in coin, the United States legal tender notes
then outstanding on their presentation for redemption, at the
office of the Assistant Treasurer of the United States in the city
of New York, in sums of not less than fifty dollars.  And to
enable the Secretary of the Treasury to prepare and provide for
the redemption in this act authorized or required, he is authorized to use any surplus revenues, from  time to time, in the
Treasury not otherwise appropriated, and to issue, sell, and dispose of, at not less than par, in coin, either of the descriptions
of bonds of the United States described in the Act of Congress
approved July fourteenth, eighteen hundred and seventy, entitled,
"An act to authorize the refunding of the national debt," with
like qualities, privileges, and exemptions, to the extent necessary
to carry this act into full effect, and to use the proceeds thereof
for the purposes aforesaid. And all provisions of law inconsistent with the provisions of this act are hereby repealed.
[The limit of circulation fixed by section 5177 of the Revised Statutes
is that prescribed on page 46 by section 1 of the Act of July 12, 1870.]
[Approved, January 14, 1875.]
Cambridge: Press of John Wilson and Son.




tI'tE  GRENT'BAC K UNDEJ TEIlE LA W  01  1878.
In order that there may be a clear understanding
as to tUle lowest limit fixed now  by law for the
greenback circulation, we rep-ablish the text of the
act known as the Reissue act of May, 1878, together with the amount of the greenback circulation at the date of its passage.  Uhlis bi.ll was put
on its passage under a suspension of the i'iles by
M]r. Fort (Rep., Ill.) in the House, A.pril 29, 1578. It
passed by a vote of 177 to 35.  It was taken un in
the Senate, May 7, by a vote of 33 to 25. Pending
the passage of the bill,  ay 28, 1.878, Senator Bayard
moved to insert this proviso:' Provided that the
said Mibtes wheln so reissued shall be receivable for
all dues to the United States excepting duties on
imports, and not to be otherwise a legal tender; any
reprint of the said notes shall bear this superscription."  This was rejected by a vote of 42 to18,
Bliaine, the two Camerons, Christiancy, Howe,
Stanley Matthews, Oglesby and Teller among the
Republicans voting in the negative. The bill was
finally passed by a vote of 41 to 18 in the following
form:
"Be it eizeted, &c., That from and after the
passage of this act it shall not be lawful for the
Secretary of the Treasury or other offlcer under
him to cancel or retire any more of the United
States legal-tender:notes, and when any of said
notes may be redeemed or be received into the
Treasury under any-law, from any source whatever,
and shall belong to the United States, they shall not
be retired, cancelled or destroyed, but they shall be
reissued and paid out again and kept in circulation,
provided thatmnothing herein shall prohihit the cancellation and destruction of mutilated notes and the
issue of other notes of like denomination in their
stead, as now provided by law. All acts or parts of
acts in conflict herewith are hereby repealed."
(Passed May 28, 1878. )
[Section 2 provides for a monetary congress. ]'  SECTION 3. That any holder of the coin authorized
by this act may deposit the same with the Treasurer or any assistant treasurer of the United States,
in sums not less than ten dollars, and receive therefor certificates of not less than ten dollars each,
corresponding with the denominations of the United
States notes. The coin deposited for or representing the certificates shall be retained in the Treasury for the payment of the same on demand. Said
certificates shall he receivable for customs, taxes,
and all public dues, and when so received may be
reissued."
This was on the 28th of May, 18T8, at which
date according to the official statement of the Comptroller of the Currency there were outstanding
lUnited States legal-tender notes to the amount of
$246, 68I, 016.
__....______~




APPENDIX,
CONTAINING LAWS RELATING TO COINAGE.








APPENDIX,
CONTAINING LAWS RELATING TO COINAGE.
I.... April, 1792. -An Act establishing a Mint, and regulating
the Coins of the United States.
SEC. 9. And be it further enacted, That there shall be from
time to time struck and coined at the said mint, coins of gold,
silver, and copper, of the following denominations, values and
descriptions, viz.  EAGLES -each to be of the value of ten
dollars or units, and to contain two hundred and forty-seven
grains and four-eighths of a grain of pure, or two hundred and
seventy grains of standard gold.
[Half eagles and quarter eagles of corresponding weights and fineness.]
DOLLARS OR UNITS - Each to be of the value of a Spanish
milled dollar as the same is now current, and to contain three
hundred and seventy-one grains and four-sixteenth parts of a
grain of pure, or four hundred and sixteen grains of standard
silver.
[Half dollars, quarter dollars, dimes, and half dimes of corresponding
weights and fineness.]
SEC. 11. And be it further enacted, That the proportional
value of gold to silver in all coins which shall by law be current
as money within the United States, shall be as fifteen to one,
according to quantity in weight, of pure gold or pure silver;
that is to say, every fifteen pounds weight of pure silver shall
be of equal value in all payments, with one pound weight of




iv                       APPENDIX,                     [1792.
pure gold, andl so in proportion as to any greater or less quantities of the respective metals.
SEC. 14. And be it fuirther enacted, That it shall be lawful
for any person or persons to bring to the said mint gold and silver bullion, in order to their being coined; and that the bullion
so brought shall be there assayed and coined as speedily as may
be after the receipt thereof, and that free of expense to the person or persons by whom the same shall have been brought. And
as soon as the said bullion shall have been coined, the person or
persons by whom the same shall have been delivered, shall upon
demand receive in lieu thereof coins of the same species of bullion
which shall have been so delivered, weight for weight, of the
pure gold or pure silver therein contained: Provided nevertheless, That it shall be at the mutual option of the party or parties
bringing such bullion, and of the director of the said mint, to
make an immediate exchange of coins for standard bullion, with
a deduction of one-half per cent. from the weight of pure gold,
or pure silver contained in the said bullion, as an indemnification to the mint for the time which will necessarily be required
for coining the said bullion, and for the advance which shall have
been so made in coins.
SEC. 16. And be it further enacted, That all the gold and
silver coins which shall have been struck at, and issued from the
said mint, shall be a lawful tender in all payments whatsoever,
those of full weight according to the respective values herein
before declared, and those of less than full weight at values proportional to their respective weights.
[Approved, April 2, 1792. 1 Statutes at Large, 246.]
II.... June, 1834. - An Act concerning the gold coins of the
TUnited States, and for other purposes.
Be it enacted,... That the gold coins of the United States
shall contain the following quantities of metal, that is to say:
each eagle shall contain two hundred and thirty-two grains of
pure gold, and two hunldred and fifty-eight grains of standard
gold; each half eagle one hundred and sixteen grains of pure
gold, and one hundred and twenty-nine grains of standard gold;




1834.]  CONTAINING LAWS RELATING TO COINAGE.                V
each quarter eagle shall contain fifty-eight grains of pure gold,
and sixty-four and a half grains of standard gold; every such
eagle shall be of the value of ten dollars; every such half eagle
shall be of the value of five dollars; and every such quarter
eagle shall be of the value of two dollars and fifty cents; and
the said gold coins shall be receivable in all payments, when of
full weight, according to their respective values; and when of
less than full weight, at less values, proportioned to their respective actual weights.
SEC. 2. And be it further enacted, That all standard gold or
silver deposited for coinage after the thirty-first of July next,
shall be paid for in coin under the direction of the Secretary of
the Treasury, within five days from the making of such deposit,
deducting from the amount of said deposit of gold and silver
one-half of one per centum: Provided, That no deduction shall
be made uniless said advance be required by such depositor within
forty days.
Siec. 3. And be it fu.rther enacted, That all gold coins of the
United States, minted anterior to the thirty-first day of July
next, shall be receivable in all payments at the rate of ninetyfour and eight-tenths of a cent per pennyweight.
[Approved, June 28, 1834. 4 Statutes at Large, 699.]
III.... January, 1837. - An Act sutpplementary to the act entitled "An act establishing a mhint, and regulating the coins
of the United States."
SEC. 8. And be it further enacted, That the standard for both
gold and silver coins of the United States shall hereafter be
such, that of one thousand parts by weight, nine hundred shall
be of pure metal, and one hundred of alloy; and the alloy of
the silver coilns shall be of copper; and the alloy of the gold
coins shall be of copper and silver, provided that the silver do
not exceed one-half of the whole alloy.
SEC. 9. And be it fiurther enacted, That of the silver coins,
the dollar shall be of the weight of four hundred and twelve
and one-half grains; the half dollar of the weight of two hundred and six and one-fourth grains; the quarter dollar of the




Vi                        APPENDIX,                      [1837.
weight of one hundred and three and one-eighth grains; the
dime, or tenth part of a dollar. of the weight of forty-one and
a quarter grains; and the half dime, or twentieth part of a dollar, of the weight of twenty grains, and five-eighths of a grain.
And that dollars, half dollars, and quarter dollars, dimes, and
half dimes, shall be legal tenders of payment, according to their
nominal value, for any sums whatever.
SEc. 10. And be it further enacted, That of the gold coins,
the weight of the eagle shall be two hundred and fifty-eight
grains; that of the half eagle one hundred and twenty-nine
grains; and that of the quarter eagle sixty-four and one-half
grains. And that for all sums whatever, the eagle shall be a
legal tender of payment for ten dollars; the half eagle for five
dollars; and the quarter eagle for two and a half dollars.
SEC. 11. And be it further enacted, That the silver coins
heretofore issued at the mint of the United States, and the gold
coins issued since the thirty-first day of July, one thousand eight
hundred and thirty-four, shall continue to be legal tenders of
payment for their nominal values, on the same terms as if they
were of the coinage provided for by this act.
[Approved, January 18, 1887. 5 Statutes at Large, 136.]
IV.... March, 1849. -  An Act to authorize the Coinage of Gold
Dollars and Double Eagles.
[This act authorizes the coinage of gold dollars and double eagles,
"conformably in all respects to the standard for gold coins now established by law," and to be a legal tender in payment for all sums.]
[Approved, March 3, 1849. 9 Statutes at Large, 397.]
V.... February, 1853.- An Act amendatory of Existing Laws
relative to the Half Dollar, Quarter Dollar, Dime, and Half
Dime.
Be it enacted,.. That from and after the first day of June,
eighteen hundred and fifty-three, the weight of the half dollar or
piece of fifty cents shall be one hundred and ninety-two grains,
and the quarter dollar, dime, and half dime, shall be, respectively, one-half, one-fifth, and one-tenth of the weight of said
half dollar.




1853.]  CONTAINING LAWS RELATING TO COINAGE.                Vii
SEC. 2. And be it ftrther enacted, That the silver coins issued
in conformity with the above section, shall be legal tenders in
payment of debts for all sums not exceeding five dollars.
SEC. 3. And be it further enacted, That in order to procure
bullion for the requisite coinage of the subdivisions of the dollar
authorized by this act, the Treasurer of the Mint shall, with the
approval of the Director, purchase such bullion with the bullion
fund of the mint....
SEC. 4. And be it further enacted, That such coins shall be
paid out at the mint, in exchange for gold coins at par, in sums
not less than one hundred dollars; and it shall be lawful, also, to
transmit parcels of the same from time to time to the assistant
treasurers, depositaries, and other officers of the United States,
under general regulations, proposed by the Director of the Mint,
and approved by the Secretary of the Treasury: Provided, however, That the amount coined into quarter dollars, dimes, and
half dimes, shall be regulated by the Secretary of the Treasury.
SEC. 5. And be it further enacted, That no deposits for coinage
into the half dollar, quarter dollar, dime, and half dime, shall hereafter be received, other than those made by the Treasurer of the
Mint, as herein authorized, and upon account of the United States.
[Section 6 provides that when gold or silver is deposited for coinage,
there shall be a charge to the depositor, in addition to the charge for
refining or parting the metals, of one half of one per centumn, this provision not applying to silver coined into the subdivisions of the dollar.]
SEC. 7. And be it further enacted, That from  time to time
there shall be struck and coined at the Mint of the United States,
and the branches thereof, conformably in all respects to law, and
conformably in all respects to the standard of gold coins now
established by law, a coin of gold of the value of three dollars, or
units.
[Approved, February 21, 1853. 10 Statutes at Large, 160.]
VI.... February, 1873. - An Act revising and amending the
Laws relative to the Mints, Assay-offices, and Coinage of the
llznited States.
SEC. 14. That the gold coins of the United States shall be a
one-dollar piece, which, at the standard weight of twenty-five




Viii                     APPENDIX,                     [1873.
and eight-tenths grains, shall be the unit of value; a quartereagle, or two-and-a-half dollar piece; a three-dollar piece; a
half-eagle, or five-dollar piece; an eagle or ten-dollar piece; and
a double eagle, or twenty-dollar piece. And the standard weight
of the gold dollar shall be twenty-five and eight-tenths grains;
of the quarter-eagle, or two-and-a-half dollar piece, sixty-four
and a half grains; of the three-dollar piece, seventy-seven and
four-tenths grains; of the half-eagle, or five-dollar piece, one
hundred and twenty-nine grains; of the eagle, or ten-dollar
piece, two hundred and fifty-eight grains; of the double eagle,
or twenty-dollar piece, five hundred and sixteen grains; which
coins shall be a legal tender in all payments at their nominal
value when not below the standard weight and limit of tolerance
provided in this act for the single piece, and, wlien reduced in
weight, below said standard and tolerance, shall be a legal tender
at valuation in proportion to their actual weight; and any gold
coin of the United States, if reduced in weight by natural abrasion not more than one-half of one per centum below the standard
weight prescribed by law, after a circulation of twenty years, as
shown by its date of coinage, and at a ratable proportion for any
period less than twenty years, shall be, received at their nominal
value by the United States treasury and its offices....
SEC. 15. That the silver coins of the United States shall be a
trade-dollar, a half-dollar, or fifty cent piece, a quarter-dollar, or
twenty-five cent piece, a dime or ten-cent piece; and the weight of
the trade-dollar shall be four hundred and twenty grains troy; the
weight of the half-dollar shall be twelve grams (grammes) and
one-half of a gram, (gramme); the quarter-dollar and the dime
shall be respectively, one-half and one-fifth of the weight of said
half-dollar; and said coins shall be a legal tender at their nominal value for any amount not exceeding five dollars in any one
payment.
SEc. 17. That no coins, either of gold, silver, or minor coinage,
shall hereafter be issued from the mint other than those of the
denominations, standards, and weights herein set forth.
SEc. 2,5. That the charge for converting standard gold bullion
into coin shall be one-fifth of one per centum; and the charges
for converting standard silver into trade-dollars, for melting and




1874.]  CONTAINING LAWS RELATING TO COINAGE.               iX
refining when bullion is below standard, for toughening when
metals are contained in it which render it unfit for coinage, for
copper used for alloy when the bullion is above standard, for
separating the gold and silver when these metals exist together
in the bullion, and for the preparation of bars, shall be fixed, from
time to time, by the director, with the concurrence of the Secretary of the Treasury, so as to equal but not exceed, in their judgment, the actual average cost to each mint and assay-office of the
material, labor, wastage, and use of machinery employed in each
of the cases aforementioned.
[Approved, February 12, 1873. 17 Statutes at Large, 424.]
NOTE. -By an Act approved March 3, 1875, the coinage of a twenty
cent piece, in conformity with the provisions made as to other subsidiary
silver coins, was authorized. See 18 Statutes at Large, part 3, 478.
VII.... June, 1874.- Revised Statutes of the United States;
Title xxxix., Legal Tender.
SEC. 3584. No foreign gold or silver coins shall be a legal
tender in payment of debts.
SEC. 3585. The gold coins of the United States shall be a
legal tender in all payments at their nominal value when not
below the standard weight and limit of tolerance provided by
law for the single piece, and, when reduced in weight below such
standlard aud tolerance, shall be a legal tender at valuation in
proportion to their actual weight.
SEC. 3586. The silver coins of the United States shall be a
legal tender at their nominal value for any amount not exceeding
five dollars in any one payment.
SEc. 3587. The minor coins of the United States shall be a
legal tender, at their nominal value for any amount not exceeding
twenty-five cents in any one payment.
[Sections 3588, 3589, 3590, contain the provisions to be found in previous acts, making United States notes, demand notes, and Treasury
notes, respectively, legal tender.]
[Approved, June 22, 1874. Revised Statutes, 712.]




X                        APPENDIX,                      [ 1876.
VIII.... January, 1875. - An Act to provide for the resumption of specie payments.
[For sections 1 and 2 of this act, providing for the coinage of small
silver coins and their issue in redemption of fractional currency, and for
the discontinuance of the charge made for coining gold bullion, see ante,
p. 57.]
[Approved, January 14, 1875. 18 Statutes at Large, part 3, 296.]
IX.... July, 1876. —Joint Resolution for the Issue of silver coin.
Resolved,... That the Secretary of the Treasury, under such
limits and regulations as will best secure a just and fair distribution of the same through the country, may issue the silver coin
at any time in the Treasury to an amount not exceeding ten
million dollars, in exchange for an equal amount of legal-tender
notes; and the notes so received in exchange shall be kept as a
special fund separate and apart from all other money in the
Treasury, and be reissued only upon the retirement and destruction of a like sum of fractional currency received at the Treasury
in payment of dues to the United States; and said fractional currency, when so substituted, shall be destroyed and held as part
of the sinking fund, as provided in the act approved April seventeen, eighteen hundred and seventy-six.
SEC. 2. That the trade dollar shall not hereafter be a legal
tender, and the Secretary of the Treasury is hereby authorized
to limit from time to time, the coinage thereof to such an amount
as he may deem  sufficient to meet the export deniand for the
same.
SEc. 3. That in addition to the amount of subsidiary silver
coin authorized by law to be issued in redemption of the fractional currency it shall be lawful to manufacture at the several
mints, and issue through the Treasury and its several offices,
such coin, to an amount, that, including the amount of subsidiary
silver coin and of fractional currency outstanding, shall, in the
aggregate, not exceed, at any time, fifty million dollars.
[Section 4 authorizes the Secretary of the Treasury to purchase bullion for the purposes of this resolution, and requires any gain arising from
the coinage thereof to be paid into the Treasury.]
[Approved, July 22, 1876. 19 Statutes at Large, 215.]




[1878.  CONTAINING LAWS REI:LA'TING TO COINAGE.             xi
X..... February, 1878. — An Act to authorize the coinage of
the standard Silver Dollar, and to restore its legal-tender
character.
Be it enacted, That there shall be coined, at the several mints
(f the United States, silver dollars of the sweight of four hundred
and twelve and a half grains troy of standard silver, as provided
in the act of January eighteen, eighteen hundred and thirtyseven, on which shall be the devices and superscriptions provided by said act, which coins, together with all silver dollars
heretofore coined bv the United States of like weight and fineness, shall be a legal-tender, at their nominal value, for all debts
and dues, public and private, except where otherwise expressly
stipulated in the contract.  And the Secretary of the Treasury
is authorized and directed to purchase, from time to time, silver
bullion, at the market price thereof, not less than two million
dollars worth per month, nor more than four million dollars
worth per month, and cause the same to be coined monthly as
fast as so purchased into such dollars; and a sum sufficient to
carry out the foregoing provision is hereby ~appropriated out of
any money in the Treasury not otherwise appropriated. And any
gain or seiglniorage arising firom this coinage shall be accounted for
and paid into the Treasury, as provided under existing laws relative to tile subsidiary coinage; Provided, That the amount of
money at any one time invested in such silver bullion, exclusive
of such resultiIng coin, shall not exceed five million dollars. And
_provided farther, That nothing in this act shall be construed to
authorize the payment in silver of certificates of deposit issued
under the provisions of section two hundred and fifty-four of the
-Revised Statutes.
Siec. 2. That immediately after the passage of this act, the
President shall invite the Governments of the countries composing the Latin Union, so-called, and of such other European
nations as he may deem  advisable, to join the United States in
a conference to adopt a common ratio as between gold and silver,
for the purpose of establishing, internationally, the use of bimetallic money, and securing fixity of relative value between those
metals; such conference to be held at such place, in Europe or




xii                       APPENDIX.                    1878.]
in the United States, at such time within six months, as may be
mutually agreed upon by the Executives of the governments
joining in the same, whenever the governments so invited, or
any three of them, shall have signified their willingness to unite
in the same. The President shall, by and with the advice and
consent of the Senate, appoint three commissioniers, who shall
attend such conference on behalf of the United States, and shall
report the doings thereof to the President, who shall transmit
the same to Congress.  Said commissioners shall each receive
the sum  of twenty-five hundred dollars and their reasonable
expenses, to be approved by the Secretary of State; and the
amount necessary to pay such compensation and expenses is
hereby appropriated out of any money in the Treasury not
otherwise appropriated.
SEC. 3. That any holder of the coin authorized by this act
may deposit the same with the Treasurer or any Assistant
Treasurel of the United States, in sums not less than ten dollars, and receive therefor certificates of not less than ten dollars
each, corresponding with the denominations of the United States
notes.  The coin deposited for or representing the certificates
shall be retained in the Treasury for the payment of the same
on demand.  Said certificates shall be receivable for customs,
taxes, and all public dues, and, when so received, may be reissued.
SEC. 4. All acts and parts of acts inconsistent with the provisions of this act are hereby repealed.
NoTE.- The above act having been returned by the President of the
United States, with hIis objections, to the House of Representatives, February 28, 1878, was passed by both Houses, and became a law on the same
day.