Gold certifi

rency certificates

Sixth. Pay out gold coin in exchange for silver dollars; Seventh. Pay out silver dollars held in the division of issue and redemption aforesaid, and not covered by outstanding silver certificates, in exchange for gold coin, United States notes, or Treasury notes;

Eighth. Pay out United States notes or Treasury notes, not subject to immediate cancellation, in exchange for gold coin;

Ninth. Pay out gold coin in exchange for subsidiary and minor coins presented in sums of twenty dollars or multiples thereof, and pay out subsidiary and minor coins in sums of twenty dollars or multiples thereof in exchange for any lawful money;

Tenth. Pay out in redemption of national-bank notes the moneys in the division available for that purpose.

SEC. 7. That gold certificates and currency certificates cates and cur- shall, whenever presented and paid or received in the Treasretired and can- ury, be retired and canceled. All provisions of law authorizing the issue or reissue of gold certificates or currency certificates are hereby repealed.

celed.

Exchange of SEC. 8. That when the division of issue and redemption gold coin and United States shall have paid out gold coin in exchange for United States notes and Treas- notes and Treasury notes presented for payment, it shall from time to time cancel such amounts of notes so paid as shall not exceed the amount of national currency notes issued subsequent to the taking effect of this act.

ury notes.

United States notes may be

cancellation.

SEC. 9. That the Secretary of the Treasury may, in his transferred for discretion, from any funds in the general Treasury not set apart under section four of this act or otherwise appropriated, transfer to the division of issue and redemption any United States notes or Treasury notes which, on such transfer, could then lawfully be canceled under the provisions of this act if they had been redeemed on presentation; and when so transferred the same shall be canceled. And the Secretary of the Treasury, whenever there may be United States notes or Treasury notes in the general Treasury which are not available as surplus revenue, and which upon transfer to the division of issue and redemption could then lawfully be canceled under the provisions of this act, may exchange such notes with the division of issue and redemption for gold coin, and such notes shall thereupon be canceled.

United States notes redeemed

SEC. 10. That United States notes or Treasury notes in gold not to be once redeemed shall not be paid out again except for gold paid out except for gold coin, unless there shall be an accumulation of such notes in United States the division of issue and redemption which can not then be

bonds.

or

canceled under the provisions of this act, in which case the Secretary of the Treasury shall have authority, if in his judgment that course is necessary for the public welfare, to invest the same, or any portion thereof, in bonds of the United States for the benefit of the gold reserve in the division of issue and redemption, such bonds to be held in the aforesaid division, subject to sale at the discretion of the Secretary of the Treasury for the benefit of the said reserve in the said division of issue and redemption, and not for any other purpose.

States notes less

cates, one dollar,

dollars.

SEC. 11. That no United States note or Treasury note No United issued under the act of July fourteenth, eighteen hundred than ten dollars. and ninety, of a denomination less than ten dollars shall Silver certifihereafter be issued, and silver certificates shall hereafter two dollars, five be issued or paid out only in denominations of one dollar, two dollars, and five dollars against silver dollars deposited in the division of issue and redemption, or in exchange for silver certificates of denominations exceeding five dollars. SEC. 12. That the circulating notes provided for in this Two classes of act shall consist of two classes, namely, national reserve notes and national currency notes. The words "national reserve notes," when used in this act, shall be understood to mean notes issued to a national banking association in exchange for United States notes, and for whose current redemption the banking association receiving the same shall be made immediately liable, and whose ultimate payment shall be by the Government of the United States.

That the words "national currency notes," when used in this act, shall be understood to mean notes issued upon the assets of a national banking association, whether secured by deposited United States bonds or otherwise, and constituting a direct and ultimate liability of the said banking association, as provided in this act.

notes defined.

Bank notes not

of bank.

SEC. 13. That any national banking association, on complying with the provisions of this act, shall, if its capital to exceed capital be wholly paid up and unimpaired, be entitled to receive from the Comptroller of the Currency national currency notes of different denominations hereinafter provided (none, however, being less than ten dollars) in blank, registered and countersigned, as provided by law, to the amounts and in the manner following, and on the following terms and conditions, but in no case exceeding the amount of such paid-up and unimpaired capital:

notes.

Subdivision A. That upon deposits by national banking Bond-based associations of United States bonds, bearing interest, as provided by law under the provisions of sections fifty-one hundred and fifty-nine and fifty-one hundred and sixty of the Revised Statutes, such associations shall be entitled to receive from the Comptroller of the Currency national currency notes of different denominations in blank, as provided by this act, equal in amount to the par value of the bonds so deposited, and national banking associations now having bonds on deposit for the security of circulating notes less in amount than the par value of the bonds, or which may hereafter have such bonds on deposit, shall be entitled to receive, immediately upon there reorganization under this act, national currency notes to an amount which will increase to the par value of the bonds the aggregate amount of circulating notes held by such associations in consequence of the deposit of such bonds; and when from time to time the circulating notes of any association issued prior to the passage of this act are received by the division of issue and redemption, and it shall be the duty of every national banking association to present them to said division as rapidly as possible, they shall be canceled, and said association shall be entitled to receive in lieu thereof an

Reserve notes

and currency notes.

National cur

equivalent amount of the national currency notes provided for in this act: Provided, That nothing herein contained shall be construed to modify or repeal the provisions of sections fifty-one hundred and sixty-seven and fifty-one hundred and seventy-one of the Revised Statutes, authoriz ing the Comptroller of the Currency to require additional deposits of bonds or of lawful money in case the market value of the bonds held to secure the circulating notes shall fall below the par value of the circulating notes outstanding for which said bonds may be deposited as security. Subdivision B. That any national banking association may deposit with the Treasurer of the United States, under such regulations as the Secretary of the Treasury may approve, United States notes, and shall then be entitled to receive in exchange therefor from the Comptroller of the Currency an equal amount of national reserve notes, of the kind and denominations described in section fourteen of this act, and to receive and issue in addition thereto an amount of national currency notes equal to the amount of national reserve notes received as aforesaid: Provided, however, That when any national banking association shalĺ have taken out an amount of national reserve notes equal to thirty-five percentum of its capital, it shall not be required to take out any further amount of national reserve notes in order to be entitled to receive and issue national currency notes to the full amount of its paid up and uuimpaired capital as authorized in this section.

That from and after three years after the passage of this act no national banking association shall be granted an extension or renewal of its charter, and from and after the passage of this act no national banking association shall be granted a certificate of organization, unless such association shall take out in the manner prescribed herein an amount of national reserve notes equal to at least twentyfive per centum of its capital, subject to the exemptions provided in section eighteen of this act.

United States notes received into the division of issue and redemption in exchange for national reserve notes shall be canceled as received.

Subdivision C. That the national currency notes conrency notes para stitute a paramount lien upon the bonds deposited to secure circulation and upon all the other assets of the association issuing such notes.

mount lien on all assets.

Description of

notes.

SEC. 14. That in order to furnish suitable notes for circulation, the Comptroller of the Currency shall, under the direction of the Secretary of the Treasury, cause plates and dies to be engraved, in the best manner to guard against counterfeiting and fraudulent alterations, and shall have printed therefrom and numbered such quantity of circulating notes in blank of the denominations of ten dollars, twenty dollars, fifty dollars, one hundred dollars, five hundred dollars, one thousand dollars, and ten thousand dollars, as may be required to supply the associations entitled to receive the same.

Each national currency note shall express upon its face the promise of the association receiving and issuing the

same to pay the specified amount on demand, attested by the signatures of the president or vice-president and the cashier of such association; it shall also bear upon its face the statement that it is issued in accordance with the provisions of this act, which statement shall be attested by the written or engraved signature of the Comptroller of the Currency, and shall bear such devices and other statements and be in such form as the Secretary of the Treasury shall, by_regulation, direct.

Each national reserve note shall be in the same form and contain the same statements as the present United States legal-tender notes, and in addition thereto shall express upon its back or reverse side the promise of the national banking association receiving the same to pay on demand the sum specified on its face, which statement shall be attested by the signatures of the president or vice-president and cashier of such association.

No circulating notes shall be issued to any national banking association other than those described in this Act.

any

SEC. 15. That national reserve notes issued to national banking association, as defined in this Act, shall be a full legal tender at their face value for all debts, public and private, except duties on imports and interest on the public debt, and shall be available for use in the reserves of any national banking association; but no national banking association shall count or report any of its own notes as a part of its cash or cash assets.

Reserve notes a legal tender.

of

SEC. 16. That each year after the expiration of one year Reduction bond deposits refrom the passage of this act the Secretary of the Treasury quired. may, from time to time, and at such times as to him shall seem best, and under regulations to be prescribed by him, decrease the deposits of the United States bonds required to be deposited under Subdivision A of section thirteen of this act by one-fourth of the amount of the bonds required to be deposited under this act as a basis of circulation, and from and after the expiration of five years from the passage of this act no such bond deposits shall be required; and no further deposit of bonds shall be required than is prescribed in this act; and any national banking association having at any time bonds of the United States deposited with the Treasurer in excess of the amount required by law to be at such time deposited may withdraw the whole or any part of such excess; Provided, however, That such decrease in the amount of bonds required to be deposited shall not of itself in any way interfere with the amount of circulating notes previously issued by said banking association: And provided further, That nothing herein contained shall be construed to authorize or permit the withdrawal of bonds required to be deposited under the provisions of section fifty-one hundred and fifty-three of the Revised Statutes of the United States as security for the safe-keeping and prompt payment of the public moneys deposited with any national banking associations.

re

SEC. 17. That any national banking association organ- Bonds quired during ized within five years after the passage of this Act shall five years.

Currency notes finally without

serve notes.

be required, preliminary to commencing business, to deposit only such amount of United States bonds as it would be required to have on deposit if it had been organized immediately after the passage of this Act.

SEC. 18. That after so many United States notes have taking out re. been canceled and destroyed, as herein provided, that in the judgment of the Secretary of the Treasury no more of such notes are available for use as a basis for the issue of circulating notes, the deposit of such United States notes as provided in section thirteen of this Act shall no longer be required, but Treasury notes issued under the Act of July fourteenth, eighteen hundred and ninety, may then be accepted in lieu of United States notes; and when in the judgment of the Secretary of the Treasury no more of such Treasury notes are available for use as a basis for the issue of circulating notes, the deposit of such notes shall no longer be required, and national banking associations shall then be entitled to receive national currency notes to the amount which they would have been entitled to receive if such United States notes or Treasury notes were available for such use.

Reduction circulation.

Bank-note

of

SEC. 19. That any national banking association desiring to reduce the volume of its national currency notes may do so by redeeming the same and sending such redeemed notes to the Comptroller of the Currency, with the request that they be canceled; and the Comptroller of the Currency may carry to the credit of any national banking association, or reimburse to it, the excess of either the bank note redemption fund or the bank-note guaranty fund, or both, above the amount required by this act to be held against outstanding circulation.

SEC. 20. That every national banking association shall guaranty fund. at all times keep and have on deposit with the division of issue and redemption for the purpose hereinafter specified a sum in gold coin equal to five per centum of its outstanding circulation of national currency notes not secured by United States bonds. The amount so kept on deposit shall constitute a fund to be known as the "bank-note guaranty fund," which fund shall be held for the following purpose, and for no other, namely:

Whenever the Comptroller of the Currency shall have become satisfied by the protest or the waiver and admission specified in section fifty-two hundred and twenty-six, or by the report provided for in section fifty-two hundred and twenty-seven of the Revised Statutes of the United States, that any association has refused to pay any of its circulating notes on demand, he shall direct the redemption of its national currency notes from the bank-note guaranty fund aforesaid, and the redemption in gold coin of the United States of the national reserve notes issued to it from the reserve fund in the division of issue and redemption, and such notes shall thereupon be redeemed. After the failure of any national banking association to redeem any of said notes shall have been thus ascertained, the bonds deposited by it with the Treasurer of the United States shall be sold as provided by law, and the proceeds