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NATIONAL MONETAKY COMMISSION

LAWS OF THE
UNITED STATES CONCERNING
MONEY, BANKING, AND
LOANS, 1778-1909
COMPILED B Y

A. T. HUNTINGTON
CHIEF OF DIVISION OF LOANS AND CURRENCY
UNITED STATES TREASURY
AND

ROBERT J. MAWHINNEY
LAW CLERK, OFFICE OF SOLICITOR OF TREASURY

Washington : Government Printing Office : 1910

NATIONAL MONETARY COMMISSION.

N E L S O N W. ALDRICH, ] thode
EDWARD B . VREELAND,

Island, Chairman.
New York,
Vice-Chairman.

J U L I U S C. BURROWS, Michigan.

J O H N W. W E E K S , Massachusetts.

E U G E N E H A L E , Maine.

ROBERT W . BONYNGE, Colorado.

P H I L A N D E R C. K N O X , P e n n s y l v a n i a .

SYLVESTER C. S M I T H , California.

THEODORE E . BURTON, Ohio.

L E M U E L P . PADGETT, T e n n e s s e e .

H E N R Y M. TELLER, Colorado.

GEORGE F . BURGESS, T e x a s .

HERNANDO D . M O N E Y , Mississippi.

ARsf:NE P . P U J O , Louisiana.
A R T H U R B . SHELTON,

JOSEPH W. BAILEY, Texas.
A. P I A T T ANDREW,
II

Spec\

Assistant

Secretary.

Commission.

TABLE OF CONTENTS.
Pages.
FINANCE

1-266

BANKING

269-470

COINAGE

•_

471-624

PAPEB MONEY

625-725

INDEX

727-812

FINANCE.
Under this subject are grouped the statutes relating to loans and other interestbearing obligations, the subtreasury system, the status of foreign coins, and other
statutes not relating specifically to banking, paper money, or coinage.

ARTICLES OF CONFEDERATION OF JULY 9, 1778.

1 Stat. L., 7.

ARTICLE 9.

SEC. 5. The United States, in Congress assembled, shall
have authority * * * to borrow money or emit bills
on the credit of the United States, transmitting every
half year to the respective States an account of the sums
of money so borrowed or emitted; * * *.
SEC. 6. The United States, in Congress assembled, shall i stat. L., 8.
never engage in a war, * * * , nor coin money, nor
regulate the value thereof, * * * , nor emit bills, nor
borrow money on the credit of the United States, * * *,
unless nine States assent to the same, * * *.
ARTICLE 12.

All bills of credit emitted, moneys borrowed, and debts I stat. L., 8.
contracted by or under the authority of Congress, before
the assembling of the United States, in pursuance of the
present confederation, shall be deemed and considered
as a charge against the United States, for payment and
satisfaction whereof the said United States and the public faith are hereby solemnly pledged.

THE CONSTITUTION OF THE UNITED STATES.
ARTICLE 1.

SEC. 8. The Congress shall have power—
istat.L.,13.
To lay and collect taxes, duties, imposts, and excises, to TO lay taxes,
i l l
i
.ii»
ii
to
-i and provide for
pay the debts, and provide tor the common defence and the common de
fence and Wei-

general welfare of the United States; but all duties, im- fare. Duties to
posts, and excises shall be uniform throughout the United
States:
To borrow money on the credit of the United States: m 2 J e £ o r r o w
To regulate commerce with foreign nations, and among COmmerrceegulate
the several States, and with the Indian tribes:
To establish * * * uniform laws on the subject Bankruptcies.
of bankruptcies throughout the United States:
To coin money, regulate the value thereof, and of for- e To %*\™^
eign coin, and fix the standard of weights and measures :^t a n^dard^of
measures.
To provide for the punishment of counterfeiting the TO punish
• .
,
.
n , -r-r . n ot
counterfeiters.
securities and current com of the United States:
3|*

•}*

3|C

3jC

SjC

To make all laws which shall be necessary and proper TO make laws
for carrying into execution the foregoing powers, and all fnto Execution
other powers vested by this Constitution in the govern- vested inWGov*
ment of the United States, or in any department or understates?*
officer thereof.
SEC. 10. No State shall * * *; coin money; emit
bills of credit; make any thing but gold and silver coin
a tender in payment of debts; * * *.
ACT OF JULY 31, 1789.
V.—An act to regulate the collection of the duties I stat. L., 29.
imposed by law on the tonnage of ships or vessels, and
on goods, wares and merchandises imported into the
United States.
*
*
*
*
*
SEC. 18. And be it further enacted, That all foreign Rates of forcoins and currencies shall be estimated according to the currency.
following rates: Each pound sterling of Great Britain,
at four dollars forty-four cents; each livre tournois of
CHAP.

NATIONAL, MONETABY COMMISSION.

France, at eighteen cents and a half; each florin or
guilder of the United Netherlands, at thirty-nine cents;
each mark banco of Hamburgh, at thirty-three cents and
one third; each rix dollar of Denmark, at one hundred
cents; each rix dollar of Sweden, at one hundred cents;
each ruble of Eussia, at one hundred cents; each real
plate of Spain, at ten cents; each milree of Portugal, at
one dollar and twenty-four cents; each pound sterling
of Ireland, at four dollars ten cents; each tale of China,
at one dollar forty-eight cents; each pagoda of India,
at one dollar ninety-four cents; each rupee of Bengal,at fifty-five cents and a half; and all other denominations of money in value as near as may be to the said
invoices to be rates; and the invoices of all importations shall be made
in currency of
the place from out in the currency of the place or country from whence
whence the imp o r t a t i o n the importation shall be made, and not otherwise.
comes.
*
*
*
*
*
Bates of coins SEC. 30. And be it further enacted. That the duties
duttesan°dfeesf and fees to be collected by virtue of this act, shall be
received in gold and silver coin only, at the following
rates, that is to say, the gold coins of France, England,
Spain and Portugal, and all other gold coin of equal
fineness, at eighty-nine cents for every pennyweight. The
Mexican dollar at one hundred cents; the crown of France
at one dollar and eleven cents; the crown of England at
one dollar and eleven cents; and all silver coins of equal
fineness at one dollar and eleven cents per ounce.
*
#
*
*
*
Approved, July 31,1789.
[Further provisions fixing the rates and status of foreign coins and currency are as follows: 1 Stat. L., 167,
173, 215, 262, 300, 539, 673, 680; 2 Stat. L., 121,173, 374;
3 Stat. L., 322, 525, 645, 777, 779; 4 Stat. L., 593, 681,
699, 700; 5 Stat. L., 496, 607, 625, 740; 9 Stat. L., 14; 11
Stat. L., 163. Former acts making foreign coins a currency or legal tender, repealed, 11 Stat. L., 163; 12 Stat.
L., 207; 17 Stat. L., 602 (sees. 3564-3565, E. S.)]
ACT OF SEPTEMBEE 2, 1789.
i stat L., 65. CHAP. XII.—An act to establish the Treasury Department.
SECTION 1. Be it enacted by the Senate and House of
Representatives of the United States of America in Condesfj^ated^^^m assembled, That there shall be a Department of

LAWS CONCERNING MONEY, BANKING, AND LOANS.

Treasury, in which shall be the following officers, namely:
A Secretary of the Treasury, to be deemed head of the r e ^®^ r s c : 0 ^:
department; a Comptroller, an Auditor, a Treasurer, aTwasuwp,dBeg'
Kegister, and an Assistant to the Secretary of the Treas- totesectetary!nt
ury, which assistant shall be appointed by the said
Secretary.
. SECT. 2. And be it further enacted, That it shall be g^SSSy?*the
the duty of the Secretary of the Treasury to digest and
prepare plans for the improvement and management of
the revenue, and for the support of public credit; to prepare and report estimates of the public revenue, and the
public expenditures; to superintend the collection of the
revenue; to decide on the forms of keeping and stating
accounts and making returns, and to grant under the
limitations herein established, or to be hereafter provided,
all warrants for monies to be issued from the Treasury,
in pursuance of appropriations by law; to execute such
services relative to the sale of the lands belonging to the
United States, as may be by law required of him; to
make report, and give information to either branch of
the legislature, in person or in writing (as he may be
required), respecting all matters referred to him by the
Senate or House of Kepresentatives, or which shall appertain to his office; and generally to perform all such
services relative to the finances, as he shall be directed to
perform.
SEC. 3. (Prescribes the duties of the Comptroller.)
SEC. 4. And be it further enacted, That it shall be the TJ*j2fj*^f the
duty of the Treasurer to receive and keep the monies of
the United States, and to disburse the same upon warrants drawn by the Secretary of the Treasury, countersigned by the Comptroller, recorded by the Eegister, and
not otherwise; he shall take receipts for all monies paid
by him, and all receipts for monies received by him shall
be endorsed upon warrants signed by the Secretary of the
Treasury, without which warrant, so signed, no acknowledgment for money received into the public Treasury
shall be valid. And the said Treasurer shall render his
accounts to the Comptroller quarterly (or oftener if required), and shall transmit a copy thereof, when settled,
to the Secretary of the Treasury. He shall moreover,
on the third day of every session of Congress, lay before
the Senate and House of Eepresentatives, fair and accurate copies of all accounts by him from time (to time)
rendered to, and settled with the Comptroller as afore

NATIONAL MONETARY COMMISSION.

said, as also, a true and perfect account of the state of
the Treasury. He shall, at all times, submit to the Secretary of the Treasury, and the Comptroller, or either of
them, the inspection of the monies in his hands; and shall,
prior to the entering upon the duties of his office, give
bond, with sufficient sureties, to be approved by the Secretary of the Treasury and Comptroller, in the sum of one
hundred and fifty thousand dollars, payable to the United
Act of Mar. 3, States, with condition for the faithful performance of
sec'i.
' t h e duties of his office, and for the fidelity of the persons
to be by him employed, which bond shall be lodged in
the office of the Comptroller of the Treasury of the
United States.
(For additional duties imposed on the Treasurer see
1 Stat. L., 280.)
SEC. 5. (Prescribes the duties of the Auditor.)
Duties of the SEC. 6. And be it further enacted. That it shall be the
duty of the Register to keep all accounts of the receipts
and expenditures of the public money, and of all debts
due to or from the United States; to receive from the
Comptroller the accounts which shall have been finally
adjusted, and to preserve such accounts with their vouchers and certificates; to record all warrants for the receipt
or payment of monies at the Treasury, certify the same
thereon, and to transmit to the Secretary of the Treasury,
copies of the certificates of balances of accounts adjusted
as is herein directed.
(Section 7 provides that the Assistant Secretary shall
have charge of the records, etc., in case of vacancy in the
office of the Secretary.)
(Section 8 forbids any person appointed to any office
instituted by this act to be concerned in trade, commerce,
navigation, or the purchase of public property or public
securities, or to take any emolument for transacting business in the department, other than is allowed by law.)
Approved, September 2, 1789 (1 Stat. L., 65).
A C T O F M A R C H 26, 1790.
l stat. L., 105. C H A P . IV.—An act making appropriations for the support of government for the year one thousand seven
hundred and ninety.
*
*
*
*
*
bSor^provided ^EC. ^ And be it further enacted, T h a t out of the aforeau^horiS f o r s a ^ appropriation of one hundred and forty-seven thoucertain
poses.

pur-

LAWS CONCERNING MONEY, BANKING, AND LOANS.

sand one hundred and sixty-nine dollars and fifty-four
cents, the payment of the following sums, not heretofore
provided for by law, and estimated in the aforesaid report of the Secretary of the Treasury of the first of March
instant, is hereby authorized and intended to be made, to
wit: * * *: For paying the interest due on the loans
made by the Secretary of the Treasury, two thousand
four hundred and fourteen dollars, and sixty-one cents.
*

•

SEC. 7. And be it further enacted, That the President of nJ£j££ffi%J£
the United States be authorized to empower the Secretary to^make ^ool
of the Treasury, if he shall deem it necessary, to make pHatfonsappro"
such loans as may be requisite to carry into effect the
foregoing appropriations, for the repayment of which
the aforesaid duties on imports and tonnage shall be, and
are hereby pledged.
Approved, March 26,1790.
A C T O F A U G U S T 4, 1790.
CHAP.

X X X I V . — A n act making provision for the [pay- 13g#
ment of tfte'] debt of the United States.

stat

Whereas, justice and the support of public credit re- R^ta!*6'1
quire, that provision should be made for fulfilling the
engagements of the United States, in respect to their
foreign debt, and for funding their domestic debt upon
equitable and satisfactory terms:
SECTION 1. Be it enacted by the Senate and House of
Representatives of the United States of America in Congress assembled, That reserving out of the monies which p^^and 0 tonhave arisen since the last day of December last past, a n d £ a | | toPpayPinwhich shall hereafter arise from the duties on g ° o d s , | ^ f * ^ t ^ |
wares and merchandise imported into the United States, gervirnioa$6boe"
and on the tonnage of ships or vessels, the yearly sum of ^
annually
six hundred thousand dollars, or so much thereof as may G o v e r n m e n t be appropriated from time to time, towards the support
of the Government of the United States, and their common defence, the residue of the said monies, or so much
thereof, as may be necessary, as the same shall be received
in each year, next after the sum reserved as aforesaid,
shall be, and is hereby appropriated to the payment of
the interest which shall from time to time become due on
the loans heretofore made by the United States in foreign
countries; and also to the payment of interest on such

NATIONAL MONETARY COMMISSION.

further loans as may be obtained for discharging the
arrears of interest thereupon, and the whole or any part
of the principal thereof; to continue so appropriated until
the said loans, as well those already made as those which
may be made in virtue of this act, shall be fully satisfied,
pursuant to the contracts relating to the same, any law to
the contrary notwithstanding. And provided. That nothing herein contained, shall be construed to annul or alter
any appropriation by law made prior to the passing of
this act.
For payment And as new loans are and will be necessary for the payof interest and

installments of ment of the aforesaid arrears of interest, and the instalments of the principal of the said foreign debt due and
growing due, and may also be found expedient for effecting an entire alteration in the state of the same:
(Section 2 authorizes the President of the United States
to cause not exceeding twelve millions of dollars to be borrowed, for the discharge of said arrears and installments
or for paying off the whole foreign debt, and to make
such further contracts respecting said debts as may be
expedient, provided that no contract shall preclude the
United States from reimbursing within fifteen years any
sum borrowed.)
Domestic aebt SEC 3. Be it therefore further enacted. That a loan to
its full amount, the full amount of the said domestic debt be, and the same
a n d subscrip- .
-i ji , i
i
<»
• .
.
tions thereto, is hereby proposed: and that books tor receiving subscriphowtobemade; ,.

.-. ,

, ,,

™

- ,5

tions to the said loan be opened at the Treasury of the
United States, and by a commissioner to be appointed in
each of the said States, on the first day of October next, to
continue open until the last day of September following,
inclusively; and that the sums which shall be subscribed
in what pay- thereto, be payable in certificates issued for the said debt,
according to their specie value, and computing the interest
upon such as bear interest to the last day of December
next, inclusively; which said certificates shall be of these
several descriptions, to wit:
Those issued by the Register of the Treasury.
Those issued by the commissioners of loans in the several States, including certificates given pursuant to the
act of Congress of the second of January, one thousand
seven hundred and seventy-nine, for bills of credit of the
several emissions of the twentieth of May, one thousand
seven hundred and seventy-seven, and the eleventh of
April, one thousand seven hundred and seventy-eight.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

Those issued by the commissioners for the adjustment
of the accounts of the quartermaster, commissary, hospital, clothing, and marine departments.
Those issued by the commissioners for the adjustment
of accounts in the respective States.
Those issued by the late and present Paymaster-General, or commissioner of Army accounts.
Those issued for the payment of interest, commonly
called indents of interest.
And in the bills of credit issued by the authority of the
United States in Congress assembled, at the rate of one
hundred dollars in the said bills, for one dollar in specie.
SEC. 4. And be it further enacted. That for the whole Subscribers
or any part of any sum subscribed to the said loan, by cipai of domesU

-VJ--

L - L

'AtiC

1 1 1 ,

d e b t

W h a t

any person or persons, or body politic, which snail be paid proportions of
in the principal of the said domestic debt, the subscriber of interest, and
or subscribers shall be entitled to a certificate, purportingment entftied
that the United States owe to the holder or holders thereof, his, her, or their assigns, a sum to be expressed therein, equal to two-thirds of the sum so paid, bearing an
interest of six per centum per annum, payable quarter
yearly, and subject to redemption by payments not exceeding in one year, on account both of principal and
interest, the proportion of eight dollars upon a hundred
of the sum mentioned in such certificate; and to another
certificate purporting that the United States owe to the
holder or holders thereof, his, her, or their assigns, a sum
to be expressed therein, equal to the proportion of thirtythree dollars and one-third of a dollar upon a hundred
of the sum so paid, which after the year one thousand
eight hundred shall bear an interest of six per centum
per annum, payable quarter yearly, and subject to redemption by payments not exceeding in one year, on account both of principal and interest, the proportion of
eight dollars upon a hundred of the sum mentioned in
such certificate: Provided, That it shall not be understood that the United States shall be bound or obliged to
redeem in the proportion aforesaid; but it shall be understood only t h a t they have a right so to do.
SEC. 5. And be it further enacted, That for the whole
Subscribers
or any part of any sum subscribed to the said loan b v esff of^domestic
!

-i...

l • i

ii i

debt, what pro-

any person or persons, or body politic, which shall be portions of
paid in the interest of the said domestic debt, computed of interest,rand
to the said last day of December next, or in the said ment entitled

NATIONAL MONETARY COMMISSION.

certificates issued in payment of interest, commonly called
indents of interest, the subscriber or subscribers shall be
entitled to a certificate purporting that the United States
owe to the holder or holders thereof, his, her, or their
assigns, a sum to be specified therein, equal to that by him,
her, or them so paid, bearing an interest of three per centum
per annum, payable quarter yearly, and subject to redemption by payment of the sum specified therein, whenever provision shall be made by law for that purpose,
er^o^e^ap- SEC. 6. And be it further enacted, That a commissioner
itatee?oir1ecee1ve':)e appointed for each State, to reside therein, whose duty
subscriptions,^ shall be to superintend the subscriptions to the said
loan; to open books for the same; to receive the certificates which shall be presented in payment thereof; to
liquidate the specie value of such of them as shall not
have been before liquidated; to issue the certificates above
mentioned in lieu thereof, according to the terms of each
subscription; to enter in books to be by him kept for that
purpose, credits to the respective subscribers to the said
loan for the sums to which they shall be respectively entitled; to transfer the said credits upon the said books
from time to time as shall be requisite; to pay the interest
thereupon as the same shall become due, and generally to
observe and perform such directions and regulations as
shall be prescribed to him by the Secretary of the Treasury, touching the execution of his office.
(Section 7 provides that the stock created in pursuance
of this act shall be transferable only on the books of the
Treasury or of the commissioners in which it is recorded
at the time of transfer, by the owner or by his attorney;
but stock may be transferred by the Secretary of the
Treasury from the books of one office to those of another,
by request of the owner.)
(Section 8 provides for the payment of the interest,
to be made quarterly on the last days of March, June,
September, and December in each year.
(Sections 9 and 10 provide that nothing in this act
shall impair the rights of creditors who do not subscribe
to the loan, but that they shall receive to the end of 1791
the same rate of interest as is paid to subscribing creditors, and payable at the same times and places. But
as some of the certificates outstanding have not been
liquidated to specie value, and as some have been counterfeited, such creditors as do not hold certificates issued
by the Register of the Treasury, in order to be entitled

LAWS CONCERNING MONEY, BANKING, AND LOANS.

to interest, are required to present them before June 1,
1791, to be exchanged for new certificates specifying
the specie amounts of debt and otherwise like those
heretofore issued by the Eegister, and made transferable
like those issued to subscribers under this act.
(Sections 11 and 12 prescribe the salaries to be paid
to the commissioners, and provide for their oath of office
and official bonds.)
SEC. 12 (2nd paragraph). And whereas a provision s t a t e d e b t s
for the debts of the respective States by the United
States, would be greatly conducive to an orderly, economical and effectual arrangement of the public finances:
SEC. 13. Be it therefore further enacted, That a loan beamounteo/$2i°
proposed to the amount of twenty-one million and fiveaioan pVohundred thousand dollars, and that subscriptions to theFn8 certificates
said loan be received at the same times and places, and °
by the same persons, as in respect to the loan herein
before proposed concerning the domestic debt of the
United States. And that the sums which shall be subscribed to the said loan, shall be payable in the principal
and interest of the certificates or notes, which prior to the
first day of January last, were issued by the respective
States, as acknowledgments or evidences of debts by
them respectively owing, except certificates issued by the
commissioners of Army accounts in the State of North
Carolina, in the year one thousand seven hundred and
eighty-six.
Provided, That no greater sum shall be received in the ceAafn^um^n
certificates of any State than as follows; that is to say: each *
I n those of New Hampshire, three hundred thousand
dollars.
I n those of Massachusetts, four million dollars.
I n those of Rhode Island and Providence Plantations,
two hundred thousand dollars.
I n those of Connecticut, one million six hundred thousand dollars.
I n those of New York, one million two hundred thousand dollars.
I n those of New Jersey, eight hundred thousand
dollars.
I n those of Pennsylvania, two million two hundred
thousand dollars.
I n those of Delaware, two hundred thousand dollars.
I n those of Maryland, eight hundred thousand dollars.
15712°—10

NATIONAL MONETARY COMMISSION.

In those of Virginia, three million five hundred thousand dollars.
In those of North Carolina, two million four hundred
thousand dollars.
In those of South Carolina, four million dollars.
In those of Georgia, three hundred thousand dollars,
what certifl- And provided. That no such certificate shall be received,
/>ofp« finfl.ll n o t

be received.

which from the tenor thereof, or from any public record,
act, or document, shall appear or can be ascertained to
have been issued for any purpose, other than compensations and expenditures for services or supplies towards
the prosecution of the late war, and the defence of the
United States, or of some part thereof during the same.
ex^eedinipti?he ®EC' ^' Provided also, and be it further enacted. That
sum allowed to if the total amount of the sums which shall be subscribed
any State, what

P r P

h ii bertid0n*° *^e sai( ^ ^ o a n m ^ e debt of any State, within the time
limited for receiving subscriptions thereto, shall exceed
the sum by this act allowed to be subscribed within such
State, the certificates and credits granted to the respective
subscribers, shall bear such proportion to the sums by
them respectively subscribed, as the total amount of the
said sums shall bear to the whole sum so allowed to be
subscribed in the debt of such State within the same.
And every subscriber to the said loan shall, at the time
of subscribing, deposit with the commissioner the certificates or notes to be loaned by him.
Subscribers SEC. 15. And be it further enacted. That for two-thirds

to said l o a n , .

.. '

• •* -.

•,

what propor- of any sum subscribed to the said loan, by any person or
tion of princi-

. . .

pal, rate of in* persons, or body politic, which shall be paid in the prmterms of pay-cipal and interest of the certificates or notes issued as
to.
aforesaid by the respective States, the subscriber or subscribers shall be entitled to a certificate, purporting that
the United States owe to the holder or holders thereof,
or his, her or their assigns, a sum to be expressed therein,
equal to two-thirds of the aforesaid two-thirds, bearing
an interest of six per centum per annum, payable quarter
yearly, and subject to redemption by payments, not exceeding in one year, on account both of principal and
interest, the proportion of eight dollars upon a hundred
of the sum mentioned in such certificate; and to another
certificate, purporting that the United States owe to the
holder or holders thereof, his, her or their assigns, a sum
to be expressed therein, equal to the proportion of thirtj'three dollars and one third of a dollar upon a hundred
of the said two thirds of such sum so subscribed, which

LAWS CONCERNING MONEY, BANKING, AND LOANS.

after the year one thousand eight hundred shall bear an
interest of six per centum per annum, payable quarter
yearly, and subject to redemption by payments, not exceeding in one year, on account both of principal and
interest, the proportion of eight dollars upon a hundred
of the sum mentioned in such certificate; and that for
the remaining third of any sum so subscribed, the subscriber or subscribers shall be entitled to a certificate, purporting that the United States owe to the holder or holders thereof, his, her or their assigns, a sum to be expressed
therein, equal to the said remaining third, bearing an interest of three per cent, per annum, payable quarter
yearly, and subject to redemption by payment of the sum
specified therein whenever provision shall be made by
law for that purpose.
SEC. 16. And be it further enacted. That the interest interest, how
upon the certificates which shall be received in payment ed, and payable
of the sums subscribed towards the said loan, shall be
computed to the last day of the year one thousand seven
hundred and ninety-one, inclusively; and the interest
upon the stock which shall be created by virtue of the
said loan, shall commence or begin to accrue on the first
day of the year one thousand seven hundred and ninetytwo, and shall be payable quarter yearly, at the same time,
and in like manner as the interest on the stock to be
created by virtue of the loan above proposed in the domestic debt of the United States.
SEC. 17. And be it further enacted, That if the whole s»m allowed
sum allowed to be subscribed in the debt or certificates of not being subany State as aforesaid, shall not be subscribed within the state to receive
time for that purpose limited, such State shall be entitled amount of dento receive, and shall receive from the United States, an
interest per centum per annum, upon so much of the said
sum as shall not have been so subscribed, equal to that
which would have accrued on the deficiency, had the same
been subscribed in trust for the non-subscribing creditors
of such State, who are holders of certificates or notes issued on account of services or supplies towards the prosecution of the late war, and the defence of the United
States or of some part thereof, to be paid in like manner
as the interest on the stock which may be created by virtue of the said loan, and to continue until there shall be
a settlement of accounts between the United States and
the individual States; and in case a balance shall then

NATIONAL MONETARY COMMISSION.

appear in favour of such State, until provision shall be
made for the said balance.
But as certain States have respectively issued their
own certificates, in exchange for those of the United
States, whereby it might happen that interest might be
twice payable on the same sums:
state certifi- SEC. 18. Be it further enacted, That the payment of
lieu of those of interest whether to States or to individuals, in respect to
s t a t e s , pay- the debt of any State, by which such exchange shall have
St on, sus- been made, shall be suspended, until it shall appear to the
pen e
*
satisfaction of the Secretary of the Treasury, that certificates issued for that purpose by such State, have been reexchanged or redeemed, or until those which shall not
have been re-exchanged or redeemed, shall be surrendered
to the United States,
states
SEC. 19. And he it further enacted. That so much of
charsreaole

with amount of the debt of each State as shall be subscribed to the said
loan, and the monies (if any) that shall be advanced to
the same pursuant to this act, shall be a charge against
such State, in account with the United States.
Further ap- SEC. 20. And he it further enacted, That the monies
monies a°Hsing arising under the revenue laws, which have been or during
from the reve- ,

nue laws to the the present session o i Congress may be passed, or so much
?hisact;
thereof as may be necessary, shall be and are hereby
pledged and appropriated for the payment of the interest
on the stock which shall be created by the loans aforesaid,
pursuant to the provisions of this act, first paying t h a t
which shall arise on the stock created by virtue of the said
first mentioned loan, to continue so pledged and appropriated, until the final redemption of the said stock, any
law to the contrary notwithstanding, subject nevertheless
to such reservations and priorities as may be requisite to
satisfy the appropriations heretofore made, and which
during the present session of Congress may be made by
law, including the sums herein before reserved and appropriated; and to the end that the said monies may be inviolably applied in conformity to this act, and may never
be diverted to any other purpose, an account shall be kept
of the receipts and disposition thereof, separate and distinct from the product of any other duties, imposts, excises and taxes whatsoever, except such as may be hereafter laid, to make good any deficiency which may be
found in the product thereof towards satisfying the
interest aforesaid.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

SEC. 21. And be it further enacted, That the faith of the ^StJ a g? at Jj
United States be, and the same is hereby pledged to pro- &aiL%ooaddef£
vide and appropriate hereafter such additional and per- Ancles,
manent funds as may be requisite towards supplying any
such deficiency, and making full provision for the payment of the interest which shall accrue on the stock to be
created by virtue of the loans aforesaid, in conformity to
the terms thereof respectively, and according to the tenor
of the certificates to be granted for the same pursuant to
this act.
SEC. 22. And be it further enacted, That the proceeds of fr*£ °8J£® d0*
the sales which shall be made of lands in the western ter- ^e|*JJJ a* sinkritory, now belonging, or that may hereafter belong to the in s fund United States, shall be, and are hereby appropriated
towards sinking or discharging the debts, for the payment whereof the United States now are, or by virtue of
this act may be holden, and shall be applied solely to that
use until the said debts shall be fully satisfied.
Approved, August 4, 1790.
NOTE—By a series of acts, beginning with that of May 8, 1792
(1 Stat. L., 279), the time allowed for subscriptions under section 3
above was extended to December 31, 1797, giving to nonsubscribing creditors a rate of interest equal to that which would be payable to them as subscribing creditors. (See the act of March 3,
1797, 1 Stat. L., 516.)
The time for receiving upon loan the debts of the States under
section 13 above was also extended by the act of May 8, 1792, to
March 1, 1793, "Provided always, That the commissioners of loans
for North Carolina shall not be allowed to receive any certificate
issued by Patrick Travers, commissioner of Cumberland County,
or by the commissioners of army accounts at Warrenton."

ACT OF AUGUST 5, 1790.
XXXVIII.—An act to provide more effectually
for the settlement of the accounts between the United
States and the individual States.

CHAP.

SECTION 1. Be it enacted, * * *, That a board, to
consist of three commissioners, be, and hereby is established to settle the accounts between the United States,
and the individual states; and the determination of a
majority of the said commissioners on the claims submitted to them, shall be final and conclusive; and they
shall have power to employ such number of clerks as they
may find necessary.

istat.L.,

NATIONAL MONETARY COMMISSION.

(Section 2 provides for the oath of office to be taken
by the commissioners, and for their payment, at the rate
of two thousand two hundred and fifty dollars per annum
for each*)
e
P
<dtare i°n S~ ^EC# 3* And ^e it} father enacted. That it shall be the
amining claims, duty of the said commissioners to receive and examine
all claims which shall be exhibited to them before the
first day of July, one thousand seven hundred and ninetyone, and to determine on all such as shall have accrued
for the general or particular defense during the war, and
on the evidence thereof, according to the principles of
general equity (although such claims may not be sanctioned by the resolves of Congress, or supported by regular vouchers), so as to provide for the final settlement of
all accounts between the United States and the states
individually; but no evidence of a claim heretofore admitted by a commissioner of the United States for any
state or district, shall be subject to such examination; nor
shall the claim of any citizen be admitted as a charge
against the United States in the account of any state,
unless the same was allowed by such state before the
twenty-fourth day of September, one thousand seven
hundred and eighty-eight.
to^pecieUla?uI SEC - 4- And he U further enacted, That it shall be the
debits * of ce£ duty °^ ^ e s a ^ commissioners to examine and liquidate
tain states, to specie value, on principles of equity, the credits and
debits of the states already on the books of the treasury
for bills of credit subsequent to the eighteenth of March,
one thousand seven hundred and eighty.
set?£ment,fia!- ^EC. ^' And be it further enacted, That the commisthegbafancesato s ^ o n e r s s^laU debit each state with all advances which
beefwpeetn°the'iave keen, o r m a y ^ e ma( *e t o ^ by the United States,
states.
a n ( j w jth the interest thereon to the last day of the year
one thousand seven hundred and eighty-nine, and shall
credit each state for its disbursements and advances on the
principles contained in the third section of this act, with
interest to the day aforesaid, and having struck the balance due to each state, shall find the aggregate of all the
balances, which aggregate shall be apportioned between
the states agreeably to the rule hereinafter given; and the
difference between such apportionments, and the respective balances, shall be carried in a new account to the
debit or credit of the states respectively, as the case
may be.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

SEC. 6. And be it further enacted, That the rule for ^ ^ ^ l
apportioning to the states the aggregate of the balances
first above mentioned, shall be the same that is prescribed
by the constitution of the United States, for the apportionment of representation and direct taxes, and according to the first enumeration which shall be made.
SEC. 7. And be it further enacted, That the states w h o g t f ^ e ^ ! ^ J
shall have balances placed to their credit on the books |undeabalances
of the treasury of the United States, shall, within twelve
months after the same shall have been so credited, be
entitled to have the same funded upon the same terms
with the other part of the domestic debt of the United
States; but the balances so credited to any state shall not
be transferable.
(Section 8 relates to the compensation of the clerks
employed by the commissioners.)
SEC. 9. And be it further enacted, That the powers of continuance
the said commissioners shall continue until the first day sioners'powers.
of July, one thousand seven hundred and ninety-two, unless the business shall be sooner accomplished.
Approved, August 5,1790.
NOTE.—The time for settling the accounts under this act was
extended to July 1, 1793, by the act of January 23, 1792 (1 S t a t
L., 229).

ACT OF AUGUST 12, 1790.
CHAP.

XLVII.—An act making provision for the reduc-18|
Hon of the public debt.

stat

It being desirable by all just and proper means, to effect 3 f^0*^^
a reduction of the amount of the public debt, and as the X^9C| °*hM£i 8*
application of such surplus of the revenue as may remain Recital,
after satisfying the purposes for which appropriations
shall have been made by law. will not only contribute to
that desirable end, but will oe beneficial to the creditors of
the United States, by raising the price of their stock?
and be productive of considerable saving to the United
State:
h
S
SECTION 1. Be it enacted by the Senate and House of t^ product of
ie
g
Representatives of theJJnited States of America in Con- and tonna e°to
gress assembled, That all such surplus of the product of ^ h ^ ^ S f ? '
the duties on goods, wares and merchandise imported, the purchase of
and on the tonnage of ships or vessels to the last day of
December next, inclusively, as shall remain after satisfy-

NATIONAL MONETABY COMMISSION.

ing the several purposes for which appropriations shall
have been made by law to the end of the present session,
shall be applied to the purchase of the debt of the United
States, at its market price, if not exceeding the par or
true value thereof.
reetioirhoSurl- ^ Ec# ^ An^ ^e ^ fur^er enacted, That the purchases
chases are to to be made of the said debt, shall be made under the
he made; and

direction of the President of the Senate, the Chief Justice, the Secretary of State, the Secretary of the Treasury,
and the Attorney-General for the time being; and who,
or any three of whom, with the approbation of the President of the United States, shall cause the said purchases
to be made in such manner, and under such regulations
as shall appear to them best calculated to fulfill the intent
Mr.what man"of this act: Provided, That the same be made openly,
and with due regard to the equal benefit of the several
States: And provided further, That to avoid all risk or
failure, or delay in the payment of interest stipulated
to be paid for and during the year one thousand seven
hundred and ninety-one, by the act, intituled "An act
making provision for the debt of the United States,"
such reservations shall be made of the said surplus as
may be necessary to make good the said payments, as they
shall respectively become due, in case of deficiency in the
amount of the receipts into the Treasury during the said
year, on account of the duties on goods, wares and merchandise imported, and the tonnage of ships or vessels,
after the last day of December next.
ofTpurchaX| SEC - 3- And ?>e it further enacted, That accounts of
other puhifc ac- t n e application of the said monies shall be rendered for
counts.
settlement as other public accounts, accompanied with
returns of the amount of the said debt purchased therewith, at the end of every quarter of a year, to be computed from the time of commencing the purchases aforece^dfngs 0topi£e s a *^ : an( ^ *ka* a ^ u ^ an( ^ e x a c ^ r ^port of the proceedings
Lreii*foreCon"0^ ^ e s a ^ **ve P e r s o n s ? o r a n y three of them, including
a statement of the disbursements and purchases made
under their direction, specifying the times thereof, the
prices at which, and the parties from whom the same
may be made, shall be laid before Congress, within the
first fourteen days of each session which may ensue the
present, during the execution of their said trust.
th^r1iedetobolr-" SEC. 4- An^ ^e ^ furiher enacted, That the President
row$2,ooo,ooo. 0 f the United States be, and he is hereby authorized to
cause to be borrowed, on behalf of the United States, a

LAWS COETCEBHttfG MONEY, BANKING, AND LOANS,

sum or sums not exceeding in the whole two millions of
dollars, at an interest not exceeding five per cent, and that
the sum or sums so borrowed, be also applied to thethepu?cnase to
purchase of the said debt of the United States, under thejJ£h%t M a j
the like direction, in the like manner, and subject to the*^™2>ch- 3®»
like regulations and restrictions with the surplus afore- 3 f795*^*4^
said: Provided, That out of the interest arising on the s e c ^.
debt to be purchased in manner aforesaid, there shall be
appropriated and applied a sum not exceeding the rate
of eight per centum per annum on account both of principal and interest towards the repayment of the two
millions of dollars so to be borrowed.
Approved, August 12, 1790.
ACT OF DECEMBER 27,1790.
I.—An act supplementary to the act intitled "An18*
act making further provision for the payment of the
debts of the United States"

CHAP.

sta

*« &.,

Whereas no express provision has been made for ex- ^ita?.1*'1
tending the act, intitled "An act to provide more effectually for the collection of the duties imposed by law on
goods, wares and merchandise imported into the United
States, and on the tonnage of ships or vessels," to the
collection of the duties imposed by the said "Act making
further provision for the payment of the debts of the
United States," doubts concerning the same may arise:
Therefore,
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That the act, intitled "An act to provide more x Provisions of
the act for col-

effectually for the collection of the duties imposed by lection of duties

extended

law on goods, wares and merchandise imported into the to the act makins further pro-

United States, and on the tonnage of ships or vessels," vision for the
doth and shall extend to, and be in force for the collec-debts of the
tion of the duties specified and laid in and by the act,
intitled "An act making further provision for the payment of the debts of the United States," as fully and
effectually, as if every regulation, restriction, penalty,
provision, clause, matter and thing therein contained,
had been inserted in and reenacted by the act last
aforesaid.
Approved, December 27, 1790.

NATIONAL MONETARY COMMISSION.

ACT OF FEBKUAKY 25, 1791.
191. Stat* L*' CHAP. X.—An act to incorporate the subscribers to the
Bank of the United States.
be^ubrSd*0

SEC

- 2- And be & further enacted, That it shall be lawful for any person, co-partnership, or body politic, to subscribe for such or so many shares, as he, she, or they shall
think fit, not exceeding one thousand, except as shall be
of Pr 2S?d ti aSd hereafter directed relatively to the United States; and
pubfic debt**)**18* ^ e s u m s 5 respectively subscribed, except on behalf of
and subscribed the United States, shall be payable one fourth in gold and
silver, and three fourths in that part of the public debt,
which, according to the loan proposed in the fourth and
fifteenth sections of the act, entitled "An act making provision for the debt of the United States," shall bear an
accruing interest, at the time of payment, of six per
centum per annum, and shall also be payable in four equal
parts, in the aforesaid ratio of specie to debt, at the diswhentobepaid.tance of six calendar months from each other; the first
whereof shall be paid at the time of subscription.
oonstitotion ° f

® E 0 ' ^ And ^e ^ father enacted, That the following rules, restrictions, limitations and provisions, shall
form and be fundamental articles of the constitution of
the said corporation, viz.

H°W and for

XL No loan shall be made by the said corporation, for

*
what objects to

make loans,

the use or on account of the government of the United
States, to an amount exceeding one hundred thousand dollars, or of any particular state, to an amount exceeding
fifty thousand dollars, or of any foreign prince or state,
unless previously authorized by a law of the United
States.

ma?0Wbem°aX ^EC. 9- ^nd ^e ^ further enacted, That if the said corvanced or lent, poration shall advance or lend any sum, for the use or on
account of the government of the United States, to an
amount exceeding one hundred thousand dollars; or of
any particular state to an amount exceeding fifty thousand dollars; or of any foreign prince or state (unless
previously authorized thereto by a law of the United
States), all and every person and persons, by and with

LAWS CONCEENING MONEY, BANKING, AND LOANS.

whose order, agreement, consent, approbation, or connivance, such unlawful advance or loan shall have been
made, upon conviction thereof, shall forfeit and pay, for
every such offence, treble the value or amount of the sum
or sums which shall have been so unlawfully advanced or
lent; one fifth thereof to the use of the informer, and the
residue thereof to the use of the United States; to be disposed of by law and not otherwise.
*
*
*
*
*
SEC. 11. And be it further enacted, That it shall be l a w - J f J ^ g ^ J J
ful for the President of the United States, at any time org***^ h™ t0
times, within eighteen months after the first day of April
next, to cause a subscription to be made to the stock of the
said corporation, as part of the aforesaid capital stock of
ten millions of dollars, on behalf of the United States, to
an amount not exceeding two millions of dollars; to be
paid out of the monies which shall be borrowed by virtue
of either of the acts, the one entitled "An act making i790,cn.34.
provision for the debt of the United States;" and the
other entitled "An act making provision for the reduction
of the public debt; " borrowing of the bank an equal sum, 1790, en. 47.
to be applied to the purposes, for which the said monies
shall have been procured; re-imbursable in ten years, by
equal annual instalments; or at any time sooner, or in any
greater proportions, that the Government may think fit.
Approved, February 25, 1791.
(For the full text of this act, see p. 269).
ACT OF MAECH 3, 1791.
XV.—An act repealing, after the last day of 1 stat.
June next, the duties heretofore laid upon distilled
spirits imported from abroad, and laying others in their
stead; and also upon spirits distilled within the United
States, and for appropriating the same.

CHAP.

3|»

3j»

L.,

SEC. 60. And be it further enacted, That the nett prod- Net productof
uct of the duties hereinbefore specified, which shall be for payment of
raised, levied and collected by virtue of this act, or so loans;
much thereof as may be necessary, shall be, and is hereby
pledged and appropriated for the payment of the interest of the several and respective loans which had been
made in foreign countries, prior to the fourth day of

NATIONAL MONETARY COMMISSION.

August last; and also upon all and every the loan and
loans which have been and shall be made, and obtained
1790, eh. 34. pursuant to the act, intituled " An act making provision
for the debt of the United States;" and according to the
true intent and meaning of the said act, and of the several
provisions and engagements therein contained and expressed, and subject to the like priorities and reservations as are made and contained in and by the said act,
in respect to the monies therein appropriated, and subject to this farther reservation, that is to say—Of the nett
amount or product during the present year, of the duties
laid by this act, in addition to those heretofore laid upon
spirits imported into the United States,*from any foreign
port or place, and of the duties laid by this act on spirits
distilled within the United States, and on stills; to be
disposed of towards such purposes for which appropriwoiabiy6 ap- a ^ o n s ^all be m&de during the present session. And
plied thereto, to the end that the said monies may be inviolably applied
in conformity to the appropriation hereby made, and
may never be diverted to any other purpose until the final
redemption, or reimbursement of the loans or sums for
the payment of the interest whereof they are appropriated, an account shall be kept of the receipts and disposition thereof, separate and distinct from the product
of any other duties, impost, excise, and taxes whatsoever,
except those heretofore laid and appropriated to the same
purposes,
unappropri- SEC. 61. And he it further enacted. That the unapprohow to he ap- priated surplus, if any there shall be, of the revenue arisp e
*
ing under this act, at the end of this and every succeeding year, shall be applied to the reduction of the public
debt, in like manner as is directed by the act, intituled
1790, ch. 34." An act making provision for the reduction of the pub1790, ch. 47. lie debt," and provided by the act, intituled " An act
making provision for the debt of the United States;" unless the said surplus, or any part thereof, shall be required
for the public exigences of the United States, and shall,
by special acts of Congress, be appropriated thereto,
loosed hhrobw ^EC# ^* ^n^ ^e ^ further enacted, That the several
«nueg *° con" duties imposed by this act, shall continue to be collected
and paid, until the debts and purposes for which they
are pledged and appropriated, shall be fully discharged
and satisfied, and no longer. Provided always, That

LAWS CONCERNING MONEY, BANKING, AND LOANS.

nothing herein contained, shall be construed to prevent
the legislature of the United States from substituting
other duties or taxes of equal value to all or any of the
said duties and imposts.
Approved, March 3,1791.
ACT OF MARCH 3, 1791.
XXV.—An act supplementary to the act making 2 i 8 . S t a t * L*'
provision for the reduction of the public debt.

CHAP.

Whereas it hath been made known to Congress that the iandaof !3,(So!President of the United States, in consequence of " A n g ^ ^ ^ p J *
act making provision for the reduction of the public annum»
debt," hath caused a certain loan to be made in Holland,
on account of the United States, to the amount of three
millions of florins, bearing an interest of five per centum
per annum, and reimbursable in six yearly instalments,
commencing in the year one thousand eight hundred, and 1790, ch. 47.
ending in the year one thousand eight hundred and six,
or at any time sooner, in whole or in part, at the option
of the United States;
And whereas it hath been also stated to Congress, ™*|rreg0ens are
that the charges upon the said loan have amounted to 4 i per c e n t
four and a half per centum, whereby a doubt hath arisen,
whether the said loan be within the meaning of the said
last mentioned act, which limits the rate of interest to five
per centum per annum;
And whereas it is expedient that the said doubt be
removed;
Be it enacted and declared by the Senate and House of
Representatives of the United States of America in Gonrgress assembled^ That the loan aforesaid shall be deemed w i t*n*i n the
and construed to be within the true intent and meaning ™Tt providing
of the said act, intituled "An act making provision for t?onofethe^ubthe reduction of the public debt," and that any farther aisoVnVt'ifer
loan, to the extent of the principal sum authorized to be like%erSmsn tbe
borrowed by the said act, the interest whereof shall be
five per centum per annum, and the charges whereof shall 1790» cb- 47not exceed the said rate of four and a half per centum,
shall, in like manner, be deemed and construed to be within the true intent and meaning of the said act.
Approved, March 3,1791.

24
22 i

NATIONAL MONETARY COMMISSION.

s t a t. L.,

Repealed.

A C T

OF MAECH 3, 1791.

XXVIII.—An act for raising and adding another
regiment to the military establishment of the United
States, and for making farther provision for the protection of the frontiers.

CHAP.

which may be jgE0. i$# Be it further enacted. That it shall be lawful
b o r r o w e d if

necessary.

262 s t a t '

f o r the President to take on loan the whole sum by this
act appropriated, or so much thereof as he may judge
requisite, at an interest not exceeding six per centum per
annum; and the fund established for the above-mentioned
appropriation, is hereby pledged for the repayment of
the principal and interest of any loan to be obtained in
manner aforesaid; and in case of any deficiency in the
said fund, the faith of the United States is hereby also
pledged to make good such deficiency.
Approved, March 3, 1791.
ACT OF MAY 2, 1792.
L

XXVII.—An act for raising a farther sum of
money for the protection of the frontiers, and for other
purposes therein mentioned.

"CHAP.

unTt^^Tates ^EC. **• ^ ^ ^ ^ further enacted, That the President
from^he^aifk1 °^ ^ e United States be empowered to take on loan, on
f£™'
£ money.
«££!? account of the United States,7 from the President,
sum or
' directt
ors and company of the bank of the United States, who
are hereby authorized and empowered to lend the same,
from any other body politic or corporate within the
United States, or from any other person or persons, the
whole or any part of the aforesaid sum of five hundred
and twenty-three thousand five hundred dollars, to be
applied to the purpose to and for which the same is
above appropriated, and to be reimbursed out of the
aforesaid surplus of the duties by this act imposed, which
surplus is, accordingly, appropriated to the said reimbursement. Provided, That the rate of interest of such
loan shall not exceed five per centum per annum, and that
the principal thereof may be reimbursed at the pleasure
of the United States.
*
*
*
$
$
Approved, May 2,1792.

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

ACT OF MAY 8, 1792.
XXXVIII.—An act supplementary to the act i s t a t . L . ,
281.
making provision for the debt of the United States.

CHAP.

(Sections 1, 2, 3, and 4 provide for extending the time
allowed for receiving on loan the domestic debt of the
United States and the debt of the respective States under
the act of August 4,1790.)
(Section 5 authorizes the President of the United States
to discharge the principal and interest of the debt due
to foreign officers out of any monies borrowed under the
aforesaid act and not needed to fulfil its purposes.)
SEC. 6. And be it further enacted. That the President certain per7

sons appointed

of the Senate, the Chief Justice, the Secretary of State, commissioners
7

to purchase

the Secretary of the Treasury, and the Attorney-General, ^®^|d %J^
for the time being, shall be commissioners, who, or any etc three of whom, are hereby authorized, with the approbation of the President of the United States, to purchase
the debt of the United States, at its market price, if not
exceeding the par or true value thereof; for which purchase the interest on so much of the public debt, as has
already been, or may hereafter be purchased for the
United States, or as shall be paid into the Treasury, and
so much of the monies appropriated for the payment of
the interest on the foreign and domestic debt, as shall
exceed what may be sufficient for the payment of such
interest to the creditors of the United States, shall be
and are hereby appropriated. And it shall be the duty Account to
.

be rendered an-

of the said commissioners to render to the legislature, nuaiiy.
within two months after the commencement of the first
session thereof in every year, a full and precise account
of all such purchases made, and public debt redeemed, in
pursuance of this act.
SEC. 7. And whereas it is expedient to establish a fund
^SSUA1^^1^
for the gradual reduction of the public debt: Be it fur-purpose;
ther enacted. That the interest on so much of the debt of
the United States, as has been or shall be purchased or redeemed for or by the United States, or as shall be paid
into the Treasury thereof in satisfaction of any debt or
demand, and the surplus of any sum or sums appropriated for the payment of the interest upon the said debt,
which shall remain after paying such interest, shall be,
and hereby are appropriated and pledged firmly and inviolably for and to the purchase and redemption of the

NATIONAL MONETARY COMMISSION.

pSed.t0 ** a p * s a ^ d e b t , t o k e applied under the direction of the President of the Senate, the Chief Justice, the Secretary of
State, the Secretary of the Treasury and the Attorney
General for the time being, or any three of them, with the
approbation of the President of the United States, for the
time being, in manner following, that is to say: First, to
the purchase of the several species of stock constituting the
debt of the United States, at their respective market
prices, not exceeding the par or true value thereof, and as
nearly as may be, in equal proportions, until the annual
amount of the said funds, together with any other provisions which may be made by law, shall be equal to two
per centum of the whole amount of the outstanding
funded stock bearing a present interest of six per centum.
Thenceforth, secondly, to the redemption of the said last
mentioned stock, according to the right for that purpose
reserved to the United States, until the whole amount
thereof shall have been redeemed. And lastly, after such
redemption, to the purchase, at its market price, of any
other stock consisting of the debt of the United States,
which may then remain unredeemed: and such purchase,
as far as the fund shall at any time extend, shall be made
within thirty days next after each day, on which a quarterly payment of interest on the debt of the United States
$hall become due, and shall be made by a known agent, to
be named by the said commissioners,
h o wrctSSbSe ^ E a **• ^n^ ^e ^ farther enacted. That all future purmade,
chases of public debt on account of the United States,
shall be made at the lowest price, at which the same can
be obtained by open purchase, or by receiving sealed proposals, to be opened in the presence of the commissioners,
or persons authorized by them to make purchases, and the
persons making such proposals,
counts ofrappu- SEC. 9. And be it further enacted, That quarter yearly
fund^o^e rerf- a c c o u n t s of the application of the said fund shall be rendered, etc.
dered for settlement, as other public accounts, accompanied
with returns of the sums of the said debt, which shall
have been from time to time purchased or redeemed; and
a full and exact report of the proceedings of the said
commissioners, including a statement of the disbursements, which shall have been made, and of the sums
which shall have been purchased or redeemed under their
direction, and specifying dates, prices, parties, and places,
shall be laid before Congress, within the first fourteen

LAWS CONCERNING MONEY, BANKING, AND LOANS.

days of each session which may ensue the present, during
the execution of the said trust.
Approved, May 8, 1792.
ACT OF MAY 8, 1792.
CHAP.

XLI.—An act making certain appropriations 285,l stat
therein specified.

L.,

SEC. 3. And he it further enacted, That a sum of fi%COur°sleifthfoV
thousand dollars in addition to the provision heretofore ei»n nationsmade be appropriated to defray any expense which may
be incurred in relation to the intercourse between the
United States and foreign nations, to be paid out of any
monies, which may be in the treasury, not otherwise appropriated, and to be applied under the direction of the
President of the United States who, if necessary, is au- President
thorized to borrow, on the credit of the United States, the $50,000.
said sum of fifty thousand dollars; an account of the
expenditure whereof as soon as may be, shall be laid before Congress.
Approved, May 8, 1792.
ACT OF FEBKUAEY 28,1793.
XVIII.—An act making appropriations for the i stat. L.,
support of Government for the year one thousand
seven hundred and ninety-three.
*
*
*
*
*
SEC. 3. And be it further enacted, That the President of ma£ %****%**
the United States be authorized to borrow, on account of $80o,ooo.eedins
the said States, any sum or sums, not exceeding, in the
whole, eight hundred thousand dollars, at a rate of interest not exceeding five per centum per annum, and reimbursable at the pleasure of the United States, to be applied for the purposes aforesaid, and to be repaid out of
the said surplus of the duties on imports and tonnage, to o n w h a t
the end of the present year, one thousand seven hundred whom.
and ninety-three: And that it shall be lawful for t h e t h ^ ° ^ a d ^
Bank of the United States to lend the said sum. And the t 0 be paid offPresident of the United States shall cause so much of the
loan, made of the Bank of the United States, pursuant to
the eleventh section of the act, by which it is incorporated,
to be paid off, in sums not less than fifty thousand dollars,
as, in his opinion, the state of the Treasury may, from
CHAP.

15712°—10

NATIONAL MONETARY COMMISSION.

time to time, admit, out of any monies which may be in
the Treasury, having due regard to the exigencies of Government, and the appropriations made and to be made by
law.
Approved, February 28, 1793.
ACT O F M A R C H 2/1793.
338. S t a t * TjM CHAP. X X V . — A n act providing for the payment of the
[Obsolete.] first instalment due on a loan made of the Bank of the
United States,
Be it enacted by the Senate and House of Representatives of the United States of America in Congress asp r esidentsembled. That the President of the United States be, and
ta?n mo^eysTto he hereby is authorized and empowered to apply two
m^nfrto1^Bank hundred thousand dollars, of the monies which may
states.11 * e have been borrowed, in pursuance of the fourth section
1790, ch. 4i. Q £ ^ a c ^ intituled " A n act making provision for the
reduction of the public debt," in payment of the first
instalment, due to the Bank of the United States, upon
a loan made of the said bank, in pursuance of the eleventh
section of the act for incorporating the subscribers to the
said bank.
Approved, March 2, 1793.
A C T O F M A E C H 2, 1793.
l stat. L., C H A P .
[ Obsolete.]

X X V I . — A n act for extending the time for receiv-

ing on loan that part of the domestic debt of the United
States, which may not be subscribed, prior to the first
day of March, one thousand seven hundred and ninetythree.
SECTION 1. Be it enacted by the Senate mid House of
Representatives of the United States of America in ConDomestic gress assembled, That the term for receiving on loan that
receiving on part of the domestic debt of the United States, which
to June, 1794. shall not have been subscribed, in pursuance of the act,
Act7of' May3!' intituled "An act supplementary to the act making pro1792,ch!38. 'vision for the debt of the United States," be extended,
from and after the first day of March, one thousand seven
hundred and ninety-three, until the last day of June, one
thousand seven hundred and ninety-four inclusively, on
the same terms and conditions, as are contained in the act,
intituled "An act making provision for the debt of the
United States; Provided, That the books for receiving the

LAWS CONCERNING MONEY, BANKING, AND LOANS.

said subscriptions shall be opened only at the Treasury
of the United States.
SEC. 2. And be it further enacted. That such of the Privilege of
creditors of the United States, as have not subscribed, and creditors.11
shall not subscribe to the said loan, shall nevertheless receive, during the year one thousand seven hundred and
ninety-three, a rate per centum on the amount of such of
their demands, as shall have been registered, conformable
to the directions contained in the said act, on or before
the last day of June, one thousand seven hundred and
ninety-four, equal to the interest, which would be payable
to them, as subscribing creditors.
Approved, March 2, 1793.
A C T O F M A E C H 20, 1794.
CHAP.

V I I I . — A n act authorizing

a loan of one million

., T 7 7
Of dollars.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That the President of the United States be, and he
.

lgtat.L.,
345.
[Obsolete.]

- I J I

President of
United S t a t e s

hereby is authorized and empowered to borrow, on the authorized to
credit of the United States, if, in his opinion, the public ooo.
service shall require it, a sum not exceeding one million
of dollars, at an interest not exceeding five per centum
per annum, reimbursable at the pleasure of the United
States, to be applied to such public purposes, as are
authorized by law, and to be repaid out of the duties on
imports and tonnage to the end of the present year: And
that it shall be lawful for the Bank of the United States,
and the said bank hereby is authorized and empowered
to make the loan aforesaid.
Approved, March 20, 1794.
A C T O F A P E I L 21, 1794.
X X I . — A n act limiting the time for presenting
claims for destroyed certificates of certain descriptions.

CHAP.

istat.L.,
{obsolete. ]

SECTION 1. Be it enacted by the Senate and House of
Representatives of the United States of America in Congress assembled, That all claims for the renewal of cer- Limitation of
tificates of the unsubscribed debt of the United States, newSf o?PcSl
of the descriptions commonly called " L o a n Office Cer-cites. c e r t i f i -

NATIONAL. MONETARY COMMISSION*

tificates," or " Final Settlements," which may have been
accidentally destroyed, shall be forever barred and precluded from settlement or allowance, unless the same
shall be presented at the treasury, on or before the first
day of June, in the year one thousand seven hundred
and ninety-five.
Proceedings SEC. 2. And he it further enacted. That no claim shall
to be had for

establishing be allowed for the renewal of loan office certificates declaims

stroyed before the fourth day of March, one thousand
seven hundred and eighty-nine, unless the destruction
of the same was advertised, according to the resolution
of Congress, of the tenth day of May, one thousand seven
hundred and eighty; or before that time, was notified
to the office from which the same was issued, nor shall
claims be allowed for the renewal of loan office certificates destroyed on or after the said fourth day of March,
one thousand seven hundred and eighty-nine, nor of
final settlement certificates destroyed at any time, unless
the destruction of the same was so far made public, as
to be known to at least two credible witnesses, soon after
it happened, and shall have been before the presentation
of the claim, as hereinafter provided, advertised for at
least six weeks successively, in some one of the newspapers of the state in which the destruction happened;
and also, in some one of the newspapers of the state in
which the certificate issued, if that was another state;
the advertisement or advertisements, in such case, expressing with as much precision as possible, the number,
date and amount of the certificate alleged to have been
destroyed, and the name of the person to whom the
same was issued, together with the time when, the place
where, and the means by which the same was destroyed.
By whom and SEC. 3. And he it further enacted, That all claims for
received? to be the renewal of destroyed certificates, of either of the
descriptions aforesaid, not precluded by this act, shall
be receivable, with the evidence in support of the same,
by the Auditor of the Treasury, until the said first day
of June, one thousand seven hundred and ninety-five, and
shall, by the accounting officers of the treasury, be duly
examined; and if satisfactorily supported, the claimants
shall be entitled to receive certificates of registered debt,
equal to the specie value of the loan office or final settlement certificates so proved to have been destroyed.
Approved, April 21, 1794.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

ACT O F M A Y 30, 1794.
L
X X X V I . — A n act further extending the time fors*0Btat"
receiving on loan the domestic debt of the United [Obsolete.]
States.

CHAP.

SECTION 1. Be it enacted by the Senate and House of
Representatives of the United States of America in Congress assembled. That the term for receiving on loan t h a t ^ 0 ™ ^ * ^
part of the domestic debt of the United States which shall subscribing ex
r

tended to 31st

not have been subscribed in pursuance of the act, entituled^c^ 1794.
"An act for extending the time for receiving on loan that i?|j>» ch. 13!
part of the domestic debt of the United States which may
not be subscribed prior to the first day of March, one
thousand seven hundred and ninety-three," be, and the
same is hereby further extended from and after the last
day of June ensuing, until the last day of December next
inclusively, on the same terms and conditions as are con- on what
tained in the act, intituled "An act making provision for
the debt of the United States." Provided, That the books
for receiving the said subscriptions shall be opened only
at the treasury of the United States.
SEC. 2. And be it further enacted. That such of t h e . Provisions
7

for

non - sub-

creditors of the United States as have not subscribed and scribing credshall not subscribe to the said loan, shall nevertheless receive during the year one thousand seven hundred and
ninety-four, a rate per centum on the amount of such of
their demands, as have been registered or as shall be registered at the treasury conformable to the directions in
the act, intituled "An act making provision for the debt 1790 » cn - 34 of the United States," equal to the interest which would
be payable to them as subscribing creditors.
Approved, May 30,1794.
A C T O F MAY 31, 1794.
CHAP. X X X V I I . — A n act making provision for the pay- o 1 stat. L. ,
ment of the interest on the balances due to certain*
States, upon a final settlement of the accounts between
the United States and the individual States.
SECTION 1. Be it enacted,
* * *, That interest upon
the balances reported to be due to certain states, by the
commissioners for settling accounts between the United
States and individual states, be allowed, from the last
day of December, one thousand seven hundred and eighty-

NATIONAL MONETARY COMMISSION.

nine, and to be computed to the last day of December, one
thousand seven hundred and ninety-four, at the rate of
four per centum per annum: And that the amount of such
interest be placed to the credit of the state, to which the
same shall be found due, upon the books of the treasury
of the United States, and shall bear an interest of three
per centum per annum, from and after the said last day
of December, one thousand seven hundred and ninety-four.
(Section 2 provides for the quarterly payment of the
interest due to any state, beginning on the last day of
March, 1795; and pledges for the payment of the interest
so much of the duties arising from imports and tonnage,
after December 31, 1794, as may be necessary and not
otherwise appropriated, also pledging the faith of the
United States to provide for any deficiency.)
Approved, May 31, 1794.
NOTE.—By the act of January 2, 1795 (1 Stat. L., 409), any
State is authorized, within two years, to transfer stock thus created to creditors of the State who were such prior to July 1, 1793.
This* authority was continued to March 4, 1799, by the act of July
6, 1797.

ACT OF JUNE 4, 1794.
l stat L., CHAP. XL.—An act providing for the payment of the
LObsoiete.]
second instalment due on a loan made of the Bank of
the United States.
SECTION 1. Be it enacted by the Senate and House of
Representatives of the United States of America in Con1 re i
t of
TT S ? ^?? * QTesB assembled. That the President of the United States
United States f

to pay second be, and he hereby is authorized and empowered to apply
the bank out of two hundred thousand dollars of the proceeds of foreign
foreign loans.

loans heretofore transferred to the United States, in payment of the second instalment due to the Bank of the
United States, upon a loan of the said bank, made pursuant to the eleventh section of the act for incorporating
Annual pe-the subscribers to the said bank: and that the annual
ment 0/ each period for the payment of each instalment of the said
loan, shall be deemed to be the last day of December in
each year.
tiot^or0arfn" ^EC. ^' ^n^ ^e ^ further enacted, That a sufficient sum
interest on said 0 f the dividends, which have accrued, or which shall hereloan.

after accrue, on the stock owned by the United States, in
the Bank of the United States, be, and the same is hereby
appropriated to the payment of the interest, which has,
or shall become due, on the loan obtained, as aforesaid.
Approved, June 4,1794.

LAWS COKCEBNING MONEY, BANKING, AND LOANS.

A C T O F J U N E 5, 1794.
CHAP. X L V I . — A n act to authorize the President of the 3 7 |
United States during the recess of the present Congress,
to cause to be purchased or built a number of vessels
to be equipped as Galleys, or otherwise, in the service
of the United States.

stat

SEC. 3. And be it further enacted, That there be appro- t ^ ^ 1 ? r i a t i o n
priated for the purpose aforesaid, the sum of eighty thousand dollars to be paid out of the proceeds of any revenue
of the United States, which now are, or hereafter during
the present session shall be provided, not being otherwise
appropriated. And that the President of the United ^Tzei^hor-States be authorized to take on loan of the Bank of the r°w $80,000.
United States, or of any other body politic or corporate,
person or persons, the said sum of eighty thousand dollars, to be reimbursed, principal and interest, out of the
said proceeds, appropriated as aforesaid, according to
such contract or contracts, which shall be made concerning the same.
Approved, J u n e 5, 1794.
A C T O F J U N E 9, 1794.
CHAP. L X I I I . — A n act making appropriations
tain purposes therein expressed.

for cer-

i stat. L.,

SEC. 2. And be it further enacted, That the President. J**®*1*6?* °|
'

the

United

of the United States be empowered to borrow, on behalf states to borx

row a sum.

of the United States, of the Bank of the United States
(which is hereby authorized to lend the same), or of any
other body or bodies politic, person or persons, any sum
not exceeding in the whole, one million of dollars, to be $ N °* exceeding
applied to the purposes aforesaid, and to be reimbursed,
as well interest as principal, out of the proceeds of the
said revenues.
SEC. 3. Provided always, and be it further enacted. A certain sum
to be reserved

That there shall be reserved out of the proceeds of the
said revenues, a sum sufficient to pay the interest of whatever monies may be borrowed pursuant to the act, intituled "An act making further provision for the expenses
attending the intercourse of the United States with foreign nations; and further to continue in force the act,

1794, ch. 7

NATIONAL MONETARY COMMISSION.

intituled " An act providing the means of intercourse between the United States and foreign nations;" and such
sum is hereby pledged and appropriated for that purpose,
according to the terms of the contract or contracts which
shall or may be made concerning the said monies. And
the faith of the United States is hereby pledged to make
such further provision therefor, as may be necessary.
Approved, June 9, 1794.
ACT O F D E C E M B E R 18, 1794.
404 s t a t L*' C H A P . IV.—An act authorizing a loan of two million of
[Expired.]
dollars.
SECTION 1. Be it enacted by the Senate and House of
Representatives of the United States of America in ConPresident of gress assembled, That the President of the United States
to borrowbe empowered to borrow, on behalf of the United States,
any sum not exceeding two million of dollars, at an interest not exceeding five per cent, per annum, reimbursable at the pleasure of the United States, to be applied to
such public purposes, as are authorized by law, and to be
repaid out of the duties on impost and tonnage, to the
end of the year one thousand seven hundred and ninetyfive.
Un?tedn states ^EC. ^ ^n^ ^e ^ further enacted, That it shall be lawmay loan said fu i for t h e g a n k 0 f t h e United States, and the said bank
hereby is authorized and empowered to loan the said sum,
or any part thereof.
Approved, December 18, 1794.

A C T O F J A N U A E Y 8,1795.
409 S t a t L , ' C H A P . X I . — A n act providing for the payment of certain
[Obsolete.]
instalments of foreign debts; and of the third instalment due on a loan made of the Bank of the United
States.
Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assem,certain i n - ^ w That the President of the United States be, and he
stalments

debt, how to be hereby is authorized and empowered to cause any instalments of the foreign debts, which may fall due in the
year one thousand seven hundred and ninety-five, and
also the third instalment due on a loan made of the Bank

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

1791

> cn- 10-

of the United States, in pursuance of the eleventh section
of the act for incorporating the subscribers to the said
bank, to be paid out of the proceeds of any foreign loans
heretofore made.
Approved, January 8, 1795.
ACT OF JANUARY 28, 1795.

XIII.—An act further extending the time for re- 1 stat. L.,
ceiving on loan the domestic debt of the United [Obsolete.]
States.

CHAP.

SECTION 1. Be it enacted by the Senate and House of
Representatives of the United States of America, in Congress assembled, That the term for receiving on loan that Time for repart of the domestic debt of the United States which hastehVengdomes?ic
, T

i •

j» xi

• •

extended

not been subscribed in pursuance or the provisions here- tin the 3ist
jj»

- I I I J » J I J .

iii

• December next.

toiore made by law tor that purpose, be and the same is 1790, ch. 34.
hereby further extended until the thirty-first day of December next, on the same terms and conditions as are contained in the act, entitled "An act making provision for
the debt of the United States." Provided, That the
books for receiving the said subscriptions shall be opened
only at the Treasury of the United States.
SEC. 2. And be it further enacted, That such of the. Non-subscribinsr creditors of

creditors of the United States as have not subscribed and united states
to

receive

for

shall not subscribe to the said loan shall nevertheless re-one year five
ceive during the year one thousand seven hundred and their demands.
ninety-five a rate per centum on the amount of such of
their demands as have been registered or as shall be registered at the Treasury conformable to the directions in
the act, entitled "An act making provision for the debt 1790, ch. 34.
of the United States," equal to the interest which would
be payable to them as subscribing creditors.
Approved, January 28, 1795.
ACT OF FEBEUAEY 21, 1795.
stat L
CHAP. XXV.—An act for the reimbursement of a loan41l
- >
authorized by an act of the last session of Gongress.
[Obsolete.]
SECTION 1. Be it enacted by the Senate and House of
Representatives of the United States of America in Congress assembled, That the Bank of the United States be, Un?tedn | ta t e g
and the same is hereby authorized to lend to the United Jg*£orteed * °

NATIONAL MONETARY COMMISSION.

States, the whole, or any part of the sum of eight hundred thousand dollars (remaining unapplied) in pursuance of the authority granted to borrow one million
1794, ch. 7. d 0 l l a r s ? by the act, intituled " An act making further
provision for the expenses attending the intercourse of
the United States with foreign nations; and further to
continue in force the act, intituled " An act providing
the means of intercourse between the United States and
foreign nations.
ta1nrplrevem!es ^EC. ^' ^nd be it further enacted, That after reserving
appropriated. s u c b s u m s a s m a y be sufficient to satisfy prior appropriations, there be further appropriated, in aid of the provision
heretofore made, out of the proceeds of the duties which
have arisen, or may arise upon carriages for the conveyance of persons; upon licenses for selling wines and foreign distilled spirituous liquors by retail; upon snuff and
refined sugar; and upon property sold at auction; which
were imposed by acts passed during the last session, and
which may be farther continued, the present session of
Congress, or from the proceeds of such duties or revenues
as may be established in lieu thereof, a sum sufficient to
the reimbursement, before the year one thousand eight
hundred and one, of any loan or loans, which have been,
or which may hereafter be made, in virtue of the act
aforesaid: And that the faith of the United States be,
and the same is hereby pledged, to make good any deficiency of the said duties.
Approved, February 21, 1795.
A C T O F M A R C H 3, 1795.
433 s * a *' L " CHAP. XLV.—An act making further provision for the
support of public credit, and for the redemption of the
public debt.
(Section 1 authorizes the commissioners of the sinking
fund to borrow not exceeding one million dollars in any
one year, in anticipation of the revenue, for the payment
of interest on the public debt, and appropriates for the
interest on such temporary loan the proceeds of duties on
goods imported, on tonnage, and upon spirits distilled
within the United States, and stills.
(Sections 2, 3, and 4 authorize a loan to be issued in exchange for equal amounts of the foreign debt, to bear
an interest equal to the interest payable on the foreign

LAWS CONCERNING MOTSTEY, BANKING, AND LOANS.

debt exchanged, with an addition of one-half of 1 per cent
per annum, and the principal to be reimbursable at
pleasure. The new loan is to be entered on the books of
the treasury in like manner as the domestic funded debt,
and to be transferable in like manner; and the interest
and principal of loans authorized by this act are to be
payable at the treasury only, so far as relates to the principal and interest of the domestic debt.
(Section 5 provides that so much of the duties on
goods imported, on tonnage, and upon spirits distilled
and stills as may be set free by subscriptions to the new
loan, with such further part of the proceeds as may be
necessary, shall remain appropriated for the payment of
interest on the said loan until the principal thereof is
reimbursed; provided that nothing herein contained shall
alter any existing contract concerning the foreign debt
except as to such holders as may subscribe to the new
loan.)
SEC. 6. And be it 1further enacted.
That the several and duties
, c e rtot aconin
.
n e t0 be co1
respective duties laid and contained in and by the act, in- f* £e d
"
tituled " An act laying additional duties on goods, wares
and merchandise imported into the United States," passed
the seventh day of June, one thousand seven hundred and
ninety-four, shall, together with the other duties heretofore charged with the ^payment of interest on the public
debt, continue to be levied, collected and paid, until the
whole of the capital or principal of the present debt of
the United States, and future loans which may be made,
pursuant to law, for the exchange, reimbursement or redemption thereof, or of any part thereof, shall be reimbursed or redeemed, and shall be, and hereby are, pledged
and appropriated for the payment of interest upon the
said debt and loans, until the same shall be so reimbursed
or redeemed.
(Section 7 annuls the reservation made by section 4 of
the act of August 12,1790, and makes other provision for
the same purpose.)
SEC. 8. And be it further enacted. That the following ti0isPmSdV *to~
appropriations, in addition to those heretofore made, be c e r t a i n fund made to the fund constituted by the seventh section of
the act, intituled " An act supplementary to the act mak- 1792 > ch - 38 ing provision for the debt of the United States," passed
the eighth day of May, one thousand seven hundred and
ninety-two, to be hereafter denominated " T h e s i n k i n g c ^ ^ h 2 » 1 7 9 1 -

NATIONAL MONETARY COMMISSION.

fund," to wit: First, so much of the proceeds of the duties
on goods, wares and merchandise imported; on the tonnage of ships or vessels, and on spirits distilled within
the United States and stills, as, together with the monies
which now constitute the said fund, and shall accrue to it,
by virtue of the provisions herein before made, and by
the interest upon each instalment, or part of principal,
which shall be reimbursed, will be sufficient, yearly and
every year, commencing the first day of January next, to
reimburse and pay so much as may rightfully be reimbursed and paid, of the principal of that part of the debt
or stock, which, on the said first day of J a n u a r y next,
shall bear an interest of six per centum per annum, redeemable by paj^ments on account both of principal and
interest, not exceeding, in one year, eight per centum,
excluding that which shall stand to the credit of the commissioners of the sinking fund, and that which shall stand
to the credit of certain States, in consequence of the
balances reported in their favour, by the commissioners
for settling accounts between the United States and individual States: Secondly,—The dividends, which shall be,
from time to time, declared on so much of the stock of
the Bank of the United States, as belongs to the United
States (deducting thereout such sums, as will be requisite to pay interest on any part remaining unpaid of the
loan of two millions of dollars, had of the Bank of the
United States, pursuant to the eleventh section of the act,
Appropria-by which the said bank is incorporated) : Thirdly,—So
tions made to

certain funds, much of the duties on goods, wares and merchandise imported, on the tonnage of ships or vessels, and on spirits
distilled within the United States and stills, as, with the
said dividends, after such deduction, will be sufficient,
yearly and every year, to pay the remaining instalments
of the principal of the said loan, as they shall become due,
and as, together with any monies, which, by virtue of provisions in former acts, and herein before made, shall, on
the first day of January, in the year one thousand eight
hundred and two, belong to the said sinking fund, not
otherwise specially appropriated; and with the interest
on each instalment, or part of principal, which shall, from
time to time, be reimbursed, or paid, of that part of the
debt or stock, which, on the first day of January, in the
year one thousand eight hundred and one, shall begin to
bear an interest of six per centum per annum, will be
sufficient, yearly and every year, commencing on the first

LAWS CONCERNING MONEY, BANKING, AND LOANS.

day of January, in the year one thousand eight hundred
and two, to reimburse and pay so much, as may rightfully
be reimbursed and paid, of the said principal of the said
debt or stock, Avhich shall so begin to bear an interest of
six per centum per annum, on the said first day of January, in the year one thousand eight hundred and one, excluding that, which shall stand to the credit of the commissioners of the sinking fund, and that, which shall
stand to the credit of certain States as aforesaid:
Fourthly,—The net proceeds of the sales of lands belonging, or which shall hereafter belong to the United States,
in the western territory thereof: Fifthly,—All monies,
which shall be received into the Treasury, on account of
debts due to the United States, by reason of any matter
prior to their present constitution: And lastly,—All surpluses of the revenues of the United States, which shall
remain, at the end of any calendar year, beyond the
amount of the appropriations charged upon the said revenues, and which, during the session of Congress next
there after, shall not be otherwise specially appropriated
or reserved by law.
SEC. 9. And be it further enacted, That as well the Moneys accmmonies which shall accrue to the said sinking: fund, byingfund, to be
» ,,
. .
<» , , .
,
,,
, . , , Sunder the divirtue or the provisions or this act, as those which shallrection and
,

-iTii

• * * . • ,

••

.management of

have accrued to the same, by virtue or the provisions of the commissionany former act or acts, shall be under the direction and
management of the commissioners of the sinking fund,
or the officers designated in and by the second section of
the act, intituled "An act making provision for the reduction of the public debt," passed the twelfth day of
August, one thousand seven hundred and ninety, and 1790, Ch. 47.
their successors in office; and shall be, and continue appropriated to the said fund, until the whole of the present
debt of the United States, foreign and domestic, funded
and unfunded, including future loans, which may be made How long to
for reimbursing or redeeming any instalments or parts of ated.
principal of the said debt, shall be reimbursed and redeemed; and shall be, and are hereby declared to be
vested in the said commissioners, in trust, to be applied,
according to the provisions of the aforesaid act of the
eighth day of May, in the year one thousand seven hundred and ninety-two, and of this act, to the reimbursement and redemption of the said debt, including the loans
aforesaid, until the same shall be fully reimbursed and redeemed. And the faith of the United States is hereby

NATIONAL MONETARY COMMISSION.

pledged, that the monies or funds aforesaid, shall inviolably remain and be appropriated and vested, as aforesaid, to be applied to the said reimbursement and redemption, in manner aforesaid, until the same shall be
fully and completely effected.
me*ntmboY sthe SEC. ^ And be it further enacted, That all reimbursetoPbe1inderdthemen*s °^ *ke c a p i t a l , or principal of the public debt, fore ^ c ^ o f n t h e e ^ n a n ( l domestic, shall be made under the superintendcommissioners, e n c e 0 f the commissioners of the sinking fund, who are
who may borr

°w.

hereby empowered and required, if necessary, with t h e
approbation of the President of the United States, as any
instalments or parts of the said capital or principal become due, to borrow, on the credit of the United States,
the sums requisite for the payment of the said instalments
or parts of principal: Provided, That any loan which
may be made by the said commissioners, shall be liable
to reimbursement at the pleasure of the United States;
and that the rate of interest thereupon, shall not exceed
six per centum per annum; and for greater caution, it is
a ^good^xecu^ 161,6 ^ declared, that it shall be deemed a good execution
powe'r °to bore- °^ ^ e s a *^ P o w e r to borrow, for the said commissioners,
row.
' with the approbation of the President, to cause to be constituted certificates of stock, signed by the Register of the
Treasury for the sums to be respectively borrowed, bearing an interest of six per centum per annum, and redeemable at t h e pleasure of the United States; and to
cause the said certificates of stock to be sold in the market
f^tSe'1*]^0* t h e United States, or elsewhere; Provided, T h a t no
ment of inter- g ^ ^ s tock be sold under par. And for the payment of
interest on any sum or sums which may be so borrowed,
either by direct loans, or by the sale of certificates of
stock, the interest on the sum or sums which shall be reimbursed by the proceeds thereof (except that upon t h e
funded stock, bearing and to bear an interest of six per
centum, redeemable by payments, not exceeding in one
year, eight per centum on account both of principal and
interest), and so much of the duties on goods, wares
and merchandise imported, on the tonnage of ships or
vessels, and upon spirits distilled within t h e United
1802, ch. 32. gtates, and upon stills, as may be necessary, shall be, and
hereby are pledged and appropriated.
t h ^ o ^ m f s 8 SEC. 11. And be it further enacted, That it shall be the
pay1 manually! * duty °^ ^he commissioners of the sinking fund, to cause to
be applied and paid, out of the said fund, yearly and
every year, at the Treasury of the United States, the sev-

LAWS CONCERNING MONEY, BANKING, AND LOANS.

eral and respective sums following, to wit: First, such
sum and sums as, according to the right for that purpose
reserved, may rightfully be paid for, and towards the
reimbursement or redemption of such debt or stock of the
United States, as, on the first day of January next, shall
bear an interest of six per centum per annum, redeemable
by payments, not exceeding in one year, eight per centum,
on account both of principal and interest, excluding that
standing to the credit of the commissioners of the sinking
fund, and that standing to the credit of certain States, as
aforesaid, commencing the said reimbursement or redemption, on the said first day of January next: Secondly, such
sum and sums as, according to the conditions of the aforesaid loan, had of the Bank of the United States, shall be
henceforth payable towards the reimbursement thereof,
as the same shall respectively accrue: Thirdly, such sum
and sums as, according to the right for that purpose reserved, may rightfully be paid for and towards the reimbursement or redemption of such debt or stock of the
United States as, on the first day of January, in the year
one thousand eight hundred and one, shall begin to bear
an interest of six per centum per annum, redeemable by
payments, not exceeding in one year, eight per centum, on
account both of principal and interest, excluding that
standing to the credit of the commissioners of the sinking
fund, and that standing to the credit of certain States, as
aforesaid, commencing the said reimbursement or redemption, on the first day of January, in the year one thousand
eight hundred and two; and also to cause to be applied all
such surplus of the said fund, as may at any time exist,
after satisfying the purposes aforesaid, towards the further and final redemption of the present debt of the
United States, foreign and domestic, funded and unfunded, including loans for the reimbursement thereof, by
payment or purchase, until the said debt shall be completely reimbursed or redeemed.
SEC. 12. Provided always, and he it further enacted,
That nothing in this act shall be construed to vest in the Commissioncommissioners of the sinking fund, a right to pay, in the more for the
purchase or discharge of the unfunded domestic debt of mestic debt,
the United States, a higher rate than the market price or ket price of the
value of the funded debt of the United States: And pro- "Government
vided also, That if, after all the debts and loans aforesaid, tfrent1 appvonow due, and that shall arise under this act, excepting the Funds°£f a cei>
said debt or stock, bearing an interest of three per cent. a m even '

NATIONAL MONETARY COMMISSION.

shall be fully paid and discharged, any part of the principal of the said debt or stock bearing an interest of three
per cent, as aforesaid, shall be unredeemed, the Government shall have liberty, if they think proper, to make
other and different appropriations of the said funds.
Priorities in S E C 13. And be it further enacted, That all priorities
for the pay-heretofore established in the appropriations by law, for
est to cease as the interest on the debt of the United States, as between
itors.
the different parts of the said debt, shall, after the year
one thousand seven hundred and ninety-six, cease with regard to all creditors of the United States, who do not,
before the expiration of the said period, signify, in writing, to the Comptroller of the Treasury, their dissent
therefrom; and that thenceforth, with the exception only
of the debts of such creditors who shall so signify their
dissent, the funds or revenues charged with the said appropriations, shall, together, constitute a common or consolidated fund, chargeable indiscriminately, and without
priority, with the payment of the said interest.
(Section 14 requires that all outstanding loan-office
certificates, final settlements, and indents of interest shall
be presented before January 1, 1797, to the Auditor of
the Treasury, to be exchanged for new certificates, or
registered and returned, at the option of the holder; and
all certificates not so presented shall be forever barred.
(Section 15 enacts that any transfer of stock standing
to the credit of a State, made after December 31, 1795,
shall be upon condition that it shall be lawful to reimburse so much of the principal of the stock transferred
as will make its reimbursement equal to that of the same
stock transferred previous to the said day.)
Sum of

mone

SEC. 16. And be it further enacted, That in regard to
butPremauiieiig any sum which shall have remained unexpended upon any
for X a e c°rtaiiiappropriation other than for the payment of interest on
rTeV°toe The the funded debt; for the payment of interest upon, and
fund."1 p l u s reimbursement, according to contract, of any loan or
loans made on account of the United States; for the purposes of the sinking fund; or for a purpose, in respect
to which, a longer duration is specially assigned by law,
for more than two years after the expiration of the calendar year in which the act of appropriation shall have been
passed, such appropriation shall be deemed to have ceased
and been determined; and the sum so unexpended shall
be carried to an account on the books of the Treasury,
to be denominated " T H E SURPLUS F U N D . " But no ap-

LAWS CONCERNING MONEY, BANKING, AND LOANS.

propriation shall be deemed to have so ceased and been
determined, until after the year one thousand seven hundred and ninety-five, unless it shall appear to the Secretary of the Treasury, that the object thereof hath been
fully satisfied, in which case, it shall be lawful for him
to cause to be carried the unexpended residue thereof, to
the said account of " the surplus fund."
(By sections 17, 18, and 19 the Treasury is required to
establish rules for the execution of this act; all restrictions and regulations heretofore imposed by law upon
the commissioners of the sinking fund are made applicable in analogous cases under this act, and an account of
all sales of stock or loans made is required to be laid
before Congress within fourteen days after its next meeting; and in every case it is made lawful to borrow from
the Bank of the United States, whatever the amount of
the loan.
(Section 20 continues acts laying duties on carriages,
licenses for selling wines and liquors, duties on snuff
and sugar, and property sold at auction.)
Approved, March 3, 1795.
A C T O F F E B E U A E Y 19, 1796.
II.—An act further extending the time for receiving on loan the domestic debt of the United States.

CHAP.

istat.L.,
[Obsolete.]

1. Be it enacted by the Senate and House of 3 ff^*^*^ 1
Representatives of the United States of America in Conqress assembled. That the term for receiving on loan that , Extension of
SECTION

the term for re-

part of the domestic debt of the United States, which has ceiving on loan
. ,

T •

? .

the domestic

not been subscribed, m pursuance *of the provisions here-debt,
tofore made by law for that purpose, be, and the same is
hereby further extended, until the thirty-first day of December next, on the same terms and conditions, as are contained in the act, intituled "An act making provision for
the debt of the United States: " Provided, That the books Proviso,
for receiving the said subscriptions shall be opened only
at the Treasury of the United States.
SEC. 2. And be it further enacted, That it shall be law- Reimburseful to reimburse so much of the principal of the debt or the principal,
stock, which may be subscribed, pursuant to this act, as
will make the reimbursement thereof equal in proportion
and degree, to that of the same stock subscribed antecedent to the present year; and the said reimbursement
shall be made at the expiration of the quarter in which
15712°—10

NATIONAL MONETARY COMMISSION.

1795, en. 45. gjjch fofo o r stock shall be subscribed, and pursuant to
the rules and conditions prescribed by the act, intituled
"An act making further provision for the support of
public credit, and for the redemption of the public debt."
Provision for SEC. 3. And be it further enacted. That such of the
interest to non-creditors of the United States, as have not subscribed,
and shall not subscribe to the said loan, shall, nevertheless, receive, during the year one thousand seven hundred
and ninety-six, a rate per centum on the amount of such
of their demands as have been registered, or as shall be
registered at the Treasury, conformably to the directions
In the act, intituled, "An act making provision for the
debt of the United States," equal to the interest which
would be payable to them as subscribing creditors.
Approved, February 19, 1796.
ACT OF APRIL 28, 1796.
istat.L.,CHAP. XVI.—An act in addition to an act intituled "An
[Obsolete.]
act making further provision for the support of public
credit, and for the redemption of the public debt?
SECTION 1. Be it enacted by the Senate and House of
Representatives of the United States of America in Concommission - qress assembled. That it shall be lawful for the commisers of the sink*

ing fund to pay sioners of the sinking fund, and they are hereby required,
stock bearing to cause the funded stock of the United States bearing a
an

interest of

i • j.

j»

•

e per cent by present interest oi six per centum per annum, to be reimbursed and paid, in manner following, to wit: First, by
dividends to be made on the last days of March, June
and September for the present year, and from the year
one thousand seven hundred and ninety-seven, to the year
one thousand eight hundred and eighteen inclusive, at
the rate of one and one half per centum upon the original
capital. Secondly, by dividends to be made on the last
day of December for the present year, and from the year
one thousand seven hundred and ninety-seven, to the year
one thousand eight hundred and seventeen inclusive, at
the rate of three and one half per centum upon the original capital; and by a dividend to be made on the last day
of December, in the year one thousand eight hundred and
eighteen, of such a sum, as will be then adequate, according to the contract, for the final redemption of the said
stock.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

(Section 2 makes similar provision for the reimburse- 45 | s t a t . Lament of the stock bearing six per cent after the year 1800,
by a like series of dividends beginning March 31, 1801,
and ending December 31, 1824.
(Section 3 extends these provisions to all balances of
stock, bearing a present or deferred interest of six per
cent, standing to the credit of the States, under the act
of May 31, 1794; and section 4 appropriates, in addition to sums already appropriated, such a sum of the
duties on goods imported, on tonnage, and on spirits
distilled in the United States and on stills, as shall be
sufficient, with monies already applicable, to reimburse
the said balances, in the manner directed.)
SEC. 5. And be it further enacted. That it shall be The commislawful for the commissioners of the sinking fund, to pointrSam secreappoint a secretary, whose duty it shall be, to record ary*
and preserve their proceedings and documents, and to
certify copies thereof, when thereunto duly required;
and the said secretary shall be allowed a compensation
not exceeding two hundred and fifty dollars, annually, His compentor his services.
Approved, April 28, 1796.
ACT OF MAY 6, 1796.
XXI.—An act authorizing a loan for the use of ^
the city of Washington, in the District of Columbia,
and for other purposes therein mentioned.

CHAP.

(NOTE.—This act provided that the Commissioners of
the city of Washington might borrow certain sums of
money to carry into effect the act establishing the seat of
government; certain lots were made chargeable with the
repayment of such loans, and if the proceeds of the lots
should be insufficient the United States should be liable
for the balance; and the act of April 18,1798 (1 Stat. L.,
551) authorized the President to cause to be loaned to
said commissioners the sum of one hundred thousand dollars ; which sum was declared to be in full of the monies
which the said commissioners were authorized to borrow
under the act of May 6,1796.)

*a * • L -»

NATIONAL MONETARY COMMISSION*

ACT OF MAY 30, 1796.
487.S t a * * L" CHAP. XLI.—An act making further provision for the
expense attending the intercourse of the United States
with foreign nations; and to continue in force the act,
intituled "An act providing the means of intercourse between the United States and foreign nations"
H*

thfreuiefte°d ®EC. 5- ^n^ ^€ ^ further enacted, That the President
foawSno>tbex-o:^ ^ e United States be authorized to borrow, on the
5?9d06.g $ 3 2 4 '" c r e d i t °f t h e United States, if, in his opinion, the public
service shall require it, a sum not exceeding three hundred and twenty-four thousand five hundred and thirtynine dollars and six cents, at an interest not exceeding
six per centum per annum, reimbursable at the pleasure
of the United States, to be applied to the purposes of
this act, and to be repaid out of the duties on imports
and tonnage accruing during the present year, and not
otherwise appropriated: and it shall be lawful for the
Bank of the United States to lend the same.
Approved, May 30,1796.
ACT OF MAY 31,1796.
488 S *a * * L** CHAP. XLIV.—An act making provision for the pay[Expired.]
ment of certain debts of the United States.
(Sections 1 and 2 authorize the commissioners of the
sinking fund to borrow a sum not exceeding five millions
of dollars, to be used in paying the capital of any debt
due by the United States to the Bank of the United
States, or to the Bank of New York, or any instalment
of foreign debt, the loan to bear an interest of six per
cent, payable quarter yearly, and to be redeemable at
the pleasure of the United States after the close of the
year 1819. The Bank of the United States is authorized
to lend the whole sum and to sell the stock received
therefor. Credits for the sums borrowed are to be
entered on the books of the Treasury, and certificates
" for sums not less than one hundred dollars " are to be
issued by the Register, and are to be transferable and
the interest thereon is to be payable, as provided in sections 7 and 8 of the act of August 4,1790.)
How the g E a 3# And ie it further enacted. That it shall be
power to bory be ex

ecuteT

" deemed a good execution of the power to borrow, herein

LAWS CONCERNING MONEY, BANKING, AND LOANS.

granted, for the said commissioners of the sinking fund,
to cause to be constituted, certificates of stock of the
description herein mentioned, and to cause the same to be
sold in the United States, or elsewhere: Provided, That
no more than one moiety of the said stock shall be sold
under p a r : And it shall be lawful for the commissioners
of the sinking fund, if they shall find the same to be
most advantageous, to sell such and so many of the shares
of the stock of the Bank of the United States, belonging
to the United States, as they may think proper; and that
they apply the proceeds thereof to the payment of the said
debts, instead of selling certificates of stock, in the manner
prescribed in this act. And such of the revenues of the AppropriaUnited States, heretofore appropriated for the payment ment °of pthe
of interest of debts, thus discharged, shall be, and t h e i n t e r e s t
same are hereby pledged and appropriated, towards the
payment of the interest, and instalments of the principal,
which shall hereafter become due, on the loan obtained
of the Bank of the United States, pursuant to the eleventh
section of the act for incorporating the subscribers to the
said bank.
SEC. 4. And he it further enacted, That such of the Funds approrevenues of the United States, heretofore appropriated ment of interfor the payment of interest on such debts as may bepai.
liberated or set free, by payments from the proceeds of
the loan herein proposed, together with such further sums
of the proceeds of the duties <in goods, wares and merchandise imported; on the tonnage of ships or vessels;
and upon spirits distilled in the United States, and stills;
as may be necessary, shall be, and the same are hereby
pledged and appropriated for the payment of the interest
which shall be payable upon the sums subscribed to the
said loan; and shall continue so pledged and appropriated, until the principal of the said loan shall be fully
reimbursed and redeemed.
SEC. 5. And be it further enacted, That the principal of re^emabi^unthe said loan, bearing interest as aforesaid, shall remain ig 19 the y e a r
fixed and irredeemable by the United States, until the
close of the year one thousand eight hundred and nineteen ; after which period, the said loan shall be redeemed,
at the pleasure of the United States: and the funds which
shall be liberated by the discharge of the stock of the
United States, bearing a present interest of six per centum, or so much thereof, as may be necessary, shall be,

NATIONAL MONETARY COMMISSION.

and the same are hereby pledged and appropriated for
the said redemption.
tr?aaur/ de- ^EC. 6- ^nd ie ii} further enacted, That the department
gartment here- Gf the treasury, according to the respective duties of the
officers thereof, shall, and they are hereby directed to
establish such forms and rules of proceeding, touching
the execution of this act, as shall be conformable with
the provisions thereof.
Approved, May 31, 1796.
ACT OF JUNE 1, 1796.
493 s * a *' L#' CHAP. LI.—An act making appropriations for the sup[Obsolete.]
p0Tf; 0j the military and naval establishments for the
year one thousand seven hundred and ninety-six.
* °? t of T?at
funds payable.

(Section 2 makes reference to authority of Bank of

the United States to make a loan.)
TT SFSf1^?**0* SEC. 3. And be it further enacted. That the President of
United States , _ _ . - ,

, '

$6^oo0ortosat
United States be empowered to borrow, at an interest
isfy this act. n o t exceeding six per centum, of the Bank of the United
States, which is hereby authorized to lend the same; or of
any body or bodies politic, person or persons, any sum or
sums not exceeding in the whole, six hundred and fifty
thousand dollars, and to be applied to the purposes aforesaid, and to be reimbursed, as well interest as principal,
out of the funds aforesaid.
Approved, June 1, 1796.
ACT OF MAKCH 3, 1797.
istat.

X.—An act for raising a further sum of money, by
additional duties on certain articles imported, and for
other purposes.

L., CHAP.

ti Ap ^ r ^ p L ia " SEC. 6. And be it further enacted, That the proceeds of
the duties laid by this act, shall be solely appropriated to
the following purpose; that is to say: First, for the payment of the principal of the present foreign debt of the
United States: Secondly, for the payment of the principal
of the debt now due by the United States to the Bank of
the United States.
Approved, March 3,1797.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

ACT O F M A E C H 3, 1797.
CHAP. X I V . — A n act to authorize the receipt of evidences
of the public debt, in payment for the lands of the
United States.

i s t a t . L.,
[Obsolete.]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the evidences of the public debt of the United Un s ^ k g °t f a tea
States, shall be receivable in payment for any of the lands ^en1/forn Pea£
which may be hereafter sold in conformity to the act, e r n lands,
intituled "An act providing for the sale of the lands of
the United States, in the territory northwest of the river
Ohio, and above the mouth of Kentucky Kiver," at the
following rates, viz.: the present foreign debt of the
United States, and such debt, or stock, as, at the time of
payment, shall bear an interest of six per centum per
annum, shall be received at their nominal value; and the
other species of debt, or stock, of the United States, shall
be received at a rate bearing the same proportion to their
respective market price, at the seat of Government, at the
time of payment, as the nominal value of the above mentioned six per centum stock shall, at the same time, bear
to its market price at the same place; the Secretary of the
Treasury, in all cases, determining what such market
price is.
Approved, March 3,1797.
(Section 5 of the act of May 10, 1800, chapter 55 (2
Stat. L., 73), contains a similar provision.
(Section 1 of the act of April 18, 1806, chapter 50 (2
Stat. L., 405), repeals the acts authorizing the receipt of
evidences of the public debt in payment for land after the
30th of April, 1806.)
NOTE.—This provision is also made applicable under the act of
May 10, 1800, amending the acts providing for the sale of public
lands. (2 Stat. L., 74.)

A C T O F M A E C H 3, 1797.
CHAP. X X V . — A n act extending

the time for receiving
on loan the domestic debt of the United States.

* a * • L -»
[Obsolete.]

51*

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assem- e d ^ l o ^ S o bled, That all the several provisions of the act, intituled m e s t i c debt -

NATIONAL MONETARY COMMISSION.

"An act further extending the time for receiving on loan
the domestic debt of the United States," passed the nine1796, ch. 2. teenth day of February, one thousand seven hundred and
ninety-six, be, and they are hereby continued in force,
until the thirty-first day of December next, and no longer:
Provided, That nothing herein contained, shall be construed to extend to any evidence of public debt, which
may be barred by any act of limitation.
Approved, March 3, 1797.
A C T O F J U L Y 8, 1797.
istat.

L.,
[Obsolete.]

CHAP.

X V I . — A n act authorizing

a loan of money.

SECTION 1. Be it enacted by the Senate and House of
Representatives of the United States of America in Con$8oo,ooo°an otgress assembled, That the President of the United States
be, and he is hereby empowered to borrow on the credit of
the United States, a sum not exceeding eight hundred
thousand dollars, at an interest not exceeding six per
centum per annum, reimburseable at the pleasure of the
United States, or at such period as may be stipulated by
contract not exceeding five years from the time of obtaining the loan, to be applied to such public purposes as are
H o w t o b e o r may be authorized by law, and to be repaid out of the
revenues accruing to the end of the present year and such
further revenues as have been, or may be provided during
the present session of Congress; and it shall be lawful
for the Bank of the United States to lend the said sum.
fic?eiicySfea?thdof SEC. 2. And be it further enacted, That in case the exstates1 pledged isting revenues of the United States, together with such
sion1 for itr.°vi further revenues as have been or may be provided, during
the present session, shall be insufficient to discharge and
reimburse the said loan, the faith of the United States is
hereby pledged to make such further provision therefor,
as may be necessary.
Approved, J u l y 8,1797.

A C T O F J U N E 12, 1798.
562

stat

LI.—An act respecting loan office and final settlement certificates, indents of interest, and the unfunded
or registered debt credited in the books of the Treasury.

CHAP.

(By section 1 the time fixed by section 14 of the act
of March 3, 1795, for the presentation of loan office cer-

LAWS CONCERNING MONEY, BANKING, AND LOANS.

tificates, final settlements, and indents of interest, is extended for one year.
(Sections 2 and 3 provide that on the settlement of such
certificates and indents of interest, the creditors may receive three per cent stock of the United States, to the
amount of the indents and of arrearages of interest on
certificates accruing prior to January 1, 1791; and that
the principal sums of the certificates, with interest since
January 1, 1791, shall be discharged by reimbursement
equal to the sum which would have been payable if the
certificates had been subscribed, and by payment of the
market value of the remaining funded stock which would
have been created by such subscription.
(The remaining sections forbid the officers of the Treasury to issue any further certificates of registered or unfunded debt; require the commissioners of the sinking
fund to reimburse the principal sums of the unfunded or
registered debt; and authorize the creditors of the unfunded or registered debt to receive three per cent stock
equal to the arrearages of interest due to them prior to
January 1, 1791.)
Approved, June 12, 1798.
A C T O F J U L Y 9, 1798.
CHAP. L X I X . — A n act limiting the time, within which 530.s * a * • L, »
claims against the United States, for credits on the [ 0 b s o l e t e ]
books of the Treasury, may be presented for allowance.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That all credits on the books of the Treasury of
the United States, for transactions during the late war,
which, according to the course of the Treasury, have
hitherto been discharged by issuing certificates of registered debt, shall be forever barred and precluded from
settlement or allowance, unless claimed by the proper
creditors, or their legal representatives on or before the
first day of March, in the year one thousand seven hundred and ninety-nine. And the Secretary of the Treasury is hereby required to cause this act to be published
in one or more of the public papers of each State.
Approved, July 9,1798.

NATIONAL MONETARY COMMISSION.

ACT OF JULY 16, 1798.
^ i s t a t. L., CHAP. LXXIX.—An act to enable the President of the
[Obsolete.]
United States to borrow money for the public service.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress asdent h ma/b e o S r- 5 ^ m& ^^5 T h a t t h e President of the United States shall be,
Sons o^oiiaman(* h e r e by is authorized to borrow, on behalf of the
United States, from the Bank of the United States, which
is hereby authorized to lend the same, or from any other
body or bodies politic or corporate, or from any person
or persons and upon such terms and conditions as he shall
judge most advantageous for the United States, a sum
not exceeding five millions of dollars, in addition to the
monies to be received into the Treasury of the United
States, from taxes, for making up any deficiency in any
appropriation heretofore made by law, or to be made
during the present session of Congress; and defraying the
expenses which may be incurred, by calling into actual
service, any part of the militia of the United States, or
by raising, equipping and calling into actual service any
regular troops, or volunteers, pursuant to authorities
vested or to be vested in the President of the United
Reservation States, by law: Provided, that no engagement nor conreimburse after tract shall be entered into, which shall preclude the
fifteen years.

_ _ . _ _ .

United fetates irom reimbursing any sum or sums borrowed at any time after the expiration of fifteen years
from the date of such loan.
surplus o f s EC . 2. And be it further enacted. That so much as may
the duties on

imports andbe necessary of the surplus of the duties on imports and
t o n n a g e

*•

pledged for the tonnage, beyond the permanent appropriations heretoprincipal and fore charged upon them by law, shall be and hereby is
pledged and appropriated for paying the interest of all
such monies as may be borrowed, pursuant to this act,
according to the terms and conditions on which the loan
or loans, respectively, may be effected; and also for paying and discharging the principal sum or sums of any
such loan or loans, according to the terms and conditions
Permanentto be fixed, as aforesaid. And the faith of the United
revenues

for

making up the States shall be and hereby is pledged, to establish sufiideficiencv to be

established,

cient permanent revenues for making up any deficiency

LAWS CONCEBNING MONEY, BANKING, AND LOANS.

that may hereafter appear in the provisions for paying
the said interest and principal sums, or any of them, in
manner aforesaid.
SEC. 3. And he it further enacted. That the sums to be rowed^t o °be
borrowed, pursuant to this act, shall be paid into the§5^ s i |^ 0 *£?
Treasury of the United States, and there separately ac- Appropriacounted for; and that the same shall be and hereby are same.
appropriated in manner following: First, to make up
any deficiency in any appropriation heretofore made by
law, or to be made, during the present session of Congress; and, secondly, to defray the expenses which may
be incurred before the end of the next session of Congress,
by calling into actual service, any part of the militia of
the United States, or by raising, equipping and calling
into actual service, any regular troops, or volunteers,
pursuant to authorities vested or to be vested in the President of the United States, by law.
Approved, July 16,1798.
ACT OF JULY 16, 1798.
LXXXIV.—An act making certain appropriations; and to authorize the President to obtain a loan
on the credit of the direct tax.

CHAP.

istat.u,

SEC. 2. And be it further enacted, That the President de £ t h £ a Prbeor"
of the United States shall be, and he is hereby authorized f&^Tn'Vhe
to borrow of the Bank of the United States, who are credit of the
1

hereby enabled to lend the same, or of any other corporation, persons or person, the sum of two millions of dollars,
upon the credit, and in anticipation of the direct tax,
laid and to be collected within the United States; which
tax shall be, and is hereby pledged for the repayment of
any loan which shall be obtained thereon, as aforesaid;
and the faith of the United States shall be, and is hereby
pledged to make good any deficiency: Provided, that the
interest to be allowed for such loan, shall not exceed six
per centum per annum; and that the principal shall be
reimbursed at the pleasure of the United States.
Approved, July 16,1798.

direct tax.

NATIONAL MONETARY COMMISSION.

A C T O F F E B R U A R Y 15, 1799.
l s t a t. ii., CHAP. I I I . — A n act respecting balances reported against
[Expired.]
certain States, by the commissioners appointed to settle
the accounts between the United States and the several
States.
SECTION 1. Be it enacted by the Senate and House of
Representatives of the United States of America in Cona?s e uming at to^* m assembled, That if any state, against which a balance
pend °in fortlfi-was r e P o r t e d by the commissioners appointed to settle the
cations a s u m a c c o u n t s between the United States and the several states,
in money or in

their S^e l\ s° s ^ a U ? o n o r before the first day of April, one thousand eight
discharge11 etc^ ^ u n ^ r e c ^ ' ^y a legislative act, engage to pay into the
treasury of the United States within five years after passing such legislative act, or to expend, within the time last
mentioned, in erecting, enlarging or completing any fortifications for the defence of the United States at such
place or places the jurisdiction whereof, having been,
previously to such expenditure, ceded by such state to the
United States, with reservation that process civil and
criminal issuing under authority of such state, may be
served and executed therein, and according to such plan
or plans as shall be approved by the President of the
United States, a sum in money, or in stock of the United
States, equal to the balance reported as aforesaid, against
such state, or to the sum assumed by the United States in
the debt of such state, such payment or expenditure, when
so made, shall be accepted by the United States as a full
discharge of all demands on account of said balance; and
the President of the United States, shall be, and hereby
is authorized to cause credit to be given to such state on
the books of the treasury of the United States accordLimitation ingly: Provided however, that no more than one third
of the descrip-

tions of stock part of the whole payment or expenditure that may be
expended.
made by any such state shall be made in three per cent
stock, nor more than one third part of the remaining two
ma^y11 obtafnatathirds shall be made in deferred stock: And provided
theCpaymentbo? a l so > that any such state may obtain a full discharge, as
expenditure o<>* a foresaid, by the payment or expenditure of a sum of
money, etc.
m 0 n e y , sufficient in the opinion of the Secretary of the
Treasury, to purchase, at market price, the different
species of stock, the payment or expenditure of which
would be accepted as a full discharge, as aforesaid.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

SEC. 2. Provided always, and be it further enacted, i n ^ i n g S le°x*
That if any such state as is aforesaid shall have expended, fortlfic^u o n s
since the establishment of the present Government of the ^ ^ n r etoththle
United States, any sum of money in fortifying any place united states,
since ceded by such state to the United States, or which
may be so ceded, within one year after the passing of this
act, such expenditure having been ascertained and proved
to the satisfaction of the Secretary of the Treasury, shall
be taken and allowed as part of the expenditure intended
by this act.
Approved, February 15,1799.
ACT OF MARCH 2, 1799.
XXXI.—An act giving eventual authority to the 1 s t a t . L.,
President of the United States to auqment the army.
Repealed

CHAP.

1802, ch. 9.

(Sections 1 to 8 provide for augmenting the military
force, including volunteers, etc.)
SEC. 9. And be it further enacted, That for the execu- Approp r i a tion of this act, if it shall be found necessary to carry it.purposesof
2 .
~
•
-i
this act, a n d
or any part of it into effect, there be appropriated the authority to
Aj

.„•

0 i 11

i .-i

, 7i

• -i

.-i

borrow money.

sum of two millions of dollars, and that the President be
authorized to borrow, on behalf of the United States, the
said sum, or so much thereof as he shall deem necessary
(which the Bank of the United States is hereby empowered to lend) and upon such terms and conditions as
he shall judge most advantageous to the United States*
Provided, That such terms and conditions shall not restrain the United States from paying off the sum which
may be borrowed, after the expiration of fifteen years.
SEC. 10. And be it further enacted, That so much as certain dumay be necessary of the surplus of the duties on importsredeem the
and tonnage, beyond the permanent appropriations heretofore charged upon them by law, shall be, and hereby
is pledged and appropriated for paying the interest of all
such monies as may be borrowed pursuant to this act, according to the terms and conditions on which the loan or
loans, respectively, may be effected; and also for paying,
by discharging the principal sum or sums of any such
loan or loans, according to the terms and conditions to be
fixed as aforesaid.
*

Approved, March 2, 1799.

NATIONAL MONETARY COMMISSION.

ACT OF MAY 7, 1800.
2 stat. L,., eo. CHAP. XLII.—An act to enable the President of the
United States to borrow money for the public service.
SECTION 1. Be it enacted by the Senate and House of
Representatives of the United States of America in Conrresident &u-gress assembled. That the President of the United States
thorized to bor- *

-i i

•

* -. -,«

row $3,500,000. shall be, and hereby is authorized to borrow on behalf of
vol. i, 194. the United States, from the Bank of the United States,
which is hereby authorized to lend the same, or from any
other body or bodies politic or corporate, or" from any person or persons, and upon such terms and conditions, as he
shall judge most advantageous for the United States, a
sum not exceeding three millions five hundred thousand
dollars, in addition to the monies to be received into the
Treasury of the United States from taxes, for making up
any deficiency in any appropriation heretofore made by
law, or to be made during the present session of Congress,
and defraying the expenses which may be incurred by
calling into actual service any part of the militia of the
United States, or by raising, equipping and calling into
actual service any regular troops or volunteers, pursuant
to authorities vested, or to be vested in the President of
the United States by law: Provided, That no engagement
nor contract shall be entered into, which shall preclude
the United States from reimbursing any sum or sums
borrowed, at any time after the expiration of fifteen years
from the date of such loan.
Appropria- SEC. 2. And be it further enacted. That so much as may
t i o n for t h e .

* .*

t> .1

,•

•

payment of in- be necessary 01 the surplus or the duties on imports and
t i n g uishment tonnage, beyond the permanent appropriations heretofore
pai.
charged upon them by law, shall be and hereby is pledged
and appropriated for paying the interest of all such
monies as may be borrowed pursuant to this act, according to the terms and conditions on which the loan or loans
respectively may be effected; and also for paying and discharging the principal sum or sums of any such loan or
loans, according to the terms and conditions to be fixed as
aforesaid. And the faith of the United States shall be,
and hereby is pledged to establish sufficient permanent
revenues for making up any deficiency, that may hereafter appear in the provisions for paying the said interest
and principal sums, or any of them, in manner aforesaid,
titnPof°Pt!ne ^EC. **• And be it further enacted, That the sums, to be
proceeds of the borrowed pursuant to this act, shall be paid into the Treas

LAWS CONCERNING MONEY, BANKING, AND LOANS.

ury of the United States, and there separately accounted
for; and that the same shall be, and hereby are appropriated in the manner following:
First, to make up any deficiency in any appropriation
heretofore made by law, or to be made during the present
session of Congress: and, secondly, to defray the expenses
which may be incurred before the end of the next session
of Congress, by calling into actual service any part of the
militia of the United States, or by raising, equipping and
calling into actual service any regular troops or volunteers,
pursuant to authorities vested or to be vested in the President of the United States by law.
Approved, May 7, 1800.
A C T O F M A Y 10, 1800.
CHAP. L V I I L — A n act supplementary
"An act to establish the Treasury

to the act entitled
Department"a

2 stat. L., 79.

Be it enacted by the Senate and House of Representatives of the United States of America m Congress assembled, That it shall be the duty of the Secretary of the Duty of the
Treasury to digest, prepare and lay before Congress ^ p ^ g ^ r y t o
the commencement of every session, a report on the sub-gress estimates
ject of finance, containing estimates of the public revenue
and public expenditures, and plans for improving or
increasing the revenues, from time to time, for the purpose of giving information to Congress in adopting
modes of raising the money requisite to meet the public
expenditures.
Approved, May 10,1800.
A C T O F A P R I L 29, 1802.
CHAP. X X X I I . — A n act making provision for the ^ - 1 6 f stat * LM
demption of the whole of the public debt of the United [Obsolete.]
States.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That so much of the duties on merchandise and ton- Approprianage as, together
with the monies, other than surplusesextinguishment
&
±
'
, . ,
... , ' , ,
. , .
„ *\
of the public
of revenue, which now constitute the sinking fund, or debt.
•

shall accrue to it by virtue of any
made, and together with the sums
,.
'
,, &
, . ,
,
,
discharge the annual interest and
_

See vol i p

provisions heretofore 138, 218,' 279,'
annually required to 432; 488! 512;
J
,
^ .
562. Debts to
charges accruing on i n d i v i d u a l
&

~_
_
°Act of September 2, 1789, chap. 12.

States, vol. i, p.
49> 1 7 g > 6 1 6

NATIONAL MONETARY COMMISSION.

the present debt of the United States, including temporary loans heretofore obtained, and also future loans
which may be made for reimbursing, or redeeming, any
instalments, or parts of the principal of the said debt,
will amount to an annual sum of seven millions three hundred thousand dollars, be, and the same hereby is yearly appropriated to the said fund; and the said sums are hereby
declared to be vested in the commissioners of the sinking
fund, in the same manner as the monies heretofore appropriated to the said fund, to be applied by the said commissioners to the payment of interest and charges, and
to the reimbursement or redemption of the principal of
the public debt, and shall be and continue appropriated
until the whole of the present debt of the United States,
and the loans which may be made for reimbursing or
redeeming any parts or instalments of the principal of
the said debt shall be reimbursed and redeemed: ProBaiances of vided. That after the whole of the said debt, the old six
unexpended ap-

propriation, per cent, stock, the deferred stock, the seventeen hundred
how d i s p o s e d ^

<>*•

and nmety-six six per cent, stock and three per cent, stock
excepted, shall have been reimbursed or redeemed, any
balance of the sums annually appropriated by this act,
which may remain unexpended at the end of six months
next succeeding the end of the calendar year to which
such annual appropriation refers, shall be carried to the
surplus fund, and cease to be vested by virtue of this act in
the commissioners of the sinking fund, and the appropriation, so far as relates to such unexpended balance, shall
cease and determine.
tiots,p Amount SEC. 2. And be it further enacted, That it shall be the
each and6 every ^ u t y 0 * ^ e Secretary of the Treasury annually, and in
I T c r e t a r y ^ l e a c ^ y e a r > *° c a u s e **> be paid to the commissioners of the
theeTceoamUmyis^ sinking fund the said sum of seven millions three hundred
sinkfnl fundtbe ^ o u s a n d dollars, in such payments, and at such times,
in each year as the situation of the Treasury will permit:
Provided, That all such payments as may be necessary to
enable the said commissioners to discharge, or reimburse,
any demands against the United States, on account of
the principal or interest of the debt, which shall be actually due, in conformity to the engagements of the said
States, shall be made at such time and times, in each year
as will enable the said commissioners faithfully and
punctually to comply with such engagement.
SEC. 3. And be it further enacted. That all reimbursements of the capital, or principal of the present debt of

LAWS CONCERNING MONEY, BANKING, AND LOANS.

the United States, including future loans which may beme^®im0^urts^e
made for reimbursing or redeeming any instalments, o r ^ * ^ ^ * ^
parts of the same, and all payments on account of t h e | ^ t e g ^J}**^
interest and charges accruing upon the said debt shall be tSf tutnmy0abe
made under the superintendence of the commissioners of mints a on Pacthe sinking fund. And it shall be the duty of the said ™£n|t£f *£*&
commissioners to cause to be applied and paid out of t h e ^ J ^ t |Jfe ^
said fund, yearly and every year, at the Treasury of the commissioners
United States, the several and respective sums following, f u |p e c i f i c ap_
to wit: first, such sum and sums as by virtue of any
^^l^vitea^or acts, they have heretofore been directed to apply a ^ ^ J j j ^ ^ 1 ^ :
to p a y : secondly, such sum and sums as may be annually missioned.
wanted to discharge the annual interest and charges accruing on any other part of the present debt of the United
States, including the interest and charges which may
accrue on future loans which may be made for reimbursing or redeeming any instalments, or parts of the principal of the said debt: thirdly, such sum and sums as may
annually be required to discharge any instalment or part
of the principal of the present debt of the United States,
and of any future loans which may be made for reimbursing, or discharging the same, which shall be actually
due and demandable, and which shall not by virtue of
this, or any other act, be renewed or prolonged, or reimbursed, out of the proceeds of a new loan: and also it shall
be the duty of the said commissioners to cause to be applied the surplus of such fund as may at any time exist,
after satisfying the purposes aforesaid, towards the further and final redemption, by payment, or purchase, of
the present debt of the United States, including loans for
the reimbursement thereof, temporary loans heretofore
obtained from the Bank of the United States, and those
demands against the United States, under any treaty, or
convention, with a foreign power, for the payment of
which the faith of the United States has been, or may
hereafter be pledged by Congress: Provided, however, Demands unThat the whole, or any part, of such demands, arising etc., mlfy^e
under a treaty, or convention, with a foreign power, and otheSrfimoneys?f
of such temporary loans, may, at any time, be reimbursed,
either out of the sinking fund, or, if the situation of the
Treasury will permit, out of any other monies which have
been, or may hereafter be, appropriated to that purpose.
(Section 4 empowers the commissioners to borrow, at
home or abroad, the sums requisite for payment of the
15712°—10

NATIONAL MONETAKY COMMISSION.

instalments of the Dutch debt, falling due in the years
from 1803 to 1806, and requires that a like sum shall be
laid out in the payment or redemption of the present debt
of the United States, so as to effect the annual payment
of seven million three hundred thousand dollars, agreeably to the provision made above; but any loan thus made
shall be reimbursable within six years from its date, and
the rate of interest thereon shall not exceed five per cent,
nor shall the charges exceed five per cent of the capital
borrowed. The power thus given is not to diminish or
affect the power to borrow given to the commissioners by
section 10 of the act of March 3,1795, or the power to sell
the shares of the Bank of the United States belonging to
the Government, given by section 3 of the act of May
81, 1796.
(Sections 5 and 6 authorize the commissioners, with the
approbation of the President, to contract with any bank
or individual for the payment, in Holland, of any part
of the Dutch debt and its interest, or to employ an agent
for procuring remittances for the discharge of said debt
or its interest, allowing therefor a compensation not exceeding one-fourth of one per cent on the remittances procured. And the commissioners are empowered, in like
manner, to employ an agent in Europe, for the transaction of any business relative to the discharge of the
Dutch debt, or of any loan authorized for the discharge
thereof.)
th£°actnto £
SEC. 7. And be it further enacted, That nothing in this
vfsionshof ^or- ac ^ contained shall be construed to repeal, alter, or affect
^|rthCetSfaitehof a n y °^ the provisions of any former act pledging the faith
sta e tes. United °^ *he United States to the payment of the interest, or
principal, of the public debt; and that all such payments
shall continue to be made at the time heretofore prescribed by law; and the surplus only of the appropriations made by this act beyond the sums payable by virtue
of the provisions of any former act, shall be applicable to
the reimbursement, redemption, or purchase of the public debt in the manner provided by this act.
anfrlguiawons SEC. 8. And be it further enacted, That all the restricfo^me^acts^^ 0118 a n ( * regulations heretofore established by law, for
thecoinm?slsion^ regulating the execution of the duties enjoined upon the
ers^under this, commissioners of the sinking fund, shall apply to and be
the sales of in as full force for the execution of the analogous duties
stocks, etc., to

. .

, _

.. _

be laid before en] omed by this act, as if they were herein particularly
1795, ch. 45. repeated and reenacted.. Provided, however, That the par-

LAWS CONCERNING MONEY, BANKING, AND LOANS.

ticular annual account of all sales of stock, of loans, and
of payments, by them made, shall, hereafter, be laid before Congress on the first week of February, in each year;
and so much of any former act as directed such account
to be laid before Congress wdthin fourteen days after their
meeting, is hereby repealed.
Approved, April 29, 1802.
ACT O F FEBJRUAKY 26, 1803.
CHAP. VIII.—An act making further provision for the
expenses attending the intercourse between the United
States and foreign nations.

§ stat. L„
[Obsolete.]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That a sum of two millions of dollars, in addition Further apto the provision heretofore made, be, and the same is foreign interhereby appropriated for the purpose of defraying any
extraordinary expenses which may be incurred in the
intercourse between the United States and foreign nations, to be paid out of any money in the treasury, not
otherwise appropriated, and to be applied under the direction of the President of the United States, who shall
cause an account of the expenditure thereof to be laid
before Congress, as soon as may be.
SEC. 2. And be it further enacted. That the President P * ^ 1 ? »Uthorized to hor-

of the United States may, if he shall deem it necessary, row the money,
and he hereby is authorized to borrow the whole, or any and time of re„ ,

imbursement.

part of the said sum, at an interest not exceeding six per
centum per annum, reimbursable before the year one
thousand eight hundred and eleven: and it shall be lawful for the Bank of the United States to lend the whole,
or any part of the same.
SEC. 3. And be it further enacted, That so much as may du^es^n \mbe necessary of the surplus of the duties on imports and g°|*s apfedtged
tonnage, beyond the permanent appropriation heretofore ^en/of intercharged upon them by law, shall be, and hereby is pledged ^ursement161©1!
and appropriated for the payment of the interest, and re- principal.
imbursement of the principal of all such monies as may
be borrowed in pursuance of this act, according to the
terms and conditions on which the loan or loans may be
effected.
Approved, February 26,1803.

NATIONAL MONETARY COMMISSION.

A C T O F N O V E M B E E 10, 1803.
2 Stat.
245.

[Obsolete.]

CHAP. II.—An act authorizing the creation of a stocky to
tfle amount of eleven millions two hundred and fifty
thousand dollars, for the purpose of carrying into effect
the convention of the thirtieth of April, one thousand
eight hundred and three, between the United States of
America and the French Republic; and making provision for the payment of the same.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemo?hth*c™vell bled, That for the purpose of carrying into effect the conto'yc ^us^to2?© mention of the thirtieth day of April, one thousand eight
stockSforeieven hundred and three, between the United States of America
hundred and - n ^ the French Republic, the Secretary of the Treasury
doiiars.housand be, and he is hereby authorized, to cause to be constituted,
certificates of stock, signed by the Register of the Treasury, in favour of the French Republic, or of its assignees,
for the sum of eleven millions two hundred and fifty
thousand dollars, bearing an interest of six per centum
per annum, from the time when possession of Louisiana
shall have been obtained, in conformity with the treaty
atk>enmand Cde- °f the thirtieth day of April, one thousand eight hundred
livery.
a n ( j three, between the United States of America and the
French Republic, and in other respects conformable with
the tenor of the convention aforesaid; and the President
of the United States is authorized to cause the said certifiThe certifi- eates of stock to be delivered to the Government of
cates of stock
to the
G o

to be delivered France, or to such person or persons as shall be authorv

ment of France, ized to receive them, m three months at most, after the
exchange of the ratifications of the treaty aforesaid, and
after Louisiana shall be taken possession of in the name of
credits of the Government of the United States: and credit, or
stock

tneUS?ookse of credits, to the proprietors thereof, shall thereupon be
the Treasury. e n t e r e d and given on the books of the Treasury, in like
manner as for the present domestic funded debt, which
said credits or stock shall thereafter be transferable only
on the books of the Treasury of the United States, by the
proprietor or proprietors of such stock, his, her or their
attorney; and the faith of the United States is hereby
pledged for the payment of the interest, and for the reimbursement of the principal of the said stock, in condemotion °may formity with the provisions of the said convention: Prohe shortened, * Med^ however^
That the Secretary of the Treasury may,

LAWS CONCEKNTNG MONEY, BANKING, AND LOANS.

with the approbation of the President of the United
States, consent to discharge the said stock in four equal
annual instalments, and also shorten the periods fixed
by the convention for its reimbursement: And provided
also. T h a t every proprietor of the said stock may, until
otherwise directed by law, on surrendering his certificate of such stock, receive another to the same amount,
and bearing an interest of six per centum per annum,
payable quarter-yearly at the Treasury of the United
States.
SEC. 2. And be it further enacted. That the annual in- interest pay7

terest accruing on the said stock, which may, in coniormity with the convention aforesaid, be payable in Europe,
J

••/••

•

able in Europe.

Rate of exchange, dollars

shall be paid at the rate of four shillings and sixpence at 4s. 6d. and
sterling for each dollar, if payable in London, and at the
rate of two guilders and one half of a guilder, current
money of Holland, for each dollar, if payable in Amsterdam.
SEC. 3. And be it further enacted. That a sum equal to i ^ e s t pro.

. ,

vided for out

what will be necessary to pay the interest which may ?f moneys in
•*

-i

• i

* -i

* n e Treasury.

accrue on the said stock to the end of the present year,
be, and the same is hereby appropriated for that purpose,
to be paid out of any monies in the Treasury not otherwise appropriated.
SEC. 4. And be it further enacted,, That from and after 29Aci8°02Apcn1
the end of the present year, (in addition to the annual l^sevenhun^
sum of seven millions three hundred thousand dollars ^dedS to° the
yearly appropriated to the sinking fund, by virtue of sinking fund,
the act, intituled " An act making provision for the redemption of the whole of the public debt of the United
States,") a further annual sum of seven hundred thousand dollars, to be paid out of the duties on merchandise
and tonnage, be, and the same hereby is, yearly appropriated to the said fund, making in the whole, an annual
sum of eight millions of dollars, which shall be vested in e r ^ om S: 1ssithe
the commissioners of the sinking fund in the same man- ton^eo5emU the
ner, shall be applied by them for the same purposes, and stock *
shall be, and continue appropriated, until the whole of
the present debt of the United States, inclusively of the
stock created by virtue of this act, shall be reimbursed
and redeemed, under the same limitations as have been
provided by the first section of the above-mentioned act,
respecting the annual appropriation of seven millions
three hundred thousand dollars, made by the same.

NATIONAL MONETARY COMMISSION.

theST^Si7yto S E C - 5 - Aru1 he H further enacted, That the Secretary
8ioner^mwho o f t h e T r e a s u r y shall cause the said further sum of seven
moneyap&lydS h u n d r e d thousand dollars to be paid to the commissioners
charge of debt. 0 f the sinking fund, in the same manner as was directed
by the above-mentioned act respecting the annual appropriation of seven millions three hundred thousand dollars ; and it shall be the duty of the commissioners of the
sinking fund to cause to be applied and paid out of the
said fund, yearly, and every year, at the Treasury of the
United States, such sum and sums as may be annually
wanted to discharge the annual interest and charges accruing on the stock created by virtue of this act, and the
several instalments, or parts of principal of the said stock,
as the same shall become due and may be discharged, in
conformity to the terms of the convention aforesaid, and
of this act.
Approved, November 10, 1803.
ACT O F N O V E M B E E 10,1808.
24|

stat

* *> CHAP. III.—An act making provision for the payment of
[Obsolete.]
claims of citizens of the United States on the Government of France, the payment of which has been assumed by the United States, by virtue of the convention
of the thirtieth of April, one thousand eight hundred
and three, between the United States and the French
Republic.
*

sjs

•

t h e ^ u S t e l SEC. 3. And be it further enacted, That the President
?owteSnot hex-°^ ^ e United States be, and he hereby is authorized to
75oeo1)ong $1 ' borrow, on the credit of the United States, to be applied
to the purposes authorized by this act, a sum not exceeding one million seven hundred and fifty thousand dollars,
at a rate of interest, not exceeding six per centum per
annum; reimbursable out of the appropriation made by
virtue of the first section of this act, at the pleasure of
the United States, or at such period, not exceeding five
years from the time of obtaining the loan, as may be
stipulated by contract; and it shall be lawful for the Bank
of the United States to lend the same.
se^eSeh^dred SEC. 4 - ^*nd be it further enacted, That so much of the
fand^ofiar^at duties o n merchandise and tonnage as may be necessary,
te&st Cchlrge-ke> a n ( * ^ e s a m e h e r e b y is appropriated for the purpose
toms OI1 cus" °^ P a y i n £ *he interest which shall accrue on the said loan.
*
*
*
*
*
Approved, November 10, 1803.

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

A C T O F F E B R U A R Y 24,1804.
CHAP. X I I I . — A n act for laying and collecting duties on 2 stat. L.,
imports and tonnage within the territories ceded to the
United States, by the treaty of the thirtieth of April,
one thousand eight hundred and three, between the
United States and the French Republic, and for other
purposes.
SEC. 1.

*
,

*
• ...

* and the following acts, that is to
-. -,

say, the act, intituled,
department."

, .

, 1T i

Act of Sept.
2, 1789, ch. 12.

An act to establish the treasury

"An act to establish a mint and to regulate the coins of 2 ijl2otchVi6
the United States."
"An act regulating foreign coins, and for other pur- Act of Feb..

ruary y, lTyo,

poses.
ch. 5.
And the act supplementary to, and amendatory of the
two last-mentioned acts, or so much of the said acts as
is now in force, * * *, shall extend to, and have full
force and effect in the above-mentioned territories:
*
*
*
*
*
Approved, February 24, 1804.
A C T O F M A R C H 26, 1804.
CHAP. X L V I . — A n act further to protect the commerce
and seamen of the United States against the Barbary
powers.

2 stat. L.,
[Expired.]

SEC. 4. * * * or if necessary the President of the President auUnited States is hereby authorized to borrow the said row this sum.
sum, or such part thereof as he may think proper, at a
rate of interest not exceeding six per centum per annum,
from the Bank of the United States, which is hereby Bank of the
empowered to lend the same, or from any other body authorized to
or bodies politic or corporate, or from any person or e n '
persons; and so much of the proceeds of the duties laid
by this act, as may be necessary, shall be and is hereby
pledged for replacing in the treasury, the said sum of ± |®e9 a£ts of
one million of dollars, or so much thereof as shall have l A I 0 ! ^ ^
7

been thus expended, and for paying the principal and
interest of the said sum, or so much thereof as may be
borrowed, pursuant to the authority given in this section;

1813, ch. 40.

NATIONAL MONETAE Y COMMISSION.

beAia?dmbefore a n ( ^ a n & c c o i m t of the several expenditures made under
Congress.
this act, shall be laid before Congress during their next
session.
Approved, March 26, 1804.
A C T O F F E B E U A E Y 13, 1806.
2 stat. L., CHAP. V.—An act making provision for defraying any
[Obsolete.]
extraordinary expenses attending the intercourse between the United States and foreign nations.
President au- SEC. 2. And be it further enacted, That the President
c a u s e t h e of the United States be, and hereby is authorized, if
borrowed.0 e necessary, to borrow the said sum, or any part thereof,
Rates of in- in behalf of the United States, at a rate of interest not
exceeding six per centum, per annum, redeemable at the
will of the Congress of the United States. And it shall
be lawful for the Bank of the United States to lend the
whole, or any part of the same.
Fund made SEC. 3. And be it further enacted, That so much as
reimbursement may be necessary of the surplus of the duties on imports
and the paying and tonnage, beyond the permanent appropriation here' tofore charged upon them, by law, shall be, and hereby
is pledged and appropriated for the payment of the interest, and reimbursement of the principal, of all such
monies as may be borrowed in pursuance of this act,
according- to the terms and conditions on which the loan
or loans may be effected.
Approved, February 13, 1806.
A C T O F A P E I L 18, 1806.
405

Stat

L.—An act to repeal so much of any act or acts as
authorize the receipt of evidences of the public debt, in
payment for lands of the United States; and for other
purposes, relative to the public debt.

CHAP.

Be it enacted by the Senate and House of Representatives of the United, States of America in Congress assemsu?he ^cfs1 as bled) That so much of any act or acts as authorize the
receiptiZof ^vi- r e c e ^P^ °^ evidences of the public debt, in payment for
dencesof public ^ e lands of the United States, shall from and after
debt

pay-

after the 30th *he thirtieth day of April, one thousand eight hundred
of
ppoviso^806, a n ( * six > b e r e P e a t e d : Provided, That the right of all

LAWS CONCERNING MONEY, BANKING, AND LOANS.

persons who may have purchased public lands previous
to the passage of this act, to pay for the same in stock,
shall in no wise be affected or impaired: And provided
further, That there shall be allowed on every payment
made in money, at or before the same shall fall due, for
lands purchased before the thirtieth day of April, one
thousand eight hundred and six, in addition to the discounts now allowed by law, a deduction equal to the
difference at the time of such payment, between the market price of six per cent, stock and the nominal value of
its unredeemed amount, which market price shall, from
time to time, be stated by the Secretary of the Treasury
to the officers of the several land-offices.
SEC. 2. And be it further enacted, That the e o m m i s - ^ & ^ p u **
sioners of the sinking fund shall not be authorized to$^f|| s S ay the
purchase any of the several species of the public debt, f^%^\\ e°J
at a higher price than at the rates following, that is to s t a t e s say; they shall not pay more for three per cent, stock
than sixty per cent, of its nominal value; nor for any
other species of the public debt more than the nominal
value of its unredeemed amount, the eight per cent,
stock only excepted; for which they shall be authorized,
in addition thereto, to give at the rate of one half of one
per cent, on the said nominal value, for each quarterly
dividend which may be payable on such purchased stock,
from the time of such purchase to the first day of January, one thousand eight hundred and nine.
SEC. 3. And be it further enacted, That so much of anyPa?teofea ^or*
act as directs that (purchasers) purchases of the publicSrictin^w> t Te
debt, by the commissioners of the sinking fund, shall b e ™ ^ ^ * 0 ^ ^
made within the thirty days next ensuing after each day purchase16 ° f
on which a quarterly payment of interest on the debt of
the United States shall become due; and also so much of
any act as directs that the said purchases shall be made by
open purchase or by sealed proposals, be, and the same
hereby is repealed. And the said commissioners are
hereby authorized to make such purchases, under the restrictions laid by the preceding section, in such manner,
and at such times and places as they shall deem most 1Z?% ch. 38,
r

eligible; and for that purpose to appoint a known agent
or agents, to whom they may allow a commission, not exceeding one-fourth of one per cent, on the respective
purchases of such agents.
Approved, April 18, 1806.

sec. 7,8.

NATIONAL MONETAKY COMMISSION.

A C T O F F E B R U A R Y 11, 1807
41|

stat

* L*> CHAP, X I I . — A n act supplementary to the act, intituled
"An act making provision for the redemption of the
whole of the public debt of the United States"

tionof the pSE- Whereas it is desirable to adapt the nature of the proonly be^foneCby y i s ^ o n f ° r the redemption of the public debt to the present
scriptiony ^ c i r c u m s t a n c e s of the United States, which can only be
done by a voluntary subscription on the part of the creditors :
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assem29Aci80f2Apch1 bted, That a subscription to the full amount of the old six
32
*subscription P e r c e n k deferred a n d three per cent, stocks be, and the
funkamoimttofsame * s hereby proposed; for which purpose books shall
c^nt01 defend ^ ° P e n e ( i a t t h e Treasury of the United States, and by
and 3 per cent, the several commissioners of loans, on the first day of
s t o c k , to be

opened at the J u l y next, to continue open until the seventeenth day of
J

Treasury a n d

loan offi e ces eial ^ arc ^ n e x t Allowing, inclusively, the fourteen last days
Mode of ef- 0 f each quarter excepted, for such parts of the above menfectmg the sub- .

-i

i n

scription.

tioned descriptions of stock, as shall, on the day of subscription, stand on the books of the Treasury, and of the
several commissioners of loans, respectively; which subscription shall be effected by a transfer to the United
States, in the manner provided by law for such transfers,
of the credit or credits standing on the said books, and by
a surrender of the certificates of the stock subscribed.
credits to be S E C . 2. And be it further enacted. T h a t for the whole or

given for any

sumssubscribed any part of any sum which shall thus be subscribed, in old
in old 6 per .

cent, stock, and six per cent, or deferred stock, credits shall be entered to
new certificates

•*•

given in 6 per the respective subscribers, and the subscriber or subcent, stock.
.
.
scribers shall be entitled to a certificate, or certificates,
purporting that the United States owe to the holder or
holders thereof, his, her, or their assigns, a sum to be
expressed therein, equal to the amount of principal of the
stock thus subscribed, which shall remain unredeemed on
the day of such subscription, bearing an interest of six
per centum per annum, payable quarter yearly, from the
first day of the quarter, during which such subscription
shall have been made, transferable in the same manner
as is provided by law for the transfers of the stock subde^ptfona^ttfe scribed, and subject to redemption at the pleasure of the
unfted^tatesf United States: Provided, That no single certificate shall
be issued for an amount greater than ten thousand dol

LAWS CONCERNING MONEY, BANKING, AND LOANS.

lars: And provided further, That no reimbursement shall ^ ^ ^ ^ l ^
be made except for the whole amount of any such newgivNoticeeto^be
certificate, nor till after at least six months' previous j£ e £ t eimburse "
public notice of such intended reimbursement.
SEC. 3. And be it further enacted, That for the whole cr£*£h2*epa{J}
or any part of any sum which shall thus be subscribed i n SerScent stock
three per cent, stock, credits shall likewise be entered to subscribed.
the respective subscribers; and the subscriber, or subscribers, shall be entitled to a certificate, purporting that
the United States owe to the holder or holders thereof,
his, her, or their assigns, a sum to be expressed therein,
equal to sixty-five per centum of the amount of the principal of the stock thus subscribed, bearing an interest of g c r ^ u ^ s t o s ^
six per centum, per annum, payable quarter yearly, froml^*?^1^ of
the first day of the quarter, during which such subscription shall have been made, and transferable and subject to
redemption in the same manner, and under the same regulations and restrictions, as the stock created by the preceding section of this act: Provided, That no part of the bu Jjj^£ reim*
stock thus created, shall be reimbursable without the assent of the holder, or holders of such stock, until after
the whole of the eight per cent, and four and a half per
cent, stocks, as well as all the six per cent, stock which
may be created by virtue of the preceding section, shall
have been redeemed.
(Section 4 authorizes the commissioners of the sinking
fund to appoint an agent in London and another in
Amsterdam to receive subscriptions and transfers and to
issue new certificates in favor of stockholders residing in
Europe.
(Section 5 provides that stockholders subscribing either
in the United States or in Europe, but resident in Europe,
may at their option receive the interest on the new stock
either in the United States or in London or Amsterdam; •
if in London, at the rate of four shillings and six pence
sterling for the dollar, and if in Amsterdam at the rate
of two and a half guilders for the dollar, credits therefor
being entered and transferable only on the books of the
treasury; provided, that the interest thus payable abroad
shall not be payable until six months after the day for
payment in the United States, and shall be subject to a
deduction of one-half of 1 per cent on its amount for commission; and provided also, that the certificates of stock
thus held may be exchanged for others bearing interest
payable in the United States,)

NATIONAL MONETARY COMMISSION.

S
Pie^ged fo?
ei
f

the ^EC. *• ^nd be it further enacted. That the same funds
SSrest and the w kich heretofore have been, and now are, pledged, by law,
It^Hnclpaf of ^ o r ^le P a y m e n t of the interest, and for the redemption
the public <Jebtor reimbursement of the stock which may be subscribed by
J

toremain
pl ed

f r

a ment of *in- ^ ^ °^ the provisions of this act, shall remain pledged
imburse^en/oi ^ o r ^e P a y m e n t °f interest accruing on the stock created
s t ^ V ^ V u b - k y r e a s o n °f s u c h subscription, and for the redemption or
scribed.
reimbursement of the principal of the same. I t shall be
the duty of the commissioners of the sinking fund to
cause to be applied, and paid out of the said fund, yearly,
and every year, such sum, and sums, as may be annually
wanted to discharge the annual interest and charges
accruing on the stock which may be created by virtue
ersC0o?msfnkingof this act. The said commissioners are hereby authorto11 be ^pptied! ized to apply, from time to time, such sum and sums, out
sumsalas may of the said fund, as they may think proper, towards retheTnt"reesiafnd deeming, by purchase, or by reimbursement, in conformsomfchastheyity with the provisions of this act, the principal of the
proper toward s a i d stock. And the annual sum of eight millions of
redeeming, etc. ^ 0 j j a r g ^ v e s t e d by law in the said commissioners, shall
be, and continue appropriated to the payment of interest
and redemption of the public debt, until the whole of
the stock which may be created by the preceding sections
of this act, shall have been redeemed, or reimbursed.
(Section 7 provides compensation of agents, clerk hire,
etc.)
intended6 to* be SEC. 8. And be it further enacted, That whensoever
beiXdesignated° notice of reimbursement shall be given, as prescribed by
imbursemyenetthe second and third sections of this act, the certificates
toebeprgifvennto intended to be reimbursed, shall be designated therein.
certificate^8 as I n every reimbursement the preference shall be given to
noticed? their s u c h holders of certificates as, previous to the said notice,
Sbursedbe re" shall have notified in writing to the Treasury Department
the Treasury to their wish to be reimbursed. If there should not be ap?otfre?c.ne b y plications to the Treasury sufficient to require the payment of the whole sum to be applied to that purpose, the
Secretary of the Treasury, after paying off all sums for
the payment of which application shall have been made,
shall determine, by lot, what other certificates shall be
reimbursed so as to make up the whole amount to be discharged; and in case the applications shall exceed the
amount to be discharged, the Secretary of the Treasury
shall proceed to determine, by lot, what applications
shall be entitled to priority of payment.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

SEC. 9. And be it further enacted, That the agents ap- c o £gS5on" s
pointed by virtue of this act, and the several c o m m i s - ^ ^ s ^ per- «*
sioners of loans, shall observe and perform such d i r e c t i o n s " ^ i^n s as
and regulations, as shall be prescribed to them by t h e | £ r i ^ by^the
Secretary of the Treasury, touching the execution of this Treasury,
act.
SEC. 10. And be it further enacted, That nothing in t h | a j i^ng of
this act contained shall be construed, in any wise, tojonsi]£scribers
'

the

loan

alter, abridge, or impair the rights of those creditors of created by this
the United States, who shall not subscribe to the loan
created by virtue of this act.
Approved, February 11, 1807.
A C T O F M A R C H 3, 1809.
CHAP. X X V I I I . — A n act further to amend the several^
acts for the establishment and regulation of the Treasury, War, and Navy
Departments.

stat

(Section 4 provides that disbursing agents for the
army and navy, * * * " shall, whenever practicable,
keep the public monies in their hands, in some incorporated bank, to be designated for the purpose by the
President of the United States," and shall make monthly
returns thereof.)
*
*
*
*
*
Approved, March 3, 1809.
A C T O F J U N E 28, 1809.
CHAP. X.—An act supplementary to the act, entituled
"An act making further provision for the support of
public credit, and for the redemption of the public
debt."

2 stat. L.,

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the powers vested in the commissioners of 3 f7950fchM|5*
the sinking fund, by the tenth section of the act to w b i c h t h p e o w e ^ m m ^
this act is a supplement, shall extend to all the cases o f f e r s o f u ^e
reimbursement of any instalments or parts of the capital, extended,
or principal, of the public debt now existing, which may
become payable according to law. And in every case in
which a loan may be made accordingly, it shall be lawful

NATIONAL MONETABY COMMISSION.

for such loan to be made of the Bank of the United
States, any thing in any act of Congress to the contrary
notwithstanding.
Approved, June 28, 1809.
A C T O F M A Y 1, 1810.
2 stat. L., C H A P . XLV.—An act authorizing a loan of money ^ for a
[Obsolete.]
$um not exceeding the amount of the principal of the
public debt, reimbursable during the year one thousand
eight hundred and ten.
Be it enacted by the Senate and House of Representatives of the United, States of America in Congress asized°an author "sembled, That the President of the United States be, and
he is hereby empowered to borrow, on the credit of the
United States, a sum not exceeding the amount of the
principal of the public debt, which will be reimbursed,
according to law, during the present year, by the commissioners of the sinking fund, at a rate of interest, payable quarter yearly, not exceeding six per centum per
annum, and reimbursable at the pleasure of the United
States, or at such period as may be stipulated by contract,
not exceeding six years from the first day of January
next; to be applied, in addition to the monies now in the
Treasury, or which may be received therein from other
sources during the present year, to defray any of the
public expenses which are, or may be authorized by law.
transferase!"*6 r^e stock thereby created, shall be transferable in the
same manner as is provided by law for the transfer of the
un?taedksfatel ^ n d e d debt. I t shall be lawful for the Bank of the
f ^ n ^ a ^ t V e U n i t e d States to lend the said sum, or any part thereof;
money.
a n ( j ft j s f u r t h e r hereby declared, that it shall be deemed
a good execution of the said power to borrow, for the
1790, ch. 34. Secretary of the Treasury, with the approbation of the
President of the United States, to cause to be constituted
certificates of stock, signed by the Register of the Treasury, or by a commissioner of loans, for the sum to be
borrowed, or for any part thereof, bearing an interest of
six per cent, per annum, transferable and reimbursable as
aforesaid; and to cause the said certificates of stock to be
sold: Provided. That no such stock be sold under par.
(By section 2 the Secretary of the Treasury is authorized, with the approbation of the President, to give the
preference, among subscribers to the loan here provided
for, to the holders of exchanged six per cent stock issued

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

under the act of February 11, 1807, to an amount not exceeding for any stockholder the amount of such exchanged
stock held by h i m : provided, that the sum thus borrowed
from holders of the exchanged stock shall be reimbursable
at the pleasure of the United States.)
SEC. 3. And be it further enacted. That so much of the
Funds
funds constituting the annual appropriation of eight mil- payment of
lions of dollars for the payment of the principal and in- interest.
terest of the public debt of the United States, as may be
wanted for that purpose, is hereby pledged and appropriated for the payment of the interest and for the reimbursement of the principal of the stock, which may be
created by virtue of this act. I t shall accordingly be the
duty of the commissioners of the sinking fund, to cause to
be applied and paid out of the said fund yearly, and every
year, such sum and sums as may be annually wanted to
discharge the interest accruing on the said stock, and to
reimburse the principal, as the same shall become due, and
may be discharged in* conformity with the terms of the
loan; and they are further authorized to apply, from
time to time, such sum or sums out of the said fund as they
may think proper, towards redeeming by purchase, and at
a price not above par, the principal of the said stock or
any part thereof. And the faith of the United States is
hereby pledged to establish sufficient revenues for making
up any deficiency that may hereafter take place in the
funds hereby appropriated for paying the said interest
and principal sums, or any of them, in manner aforesaid.
Approved, May 1, 1810.
A C T O F MAKCH 2, 1811.
CHAP.

X X X I I . — A n act authorizing a loan of money, for 2 s t a t. L.,
a sum not exceeding five millions of dollars.
\obsolete.]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, T h a t the President of the United States be, and he
7

K***1*?**
authorized to

is hereby empowered to borrow, on the credit of t h e ^ 0 ^ 5 * 0 0 0 * United States, a sum not exceeding five millions of dollars, at a rate of interest, payable quarter yearly, not exceeding six per centum per annum, and reimbursable at
the pleasure of the United States, or at such periods as
may be stipulated by contract, n6t exceeding six years

NATIONAL MONETARY COMMISSION.

from the first day of January next; to be applied in addition to the monies now in the Treasury, or which may be
received therein from other sources during the present
year, to defray any of the public expenses which are or
may be authorized by law. The stock thereby created
shall be transferable in the same manner as is provided by
Proviso.
law for the transfer of the funded debt: And it is further
hereby declared, That it shall be deemed a good execution
of the said power to borrow, for the Secretary of the
Treasury, with the approbation of the President of the
United States, to cause to be constituted certificates of
stock, signed by the Eegister of the Treasury, or by a commissioner of loans for the sum to be borrowed, or for any
part thereof, bearing an interest of six per cent, per annum, transferable and reimbursable as aforesaid; and to
cause the said certificates of stock to be sold at auction,
after having given thirty days' public notice of the time
and place of such sale: Provided, That no such stock be
sold under par.
F u nds
SEC. 2. And be it further enacted, That so much of the
p l e d g e d for

paying interest, funds constituting the annual appropriation of eight millions of dollars, for the payment of the principal and interest of the public debt of the United States, as may be
wanted for that purpose, is hereby pledged and appropriated for the payment of the interest, and for the reimbursement of the principal of the stock, which may be
created by virtue of this act. I t shall accordingly be the
duty of the commissioners of the sinking fund to cause to
be applied and paid out of the said fund yearly, and every
year, such sum and sums as may be annually wanted to
discharge the interest accruing on the said stock, and to
reimburse the principal as the same shall become due, and
may be discharged in conformity with the terms of the
loan; and they are further authorized to apply, from time
to time, such sum or sums out of the said fund, as they
may think proper, towards redeeming by purchase, and at
a price not above par, the principal of the said stock or
any part thereof. And the faith of the United States is
hereby pledged to establish sufficient revenues for making
up any deficiency that may hereafter take place in the
funds hereby appropriated for paying the said interest
and principal sums, or any of them in manner aforesaid.
Approved, March 2, 1811.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

A C T O F M A R C H 14, 1812.
CHAP.

X L L — A n act authorizing a loan for a sum not
exceeding eleven millions of dollars.

| stat.

L.,

(By sections 1 and 2 the President is authorized to borrow on the credit of the United States, in order to defray
expenses authorized by law during the present session of
Congress, a sum not exceeding eleven millions of dollars,
at an interest not exceeding six per cent per annum, payable quarter yearly. No contract is to be made precluding reimbursement at any time after the expiration o*f
twelve years from January 1, 1813, and none of the stock
is to be sold under par.)
SEC. 3. And be it further enacted. That so much of the ^ «fn a s
funds constituting the annual appropriation of eight fog princfpai
millions of dollars, for the payment of the principal and
interest of the public debt of the United States, as may be
wanted for that purpose, after satisfying the sums necessary for the payment of the interest and such part of
the principal of the said debt as the United States are
now pledged annually to pay or reimburse, is hereby
pledged and appropriated for the payment of the interest, and for the reimbursement of the principal of the
stock which may be created by virtue of this act; it shall
accordingly be the duty of the commissioners of the sinking fund, to cause to be applied and paid out of the said
fund yearly, such sum and sums as may be annually
wanted to discharge the interest accruing on the said
stock, and to reimburse the principal as the same shall
become due, and may be discharged in conformity with
the terms of the loan; and they are further authorized
to apply, from time to time, such sum or sums out of the
said fund as they may think proper, towards redeeming
by purchase, and at a price not above par, the principal
of the said stock, or any part thereof. And the faith of ^ j ^ g ° f \^l
the United States is hereby pledged to establish sufficient g g g g ^ ^
revenues for making up any deficiency that may here-£ f ev su ^ c e iei *t
after take place in the funds hereby appropriated fo r Stncie? p defi
paying the said interest and principal sums, or any of
them, in manner aforesaid.
SEC. 4. And be it further enacted, That it shall be t h ^awfu w o r
lawful for any of the banks in the District of Columbia JteP^fSft* {£
J

Columbia

to lend any part of the sum authorized to be b o r - ^ k | j J ^ e
rowed by virtue of this act, any thing in any of their t h e r e o f 15712°—10

NATIONAL MONETARY COMMISSION.

charters of incorporation to the contrary n o t w i t h s t a n d ing.
Approved, March 14, 1812.
NOTE.—By the act of July 6, 1812, authority is given for the
employment of agents for the purpose of selling any part of the
stock authorized above, and a commission not exceeding one-eighth
of one per cent is allowed. (2 Stat L., 784.)

A C T O F J U N E 30,1812.
2 stat. L., CHAP. CXI.—An act to authorize the issuing of Treas766.

* .

[ obsolete, i

ury notes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemcause^asuJ? bled, That the President of the United States be, and
notes to issue. } l e j s hereby authorized to cause Treasury notes for such
sum or sums as he may think expedient, but not exceeding in the whole the sum of five millions of dollars, to
be prepared, signed and issued in the manner herein
after provided.
toSaibeB°reim^ SEC. 2. And be it further enacted. That the said Treasbursed.
u r y n o t e s shall be reimbursed by the United States, at
such places, respectively, as may be expressed on the
face of the said notes, one year, respectively, after the
day on which the same shall have been issued: from which
day of issue they shall bear interest, at the rate of five
and two-fifths per centum a year, payable to the owner
and owners of such notes, at the Treasury, or by the
proper commisisoner of loans, at the places and times
respectively designated on the face of said notes for the
payment of principal.
(Section 3 provides for the signing and countersigning of the notes, and for the compensation of the persons
employed for this purpose.)
thf^p?ea5urof ^ E0 * *• ^n^ ^e ^ fUT^er
enacted, That the Secretary
rectfon *<>? the ° ' ^ e Treasury be, and he is hereby authorized, with the
President, t o approbation of the President of the United States, to
cause a portion
0t

be 1ssue^ etc

t0 c a u s e

*° ^ e i s s u e ( l such portion of the said Treasury notes
as the President may think expedient in payment of supplies, or debts due by the United States, to such public
creditors, or other persons, as may choose to receive such
notes in payment, as aforesaid, at p a r : and the Secretary
of the Treasury is further authorized, with the approbation of the President of the United States, to borrow,

LAWS CONCERNING MONEY, BANKING, AND LOANS.

from time to time, not under par, such sums as the President may think expedient, on the credit of such notes.
And it shall be a good execution of this provision to pay
such notes to such bank or banks as will receive the same
at par and give credit to the Treasurer of the United
States for the amount thereof, on the day on which the
said notes shall thus be issued and paid to such bank or
banks respectively.
SEC. 5. And be it further enacted, That the said Treas- transferable by
ury notes shall be transferable by delivery and assign- als^/mnentand
ment endorsed thereon by the person to whose order the
same shall, on the face thereof, have been made payable.
SEC. 6. And be it further enacted, That the said Treas- inTpaymeCntVof
ury notes, wherever made payable, shall be every where taxes!e s a n d
received in payment of all duties and taxes laid by the
authority of the United States, and of all public lands
sold by the said authority. On every such payment,
credit shall be given for the amount of both the principal
and the interest which, on the day of such payment, may
appear due on the note or notes thus given in payment.
And the said interest shall, on such payments, be computed at the rate of one cent and one half of a cent per
day on every hundred dollars of principal, and each
month shall be computed as containing thirty days.
(Section 7 provides that any public officer who may
receive such Treasury notes shall, on payment of the same
into the Treasury or into any bank where public monies
are deposited, be credited with the principal of the notes
so paid in, and the interest which may then have accrued,
and shall be charged with the interest accruing on the
notes while in his hands. But no such charge for accruing interest shall be made against any bank receiving
payment for the United States from individuals or public officers, which shall receive such notes as specie and
shall credit the Treasurer of the United States with the
amount thereof, including the interest due on the day of
receipt.)
SEC. 8. And be it further enacted, That the commis- er^oT^lnkfng
sioners of the sinking fund be, and they are hereby au- bursedpi?nc11mi
thorized and directed to cause to be reimbursed and paid ^ j£\eergest of
the principal and interest of the Treasury notes which
may be issued by virtue of this act, at the several time
and times when the same, according to the provisions of
this act, should be thus reimbursed and paid. And the
said commissioners are further authorized to make pur-

NATIONAL MONETARY COMMISSION.

chases of the said notes, in the same manner as of other
evidences of the public debt, and at a price not exceeding
par, for the amount of the principal and interest due
tion?<M-rsa?di^a* ^ e time of purchase on such notes. So much of the
imbursement. funds constituting the annual appropriation of eight millions of dollars, for the principal and interest of the public debt of the United States, as may be wanted for that
purpose, after satisfying the sums necessary for the payment of the interest and such part of the principal of the
said debt as the United States are now pledged annually
to pay and reimburse, is hereby pledged and appropriated
for the payment of the interest, and for the reimbursement or purchase of the principal of the said notes. And
so much of any monies in the Treasury not otherwise appropriated as may be necessary for that purpose is hereby
appropriated for making up any deficiency in the funds
thus pledged appropriated for paying the principal and
interest as aforesaid.
(Sections 9 and 10 provide for the expense of preparing the notes for issue, and fix the penalties for counterfeiting and for uttering counterfeited notes.)
Approved, J u n e 30, 1812.
A C T O F J U L Y 1, 1812.
77 f

stat

CHAP. CXV.—An act to facilitate the transfer of the
stock created under an act passed on the tenth of
November, one thousand eight hundred and three.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress asio,Ai803fch°2*. sembled, That the stock created under the act, entitled
feraWeas1other"An act authorizing the creation of a stock to the amount
1*00^8°3 the of eleven millions two hundred and fifty thousand dolSfose^of7 any lars, for the purpose of carrying into effect the convention
an^fromTheof the thirtieth of April, one thousand eight hundred
commissioner and three, between the United States of America and the
other?Setc.f an" French Eepublic, and making provision for the payment
of the same," from and after the passing of this act shall
be transferable in the same manner as the other stocks of
the United States are or shall be transferable from the
books of the treasury to the books of any commissioner,
and from the books of one commissioner to those of
another commissioner or to those of the treasury.
Approved, July 1,1812.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

ACT OF JULY 6, 1812.
CXXXV.—An act authorising a subscription for
the old six per cent, and deferred stocks, and providing
for an exchange of the same.

CHAP.

2 stat.

L.,

(By section 1 a subscription to the full amount of the
old six per cent and deferred stocks is proposed, to remain
open from October 1,1812, to March 17,1813, inclusively,
the last fourteen days of each quarter excepted, in terms
identical with those of section 1 of the act of February
11, 1807.)
SEC. 2. And be it further enacted. That for such part Terms upon
' .

which subscrip-

01 the amount or old six per cent, or deterred stock, thus tions may be
subscribed, as shall remain unredeemed on the day of
such subscription, credits shall be entered to the respective
subscribers, on the books of the Treasury or of the commissioners of loans where such subscription shall have
been made, and the subscriber or subscribers shall be entitled to receive a certificate or certificates purporting that
the United States owe to the holder or holders thereof,
his, her, or their assigns, a sum to be expressed therein,
equal to the unredeemed amount of the principal of the
old six per cent, or deferred stocks, subscribed as aforesaid, bearing an interest of six per centum per annum,
payable quarter yearly, from the first day of the quarter
during which such subscription shall have been made,
transferable in the same manner as is provided by law
for the transfers of the stock subscribed, and subject to
redemption at the pleasure of the United States at any
time after the thirty-first day of December, one thousand
eight hundred and twenty-four: Provided, That no reim- Proviso,
bursement shall be made except for the whole amount
of the stock standing at the time, to the credit of any
proprietor, on the books of the Treasury or of the commissioners of loans respectively, nor till after at least
six months' previous public notice of such intended reimbursement.
(Section 3 is identical with section 6 of the act of February 11, 1807, except that, in the concluding sentence,
only " such part of the annual sum of eight millions as
may be necessary and wanting for the above purposes,"
to wit, the payment of interest and reimbursement of
principal of the stock now to be created, is to continue
appropriated until the redemption of the stock.)

NATIONAL MONETARY COMMISSION.

SEC. 4. And be it further enacted, That nothing in this
act contained shall be construed in anywise to alter,
abridge or impair the rights of those creditors of the
United States who shall not subscribe to the loan to be
opened by virtue of this act.
Approved, July 6, 1812.
ACT OF JULY 6, 1812.
2 stat. L„ CHAP. CXXXVI.—An act supplementary to the act en[Obsolete.]
titled "An act authorizing a loan for a sum not exceeding eleven millions of dollars"
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembeifpoint?dby bled, That the Secretary of the Treasury be, and he is
ofetbe Treasury hereby authorized to employ, with the approbation of
JtVc*! ofleth!the President of the United States, an agent or agents for
AcTof March the purpose of selling, in conformity with the provisions
14, 1812, ch. o £ ^ e a c ^ entitled "An act authorizing a loan for a sum
not exceeding eleven millions of dollars," any part of the
stock created by virtue of the said act. A commission
not exceeding one-eighth of one per cent, on the amount
thus sold, may by the Secretary of the Treasury be allowed to such agent or agents; and a sum not exceeding
five thousand five hundred dollars, to be paid out of any
monies in the Treasury not otherwise appropriated, is
hereby appropriated for paying the amount of such
commission or commissions as may be thus allowed.
Approved, July 6, 1812.
ACT OF FEBRUARY 8, 1813.
2 stat.

798

L., CHAP.

XXI.—An act authorizing a loan for a sum not
exceeding sixteen millions of dollars.

(Section 1 empowers the President to borrow, on the
credit of the United States, a sum not exceeding sixteen
millions of dollars, to be applied to defray expenses authorized during the present session of Congress; but no
engagement is to be entered into which shall preclude the
reimbursement of the loan at any time after twelve years
from January 1,1814.)
caSo^riaid SEC - 2- And be it further enacted, That the President of
^°acccHnftreof ^ e United States do cause to be laid before Congress, on
obtahiened0neby ^ e **rst Monday in February, eighteen hundred and fourcates°etc?rtifiteen, o r a s s 0 0 n thereafter as Congress may be in session,

LAWS COJSTCEBNING MONEY, BANKING, AND LOANS.

an account of all the monies obtained by the sale of the
certificates of stock, by virtue of the power given him by
the preceding section, together with a statement of the
rate at which the same may have been sold.
(Section 3 authorizes the employment of agents to procure subscriptions to the stock or to sell the same and
allows a commission not exceeding one-quarter of one per
cent on the amount disposed of by them.
(Section 4 pledging for the support of this loan the
requisite amount of the sinking fund, and prescribing the
duties of the commissioners of the sinking fund, is identical with section 3 of the act of March 14,1812.)
SEC. 5. And be it further enacted. That it shall be law- _ Banks in the
District or Co-

ful for any of the banks in the District of Columbia, to Jumbia autnor7

ized to l e n d

lend any part of the sum authorized to be borrowed by mpney under
.

*» this act.

virtue of this act, any thing m any of their charters of
incorporation to the contrary notwithstanding.
Approved, February 8, 1813.
ACT O F F E B K U A R Y 25, 1813.
CHAP. X X V I I . — A n act authorizing the issuing of Treas- 2 stat. L.,
ury notes for the service of the year one thousand eight S0[obsolete.]
hundred and thirteen.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That the President of the United States be, and he Act of May
is hereby authorized to cause Treasury notes for such3,T®2e\l$hur7y
sum or sums as he may think expedient, but not exceed- ooo?ooo°to$he
ing in the whole the sum of five millions of dollars, to F SS uk red a n d
be prepared, signed, and issued, in the manner herein
after provided.
S E C 2. And be it further enacted, That the President Additional
of the United States be, and he is hereby authorized, in 000 to $be'°Doraddition to the amount authorized by the next preceding TVeVs u^°y
section of this act, to cause Treasury notes, for such sum notes*
or sums as he may think expedient, but not exceeding in
the whole the further sum of five millions of dollars, to
be prepared, signed, and issued in the manner herein after
provided: Provided, that the amount of money borrowed Proviso,
or obtained, by virtue of the notes which may be issued by
virtue of this section, shall be deemed and^held to be in
part of the sum of sixteen millions of dollars, authorized isi3, en. 21.

NATIONAL MONETARY COMMISSION.

to be borrowed by virtue of the act to that effect, passed
during the present session of Congress.
Termsand SEC. 3. And be it further enacted. That the said Treasplaces of reim-

hursement.

ury notes shall be reimbursed by the United States, at
such places respectively as may be expressed on the face
of the said notes, one year respectively after the day on
which the same shall have been issued; from which day
of issue they shall bear interest, at the rate of five and
two-fifths per centum a year, payable to the owner and
owners of such notes, at the Treasury, or by the proper
commissioner of loans, or by the officer designated for that
purpose, at the places and times respectively designated
on the face of said notes, for the payment of principal.
(Sections 4 and 5, providing for the signing of the
notes and authorizing their issue in any of several
methods, are nearly identical with sections 3 and 4 of
the Treasury note act of June 30, 1812; but to section
5 of the present act is added a provision that the Secretary may " sell, not under par, such portion of. the said
notes as.the President may think expedient."
(Section 6 authorizes the employment of agents for
the purpose of selling any of the notes now to be issued,
and allows a commission not exceeding one-quarter of
one per cent on the amount thus sold.
(Sections 7, 8, and 9, relating to the transfer of the
notes, their receipt for public dues, and the manner of
crediting public officers and banks with the interest accruing on them, are identical with the sections 5, 6, and
7 of the act of June 30, 1812.)
Commission- S E C , io. And be it further enacted. That the comers of the sink- . ,
. .'
'
ing fund may missioners or the sinking iund be, and they are hereby
cause t h e re-

I T

I ,

• ,

imbursement to authorized and directed to cause to be reimbursed and
purchases of paid the principal and interest of the Treasury notes
the

Treasury

notes to be ef- which may be issued by virtue of this act, at the several
time and times Avhen the same, according to the provisions of this act, should be thus reimbursed and paid; and
the said commissioners are further authorized to make
purchases of the said notes, in the same manner as of
other evidences of the public debt, and at a price not exceeding par, for the amount of the principal and interest
due at the time of purchase of such notes. So much of
the funds constituting the annual appropriation of eight
millions of dollars, for the payment of the principal and
interest of the public debt of the United States, as may
be wanted for that purpose, after satisfying the sums

LAWS CONCERNING MONEY, BANKING, AND LOANS.

necessary for the payment of the interest and such part
of the principal of the said debt, as the United States are
now pledged annually to pay and reimburse, including
therein the interest and principal which may become
payable upon any loan or loans which may be contracted
by virtue of any law passed during the present session
of Congress, is hereby pledged and appropriated for the
payment of the interest, and for the reimbursement or
purchase of the principal of the said notes; and so much
of any monies in the Treasury not otherwise appropriated, as may be necessary for that purpose, is hereby appropriated for making up any deficiency in the funds
thus pledged and appropriated, for paying the principal
and interest as aforesaid; and the Secretary of the Treasury is hereby authorized and directed for that purpose
to cause to be paid to the commissioners of the sinking
fund such sum or sums of money, and at such time and
times as will enable the said commissioners faithfully
and punctually to pay the principal and interest of the
said notes.
(Sections 11 and 12 providing for the expense of preparing the notes for issue, and fixing the penalties for
counterfeiting, and for uttering counterfeited notes, follow closely the corresponding sections of the act of June
30,1812.)
Approved, February 25, 1813.
ACT OF AUGUST 2, 1813.
LI.—An act authorizing a loan for a sum not exceeding seven millions five hundred thousand dollars.

CHAP.

(Section 1 empowers the President to borrow on the 7 5 3
credit of the United States a sum not exceeding seven
million five hundred thousand dollars, to be applied to
defray expenses for the years 1813 and 1814, but provides
that no contract shall be entered into precluding the reimbursement of the sum thus borrowed, at any time after
twelve years from January 1,1814.
(Section 2 authorizes the sale of certificates of the
stock thus to be created: "Provided, That no such certificate shall be sold at a rate less than eighty-eight per centum, or eighty-eight dollars in money for one hundred
dollars in stock;" and requires that an account of moneys
obtained by such sales and a statement of the rate obtained shall be laid before Congress on the first Monday

NATIONAL MONETARY COMMISSION.

in February, 1814, or as soon thereafter as Congress shall
be in session.
(Section 3, authorizing the employment of agents in
disposing of the stock, follows the terms of section 3 of
the act of February 8,1813.
(Section 4, pledging for the support of this loan the
requisite amount of the sinking fund and prescribing the
duties of the commissioners of the sinking fund, is identical with section 3 of the act of March 14, 1812.)
Banks in SEC. 5. And be it further enacted, That it shall be law1 u m b i a may ful for any of the banks in the District of Columbia to
or any p a r t l e n d any part of the sum authorized to be borrowed by
virtue of this act, any thing in any of their charters of
incorporation to the contrary notwithstanding.
Approved, August 2, 1813.
A C T O F M A E C H 4, 1814.
IOO Stat* L " C H A P . X V I I I . — A n act to authorize the issuing of Treas[6bsoiete.j
eight
UTy notes for the service of the year one thousand
hundred and fourteen.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress asA sum not sembled, That the President of the United States be, and
e x c e e d i n g .

$5,000,000 in he is hereby authorized to cause Treasury notes, for a
Treasury notes

to be prepare^ sum not exceeding five millions of dollars, to be prepared, signed, and issued, in the manner hereinafter provided.
Additionai SEC. 2. And be it further enacted, That the President
Treasury notes of the United States be, and he is hereby authorized to
butytoebeScon- cause Treasury notes for a further and additional sum
of the sumPau- not exceeding in the whole five millions of dollars, or
borrowed,
such part thereof as he shall deem expedient, to be prepared, signed, and issued, in the manner hereinafter provided: but the amount of money borrowed or obtained
for the notes which may be issued by virtue of this section, shall be deemed and held to be in part of the sum
which may be authorized to be borrowed by virtue of an
act authorizing a loan which may be passed during the
present session of Congress,
where, when, SEC. 3. And be it further enacted, That the said Treasw^1chtetomberSury notes shall be reimbursed by the United States at
imbursed.
such places respectively, as may be expressed on the face
of such notes, one year respectively after the day on
which the same shall have been issued; from which day

LAWS CONCERNING MONEY, BANKING, AND LOANS.

of issue they shall bear interest at the rate of five and
two-fifths per centum a year, payable to the owner or
owners of such notes, at the Treasury, or by the proper
commissioner of loans, or by the officer designated for
that purpose, at the places and times respectively designated on the face of said notes for the payment of principal.
(Sections 4, 5, and 6, providing for the signing of the
notes and for their issue or sale, and for the employment
and compensation of agents in their sale, follow the language of the corresponding sections 4. 5, and 6 of the act
of February 25, 1813.
(Sections 7, 8, and 9, relating to the transfer of the
notes, their receipt for public dues, and the manner of
crediting public officers and banks with interest accruing
on them, are identical with the sections 5, 6, and 7 of the
Act of June 30, 1812.
(Section 10, containing the sinking fund provisions, is
identical with section 10 of the Treasury note act of February 25, 1813.
(Sections 11 and 12, providing for the expense of preparing the notes for issue and fixing the penalties for
counterfeiting and for uttering counterfeited notes, follow the language of the corresponding sections of the act
of June 30, 1812.)
Approved, March 4, 1814.
ACT O F M A R C H 24,1814.
CHAP.

X X I X . — A n act to authorize a loan for a sum
exceeding twenty-five millions of dollars.

not^z

(Section 1 empowers the President to borrow, on the
credit of the United States, a sum not exceeding twentyfive millions of dollars, to be applied to defray any expenses authorized by law,% during the present year: Provided, that no contract shall be made to preclude the reimbursement of the sum thus borrowed, at any time after
twelve years from December 31, 1814.
(Section 2 authorizes the sale of the stock thus to be .
created, but fixes no limit as to the rate, and requires the
Secretary of the Treasury to lay before Congress during
the first week of February, 1815, an account of the moneys
procured by sale of the stock and a statement of the rate
obtained.

NATIONAL MONETARY COMMISSION.

(Section 3, authorizing the employment of agents in
disposing of the stock, follows the terms of section 3 of
the act of February 8, 1813.
(Section 4, containing the sinking fund provisions, is
identical with section 3 of the act of March 14,1812.)
Approved, March 24, 1814.
ACT O F N O V E M B E R 15, 1814.
3 stat.

L., C H A P .

IV.—An act to authorize a loan for a sum not exceeding three millions of dollars.

(Section 1 authorizes the President to borrow, on the
credit of the United States, a sum not exceeding three
millions of dollars, to be applied to defray any expenses
authorized by law during the present year: Provided, that
no contract shall be entered into precluding the reimbursement of the sum thus borrowed at any time after
twelve years from December 31, 1814.
(Section 2 authorizes the Secretary of the Treasury to
sell the stock thus to be created, but fixes no limit as to the
rate of sale, requiring him to lay before Congress an account of the moneys thus procured and the rate obtained.
(Section 3, authorizing the employment of agents in
disposing of the stock, follows the terms of section 3 of
the act of February 8, 1813.)
T r e a s u r y SEC. 4. And be it further enacted.1 That it shall be lawnotes due be'
,
fore January ful to receive in payment 01 any loan obtained under
receivable in

•,

* r*

• •

paymentof this this act, or under any other act of Congress authorizing
loan.
a loan, Treasury notes which have been issued according
to law, and which shall become due and payable on or
before the first day of January next, at the par value of
such Treasury notes, together with the interest thereon
accrued, at the time of the payment on account of the
loan.
Fund appro- SEC. 5. And be it further enacted. That so much of
priated for the ,

•

. .

A . ,

payment of in- the funds constituting the annual appropriation of eight
terest and re-

imbursement of millions of dollars, for the payment of the principal and
stock created interest of the public debt of the United States as may
by

virtue

this act.

be wanted for that purpose, after satisfying the sums
necessary for the payment of the interest and such part
of the principal of said debt, as the United States are
now pledged annually to pay or reimburse, is hereby
pledged and appropriated for the payment of the interest, and for the reimbursement of the principal of the

LAWS CONCERNING MONEY, BANKING, AND LOANS.

stock which may be created by virtue of this act. It^^**e/sCOof
shall accordingly be the duty of the commissioners of |ic°oir^fnfIund
the sinking fund, to cause to be applied and paid out of
the said fund, yearly, such sum and sums as may be
annually wanted to discharge the interest accruing on
the said stock, and to reimburse the principal, as the
same shall become due, and may be discharged in conformity with the terms of the loan; and they are further
authorized to apply, from time to time, such sum or
sums out of the said fund, as they may think proper,
towards redeeming, by purchase, and at a price not above
par, the principal of the said stock, or any part thereof.
SEC. 6. And be it further enacted, That in addition Permanent
to the annual sum of eight millions of dollars, heretofore provided and
appropriated to the sinking fund, adequate and perma-inP addition to
nent funds shall during the present session of Congress, r e a d^apprV
be provided and appropriated, for the payment of the sinking fund. e
interest and reimbursement of the principal of said
stock created by this act.
SEC. 7. And be it further enacted. That an adequate ,4? ad2^uatf
•

-i

sinking f u n d

and permanent sinking fund, gradually to reduce and for PJ^M *5e
eventually to extinguish the public debt, contracted and created.
to be contracted during the present war, shall also be
established during the present session of Congress.
SEC. 8. And be it further enacted, That it shall be D!g5£k05 c ^
lawful for any of the banks in the District of Columbia, Jumbia autnor"

' i z e d to con-

to lend any part of the sum authorized to be borrowed by tribute to the
virtue of this act, any thing in any of their charters to
the contrary notwithstanding.
Approved, November 15, 1814.
ACT OF DECEMBEK 15,1814.
stat
CHAP. XII.—An Act to provide additional revenues for 1 4 |
* LM
defraying the expenses of government, and maintaining the public credit, by duties on carriages, and the
harness used therefor.
SEC. 10. And be %t further enacted, That towards es- Revenues
,,,.,.

• ! ! » , !

tablishmg an adequate revenue to provide
ment of the expenses of government, for
payment of the public debt, principal and
T . i
i i i
,
. i
T
tracted and to be contracted, according to

arising

under

tor the pay- this act apthe punctualment of exB C D S 6 S
ill"
interest, con- curred during
ii
,
* present war.
the terms or

NATIONAL MONETAEY COMMISSION.

the contracts respectively, and for creating an adequate
sinking fund, gradually to reduce and eventually to extinguish the public debt, contracted and to be contracted,
the internal duties laid and imposed by this act, (and
24 Ac i8il J c 1 Z ^ o s e * a id and imposed by the "Act laying duties on
24'
carriages fer the conveyance of persons," passed twentyfourth July, one thousand eight hundred and thirteen,
so far as the same are not hereby abolished,) shall be
laid, levied, and collected, during the present war between
the United States and Great Britain, and until the purif with-poses aforesaid shall be completely accomplished, any
adequate reve^ thing in any act of Congress to the contrary thereof in
tutedS s u b s t any wise notwithstanding. And for effectual application of the revenue to be raised by and from the said internal duties to the purposes aforesaid, in due form of
law, the faith of the United States is hereby pledged;
Proviso.
Provided always, That whenever Congress shall deem it
expedient to alter, reduce, or change the said internal
duties, or any or either of them, it shall be lawful so to
do, upon providing and substituting by law, at the same
time, and for the same purposes, other duties which shall
be equally productive with the duties so altered, reduced,
or changed: And, Provided further, That nothing in
this act contained shall be deemed or construed in any
w ise to rescind or impair any specific appropriation of the
said duties, or any or either of them, heretofore made by
law, but such appropriation shall remain and be carried
into effect according to the true intent and meaning of
the laws making the same, any thing in this act to the
contrary thereof in any wise notwithstanding.
*
*
*
*
*
Approved, December 15, 1814.
NOTE.—This provision, without substantial change, is embodied
in section 23 of the act of December 21, 1814, chapter 15 (3 Stat.
L., 152) ; in section 3 of the act of December 23, 1814, chapter 16
(3 Stat. L., 159) ; in* section 41 of the act of January 9, 1815,
chapter 21 (3 Stat. L., 164) ; and in all these cases was made
applicable to previous acts on the same subject-matter. It is also
embodied in section 23 of the act of January 18, 1815, chapter 22
(3 Stat. L., 180) ; and in section 25 of another act of the same
day, chapter 23 (3 Stat. L„ 186).

LAWS CONCERNING MONEY, BANKING, AND LOANS.

A C T O F D E C E M B E R 21, 1814.
CHAP. XV.—An act to provide additional revenues for s stat. L.,
defraying the expenses of government and maintaining
the public credit, by laying duties on spirits distilled
within the United States, and Territories thereof, and
by amending the act laying duties on licenses to distillers of spirituous liquors.
(Section 25 authorizes the anticipation of the duties
laid by this act, by a loan upon the pledge of the said
duties for its reimbursement, for an amount not exceeding six millions of dollars and at a rate not above six per
cent, the money so obtained to be applied only to the purposes to which the duties pledged are applicable by law.
The same provision is embodied in the act of January 9,
1815, laying a direct tax. See 3 St. L., 179.)
Approved, December 21, 1814.
A C T O F D E C E M B E R 26, 1814.
X V I I . — A n act supplementary to the acts authorizing a loan for the severaH sums of twenty-five millions
of dollars and three millions of dollars.

CHAP.

16f

s t a t . L.,
[Obsolete.]

Be it enacted by the Senate and House of Representa- n^s \l sb£ \l
tives of the United States of America, in Congress ««-|elcientrinS1an
sembled, That the Secretary of the Treasury be and he i s f 0 a n . h o r l z e a
hereby authorized, with the approbation of the President
of the United States, to cause Treasury notes to be prepared, signed and issued, for and in lieu of so much of the
sum authorized to be borrowed on the credit of the United
States, by the act of Congress, entitled "An act to author- M} £ cn 24,1814!
ize a loan for a sum not exceeding twenty-five millions of ch* 29*
dollars," passed on the twenty-fourth day of March, in
the year one thousand eight hundred and fourteen, and
also for, and in lieu of so much of the sum authorized to
be borrowed on the credit of the United States by the
act of Congress, entitled "An act authorizing a loan for Act of Nov.
[a] sum of three millions of dollars," passed on the
fifteenth day of November, in the year one thousand eight
hundred and fourteen, as has not been borrowed or otherwise employed in the issue of Treasury notes according to
law: Provided always. That the whole amount of Treas- The amount
-1 i

• «

» ,, .

-. .

„of

Treasury

ury notes issued by virtue or this act, tor and m lieu 01 notes which
the residue of the said two sums as aforesaid, shall not shall not exexceed the sum of seven millions five hundred thousand dollars'

NATIONAL MONETARY COMMISSION.

dollars: and further, that the Treasury notes so issued
shall be applied to the same uses to which the said two
loans authorized as aforesaid were respectively by law
made applicable.
Secretary of SEC. 2. And be it further enacted. That the Secretary
the Treasurv

to cause a fur- of the Treasury be, and he is hereby authorized, with the
Treasury notes approbation of the President of the United States to
cause Treasury notes to be prepared, signed, and issued,
for a further sum of three millions of dollars, to defray
the expenses of the War Department, for the year one
thousand eight hundred and fourteen, in addition to the
sums heretofore appropriated by law for those purposes
respectively.
(Section 3 provides that the Treasury notes issued under
this act shall be prepared and issued in the same form,
and reimbursable, transferable, and receivable in the same
manner as the notes issued under the act of March 4,
1814; and that the Secretary of the Treasury shall have
the same powers to sell or pay out the notes, or to borrow
money on the pledge thereof, and to employ agents for
the purpose of making sales of the same.)
sum pledged SEC. 4. And be it farther enacted, That a sum equal to
Treasury notel; the whole amount of the Treasury notes issued by virtue
of this act, to be paid out of any money in the Treasury
not otherwise appropriated, shall be and the same is
. hereby appropriated, for the payment and reimbursement
of the principal and interest of such Treasury notes, according to contract, and the faith of the United States is
hereby pledged to provide adequate funds for any deficiency in the appropriation hereby made.
(Sections 5 and 6 provide, as in previous acts, for the
expense of preparing the notes, and for the punishment
of counterfeiting or uttering counterfeited notes.)
Approved, December 26, 1814.
ACT OF JANUAEY 9, 1815.
8 stat. L., c HA p # XXI.—An act to provide additional revenues for
[Repealed.]
defraying the expenses of Government, and maintaining the public credit, by laying a direct tax upon the
United States, and to provide for assessing and collecting the same.
*
*
*
*
*
Loansauthor- gEC# 42. And be it further enacted, That it shall be
tfclpatfon nof lawful for the President of the United States to authorize

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

the Secretary of the Treasury to anticipate the collection
and receipt of the direct tax laid and imposed by this
act, and by the said act of Congress, entitled "An act to f£* of Auslay and collect a direct tax within the United States," by
obtaining a loan upon the pledge of the said direct taxes,
or either of them, for the reimbursement thereof, to an
amount not exceeding six millions of dollars; and at a
rate of interest not exceeding six per centum per annum.
And any bank or banks now incorporated, or which may
hereafter be incorporated, under the authority of the
United States, is, and are hereby authorized to make such
loan: Provided always, and it is expressly declared, That | rovis 1 ° d
the money so obtained upon loan, shall be applied to the act of Dec. 23,
purpose aforesaid, to which the said direct taxes so to be
pledged are by this act applied and appropriated, and
to no other purposes whatsoever.
Approved, January 9, 1815.
ACT OF FEBRUAEY 24,1815.
LVI.—An act to authorize the issuing of Treasury 3 stat. L.,
213.
notes for the service of the year one thousand eight
hundred and fifteen.

CHAP.

Be it enacted by the Senate and House of Representatatives of the United States of America, in Congress
assembled, That the Secretary of the Treasury, with An issue of
the approbation of the President of the United States, be, authorized.
and he is hereby authorized to cause Treasury notes for a
sum not exceeding twenty-five millions of dollars, to be
prepared, signed, and issued at the Treasury of the United
States, in the manner hereinafter provided.
(Section 2 provides for the signing and countersigning of the notes.)
SEC. 3. And be it further enacted, That the said Treasury ti0?sen0°fmitnha;
notes shall be prepared of such denominations as the Sec-notesretary of the Treasury, with the approbation of the President of the United States, shall, from time to time, direct;
and such of the said notes as shall be of a denomination
less than one hundred dollars, shall be payable to bearer
and be transferable by delivery alone, and shall bear no
interest; and such of the said notes as shall be of the
denomination of one hundred dollars, or upwards, may be
made payable to order, and transferable by delivery and
assignment, endorsed on the same, and bearing an interest
from the day on which they shall be issued, at the rate of
15712°—10

NATIONAL MONETARY COMMISSION.

five and two-fifths per centum per annum; or they may
be made payable to bearer, and transferable by delivery
alone, and bearing no interest, as the Secretary of the
Treasury, with the approbation of the President of the
United States, shall direct.
HOW holders SEC. 4. And he it further enacted. That it shall be lawury notes bear- ful for the holders of the aforesaid Treasury notes, not
ancl not bear - bearing a n interest, a n d of the Treasury notes bearing a n
m i ynmfeunSd interest a t t h e rate of five a n d two-fifths p e r centum p e r
them
*
annum, t o present them a t any time, in sums not less t h a n
one hundred dollars, to the Treasury of the United States,
or to a n y commissioner of loans; a n d t h e holders of t h e
said Treasury notes n o t bearing an interest, shall be entitled to receive therefor, t h e amount of t h e said notes, in
a certificate or certificates of funded stock, bearing interest at seven per centum p e r annum, and the holders of t h e
aforesaid Treasury notes bearing an interest at the rate
of five and two-fifths per centum, shall be entitled to
receive therefor the amount of the said notes including
the interest due on the same, in a like certificate or certificates of funded stock, bearing an interest of six per
centum per annum, from the first day of the calendar
month next ensuing that in which the said notes shall thus
be respectively presented, and payable quarter-yearly, on
the same days whereon the interest of the funded debt is
now payable. And the stock thus to be issued shall be
transferable in the same manner as the other funded stock
of [the] United States; the interest on the same, and its
eventual reimbursement, shall be effected out of such fund
as has been or shall be established by law for the payment
and reimbursement of the funded public debt contracted
Faith of the s i n c e the declaration of war against Great Britain. And
piedled foJathethe f a i t h o f t h e United States is hereby pledged to estabc «p?f?icaftes! l^k sufficient revenues and to appropriate them as an
Fnterist1 an( * addition to the said fund, if the same shall, at any time
hereafter, become inadequate for effecting the purpose
aforesaid: Provided however, and he it further enacted,
That it shall be lawful for the United States to reimburse
the stock thus created, at any time after the last day of
December, one thousand eight hundred and twenty-four.
no^Yowso^ ^EC. 5# ^n^ ^e ^ farther enacted, That it shall be lawma1 rt> eeereies! ^ ^ o r *k e Secretary of the Treasury to cause t h e Treassued.
u r y notes which, in pursuance of t h e preceding section,
shall be delivered u p and exchanged for funded stock,
and also the Treasury notes which shall have been paid t o

LAWS CONCERNING MONEY, BANKING, AND LOANS.

the United States for taxes, duties, or demands, in the
manner hereinafter provided, to be re-issued, and applied
anew, to the same purposes, and in the same manner, as
when originally issued.
SEC. 6. And he it further enacted, That the Treasury Treasury
notes authorized to be issued by this act, shall be every everywhere reeeivable

for

where received in all payments to the United States. On public dues.
every such payment the note or notes shall be received for
the amount of both the principal and the interest, which,
on the day of such payment, may appear due on such of
the notes as shall bear interest, thus given in payment;
and the interest on the said notes bearing an interest,
shall, on such payments, be computed at the rate of one
cent and one half of a cent per day, on every hundred
dollars of principal; and each month shall be computed
as containing thirty days.
(Section 7 provides for crediting collectors and other
receivers of public moneys with the principal of the notes
received by them in payment, and makes the same provisions for crediting and charging interest, in case the
notes so received bear interest, as are made in the Treasury
note act of June 30,1812, and in subsequent acts.)
SEC. 8. And he it further enacted. That the Secretary Notes not to
of the Treasury be, and he is hereby authorized, with the united States
approbation of the President of the United States, tovaiuJ. e r p a r
cause the said Treasury notes to be issued at the par value
thereof, in payment of services, of supplies, or of debts,
for which the United States are or may be answerable by
law, to such person and persons as shall be willing to
accept the same in payment; and to deposit portions of
the said notes in the loan offices, or in State banks, for the Money may
/»

•

J/I

TJ.

be borrowed on

purpose ox paying the same to the public creditors as Treasury notes.
aforesaid; and to borrow money on the credit of the said
notes; or to sell the same, at a rate not under par; and it
shall be a good execution of this provision, to pay such
notes to such bank or banks as will receive the same at
par, and give credit to the Treasurer of the United States
for the amount thereof, on the day on which the said notes
shall thus be issued and paid to such bank or banks
respectively.
SEC. 9. And he it further enacted. That it shall and may Holders of
be lawful for the holder of any Treasury notes issued, Or received^ from
authorized to be issued, under any laws heretofore passed, m aey convert
to convert the same into certificates of funded debt, upon ede stock.
the same terms, and in the same manner hereinbefore

NATIONAL MONETARY COMMISSION.

provided, in relation to the Treasury notes authorized
by this act, bearing an interest of five and two-fifths per
centum.
(Sections 10 and 11 provide, as in previous acts, for
the expense of preparing the notes, and for the punishment of counterfeiting or uttering counterfeited notes.)
Approved, February 24, 1815.
ACT OF MAECH 3, 1815.
3 stat. L., CHAP. LXXXVII.—An act to authorize a loan for a sum
227.

not exceeding eighteen millions four hundred and fiftytwo thousand eight hundred dollars.
(Section 1 authorizes the President to borrow, on the
credit of the United States, a sum not exceeding eighteen
million four hundred and fifty-two thousand eight hundred dollars, to be applied to defray any expenses authorized by law during the present year: Provided, That no
contract shall be made precluding the United States from
reimbursing the sum thus borrowed at any time after
twelve years from December 31,1815.
(Section 2 authorizes the Secretary of the Treasury
to sell the stock thus to be created, but without fixing any
limit of rate, and requires an account of the moneys thus
procured and of the rate obtained for the stock, to be laid
before Congress during the first week of February, 1816.
(Section 3, authorizing the employment of agents in
disposing of the stock, follows the terms of section 3 of
the act of February 8, 1813.
(Section 4, containing the sinking fund provisions, is
identical with section 3 of the act of March 14, 1812.)
Banks of the SEC. 5. And he it further enacted, That it shall be lawlumMa author- ful for any of the banks of the District of Columbia, to
lend any part of the sum authorized to be borrowed by
virtue of this act, any thing in any of their charters to
the contrary notwithstanding.
Treasury SEC. 6. And he it further enacted, That it shall be lawprevious to ful for the Secretary of the Treasury to accept in paybe received, ment of any loan obtained in virtue of this act, such
Treasury notes as have been actually issued, before the
passing of this act, and which were made by law a charge
upon the sinking fund, such Treasury notes to be credited
for the principal thereof, and the amount of interest actually accrued at the time of the payment.

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

SEC. 7. And be it further enacted, That it shall be law- TreagurryStnotes
ful for the Secretary of the Treasury to cause to be paid, *™>t0 be Paid»
the interest upon Treasury notes which have become due,
and remain unpaid, as well with respect to the time
elapsed before they become due, as with respect to the
time that shall elapse after they become due, and until
funds shall be assigned for the payment of the said
Treasury notes, and notice thereof shall be given by the
Secretary of the Treasury.
Approved, March 3,1815.
RESOLUTION, APEIL 30,1816.
VIII.—A Resolution relative to the more effectual collec- 3 4 |
tion of the public revenue.

stat L

-»

Resolved by the Senate and House of Representatives
of the United States of America, in Congress assembled,
That the Secretary of the Treasury be, and he hereby is, th £ revenue. of
required and directed to adopt such measures as he may
deem necessary to cause, as soon as may be, all duties,
taxes, debts, or sums of money, accruing or becoming payable to the United States, to be collected and paid in
the legal currency of the United States, or treasury notes,
or notes of the Bank of the United States as by law provided and declared, or in notes of banks which are payable and paid on demand in the said legal currency of the
United States, and that from and after the twentieth day
of February next, no such duties, taxes, debts, or sums of
money accruing or becoming payable to the United States
as aforesaid, ought to be collected or received otherwise
than in the legal currency of the United States, or treasury notes, or notes of the bank of the United States, or in
notes of banks which are payable and paid on demand in
the said legal currency of the United States.
Approved, April 30, 1816.
ACT OF MAKCH 3,1817.
XXXVIII.—An act transferring the duties of 36^
commissioner of loans to the Bank of the United States,
and abolishing the office of commissioner of loans.

CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assembled, That the Bank of the United States, and its several

stat

- L->

NATIONAL MONETARY COMMISSION.

thehVnYte°ibranches, shall be, and they are hereby, required to do and
££*£% S mM+tE2 perform the several duties of commissioners of loans for
p e r f o r m the *

m l s i l o n e L 0 0 ^ t h e s e v e r a l States; and the Bank of the United States
l0
?836 ch 50 a n ^ **s s e v e r a l branches, and such State banks as the Bank
of the United States may employ in those States where
no branch bank shall be established, shall observe and conform to the directions which have been or may hereafter
be prescribed by the Secretary of the Treasury, with the
approbation of the President of the United States, touching the execution of the duties aforesaid.
SEC. 2. And be it further enacted. That all such duties
and acts as are now done and performed by the commissioners of loans, in transferring stock from the books of
one loan office to another, or to the books of the Treasury,
or from the books of the Treasury to the books of the loan
offices, shall be done and performed by the president of
the Bank of the United States, the president of the several branches of the said bank, and by the president of
such State banks as the Bank of the United States may
employ, (in States where no branch of the United States
Bank shall be established:) and the acts of the presidents
aforesaid shall be countersigned by the cashiers of those
banks, respectively,
tary h of S tTe SEC - 3* And ie it} further enacted, That it shall be the
noS5rUSepre£ ^nt^ °^ *^e Secretary of the Treasury to notify the presiBank °of t t h l d e n t o f t h e B a n k o f t h e United States, that the duties
united states, n o w performed by the commissioner of loans will be
transferred to the Bank of the United States, and he shall
direct the commissioners of loans and the agents for
military pensions, where there is no commissioner, respectively, in the several States, to deliver to the president of the Bank of the United States, or to the president of a branch thereof, or to the president of such
State bank as the Bank of the United States may employ,
on such day or days as he may designate, the register,
and all the records and papers of their respective offices;
and it shall be the duty of the said commissioners of
loans and agents for pensioners to comply with the said
direction, and also to take duplicate receipts for the delivery of the records and papers herein described, one of
which shall be transmitted, without delay, to the Sect^Ime^tc* 0 ^ 8 , 1 ^ °^ ^ e Treasury: Provided, however, That the
Secretary of the Treasury may designate such time before the first day of January, one thousand eight hundred

LAWS COJSTCEBNING MONEY, BANKING, AND LOANS.

and eighteen, for the performance of the duties aforesaid, as the public convenience will permit: And ^0~to?taTes°where
vided also. That this act shall not be construed to ex- eS°tabi!?heSd %y
tend to any agent for military pensions in any State I a w where there is no bank established by law.
SEC. 4. And be it further enacted, That the office of mPf££fe™mcommissioner of loans, upon the delivery of the records \^^ | t c abo1 '
and papers, as herein required, to the Bank of the United
States, or its branches, or to the State banks employed by
the Bank of the United States in those States where there
may be no branch, shall be, and hereby is, abolished; and
the pay and emoluments of the said commissioners of
loans, and the clerks and persons employed by them,
after such delivery, shall respectively cease and determine.
SEC. 5. And be it further enacted, T h a t the act, enti- th^Jr0mCpt ££l
tied "An act for the prompt settlement of public ac-fte*ec*0u°*tPu&
counts," shall commence, and be in force, on and after 3°dCe0ff01Mare
the third day of this instant, March, any thing in the 1 8 J£ t of M a r
3 1817 ch 45
aforesaid act to the contrary notwithstanding.
»
> - Approved, March 3, 1817.
A C T O F M A R C H 3, 1817.
L X X X V . — A n act to repeal so much of any acts
now in force as authorize a loan of money, or an issue
of treasury notes.

CHAP.

(Sections 1 and 2 repeal so much of any acts of Congress as authorizes the President to borrow money on
the credit of the United States, and to cause certificates
of stock to be issued therefor, or to cause treasury notes
to be prepared and issued: Provided, That no securities
for money already borrowed shall thus be invalidated,
nor shall the right of fhe holders of treasury notes
already issued be affected.)
SEC. 3. And be it further enacted, That so much of
'

3 stat

L.,

So much of
the act men-

the act, entitled " A n act to authorize the issuing ofHpnea, as au.
*i
-i tborizes a reTreasury notes for the service oi the year one thousand Jssue of the
Tre3.su.rv notes

eight hundred and fifteen," as makes it lawful for the repealed.
Secretary of the Treasury to cause the Treasury notes, ch. 56.
[in] cases therein mentioned, to be re-issued and applied
anew to the same purposes, and in the same manner,
as when originally issued, be, and the same is hereby
repealed.

NATIONAL MONETAEY COMMISSION.

noTesenowuro? ^EC. 4- ^nd ^e ^ furt^er enacted, That all Treasury
a
2^?+£
propcome, theLJS"
prop- notes which are now," or shall hereafter# become,7 the sr
xr
0f
United statese er ^y °^ ^ e United States, (from reimbursement, purtofeecanceled! chase, exchange, or receipts, on account of taxes, duties,
and demands,) shall be cancelled or destroyed at such
times, and under such regulations and securities, as the
commissioners of the sinking fund, with the approbation of the President, shall establish and determine.
Approved, March 3, 1817.
ACT OF MAECH 3, 1817.
3 stat. L.,
[Obsoiete.]

CHAP.

LXXXVIL—An act to provide for the redemption of the public debt.

Be it enacted by the Senate and House of Representor
tives of the United States of America, in Congress assemap^op^iation^^^' That so much of any act or acts of Congress, as
c2asethetc pu 5 m a " i e s appropriations for the purchase or reimbursedebt fetc2 * ve-men^ 0 ^ the principal, or for the payment of the interest,
pealed '
0 f the funded debt of the United States be, and the same
is hereby repealed.
sumnofan$iu<v SEC. 2. And be it further enacted, That from the propriated*toPPtheceeds of the duties on merchandise imported, and on the
sinking fund, tonnage of vessels, and from the proceeds of the internal
duties, and of the sales of western lands, now belonging,
or which may hereafter belong, to the United States, the
annual sum of ten millions of dollars be, and the same
o^&^mone11 ls yearty> appropriated to the sinking fund; and the
said sum is hereby declared to be vested in the commissioners of the sinking fund, in the same manner as the
moneys heretofore appropriated to the said fund, to be
applied by the said commissioners to the payment of
interest and charges, and to the reimbursement or purtary h of S tTe c k ase °^ ^ e principal of the public debt; and it shall
paryeather^io,°-^e ^ duty of the Secretary of the Treasury annually
co mD??ss^oners *° c a u s e *° ^ e P a ^ *o ^ e commissioners of the sinking
?undhe sinking fund, the said sum of ten millions of dollars, in such
payments, and at such times in each year, as the situato ^heVt!me of tion of the treasury will best admit: Provided, That
payment.
a jj g u c j 1 p a y m e n t s a s may be necessary to enable the
said commissioners to discharge or reimburse any demands against the United States, on account of the
principal or interest of the debt which shall be actually
due in conformity to the engagements of the said United

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

States, shall [and] may be made at such times in each
year as will enable the said commissioners faithfully and
punctually to comply with such engagement:
Provided10Pr^|ments
also. That any money which may have been paid, be- Jfi*^ uSionerle
fore the passage of this act, to the commissioners of the heretofore,
sinking fund for the year one thousand eight hundred
and seventeen, as a part of the annual appropriation
heretofore made by law to that fund, shall be held to
be a payment for the year one thousand eight hundred
and seventeen, on account of the appropriation of ten
millions hereinbefore directed.
SEC. 3. And be it further enacted, That in addition to ad|it9i0™?' 0a00.
the sum of ten millions of dollars, hereinbefore annually propriated t o
7

the s i n k i n g

appropriated to the sinking fund, there shall be appro- fu£d tor t h^e
priated for the year one thousand eight hundred and
seventeen, to the sinking fund, the further sum of nine
millions of dollars, to be paid out of any moneys in the
treasury not otherwise appropriated, at such time within
the year as the Secretary of the Treasury shall deem most
conducive to the public interest, to be applied by the commissioners of the sinking fund to the purchase or redemption of the public debt: and it shall be lawful for the
Secretary of the Treasury, at any time during the year
one thousand eight hundred and seventeen, if he shall
deem it expedient to do so, to cause to be paid to the commissioners of the sinking fund a further sum, not exceeding four millions of dollars, which shall be considered as A J«rther
&

sum of $4,000,-

an advance to that amount, on the appropriation of tenooo d u r i n g
millions, payable in the next year, and the said amount vance, if, etc.
shall also be applied by the said commisisoners to the
purchase or redemption of the public debt, and the com- thep£eb?no1aen
missioners aforesaid are authorized and directed to apply by t h e bank>
the sums by this act appropriated to the purchase and
redemption of the public debt, holden by the Bank of the
United States, if not otherwise to be obtained on the terms
stated in this act.
SEC. 4. And be it further enacted, That after the year Any surplus
one thousand eight hundred and seventeen, whenever ury, above apthere shall be, at any time after an adjournment of Con- andSVa vYn g
i

two

millions

gress, in any year, a surplus of money m the treasury, there, approi

xi,

• i. J £

±i

•

priated to the

above the sums appropriated tor the service ot such year, sinking fund,
the payment of which to the commissioners of the sinking
fund, will yet leave in the treasury, at the end of the
year, a balance equal to two millions of dollars, then

100

NATIONAL MONETABY COMMISSION.

such surplus shall be, and the same is hereby, appropriated to the sinking fund, to be paid at such times as
the situation of the treasury will best permit; and shall be
applied, by the commissioners thereof, to the purchase or
redemption of the public debt.
. When there SEC. 5. And be it further enacted. T h a t whenever, in
is a surplus in

fundS ithekco1nvany y e a r > there shall be a surplus in the sinking fund,
"urch311 e r a thlbeyond the amount of interest and principal, which may
debt at. the be actually due and payable to the United States, in such
market price.

•

• i

i •

year, in conformity with their engagements, the commissioners of the sinking fund shall be, and they are hereby,
authorized, with the approbation of the President of
the United States, to purchase the debt of the United
toTex eedCet h°e States, at its market price, if such price shall not exceed
rates specified, the following rates, viz: for stock of the United States,
bearing an interest of three per centum per annum, there
shall not be paid more than sixty-five dollars for every
hundred dollars of the principal thereof: for stock bearing an annual interest of six per centum per annum,
there shall not be paid more than the par or true value
thereof; and for stock bearing an annual interest of seven
per centum, there shall not be paid an advance above the
par value thereof, which shall exceed, for every hundred dollars of stock, the computed value of an annuity of
one dollar for a number of years, equal to that during
which the stock so purchased will not be reimbursable
at the pleasure of government, estimating, in such computation, the interest of money at six per centum per
annum.
ofCtheifiuMic ^EC* 6* And ie ^ further
enacted, That all certificates
debt
be- 0 f *public debt which," by
or rpurchase,
J
1 have become which
the prop* *payment
rt y 0 t
ecome
or
erea;
xj t d st te
'
h
fter shall become, the property of the
to be cancelled! United States, shall be cancelled or destroyed, at such
times, and under such regulations and securities, as the
commissioners of the sinking fund, with the approbaN o interest tion of the President, shall establish and determine. And
certificates ca^ no interest shall be considered as accruing, and no furceiied, etc.
^ e r payment shall be made, on account of such debt,
the certificates of which have been so cancelled and destroyed.
Nothing i n SEC. 7. And be it further enacted, That nothing in this
prevent C o n - act contained shall be construed to prevent the Congress
plying surplus of the United States, if war shall occur with any foreign
jects^case of power, from applying, to any object of public service,
war, etc.

LAWS COJSTCEftOTNG MONEiT, BAKTQNG, AND LOANS.

101

kriy surplus of the amount herein appropriated to the
sinking fund, which may be left in any year after paying the interest and principal which may be actually due
and payable by the United States, in conformity with
their engagements. Nor shall any thing in this act befec^edt^ega0ff
construed to repeal, alter, or affect, any of the provisions ^ m e r a c * s '
of any former act, pledging the faith of the United States
to the payment of the interest or principal of the public
debt, but all such payments shall continue to be made at
the time heretofore prescribed by law, excepting only as Exception.
before provided, that no payments shall be made on certificates which have become the property of the United
States.
Approved, March 3,1817.
ACT OF MARCH 3, 1817.
XCIII. An act to incorporate the subscribers to 3 8 |
certain banks in the District of Columbia, and to prevent the circulation of the notes of unincorporated associations within the said district.

CHAP.

stat

-»

SEC. 14. And be it further enacted, That the bank shall, on fhl^nk^s
in no case, buy and sell the funded debt of the United In gU,yitSdlngi
States, or of any State, or be owners of any ships or ves-etc*
sels, or directly or indirectly be concerned in trade, or the
importation, exportation, purchase or sale of any goods,
wares, or merchandise whatever, except bills of exchange,
or bullion, and such ships, vessels, goods, wares, or merchandise, as shall be truly pledged to them by way of
security, for debts due, owing, or growing due to the said
bank, or purchased by it to secure such debts: Provided, Proviso; as
nevertheless, That the said bank may sell and dispose of debt now held
either the whole or any part of the funded debt of the
United States, which it now holds.

(Sections 23, 24, 25, 26, 27 apply same provisions to
other banks in Washington, Georgetown, and Alexandria.)
Approved, March 3,1817.

102

NATIONAL MONETAKY COMMISSION.

ACT OF APRIL 13, 1818.
42|

stat

- L-» CHAP. LVI.—An act to authorize the payment of certain
certificates.
(This act suspends for the term of two years from its
passage so much of the acts of March 3, 1795, and June
12, 1798, as bar from settlement loan office and final settlement certificates and indents of interest; and provides
that, upon the presentation at the Treasury and adjustment of such claims, they shall be paid, with interest at
the rate of six per cent from the date of the last payment
of interest indorsed thereon.)
Approved, April 13,1818.
NOTE.—By the act of May 7, 1822, having the same title as the
above the provisions of the acts of 1795 and 1798 are further
suspended for the term of two years and from thence until the
end of the next session of Congress. (3 ibid,, 697.) And by the
act of July 14, 1832, the act of 1822 is revived and continued in
force for the term of four years and from thence until the end of
the next session of Congress. (4 ibid., 602.)

ACT OF FEBKUARY 4, 1819.
3 stat. L.,CHAP. XIII.—An act to authorize the payment, in certain cases, on account of Treasury notes ivhich have
been lost or destroyed.
Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assem° ^ +upr,oof' bled, That whenever proof shall be exhibited to the satis-

+
e t c , of t h e loss
1
e

note the secr<f- ^ a c ^ o n °^ the Secretary of the Treasury, of the loss or
Don^y,etcUpto^es^ruc^on °^ a n y Treasury note, issued under the
pay the amount au thority of any act of Congress, it shall be lawful for
the said Secretary, upon receiving bond, with sufficient
security to indemnify the United States against any
other claim on account of the Treasury note alleged to be
so lost or destroyed, to pay the amount due on such note,
to the person who had lost it, or in whose possession it
has been destroyed.
on proof of SEC. 2. And be it further enacted, That, whenever proof
struction of shall be exhibited, to the satisfaction of the Secretary of
Q«TT certificate

o f Mississippi the Treasury, of the loss or destruction of any certificate
certificate may of Mississippi stock, it shall be lawful to issue to the perbe issued

•

son who had lost it, or in whose possession it was destroyed, a new certificate of the same value with the one

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

103

lost or destroyed; the person claiming such renewal complying with the rules and regulations at present established at the Treasury Department, for the renewal of
certificates of stock lost or destroyed.
Approved, February 4, 1819.
ACT OF MAY 15, 1820.
CIII.—An act to authorize the President of ^ 5 8 |
United States to borrow a sum not exceeding three
millions of dollars.

CHAP.

stat

(Section 1 empowers the President to borrow, on the
credit of the United States, a sum not exceeding three
millions of dollars, at a rate not exceeding five per cent
and reimbursable at any time after January 1, 1832, or
at a rate not exceeding six per cent, and reimbursable at
pleasure, to be applied in defraying any public expenses
authorized by law.
(Section 2 authorizes the Bank of the United States to
lend the sum, or any part thereof, and further authorizes
the sale of certificates of the stock, "Provided, That no
stock shall be sold under par."
(Section 3, authorizing the employment of agents in disposing of the stock, follows the terms of section 3 of the
act of February 8, 1813.
(Section 4 makes the same sinking-fund provisions as
section 3 of the act of March 14, 1812, with the substitution of " ten millions of dollars " for eight millions, as
the amount of the total annual appropriation for the
public debt.)
Approved, May 15, 1820.
ACT OF MAECH 3, 1821.
XXXVIII.—An act to authorize the President o/ 63 §
the United States to borrow a sum not exceeding five
millions of dollars.

CHAP.

(Section 1 empowers the President to borrow, on the
credit of the United States, a sum not exceeding five
millions of dollars, at a rate not exceeding five per cent,
and reimbursable at any time after January 1, 1835, to
be applied in defraying any public expenses authorized
by law.

stat

104

NATIONAL MONETARY COMMISSION.

(Sections 2, 3, and 4 are identical with sections 2, 3,
and 4 of the act of May 15, 1820, above.)
Approved, March 3, 1821.
ACT OF FEBRUARY 19, 1822.
3 stat. L., CHAP. VIII.—An act authorizing the transfer of certain
[Obsolete.]
certificates of the funded debt of the United States.
Be it enacted by the Senate and House of Representatives of the United States of America, in Congress ascertiflcates of sembled, That the certificates of the funded debt of the
the funded

debt, issued to United States, which, upon the assumption of the debts
creditor States

•

-i •

-i • /»

.upon the as-ot the several creditor States, were issued m their favour,
their debts,respectively, be, and hereby are, made transferable, acmade transfer-

able.

8 stat.

•'/_

_ _

. . , , - , -

cording to the rules and forms instituted for the purpose
of transfeass of the public debt.
Approved, February 19, 1822.
ACT OF APRIL 20, 1822.
XXVIII.—An act to authorize the Secretary of
the Treasury to exchange a stock bearing an interest of
five per cent, for certain stocks bearing an interest of
six and seven per cent.

L.,CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America, in Congress asprobporsled,°to^^^&^^5 That a subscription, to the amount of twelve
t^iv"nmiiiionmillions of dollars, of the seven per cent, stock, and of
dollars, etc. fas six per cent, stock of the year eighteen hundred and
twelve, and also for fourteen millions of the six per cent,
stock of the years eighteen hundred and thirteen, fourteen, and fifteen, be, and the same is hereby, proposed:
o SiedkSat0the^or w ^ich purpose books shall be opened at the Treasury
Treasury and 0 f the United States, and at the several loan offices, on
loan o i c e a

May^tM July the first day of May, one thousand eight hundred and
twenty-two, to continue open until the first day of July
next thereafter, for such parts of the above-mentioned
description of stocks as shall, on the day of subscription,
stand on the books of the Treasury, and on those of the
subscription several loan offices, respectively; which subscription shall
by ae transfer be effected by a transfer to the United States, in the
surrender of manner provided by law for such transfers, of the credit
certificates. ^ c r e dits standing on the said books, and by a surrender
of the certificates of the stock so subscribed.

LAWS CONCEBNING MONEY, BANKING, AND LOANS.

105

(Section 2 provides that for any sum thus subscribed
of the six per cent stocks of 1812 and 1813, the subscribers
shall be entitled to an equal amount of stock, bearing interest at five per cent and payable quarterly from June 30,
1822, and redeemable at the pleasure of the United
States, one-third after December 31, 1830, one-third after
December 31, 1831, and one-third after December 31,
1832; and that for any sum subscribed of the seven per
cent stock, the subscribers shall be entitled to an equal
amount of five per cent stock, bearing interest and dated
as above, and redeemable in like manner after December
31, 1833: Provided, that no reimbursement shall be made
of any certificate, except for its whole amount, nor until
after six months' notice.
(Section 3 provides that if the subscription authorized
by section 1 is not completed by July 1,1822, the remainder of the amount may be subscribed at any time before
October 1, 1822; and that for so much as may be subscribed of the six per cent stocks of 1812,1813,1814, and
1815, the subscribers shall be entitled to an equal amount
of stock, bearing interest at five per cent and payable
quarterly from September 30, 1822, and redeemable after
1830,1831, and 1832 as above; and that for so much of the
seven per cent stock as may be subscribed, the subscribers
shall be entitled to an equal amount of five per cent stock,
with interest payable as above, and redeemable in like
manner after 1833, the same proviso being made as to the
conditions of reimbursement.)
SEC. 4. And he it further enacted. That the same funds Funds piedgwhich have heretofore been, and now are, pledged by law ment of interfor the payment of the interest, and for the redemption ordemption of the
reimbursement of the stock which may be subscribed by newCstock.
virtue of the provisions of this act, shall remain pledged
for the payment of the interest accruing on the stock created by reason of such subscription, and for the redemption or reimbursement of the principal of the same. It c o mmissionshall be the duty of the commissioners of the sinking fund ingfundto
to cause to be applied and paid, out of the said fund.pHed the sums
,

nece ssary to

yearly and every year, such sum and sums as may bepay the interest
find ppdpetn th<*

annually wanted to discharge the interest a c c r u i n g on t h e principal, etc.
stock which may be created by virtue of this act. The
said commissioners are hereby authorized to apply, from
time to time, such sum and sums, out of the said fund, as
they may think proper, towards redeeming, by purchase
or by reimbursement, in conformity with the provisions

106

NATIONAL MONETAKY COMMISSION.

th^encoooiooo °^ ^S act ? ^ e Principal of the said stock. And such part
tTnued^appro- °^ *^e a n n u a l s u m oi ten millions of dollars, vested by law
the1neterest etc" *n ^ e sa *^ commissioners, as may be necessary and wanting for the above purposes, shall be and continue appriated [appropriated] to the payment of interest and
redemption of the public debt, until the whole of the
stock which may be created under the provisions of this
act shall have been redeemed or reimbursed.
subscribers ^EC- 5* ^n^ ^e ^ farther enacted, That nothing in this
nor* abridgedred ac*i c o n t a i n e ( l shaH- be construed in any wise to alter,
abridge, or impair, the rights of those creditors of the
United States who shall not subscribe to the loan to be
opened by virtue of this act.
Approved, April 20,1822.
ACT OF MAY 3, 1822.
3 stat.

L.,

CHAP.

XLVII.—An act relating to Treasury notes.

Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assemnotes ?oebeUr* bled, That, from and after the passing of this act, no
mentf ov w&, Treasury note shall be received in payment on account of
ce pT^at' the the United States, or paid, or funded, except at the TreasTreasury.
u r y o f t h e U n ited States.
Approved, May 3, 1822.
ACT OF MAY 7, 1822.
696

Stat

CHAP.

CXII.—An act authorizing the payment of certain
certificates.

Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assemthSe0ac?ofbMa°r^^5 ^hat so much of an act, entitled "An act making
and7 of' act 4oi * ur ther provisions for the support of public credit and
c h ^ / ^ b a r s ^ o r t*16 redemption of the public debt," passed the third
loan office and (ja7y 0 f March, one thousand seven hundred and ninetyfinal s e t t l e - *
'
» i " A
.
ment certifi-five a n d s o m U ch of the act, entitled "An act respecting
cates, etc., sus-

, „

• «i

* .

pended for two i o a n office and final settlement certificates, indents of invears etc

terest, and the unfunded and registered debt, credited on
the books of the treasury," passed the twelfth day of
June, one thousand seven hundred and ninety-eight, as
bars from settlement or allowance certificates, commonly
called loan office and final settlement certificates, and
indents of interest, be, and the same is hereby, suspended
for the term of two years from and after the passing of
this act, and from thence until the end of the next session

LAWS CONCERNING MONEY, BANKING, AND LOANS.

107

of Congress; a notification of which temporary suspen-of^p^VgfoS
sion of the act of limitation shall be published by the t 0 be published.
Secretary of the Treasury, for the information of the
holders of the said certificates, in one or more of the
public papers in each of the United States.
SEC. 2. And he it further enacted, That all certificates, ^ n ^ m ^ e *
commonly called loan office certificates, countersigned by^ a t e |' e e t p c r the loan officers of the states, respectively, final settle- ^ea^iry* and6
ment certificates, and indents of interest, which, at thej^y**^ 1 1 ^
time of passing this act, shall be outstanding, may be pre-^pafci t0W|t£
sented at the treasury; and, upon the same being liqui-interest, etc.
dated and adjusted, shall be paid to the respective holders
of the same, with interest at six per cent, per annum,
from the date of the last payment of interest, as endorsed
on said certificates.
SEC. 3. And he it further enacted, That, for carrying AQPpropriathis act into effect, the sum of fifteen thousand dollars be
appropriated out of any moneys in the treasury of the
United States not otherwise appropriated.
Approved, May 7, 1822.
ACT OF MAKCH 3,1823.
LIII.—An act making the gold coins of Great | stat. L.,
Britain, France, Portugal, and Spain receivable in payments on account of public lands.
(Section 1 makes the gold coins of Great Britain,
France, Portugal, and Spain, of their present standard,
receivable in all payments on account of public lands, at
rates identical with those specified in the act of April 29,
1816; and section 2 makes it the duty of the Secretary of
the Treasury to cause assays of the said coins to be made
at least once in every year, and to report the results to
Congress.)
Approved, March 3, 1823.
CHAP.

ACT OF JANUAEY 22, 1824.
XVI.—An act authorizing the commissioners of
the sinking fund to purchase the seven per cent, stock
of the United States, in the year one thousand eight
hundred and twenty-four.

CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assembled, That the commissioners of the sinking fund be, and
15712°—10

4 stat. L., 4.

108

NATIONAL MONETARY COMMISSION.

ers °o?Tink?ng they are hereby, authorized to purchase, during the year
chase aur Pnrg o n e thousand eight hundred and twenty-four, any stock
7hVee?r^(fnt°^ the United States, bearing an interest of seven per
amount'not e£- c e n tum per annum, not exceeding the sum of eight milceeding$8,6io,-iions s i x hundred and ten thousand dollars, upon such
terms as they may think proper, not exceeding the following rates above the principal sum purchased, that is to
say:
For all such stock as they may purchase before the first
day of April next, at a rate not exceeding two dollars for
every sum of one hundred dollars, in addition to the interest which would have accrued on that day upon the said
stock:
For all such stock which they may purchase between
the first day of April and the first day of July next, at a
rate not exceeding seventy-five cents on every sum of one
hundred dollars, in addition to the interest which would
have accrued on the day last mentioned:
For all such stock which they may purchase between
the first day of July and the first day of October next, at
a rate not exceeding, on every sum of one hundred dollars,
the amount of interest which would have accrued on the
day last mentioned: and
For all such stock which they may purchase between
the first day of October next, and the first day of January,
one thousand eight hundred and twenty-five, at a rate not
exceeding the principal and the interest which shall have
accrued at the day of purchase.
sioners^h^?- SEC. 2. And be it further enacted, That the said cornsuch purchases missioners are hereby authorized to make such purchases,
restrictions!ainun(ier the foregoing restrictions, at such times and places
as they may deem most expedient, out of any moneys in
the Treasury, heretofore appropriated for the redemption
of the public debt, or out of any money in the Treasury
not otherwise appropriated.
Approved, January 22, 1824.

LAWS CONCEBNING MONEY, BANKING, AND LOANS.

109

ACT OF MAY 24, 1824.
CXL.—An act to authorize the creation of a stock *o^oiete*.-?3'
to an amount not exceeding five millions of dollars, to
provide for the awards of the commissioners under the
treaty with Spain, of the twenty-second of February%
one thousand eight hundred and nineteen.

CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assembled, That, for the purpose of providing funds to The secretary
discharge the awards of the commissioners under theory authorized
to c r e a t e a

treaty with Spain, of the twenty-second day of February, stock to an
in the year of our Lord one thousand eight hundred and ceeding $5,000,nineteen, the Secretary of the Treasury be, and he is
hereby, authorized, with the approbation of the President of the United States, to cause to be issued and sold
to the Bank of the United States, or others, at a sum not
less than the par value thereof, certificates of stock of the
United States, to any amount not exceeding the sum of
five millions of dollars, and bearing an interest of not
exceeding four and one half per centum per annum, from
the period of the sale thereof; which stock, so created,
shall be redeemable at the pleasure of the United States,
at any time after the first day of January, in the year
one thousand eight hundred and thirty-two. And, upon
the sale of such stock, in manner aforesaid, credit or
credits to the proprietors thereof, shall thereupon be
entered and given on the books of the Treasury, in like
manner as for the present funded debt; which said credits or stock shall thereafter be transferable as other public stock of the United States.
(Section 2 provides for the award and application of
the moneys thus borrowed.)
SEC. 3. And be it further enacted, That a sum, equal to interest acwhat will be necessary to pay the interest which may ac-stock to be
JI

•

*» j i

P a i < * out ot t h e

crue on the said stock, to the end of the present year, be, Treasury,
and the same is hereby, appropriated for that purpose, to
be paid out of any moneys in the Treasury not otherwise
appropriated.
Approved, May 24, 1824.

110

NATIONAL MONETAEY COMMISSION.

ACT OF MAY 26, 1824.
4 stat

L.,

73. CHAP. CXCIL—An act to authorize the Secretary of the
Treasury to exchange a stock, hearing an interest of
four and one half per cent., for certain stocks hearing
an interest of six per cent.

Be it enacted by the Senate and House of Representatives of the United States of Amer ca, in Congress asThe President sembled, That the President of the United States be, and
borrow a sum he is hereby, empowered to borrow, on or before the first
exceeding $5,- day cf April next, on the credit of the United States, a
sum not exceeding five millions of dollars, at a rate of
interest, payable quarter yearly, not exceeding four and
one half per centum per annum, and reimbursable at the
pleasure of the Government, at any time after the thirtyfirst day of December, one thousand eight hundred and
thirty-one, to be applied, in addition to the moneys which
may be in the Treasury at the time of borrowing the same,
to pay off and discharge such part of the six per cent,
stock of the United States, of the year one thousand eight
hundred and twelve, as may be redeemable after the first
day of January next.
(Section 2 authorizes the Bank of the United States
to lend the sum or any part thereof, and further authorizes the sale of certificates of the new stock: " provided,
that no stock be sold under par."
(Sections 3 and 4 provide that a subscription, to the
amount of fifteen million dollars of the six per cent stock
of 1813, shall be opened on July 1,1824, to continue open
until October 1 following; and that for so much as shall
be thus subscribed, the subscribers shall be entitled to an
equal amount of stock, bearing interest at the rate of four
and one-half per cent and payable quarterly from September 30, 1824, and redeemable at the pleasure of the
United States, one-half after December 31,1832, and onehalf after December 31,1833, provided that no reimbursement shall be made of any new certificate except for its
whole amount, nor until after six months' notice.
(Sections 5 and 6 contain the same provisions for the
sinking fund and for saving the rights of nonsubscribing
creditors as those contained in sections 4 and 5 of the act
of April 20, 1822.)
Approved, May 26, 1824.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

Ill

ACT OF MARCH 3, 1825.
LXV.—An act more effectually to provide for the 4 stat. L.,
punishment of certain crimes against the United States,
and for other purposes.

CHAP.

$
$
$
#
$
SEC. 17. And he it further enacted. That, if any person Forgery of
i ii » i i
i
A
i /"•!
Treasury notes,
or persons shall falsely
make, forge,
or counterfeit, oror other public
J
fe
^

. _

security of the

cause or procure to be falsely made, forged, or counter-united states.
feited, or willingly aid or assist in falsely making, forg-30,1790, ch. 9;
ing, or counterfeiting, any paper, writing, or instrument,
in imitation of, or purporting to be, an indent, certificate
of the public stock, or debt, treasury note, or other public
security of the United States, or any letters patent, issued
or granted by the President of the United States, or any
bill, check, or draft for money drawn by, or on the treasurer of the United States, or by, or on, any other public
officer or agent of the United States, duly authorized to
make, draw, accept, or pay the same, on behalf and for
account of the United States, (a) or if any person or persons shall pass, utter, or publish, or attempt to pass,
utter, or publish, as true, any such false, forged, or counterfeited paper, writing, or instrument, knowing the
same to be false, forged, or counterfeited, with intent to
defraud the United States, or any body politic or corporate, or any other person or persons whatsoever;
or if any person or persons shall falsely alter any indent,
certificate of the public stock, or debt, treasury note, or
other public security of the United States, or any letters
patent, issued or granted by the President of the United
States, or any bill, check, or draft for money drawn by
or on the treasurer of the United States, or any other
public officer or agent of the United States, duly authorized to make, draw, accept, or pay such bill, check, or
draft, or if any person or persons shall pass, utter, or
publish, or attempt to pass, utter, or publish, as true and
unaltered, any such falsely altered indent, certificate,
treasury note, or other public security, letters patent, or
bill, check, or draft, knowing the same to be falsely altered, with intent to defraud the United States, or any
body politic or corporate, or any person or persons whatsoever, (b) every such person, so offending, shall be
deemed guilty of felony, and shall, on conviction thereof,
be punished by fine, not exceeding five thousand dollars,

112

KATIOKAL MONETABY COMMISSION.

and by imprisonment and confinement to hard labour,
not exceeding ten years, according to the aggravation of
the offence.
(Section 18 makes it an offense and punishable to forge
Treasury notes or other public securities of the United
States, certificates of stock of the United States or certificates of stock of the Bank of the United States.)
Approved, March 3, 1825.
ACT OF MARCH 3, 1825.
129. Stat* L " CHAP. C.—An act authorizing the Secretary of the Treas[Obsoiete.]
UTy j.Q j ) o r r o w a 8um nof} exceeding twelve millions of
dollars, or to exchange a stock of four and one-half
per cent, for a certain stock hearing an interest of six
per cent.
Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assemautheoHzede?o bled, That the President of the United States be, and he
notrelceedlng^s hereby, authorized to borrow, on or before the first
o7dXS mioIls day of January next, on the credit of the United States,
a sum not exceeding twelve millions of dollars, at a rate
of interest payable quarterly, not exceeding four and onehalf per centum per annum, six millions whereof reimbursable at the pleasure of the Government, at any time
after the thirty-first day of December, in the year eighteen hundred and twenty-eight; and six millions at any
time after the thirty-first day of December, in the year
eighteen hundred and twenty-nine, to be applied, in addition to the moneys which may be in the Treasury at
the time of borrowing the same, to pay off and discharge
such part of the six per cent, stock of the United States,
of the year one thousand eight hundred and thirteen, as
may be redeemable after the first day of January next.
(Section 2 is identical with section 2 of the act of May
26,1824, above.
(Sections 3 and 4 provide that a subscription to the
amount of twelve million dollars of the six per cent stock
of 1813 shall be opened on April 1,1825, to continue open
until October 1 following, all thus subscribed to be considered as part of the twelve million dollars authorized
by section 1; and that for so much as shall be thus subscribed, the subscribers shall be entitled to an equal

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

113

amount of stock bearing interest not exceeding four and
one-half per cent and payable quarterly from December
31, 1825, and redeemable at the pleasure of the United
States, one-half after December 31, 1828, and one-half
after December 31, 1829: Provided, that no reimbursement shall be made of any new certificate except for its
whole amount, nor until after six months' notice.
(Sections 5 and 6 contain the same provisions for the
sinking fund, and for saving the rights of nonsubscribing
creditors, as those contained in sections 4 and 5 of the act
of April 20, 1822.)
Approved, March 3,1825.
ACT OF APEIL 24, 1830.
CHAP. LXXVIII.—An

act to authorize the commissioners 3 9 | stat. L.,
of the sinking fund to redeem the public debt of the
United States.

Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assembled. That whenever in the opinion of the Secretary of m secretary of
7
M.
*/
T r e a s u r y authe Treasury, the state of the Treasury will admit of the tnorized, under
i*
•
»
i
»-IT
i»
certain circumapphcation of a greater sum than ten millions of dollars stances, to ap. **

propriate more

in any one year, to the payment of interest and charges, than $1^00,and to the reimbursement or purchase of the principal of to the sinking
the public debt, it shall be lawful for him, with the approbation of the President of the United States, to cause
such surplus to be placed at the disposal of the commissioners of the sinking fund, and the same shall be applied
by them to the reimbursement or purchase of the principal of the public debt, at such times as the state of the
Treasury will best admit.
SEC. 2. And be it further enacted, That, whenever, in e r B gSggJ^
any year, there shall be a surplus in the sinking fund^° r ^ed^to
beyond the amount of interest and principal of the debt]?^ t°\h®f£
which may be actually due and payable by the United t^gu^hmen^tof
States in such year, in conformity with their engagements, it shall be lawful for the commissioners of the
sinking fund to apply such surplus to the purchase of
any portion of the public debt, at such rates as, in their
opinion, may be advantageous to the United States; any
thing in any act of Congress to the contrary notwithstanding.

114

NATIONAL MONETARY COMMISSION.

anie5Cof°anct of SEO - 3- And ^e ii} furtfier enacted, That the fourth and
Marchg3, i8ij, fifth sections of the act, entitled "An act to provide for
peaied. '
the redemption of the public debt," approved on the
third of March, one thousand eight hundred and seventeen, are hereby repealed,
thousand nddo£ SEC. 4. And be it further enacted, That the sum of two
imputed8 for hundred thousand dollars, being the balance of the sums
to be^asse^uto heretofore appropriated for the expenses of taking the
surplus fund. n e x t census, and which will not be required for that purpose, be, and the same is hereby, directed to be passed to
the surplus fund upon the last day of the year one thousand eight hundred and thirty, any law to the contrary
notwithstanding.
Approved, April 24, 1830.
ACT OF JULY 14, 1832.
4 stat.

Act

CCXLV.—An act to revive and continue in force
"An act authorizing the payment of certain certificates" approved seventh May, one thousand eight hundred and twenty-two.

L., CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assem°l S?n" bled. That the "Act authorizing the payment of certain

gress of May

7,1822, en. ii2, certificates," approved on the seventh May, one thousand
revived and

force1?"/four e*S^ hundred and twenty-two, be, and the same is hereby,
years.
revived and continued in force for the term of four
years from and after the passing of this act, and from
thence to the end of the next session of Congress thereafter, a notification of which revival and continuance
shall be published by the Secretary of the Treasury, for
the information of the holders of the certificates, the
payment of which is authorized by said act, in one or more
of the public papers printed in each of the United States.
tion.
iotP propria " SEC. 2. And be it further enacted, That, for carrying
this act into effect, the sum of forty thousand dollars be,
and hereby is, appropriated, out of any money in the
treasury of the United States not otherwise appropriated.
Approved, July 14,1832.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

115

ACT OF APEIL 11, 1836.
L.—An act to repeal so much of the act entitled 5 stat. L., 8.
"An, act transferring the duties of Commissioner of
Loans to the Bank of the United States, and abolishing the office of Commissioner of Loans" as requires
the Bank of the United States to perform the duties of
Commissioner of Loans for the several States.

CHAP.

(Section 1 repeals the provisions of the act of March
3,1817, which transfer the duties of commissioner of loans
to the United States Bank, its branches, and state banks
employed by it, and requires the immediate transfer of
all papers and records relating to said duties to the Secretary of the Treasury.)
SEC. 2. And be it further enacted, That the Bank of Banks to pay
. the United States and its several branches, and the State the m°Treasury
Banks employed by the Bank of the United States, per- months.
forming the duties of Commissioners of Loans, shall be,
and they are hereby required to pay into the Treasury of
the United States, within three months after the passing
of this act, all the money in their possession for the redemption of the public debt of the United States, and the
interest thereon remaining in their hands, which has not
been applied for by the person or persons entitled to receive the same.
SEC. 3. And be it further enacted, That it shall be the
duty of the Secretary of the Treasury to pay over to the
person or persons entitled to receive the same, the amount
so received into the Treasury, by virtue of the second section of this act, out of any money in the Treasury not
otherwise appropriated.
SEC. 4. And be it further enacted, That nothing contained in this act shall be construed to authorize the appointment of a Commissioner or Commissioners of Loans
in any State, District, or Territory of the United States.
Approved, April 11, 1836.
NOTE.-—By the act of April 20, 1836 (5 Stat L., 16), it is also
provided that all acts and parts of acts enabling the Bank of the
United States or its branches to pay pensions granted under the
authority of the United States are repealed, and that payments
of pensions shall be made by such persons and corporations as
the Secretary of War may direct.

116

NATIONAL MONETARY COMMISSION.

ACT OF JUNE 7,1836.
5 stat.

L., CHAP.

LXXXVII.—An act to carry into effect a convenHon between the United States and Spain.

(Section 1 authorizes the appointment of a commissioner to receive and examine all claims growing out of
the convention between the United States of America
and her Catholic Majesty the Queen of Spain, concluded
at Madrid on the 17th day of February, 1834.
(Sections 2 to 6, inclusive, prescribe the duties of the
commissioner and the compensation of himself and his
secretary. The duties of the Secretary of the Treasury
in the matter, who is required to receive and account for
at Paris any moneys paid in pursuance of said convention and to remit the same to the United States for deposit in the Treasury of the United States. Said moneys
are appropriated to be distributed and paid to those
authorized to receive them.)
commission- SEC. 7. And be it further enacted. That the commis• to report.

sioner aforesaid shall report to the Secretary of State
a list of all the several awards made by him, a certified
copy of which shall be by the said Secretary of State
transmitted to the Secretary of the Treasury, who shall
thereupon distribute in ratable proportions, among the
persons in whose favor the award shall have been made,
such moneys as may have been received into the Treasury in virtue of this act, according to the proportions
which their respective awards shall bear to the whole
amount then received; first deducting such sums of
money as may be due the United States from said persons
in whose favor said awards shall be made; and shall
cause certificates to be issued by the Secretary of the
Treasury, in such form as he may prescribe, showing
the proportion to which each may be entitled of the
amount that may thereafter be received; and on the
presentation of the said certificates at the Treasury, as
the nett proceeds of the general instalments, payable by
the Government of Spain, shall have been received, such
proportions thereof shall be paid to the legal holders of
the said certificates.
*

Approved, June 7, 1836.

•

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

117

ACT OF JULY 4, 1836.
CCCLIIL—An act in addition to the act entitled | stat. L.,
" A n act making appropriations, in part, for the sup- t9S|ole*el
port of Government, for the year eighteen hundred
and thirty-six, and for other purposes.

CHAP.

SEC. 10. And be it further enacted, That the duties a n d p o ^ e s o f a g ^
powers of the commissioners of the sinking fund a r e ^ 0 ^ 1 ^ ^ !
hereby suspended until revived by law, and that t h e ^ r ^ t*™^
records of the commissioners be transferred to the cus- theeCTreasury°f
tody of the Secretary of the Treasury, who is hereby
authorized and directed to pay out of any money in
the Treasury not otherwise appropriated any outstanding debts of the United States and the interest thereon.
$
*
*
*
*
Approved, July 4, 1836.
ACT OF OCTOBEE 12,1837.
II.—An act to authorize the issuing of Treasury 20j> stat - L>
notes.
Be it enacted ~by the Senate and House of Representatives of the United States of America in Congress assembled, That the President of the United States is hereby 6f£th*0 ***£
authorized to cause Treasury notes for such sum or s u m s ^ ^ ^
as the exigencies of the Government may require, but not J^r ^ ^ g ^ :
exceeding, in the whole amount of notes issued, the sum ^jo, a ^ ^ n ^
of ten millions of dollars, and of denominations not lessngtion t h a n
than fifty dollars for any one note, to be prepared, signed,
and issued in the manner hereinafter provided.
SEC. 2. And be it further enacted, That the said Treas- reiSbuersed°and
ury notes, authorized to be issued by the first section of redeemed after
CHAP.

the expiration

this act, shall be reimbursed and redeemed by the United of one year.
States, at the Treasury thereof, after the expiration of
one year from the dates of the said notes respectively;
from which said dates, for the term of one year, and no
longer, they shall bear such interest as shall be expressed Notes to bear
upon the face of the said notes; which rate of interest as1 fs expressed
upon each several issue of the said notes shall be fixed °n
by the Secretary of the Treasury, by and with the advice
and approbation of the President; but shall in no casecale^tTei^eed
exceed the rate of interest of six per centum per annum. J*j ™** ot 6

118

NATIONAL MONETAEY COMMISSION.

The reimbursement herein provided for shall be made
at the Treasury of the United States to the holders of
the said notes respectively, upon presentment, and shall
include the principal of each note, and the interest which
may be due thereon at the time of payment. For this
reimbursement, at the time and times herein specified, the
faith of the United States is hereby solemnly pledged.
(Section 3 provides that the said Treasury notes shall
be signed by the Treasurer and countersigned by the
Register of the Treasury, and that those officers shall
keep separate accounts thereof, as checks upon each
other.)
Q?htheec™rQ&l ^EC. *• ^~n^ ^e M further enacted, That the Secretary
^ion^said 0 -^ *ke Treasury is hereby authorized, with the approbanotes to be is- tion of the President of the United States, to cause to be
7

sued in pay- .

ment^ ^>f ^debts xssued such portion of the said Treasury notes as the
ceiv? them etc" P r e s ident may think expedient, in payment of debts due
by the United States to such public creditors or other
persons as may choose to receive such notes in payment,
o^the60?^1^ a s a f ° r e s a ^ ? a * P a r - And the Secretary of the Treasury
ury authorized, is further authorized, with the approbation of the Presietc, to borrow

•*•x

on the credit dent of the United States, to borrow, from time to time,
of the notes,

etc. •

not under par, such sums as the President may think
expedient, on the credit of such notes,
transferable I s ^EC# ^ ^n(^ ^e ^ further enacted, That the said Treasu l r n m e n f nr^ n o * e s &L2LII be transferable by delivery and assignment
etc.
' endorsed thereon, by the person to whose order the same
shall, on the face thereof, have been made payable.
The Treasury SEC. 6. And be it further enacted, That the said Treasnotes to be re-

ceived in pay- ury notes shall be received in payment of all duties and
ties, taxes, taxes laid by the authority of the United States, of all
etc.
' public lands sold by the said authority, and of all debts
to the United States, of any character whatsoever, which
may be due and payable at the time when said Treasury
m?nteofrTreas- notes may be so offered in payment. And on every such
cre6fitnt0otebePaymen*? credit shall be given for the amount of the
fipafand inter- principal and interest which, on the day of such payment,
est, etc.
m a y k e ( j u e o n ^he n o t e o r notes thus given in payment.
(Section 7 provides for the accounts to be kept by collectors and other receivers of the public moneys, of Treasury notes received by them, and for the charging and
crediting of accrued interest on such notes when paid out
by them.)

LAWS CONCERNING MONEY, BANKING, AND LOANS.

119

SEC. 8. And be it further enacted, That the Secretary oft hseecr|reasurf
the Treasury be, and he is hereby, authorized and directed J^*°rlle^e Je°
to cause to be reimbursed and paid the principal and in- Jjjjj1*^ p r ^
terest of the Treasury notes which may be issued by virtue gpj£t a j * t*£
of this act, at the several time and times when the same, Treasur y notes according to the provisions of this act, should be thus reimbursed and paid. And the said Secretary is further
authorized to make purchases of the said notes, at par,
for the amount of the principal and interest due at the
time of purchase on such notes. And so much of any un- t it nPt oPp ay
appropriated money in the Treasury as may be necessaryTreasurynotes*
for that purpose, is hereby appropriated, for paying the
principal and interest of said notes.
(Section 9 appropriates for expense of preparing, etc.
(Section 10 prescribes punishment for forging notes.
(Section 11 prescribes punishment for engraving, etc.
(Section 12 authorizes Secretary to make and issue
rules and regulations: "Provided, That nothing herein
contained shall be so construed as to authorize the Secretary of the Treasury to reissue any of said notes, but upon
the return of the said notes or any of them to the Treasury, the same shall be cancelled.")
SEC. 13. And be it further enacted, That it shall be, and ..secretary of
'

the

Treasury

hereby is, made the duty of the Secretary of the Treasury t o c a u s e a
to cause a statement to be published monthly, of thementto bepub^
amount of all Treasury notes issued or redeemed, in pursuance of the provisions of this act; and that the power to^Power co n^ issue Treasury notes conferred on the President of the act to deter47

m I n e on the

United States by this act, shall cease .and determine on|||| December »
the thirty-first day of December, eighteen hundred and
thirty-eight.
Approved, October 12, 1837.
ACT OF OCTOBEE 16, 1837.
stat L
CHAP. X.—An act making further appropriations for the20*>
- -»
year eighteen hundred and thirty-seven.
[Obsolete.]
SEC. 3. And be it further enacted, That the Secretary ofT^|e^eaarsyof the Treasury be, and he is hereby authorized, to ar-J^a^horized
range and settle any of the outstanding transfer draftsf^ 6 ^ 11 * 8 *^
given to transfer moneys to the States under the act offeremoSeyrsanto
twenty-third of June, 1836, and which have not been*h|rsaatets ™£
paid by the depositories upon which they were drawn,jj^e'e^36»ch*

120

NATIONAL MONETARY COMMISSION.

or otherwise arranged and settled by the United States,
by receiving such drafts at p a r in payment of any debts
due to the United States, without any allowance of interest for the time the drafts have been outstanding and
unpaid, or any other allowance for interest or damages
of any description.
Approved, October 16,1837.
A C T O F M A Y 21, 1838.
22|

stat

L X X X I I . — A n act to authorize the issuing of
Treasury notes to meet the current expenses of the
Government.

-»CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress asi2, A i837? f ch? c i^ m ^^^? T h a t the Secretary of the Treasury, with the
approbation of the President of the United States, is
notes to be ^-hereby authorized t o cause Treasury notes to be issued,
toedthaeCC°p^ovi^accor^^nS *° t*16 provisions of, and subject to, all the conoctns i°2, ai837f ditions, limitations and restrictions contained in an act
of,' etc.in place entitled " A n act to authorize the issuing of Treasury
notes," approved the twelfth day of October last, in place
of such notes as have been, or n\ay be, issued under the
authority of the act aforesaid, and which have been, or
may hereafter be, paid into the Treasury and cancelled.
Approved, May 21, 1838.
A C T O F M A K C H 2, 1839.
323. Stat * L '' C H A P . X X X V I I . — A n act to revise and extend "An act
to authorize the issuing of Treasury notes to meet the
2iAci838 McZ current expenses of the Government"
approved the
82
twenty-first of May, eighteen hundred and thirtyeight.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress asSecretary-sembled* T h a t the Secretary of the Treasury, with the
Treasurer to

•

cause to he is- approbation of the President of the United States, is
sued

the

re- •*--*•

mainder of the hereby authorized t o cause to be issued the remainder of
authorized hy the Treasury notes authorized to be issued by the act " to
1838! ch.aJ2. ' authorize the issuing of Treasury notes to meet the current expenses of the Government," approved the twentyfirst day of May, eighteen hundred and thirty-eight, according to the provisions of said act, at any time prior to
the thirtieth day of June next 3 any limitation in the act

LAWS CONCERNING MONEY, BANKING, AND LOANS.

aforesaid or in the act" to authorize the issuing of Treasury notes," approved the twelfth day of October, eighteen hundred and thirty-seven, to the contrary notwithstanding.
Approved, March 2, 1839.

121

1837 ch 2

» - -

ACT OF MAKCH 31, 1840.
CHAP.

V.—An act additional to the act on the subject of 37Q
Treasury notes.

stat

* L*'

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled^ That the regulations and provisions contained 12f c\ssit °<lt
in the act passed the twelfth day of October, in the year|ewe^*c" re"
one thousand eight hundred and thirty-seven, entitled
"An act to authorize the issuing of Treasury notes," and
in the subsequent acts in addition thereto, be, and the
same are hereby, renewed, and made in full force, excepting the limitations concerning the times within which
such notes may be issued, and restricting the amount
thereof as hereafter provided.
SEC. 2. And be it further enacted. That under the regu- Treasury
, , .

. .

•

n o t e s

b e

lations and provisions contained in said act, Treasury issued in iieu
notes may be issued in lieu of others hereafter or hereto- deemed.
fore redeemed, but not to exceed in the amount of notes
outstanding at any one time, the aggregate of five millions
of dollars; and to be redeemed sooner than one year, if
the means of the Treasury will permit, by giving notice
sixty days of those notes which the Department is ready
to redeem; no interest to be allowed thereon after the
expiration of said sixty days.
SEC. 3. And be it further enacted. That this act shall
continue in force one year and no longer.
Approved, March 31,1840.
ACT OF JULY 4, 1840.
XLI.—An act to provide for the collection, safe 5 stat.
keeping, transfer, and disbursement of public revenue.

CHAP.

L.,

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there shall be prepared and provided, within P*S§2f tot 0 b ®
the new Treasury building now erecting at the seat of J*® VaUitssYnd
Government, suitable and convenient rooms for the use^fS for the
'

public moneys.

122

NATIONAL MONETARY COMMISSION.

of the Treasurer of the United States, his assistants and
clerks: and sufficient and secure fire-proof vaults and
safes for the keeping of the public moneys in the possession and under the immediate control of the said Treasurer; which said rooms, vaults, and safes, are hereby
constituted and declared to be, the Treasury of the United
States. And the said Treasurer of the United States
shall keep all the public moneys which shall come to his
hands in the Treasury of the United States, as hereby
constituted, until the same are drawn therefrom according to law.
(Section 2 provides that the mint at Philadelphia and
the branch mint at New Orleans, and the vaults and safes
thereof, shall be places of deposit, and that the treasurers
of the said mint and branch mint, respectively, shall have
custody of all public moneys deposited therein and perform all the duties prescribed by this act relating to such
moneys.
(Sections 3 and 4 require that in the custom-houses of
New York and Boston and at the cities of Charleston
and St. Louis, suitable rooms and sufficient and secure
fireproof vaults and safes shall be prepared for the use
of the receivers-general of public money, who shall have
the custody of all public moneys deposited therein and
shall perform all the duties prescribed by this act relating
to such moneys.)
U
ecei
erf-ge nerai 7o" SEC - 5- And ie ii} farther enacted, That the President
oeneP^tinNews^a^ nominate, and by and with the advice and consent
Boston °one at °^ *ke Senate, appoint four officers, to be denominated
andaoneeattost'" r e c e i v e r s - g e n e r a l °f public money," which said officers
Louis
shall hold their respective offices for the term of four
years, unless sooner removed therefrom; one of which
shall be located at the city of New York, in the State of
New York; one other of which shall be located at the city
of Boston, in the State of Massachusetts; one other of
which shall be located at the city of Charleston, in the
State of South Carolina; and the remaining one of which
shall be located at the city of St. Louis, in the State of
toAlverbondrsed^ssour^' an( ^ a ^ °^ w h* c k s a ^ officers shall give bonds
to the United States, with sureties according to the provsions hereinafter contained, for the faithful discharge
of the duties of their respective offices.
charged1 cwith SEC. 6. And he it further enacted, That the Treasurer
t^VTubyii°co:f t h e United States, the treasurer of the Mint of the
?0tte!P~~tbeir United States, the treasurers, and those acting as such,

LAWS CONCERNING MONEY, BANKING, AND LOANS.
of the various Branch Mints, all collectors of the customs,
all surveyors of the customs acting also as collectors, all
receivers-general of public moneys, all receivers of public
moneys at the several land offices, and all postmasters,
except as hereinafter particularly provided, be, and they
are hereby, required to keep safely, without loaning or
using, 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 same as
directed, and to do and perform all other duties as fiscal
agents of the Government, which may be imposed by this
or any other acts of Congress, or by any regulation of the
Treasury Department, made in conformity to law; and
also to do and perform all acts and duties required by
law, or by direction of any of the Executive Departments
of the Government, as agents for paying pensions, or for
making any other disbursements which either of the
heads of those departments may be required by law to
make, and which are of a character to be made by the
depositaries hereby constituted, consistently with the other
official duties imposed upon them.
(Section 7 requires bonds to be given by the treasurers
and receivers-general, etc.
(Section 8 requires bonds to be given and renewed by
the other depositaries constituted by this act.
(By sections 9, 10, and 11 it is required that all collectors and receivers of public money shall, as often as
may be directed, pay over the moneys collected by them,
those in the District of Columbia to the Treasurer of the
United States, those in Philadelphia and New Orleans to
the treasurers of the mints, respectively, and those in New
York, Boston, Charleston, and St. Louis to the receiversgeneral in their respective cities, and it is made the duty
of the Secretary of the Treasury and Postmaster-General
to direct such payments to be made as often as once in
every week. Provision is made for the transfer of money
from one depositary to any other, at the direction of the
Secretary of the Treasury, and for the like transfer of
moneys belonging to the Post-Office Department by the
Postmaster-General; and every depositary is required to
keep his account of money belonging to that department
separate from his account of other public moneys. And
15712°—10

123

124

NATIONAL MONETAEY COMMISSION.

all moneys in the hands of any depositary are to be considered as deposited to the credit of the Treasurer of the
United States and to be, at all times, subject to his draft.
(By sections 12 and 13, provision is made for the examination of the accounts and money on hand of the
several depositaries by special agents appointed for that
purpose, and further for a like examination, at least once
in every quarter, by public officers who are required to
act as a check upon all receivers, collectors, treasurers,
and persons acting as such.
(Section 14 authorizes necessary expenses for clerks,
fire-proof chests, etc.)
The balances SEC. 15. And he it further enacted. That the Secretary
remaininsr with

the present de- of the Treasury shall, with as much promptitude as the
positaries to be

withdrawn.

convenience of the public business, and the safety of the
public funds will permit, withdraw the balances remaining with the present depositaries of the public moneys,
and confine the safekeeping, transfer, and disbursement
of those moneys to the depositaries established by this
act.
Payments of SEC. 16. And be it further enacted^ That all marshalls,
Shelcumnnyed district attorneys, and others, having public money to
ments for pat" pay to the United States, and all patentees, wishing to
to be made, make payment for patents to be issued, may pay all such
moneys to the Treasurer of the United States, at the
Treasury, to the Treasurer of either of the Mints, in
Philadelphia or New Orleans, to either of the receiversgeneral of public money, or to such other depositary constituted by this act as shall be designated by the Secretary of the Treasury, in other parts of the United States,
to receive such payments, and give receipts or certificates
of deposite therefor.
(By section 17 all officers entrusted with public moneys,
except those connected with the Post-Office Department,
are required to keep an accurate account of all receipts
and payments, showing the kind of currency received or
paid; and it is declared to be embezzlement and felony
for any such officer or for any officer of the Post-Office
Department to convert to his own use, or to use by investment, or to loan any portion of the public moneys entrusted to him.)
other rooms SEC. 18. And he it further enacted. That until the
to be procured.

rooms, offices, vaults, and safes, directed by the first four
sections of this act to be constructed and prepared for
the use of the Treasurer of the United States, the treas

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

125

urers of the mints at Philadelphia and New Orleans, and
the receivers-general of public money at New York, Boston, Charleston, and St. Louis, can be constructed and
prepared for use, it shall be the duty of the Secretary of
the Treasury to procure suitable rooms for offices for
those officers at their respective locations, and to contract
for such use of vaults and safes as may be required for
the safekeeping of the public moneys in the charge and
custody of those officers respectively, the expense to be
paid by the United States.
SEC. 19. And he it further enacted. That from and. Duties, how
'

to he paid, etc.

after the thirtieth day of June, which will be in the year
one thousand eight hundred and forty, the resolution of
Congress of the thirtieth day of April, in the year one
thousand eight hundred and sixteen, so far as it authorizes the receipt in payment of duties, taxes, sales of public
lands, debts, and sums of money, accruing or becoming
payable to the United States, to be collected and paid
in the notes of specie-paying banks, shall be so modified
as that one fourth part of all such duties, taxes, sales of
public lands, debts, and sums of money accruing or becoming due to the United States, shall be collected in
the legal currency of the United States; and from and
after the thirtieth day of June, which will be in the year
one thousand eight hundred and forty-one, one other
fourth part of all such duties, taxes, sales of public lands,
debts, and sums of money, shall be so collected; and that
from and after the thirtieth day of June, which will be
in the year one thousand eight hundred and forty-two,
one other fourth part of all such duties, taxes, sales of
public lands, debts and sums of money, shall be so collected; and that from and after the thirtieth day of
June, which will be in the year one thousand eight hundred and forty-three, the remaining fourth part of the
said duties, taxes, sales of public lands, debts, and sums
of money, shall be also collected in the legal currency of
the United States; and from and after the last-mentioned day, all sums accruing, or becoming payable to the
United States, for duties, taxes, sales of public lands, or
other debts, and also all sums due for postages, or otherwise, to the General Post Office Department, shall be paid
in gold and silver only.
SEC. 20. And he it further enacted, That from and after AH payments
the thirtieth day of June, which will be in the year one u. s. to he in
thousand eight hundred and forty-three, every officer or only.

126

NATIONAL MONETARY COMMISSION.

agent engaged in making disbursements on account of
the United States, or of the General Post Office, shall
violations of make all payments in gold and silver coin only; and any
this and the

. .

T i

•

rr»

/ i - i - n

-ii

preceding sec- receiving or disbursing omcer, or agent, who shall neglect,
evade, or violate, the provisions of this and the last preceding section of this act, shall, by the Secretary of the
Treasury, be immediately reported to the President of
the United States, with the facts of such neglect, evasion,
or violation, and also to Congress, if in session, and, if
not in session, at the commencement of its session next
after the violation takes place.
(Section 21 forbids any disbursing officer to make any
exchange of funds other than an exchange for gold and
silver, and requires every such officer to make his payments in the currency furnished him when legally receivable under the provisions of this act, " unless * * *
he can exchange the means in his hands for gold and
silver at par, and so as to facilitate his payments, or
otherwise accommodate the public service and promote
the circulation of a metallic currency.")
To be no dif- SEC. 22. And be it further enacted. That it shall not
t w e e n t h e be lawful for the Secretary of the Treasury to make
ab?e.s rece v or continue in force, any general order, which shall create
any difference between the different branches of revenue,
as to the funds or medium of payment, in which debts
or dues accruing to the United States may be paid.
(Sections 23 and 25 make it the duty of the Secretary
of the Treasury to make regulations prescribing the
time within which drafts on the depositaries shall be
presented for payment, but require him "to guard, as
far as ma}^ be, against those drafts being used or thrown
into circulation, as a paper currency, or medium of
exchange." The Treasurer of the United States, however, is authorized to receive payments for public lands
in advance, and to give therefor his receipts, which shall
be receivable for public lands in the same manner as the
currency authorized by law, provided, that such receipts
shall not be negotiable or transferable by delivery or
assignment, but shall be in all cases presented in payment by or for the person named therein.
(Section 26 makes appropriation for purchase of sites
and construction of offices, etc.
(Section 27 makes appropriation for other expenses
authorized by this act.)

LAWS CONCERNING MONEY, BANKING, AND LOANS.

127

SEC. 28. And be it further enacted, That all acts or Acts, etc.,
/»

i-i

•

/i- ,

-,i

• •

conflicting with

parts oi acts which come in conflict with the provisions this, repealed.
of this act be, and the same are hereby, repealed.
Approved, July 4, 1840.
ACT OF FEBEUARY 15, 1841.
CHAP.

V.—An act to authorize the issuing of treasury
notes.

5 stat.

L.,

[Obsolete.]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled^ That the President of the United States is hereby An emission
authorized to cause Treasury notes to be issued for such ing $5,000,000
sum or sums as the exigencies of the Government may time outstandrequire; but not exceeding the sum of five millions of ized!
dollars of this emission, outstanding at any one time, to
be reimbursed in the last quarters of the year, if the
condition of the Treasury will permit it, and to be issued
under the limitations and other provisions, contained
in the act, entitled " An act to authorize the issuing of TO be issued
under the act

Treasury notes," approved the twelfth day of October, of 12th Oct.,
one thousand eight hundred #nd thirty-seven, and as as modified by
the act of 31st

modified by an act, entitled "An act additional to the act March, 1840,
ch. 5.

on the subject of Treasury notes," approved the thirtyfirst day of March, one thousand eight hundred and
forty, except that this law shall expire in one year from This law to
and after its passage: Provided^ That in case the Treas- year.
ury notes outstanding and unredeemed, issued under
former laws of Congress, added to the amount of such
notes issued under this act, and actually expended or
issued to meet payments due and payable before the
fourth day of March next, shall, on the fourth day of
March next, exceed the sum of five millions of dollars,
then the President of United States shall be, and he is
hereby, authorized to issue, by virtue of the provisions of
this act, such further amount of the said notes as will
make the whole amount issued under this act, and applicable to payments falling due after the third day of
March next, the full sum of five millions of dollars.
Approved, February 15, 1841.

128

NATIONAL MONETARY COMMISSION.

ACT OF JULY 21, 1841.
5 stat.

L., CHAP.

III.—An act authorizing a loan not exceeding the
sum of twelve millions of dollars.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress asPresident *n-sembled* That the President of the United States is
thorized to bor-

row $12,000,-hereby authorized, at any time withm one year from the
cent.
passage of this act, to borrow, on the credit of the United
States, a sum not exceeding twelve millions of dollars,
or so much thereof as in his opinion the exigencies of the
Government may require, at a rate of interest, payable
quarterly or semi-annually, not exceeding six per centum
when reim-per annum, which loan shall be made reimbursable either
at the will of the Secretary of the Treasury, after six
months' notice, or at any time after three years from the
The moneyfirst day of January next; and said money so borrowed
borrowed, how

to be applied, shall be applied, in addition to the money now m the
Treasury, or which may be received therein from other
sources, to the payment and redemption of the Treasury
notes heretofore authorized, which are or may be outstanding and unpaid, and to defray any of the public
expenses which have been heretofore or which may be
stock, how authorized by law, which stock shall be transferable only
transferable.

on the books of the Treasury.
(Sections 2 and 3 authorize the preparation and sale
of certificates of the stock, " provided, that no stock be
sold below par," and the employment of agents for the
negotiation of the same, with a commission not exceeding
one-tenth of one per cent on the amount so negotiated.)
Secretary of SEC. 4. And ~be it further enacted, That the Secretary
authorized to of the Treasury is hereby authorized to purchase, at any
prior toetimeoftime before the period herein limited for the redemption
re emp on. ^ stock hereby authorized, such portion thereof as the
funds of the Government may admit of, after meeting
tiAnPthereforia"a^ *^e demands on the Treasury, and any surplus in the
Treasury is hereby appropriated to that object.
Faith of SEC. 5. And be it further enacted, That the faith of the
pfedged for United States be, and is hereby, pledged for the punctual
mentUof iiFter-payment of the interest and redemption of said stock.
est, etc.
Approved, July 21,1841.

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

129

ACT OF AUGUST 13, 1841.
VII.—An act to repeal the act entitled "An act to ^
provide for the collection, safe-keeping, transfer, and
• disbursement of the public revenue? and to provide for
the punishment of embezzlers of public money, and for
other purposes.
CHAP.

stat.

L.,

Be it enacted, * * * That the act entitled "An act
to provide for the collection, safe-keeping, transfer and
disbursement of the public revenue," approved on the
fourth day of July, A. D., one thousand eight hundred
and forty, be, and the same is hereby, repealed: Provided,
always, That offenders against section 17 of the repealed
act may be prosecuted, and that all liabilities arising upon
bonds or otherwise under the said act shall remain unimpaired.
(Section 2 makes it felony for any officer entrusted with
public moneys, or connected with the Post-Office Department, to convert to his own use, or to use by investment,
or to loan any portion of the public moneys entrusted
to him, and the neglect to pay over or transfer such
moneys on legal requirement is declared to be prima facie
evidence of conversion.)
SEC. 3. And be it further enacted, That the act entitled 23Act18^f6 JulJf
"An act to regulate the deposites of the public money," life, excepting
approved on the twenty-third day of June, eighteen hun- fourteenth secdred and thirty-six, excepting the thirteenth and fourteenth sections thereof, be and the same hereby is repealed.
(Section 4 repeals so much of the act of April 14,1836,
as forbids the offer of bank notes of less denomination
than ten dollars, and after March 3, 1837, of less than
twenty dollars, in payments by the United States or the
Post-Office Department.)
Approved, August 13, 1841.
ACT OF JANUAKY 31, 1842.
CHAP.

II.—An act to authorize an issue of Treasury 5 stat.
notes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the President of the United States is hereby

[Obsolete.]

130

NATIONAL MONETAKY COMMISSION.

ofAnoteiexcee0d^ authorized to cause Treasury notes to be issued for such
a1? a n y00o°n e s u m o r s u m s a s ^ e exigencies of the Government may re^m\uthorh5ed ( l u ^ r e ' a n ( ^ * n P ^ a c e °^ s u c ^ °f the same as may be redeemed to cause others to be issued, but not exceeding the
sum of five millions of dollars of this emission outstandunderbtheS pro? *n& a ^ a n y o n e ^ m e ? a n < l to be issued under the limitations
act10<rfSi2thoS a n ( ^ ° ^ e r provisions contained in the act entitled "An act
tober,i837,ch.2. to authorize the issuing of Treasury notes," approved the
twelfth of October, one thousand eight hundred and
thirty-seven, except that the authority hereby given to
issue Treasury notes shall expire at the end of one year
from the passage of this act.
Approved, January 31, 1842.
A C T OF A P R I L 15, 1842.
5 stat
47 3

X X V I . — A n act for the extension of the loan of
eighteen hundred and forty-one, and for an addition of
five millions of dollars thereto; and for allowing interest on Treasury notes due.

CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemThat the time limited by the first section of the act
t Tjme^r ob- j ^
l0
lct eofenjuiy °^ Congress, entitled "An act authorizing a loan not ex21,1841, ch. 3. C eeding the sum of twelve millions of dollars," approved
July twenty-first, eighteen hundred and forty-one, for
obtaining said loan, shall be, and the same is hereby, extended for one year from the passage of this act.
Loan r e i m - s E C # 2. And be it further enacted. That so much of said
bursable, when.

•'

loan as may be obtained a iter the passage of this act shall
be made reimbursable, as shall be agreed upon and determined at the time of issuing said stock, either at the
will of the Secretary of the Treasury, after six months'
notice, or at any time not exceeding twenty years from
the first day of January next.
ti!c°artes.°f cer" SEC. 3. And be it further enacted. That the certificates
hereafter to be issued for said loan may, when required,
be in such form as shall be prescribed by the Secretary
tr!nsferab'ie.°wof the Treasury, so that the stock may be transferable by
delivery of the certificate, instead of being assignable on
the books of the Treasury.
dfs°pkosed o? SEC. 4. And be it further enacted, That the Secretary
how
'of the Treasury be, and he hereby is, authorized to dis-

LAWS CONCERNING MONEY, BANKING, AND LOANS.

131

pose of the stock hereafter to be issued, or any part
thereof, at its par value, but no part thereof shall be disposed of under par until the same has been advertised a
reasonable time, and proposals for subscription to said
loan invited. And the said Secretary is hereby authorized to accept such proposals, if he deem it for the interest of the United States so to do, as shall offer the
highest price for said stock or any part thereof; or to
appoint an agent or agents as provided in the third section of the act, approved July twenty-first, eighteen hundred and forty-one, before recited, to negotiate the same:
Provided, T h a t ' n o stock shall be disposed of at a lower
rate than the highest price offered in said proposals.
SEC. 5. And be it further enacted, That the moneys in^onf%^ aSl£
arising from duties on goods, wares, and merchandise, *{J£ ^[yDQen/of
which may be imported into the United States, or so*£ e interest,
much thereof as shall be equal to the payment, from time
to time, of the interest, and to the ultimate redemption of
the principal of the said stock, be, and the same are hereby, pledged for the payment and redemption of the stock
hereafter to be issued under and by virtue of this act and
the said act of July twenty-first, eighteen hundred and
forty-one, hereby amended; and so much thereof as may
be necessary to pay the interest on said stock, and redeem
the same when due, is hereby appropriated to that object,
to be first applied by the Secretary of the Treasury to
such payments and redemption.
SEC. 6. And be it further enacted, That it shall be the m ^ e p o £, t0Q**_
duty of the Secretary of the Treasury to report to Con- f^% u £ft **«
gress, at the commencement of next session, the amount f0^^ \tc ° r "
of money borrowed under this act and the act hereby
amended, and of whom and upon what terms it shall
have been obtained, with an abstract or brief statement
of all the proposals submitted for the same, distinguishing between those accepted and those rejected; and a detailed statement of the expense of making such loans.
SEC. 7. And be it further enacted, That all the p r o - g ^ ^ t ^ j j :
visions of the said act, not hereby modified or changed, ™mainChifor?e!
shall be and remain in force, and apply to this act.
SEC. 8. And be it further enacted, That the President x 0Aadnd ^{g^l
of the United States is hereby authorized to borrow an ized additional sum, not exceeding the sum of five millions of
dollars, if, in his opinion, the exigencies of the Government may require the same; which additional loan shall

132

NATIONAL MONETAEY COMMISSION.

be made within the time and according to the provisions
of said act, as modified by this.
noS^fuSYnS SEC. 9. And be it further enacted, That all Treasury
bear 1 ^percent no ^ es heretofore issued under the act entitled "An act to
interest.
authorize the issuing of Treasury notes," approved the
i2AiC837°fch)C2 twelfth day of October, eighteen hundred and thirtyseven, and the acts subsequent thereto, and now outstanding and unredeemed, or which may hereafter be issued
under and by virtue of the same, shall, if due and unpaid
before the fifth day of March, eighteen hundred and
forty-two, bear interest at the rate of six per cent, per
annum from that day; and when they may become due
hereafter, or may have become due since the said fifth
day of March, eighteen hundred and forty-two, shall bear
interest from the day of their so becoming due, at the
rate of six per cent, per annum, until they shall be reProviso.
spectively redeemed: Provided, That such interest shall
cease at the expiration of sixty days' notice, to be given
at any time, by the Secretary of the Treasury in one or
more of the principal papers published at the seat of
Government, of a readiness to redeem the same. And
ab^teresem?an"t'ie s a i d interest shall be payable semi-annually at the
nuaiiy.
Treasury of the United States, on the first days of January and July in every year.
Approved, April 15, 1842.
A C T O F A U G U S T 31, 1842.
5 stat.

C C L X X X V I L — A n act to limit the sale of the
public stock to par, and to authorize the issue of Treasury notes, in lieu thereof, to a certain amount.

L.,CHAP.

(Section 1 provides that no stock authorized under the
act of July 21, 1841, and the amendatory act of April 15,
1842, shall hereafter be sold below p a r ; and the Secretary
of the Treasury is authorized to issue Treasury notes in
lieu of so much thereof as can not be negotiated at or
above par, to an amount not exceeding six millions of
dollars.)
issuiSe fof thl ^ E 0 # ^' ^n^ ^e ^ further enacted, That the Treasury
Treasury notes notes authorized to be issued by virtue of this act shall not
limited.

be issued after the time limited by said last mentioned
act, being the fifteenth day of April, eighteen hundred
and forty-three, for making said loan, and they shall be

LAWS CONCERNING MONEY, BANKING, AND LOANS.

133

issued under the provisions and limitations contained in u n ^ r b ® h * B B ^
the act entitled "An act to authorize the issuing of Treas- [^ftattonsa of
ury notes," approved the twelfth day of October, eighteen ^oh^vf
-^ff
hundred and thirty-seven, and as modified by the act en-Ma?ch°dil40^
titled "An act additional to the act on the subject of <*• 5.
Treasury notes," approved March thirty-first, eighteen
hundred and forty: Provided, That the notes authorized Proviso,
to be issued by virtue of this act may, when redeemed, be
reissued, or new notes issued in lieu of such as may be redeemed within the time above prescribed for issuing the
same, provided that not more than six millions in amount st aShJ5^o?to
shall be outstanding at any one time under the authority <^ eed *6>000>of this act.
SEC. 3. And be it further enacted, That nothing in the tl& ^ ^ l°t
act contained, entitled an act authorizing the loan r above certificates of
referred to, and an act amendatory of the same, shall
be so construed as to authorize the issue of certificates of
stock, for debts now due or to become due by the United
States, for any other purpose than a bona fide loan to the
Government according to the original intention of that
law, and that no certificate for any loan shall be issued
for a less sum than one hundred dollars.
Approved, August 31,1842.
. A C T O F M A R C H 3, 1843.
CHAP.

L X X X I . — A n act authorizing the reissue of Treasury notes and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That when any outstanding Treasury notes, issued
in pursuance of the act of thirty-first August, one thousand eight hundred and forty-two, entitled "An act to

5
61 4

stat

>
Obsolete1]1,

Act of Aug.
31 1 8 4 2

limit the sale of public stock to par, and to authorize the 287.
issue of Treasury notes, in lieu thereof, to a certain
amount," or any previous act of Congress, shall, after the
passage of this act, be redeemed at any time before the
first day of July, one thousand eight hundred and fortyfour, the Secretary of the Treasury, should the wants of
the public service require, may cause other notes, to the
same amount, to be issued in place of such as may b e r n R e i s s u e o f
7

Treasury notes

redeemed, under the limitations and other provisions of authorized.
the respective acts by which said notes were originally
authorized and issued.

134

NATIONAL MONETARY COMMISSION.

i ift eT^s t on ^EC. 2 * And he it further enacted. That, after maturity
Treasury notes. 0 f the Treasury notes issued under the said act of
thirty-first August, or of this act, interest may be paid
thereon, in the same manner as on Treasury notes authorized previous to the fifteenth April last, under the ninth
1842, en. 26. section of the act approved on that day, entitled "An act
for the extension of the loan of one thousand eight hundred and forty-one, and for an addition of five millions
of dollars thereto, and for allowing interest on Treasury
notes due."
issue of stock SEC. 3. And he it further enacted, That, in lieu of issu/

inlieuof.

Treasury notes mg the Treasury notes in the manner authorized by the
first section of this act, the President, if in his opinion it
shall be for the interest of the United States so to do, may
cause any of said notes now outstanding, to be redeemed
and cancelled as they become due, if the Secretary of the
Treasury cannot redeem them out of the funds in the
Treasury, by an issue of stock of the United States, for
the amount thus redeemed, in the same form, for the same
time, and under the same restrictions, limitations, and
it i842£ ct^i P rov i s i° ns > a s a r e contained in an act approved April
fifteen, eighteen hundred and forty-two, entitled "An act
for the extension of the loan of eighteen hundred and
forty-one, and for an addition of five million of dollars
thereto, and for allowing interest on Treasury notes
due," except that no commissions shall be allowed or paid
for the negotiation of such business; and except also that
said stock so to be issued, shall be redeemable at a period
not longer than ten years from the issue thereof.
Approved, March 3, 1843.
ACT OF JULY 22, 1846.
9 stat. L., 39. CHAP. LXIV.—An act to authorize an issue of Treasury
notes and a loan.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemissueofTreas-Jfe^ That the President of the United States is hereby
thorized, not authorized to cause Treasury notes to be issued for such
exceeding $10,-

« ,

000,000 to be sum or sums as the exigencies 01 the (jovernment may
outstanding at

_ .

« .

any one time, require; and, m place 01 such or the same as may be redeemed, to cause others to be issued; but not exceeding
To be issued ^ e s u m °^ t e n millions of dollars of this emission out?tatfonsbof "hestanding at any one time, and to be issued under the limact of 1837, en. itations and other provisions contained in the act entitled

LAWS CONCERNING MONEY, BANKING, AND LOANS.

135

"An act to authorize the issue of Treasury notes," approved the twelfth of October, one thousand eight hundred and thirty-seven, except that the authority hereby
given to issue Treasury notes shall expire at the end of one
year from the passage of this act.
(Section 2 provides that the President, instead of
issuing the whole amount of Treasury notes thus authorized, may borrow by the issue of stock of the United
States, in the form and under the provisions prescribed by
the act of April 15, 1842: "Provided, That the sum thus
borrowed, together with the Treasury notes issued, shall
not exceed ten millions of dollars, that the stock created
shall be redeemable at a period not longer than ten years
from its issue, and that no commission shall be paid for
the negotiation of this loan.")
SEC. 3. And be it further enacted, That the Treasury Not to bear a
notes and the stock issued under the provisions of this act terest than 6
shall not bear a higher rate of interest than six per centum
per annum, and no part thereof shall be disposed of at
less than par.
SEC. 4. And "be it further enacted, That no compensa- No compensation shall be made to any officer, whose salary is j&xed bv to any salaried
,
„
. . .
.
" officer for prelaw, tor preparing, signing, or issuing Treasury notes; paring, signing,
nor shall any clerks be employed beyond the number au- said notes, &c.
thorized by the act herein referred to.
SEC. 5. And be it further enacted, That the sum of fifty Fifty thousand

dollars

thousand dollars be, and the same is hereby, appropriated, appropriated
out of any money in the Treasury not otherwise appropri- amount *of cer*
ated, for the purpose of paying the amount of certain Treasury notes.
Treasury notes (which, having been received or redeemed
by any authorized officer of the Government, were subsequently purloined or stolen, and put into circulation without evidence on their face of their having been cancelled)
to the respective holders, who may have received the same,
or any of them, for a full consideration, in the usual
course of business, without notice or knowledge of the
same having been stolen, or cancelled, or altered, and
without any circumstances to cast suspicion on the good
faith or due caution with which they may have received
the same.
Approved, J u l y 22,1846.

136

NATIONAL MONETARY COMMISSION.

ACT OF AUGUST 6,1846.
9 stat. L., 59. CHAP. XC.—An act to provide for the better organization of the Treasury, and for the collection, safe-keeping, transfer, and disbursement of the public revenue.
Preamble.

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 should be the duty of the treasurer
to receive and keep the moneys of the United States, and
to disburse the same upon 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 assemThe treasury bled, That the rooms prepared and provided in the new
of the United

. .*

, -

states desig-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
Moneys paid to be the treasury of the United States. And all moneys
into same, sub., .
-,
i 11 i
1•
1
-1 i» <» i
3ect t o t h e Lpaid into the same shall be subject
to the draft of the
J
draft of the
.
J
treasurer.
treasurer, drawn agreeably to appropriations made by
law.
(Sections 2, 3, and 4 establish as "places of deposit"
the mint at Philadelphia and the branch mint at New
Orleans, and the vaults and safes thereof; and the treasurers of said mint and branch mint, respectively, are
made assistant treasurers under the provisions of this act,
and are to have custody of all public moneys deposited
therein, and to perform all the duties required as to the
receipt, safe-keeping, transfer, and disbursement of the
same. The rooms, safes, and vaults, prepared in the
custom-houses of New York and Boston and in the cities
of Charleston and St. Louis, for the use of receiversgeneral under the act of July 4, 1840, are declared to be

LAWS COSTCEKNING MONEY, BANKING, AND LOANS.

137

for the use of the assistant treasurers now to be appointed
at those places, respecively; and the said assistant treasurers are to have custody of said rooms, vaults, and safes,
and of public moneys therein deposited, and to perform
all duties required in relation to such moneys. By subsequent acts the mints at San Francispo, Carson City,
and Denver, and the assay office at Boise City are declared
to be places of deposit, and the superintendents thereof
are made assistant treasurers. See Eevised Statutes,
sections 3592, 3594.)
SEC. 5. And be it further enacted. That the President four assistant
i
i •
T
treasurers
shall nominate, and bv
and with the advice and consent *<> be app o i n J:
c
/ » i o i
- / .
n*
i - i
•
ed, w h o shall
oi the Senate appoint,
four officers to be denominated Joid their ofx r
7
fices

for f o u r

"assistant treasurers of the United States," which said years,
officers shall hold their respective offices for the term
of four years, unless sooner removed therefrom; one Location of
of which shall be located at the city of New York, inurers.
the State of New York; one other of which shall be
located at the city of Boston, in the State of Massachusetts; one other of which shall be located at the city of
Charleston, in the State of South Carolina; and one
other at St. Louis, in the State of Missouri. And alL shall give
7

of which said officers shall give bonds to the United
States, with sureties, according to the provisions hereinafter contained, for the faithful discharge of the
duties of their respective offices.
NOTE.—The assistant treasurers mentioned in sections 3 and 5
of this act were, with others, provided for by section 3595 of
the Revised Statutes. The act of August 15, 1876 (19 Stat. L.,
155), abolished the position at Charleston, S. C.
Additional assistant treasurers of the United States were provided for by the following acts:
At Denver, April 21, 1862 (12 S t a t L., 382), the duties to be
performed by the superintendent of the mint, but the act of
July 12, 1870 (16 Stat. L., 241), abolished the office of such
superintendent.
At Baltimore, June 15, 1870 (16 Stat. L., 151), section 3595,
Revised Statutes.
At Cincinnati, March 3, 1873 (17 Stat. L., 543), section 3595,
Revised Statutes.
At San Francisco, February 12, 1873 (17 Stat. L., 435), section
3595, Revised Statutes.
At Chicago, March 3, 1873 (17 Stat. L.? 543), section 3595,
Revised Statutes.
At Carson City, March 3, 1863 (12 Stat. L., 770). The duties
to be performed by the superintendent of the mint.
At Boise City, February 19, 1869 (15 Stat. L., 270). The
duties to be performed by the superintendent of the mint.

bonds.

138

NATIONAL MONETARY COMMISSION.
The act of June 8, 1878 (20 Stat. L., 102), empowered the Secretary of the Treasury to constitute any superintendent of a mint
or assayer of an assay office an assistant treasurer of the United
States to receive gold coin and bullion for the purposes provided
for in section 254, Revised Statutes.

urer? eaSfstant ^EC. ^. ^nd be it further enacted. That the treasurer
other11 oefficIrs o f t h e United States, the treasurer of the mint of the
todynoftbpeuwfc United States, the treasurers, and those acting as such, of
qu?redetoSkeep ^ i e va ^ious branch mints, all collectors of the customs, all
Iy? etc?, ane<i surveyors of the customs acting also as collectors, all
pro^ptfy a to assistant treasurers, all receivers of public moneys at the
m^n t ^ a n ^ several land offices, all postmasters, and all public officers
require? to abe °^ whatsoever character, be, and they are hereby, required
made, etc.
^0 fceep safely, without loaning, using, depositing in
banks, or exchanging 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 same as
directed, and to do and perform all other duties as fiscal
agents of the government which may be imposed by this
or any other acts of Congress, or by any regulation of the
TO act as pen- treasury department made in conformity to law; and
also to do and perform all acts and duties required by
law, or by direction of any of the Executive departments
of the government, as agents for paying pensions, or for
making any other disbursements which either of the heads
of those departments may be required by law to make,
and which are of a character to be made by the depositaries hereby constituted, consistently with the other official duties imposed upon them.
(Sections 7 and 8 provide for the official bonds to be
given by the Treasurer of the United States, the treasurer
of the mint, the treasurer of the branch mint at New
Orleans, the assistant treasurers and other depositaries,
and for the renewal and increase of their bonds as occasion may require.
(Sections 9 to 12 repeat without material change the
provisions of sections 9 to 13 of the act of July 4, 1840,
substituting, however, the assistant treasurers for the
receivers-general provided for by that act.
(Section 13 authorizes the necessary expenses for clerks,
vaults, etc.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

139

(By section 14 the Secretary of the Treasury is authorized to transfer, at his discretion, balances remaining with
any of the present depositaries to any other of them, and
also to draw upon such balances in making payments as
he may find advisable, but is not to transfer such balances
to the depositaries constituted by this act before January
1, 1847.)
SEC. 15. And be it further enacted. That all marshals,. Payments to
,.

,,.

'the United

district attorneys, and others having public money to states and for
pay to the United States, and all patentees wishing to whom to' be
make payment for patents to be issued, may pay all such
moneys to the treasurer of the United States, to the
treasurer of either of the mints in Philadelphia or New
Orleans, to either of the other assistant treasurers, or to
such other depositary constituted by this act as shall be
designated by the Secretary of the Treasury in other
parts of the United States to receive such payments, and
give receipts or certificates of deposit therefor.
(Section 16 requires all officers intrusted with public
moneys, except those connected with the Posjt-Office Department, to keep an accurate account of all receipts and
payments; and if any such officer or any officer of the
Post-Office Department shall convert to his own use, or
use by investment, or loan, or deposit in any bank, or exchange, except as herein allowed, any portion of the public
moneys intrusted to him, the act is to be deemed an embezzlement, and is declared to be felony; and any failure
to pay over or produce such moneys is to be taken as
prima facie evidence of such embezzlement.)
SEC. 17. And be it further enacted. That, until the U n t i l the
'

rooms, etc., di-

rooms, offices, vaults, and safes, directed by the first four rected to be
.
- i .
,
- i n
- i n i
Prepared by the
sections of this act to be constructed and rprepared for the first four sec~

tions of this

use of the treasurer of the United States, the treasurers act can be conof the mints at Philadelphia and New Orleans, and the ers to be procured.

assistant treasurers at New York, Boston, Charleston, and
St. Louis, can be constructed and prepared for use, it
shall be the duty of the Secretary of the Treasury to
procure suitable rooms for offices for those officers at
their respective locations, and to contract for such use of
vaults and safes as may be required for the safe-keeping
of the public moneys in the charge and custody of those
officers respectively, the expense to be paid by the United
States.
And whereas, by the thirtieth section of the act entitled " An act to regulate the collection of duties imposed
15712°—10
10

1789, ch. 5.

140

NATIONAL MONETARY COMMISSION.

by law on the tonnage of ships or vessels, and on goods,
wares, and merchandises, imported into the United
States," approved July thirty-one, seventeen hundred
and eighty-nine, it was provided that all fees and dues collected by virtue of that act should be received in gold and
1800,ch.55. silver coin only; and whereas, also, by the fifth section
of the act approved May ten, eighteen hundred, entitled
" An act to amend the act entitled ' An act providing
for the sale of the lands of the United States in the
Territory North-west of the Ohio, and above the mouth
of Kentucky River,'" it was provided that payment for
the said lands shall be made by all purchasers in specie,
or in evidences of the public debt; and whereas, experience has proved that said provisions ought to be revived
and enforced, according to the true and wise intent of
the constitution of the United States.
jgEC# jg# Be it further enacted, That on the first day
ja0n and after
ese et^Hccru- °^ J a n u a ry? *n the year one thousand eight hundred and
shin0 bee Uald *orty-seven, and thereafter, all duties, taxes, sales of pub^wl^coiif n d ^ c lands> debts, and sums of money accruing or becomin treasury i n g (Jue to the 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 the United
Monthly pub- States: Provided, That the Secretary of the Treasury
shall 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,
on and after SEC. 19. And he it further enacted, That on the first
an payments day of April, one thousand eight hundred and fortyto be made in

•f

«?

, .

gold and silver seven, and thereafter, every officer or agent engaged m
Treasury notes, making disbursements on account of the United States,
agrees to re- or of the general post-office, shall make all payments in
em. ^ ^ ^^^ silver coin, or in treasury notes, if the creditor
violations of agree to receive .said notes in payment; and any receiving
preceding sector disbursing officer or agent who shall neglect, evade,
ported to the or violate, the provisions of this and the last preceding
tor^congress.n section of this act, shall, by the Secretary of the Treasury, be immediately reported to the President of the
United States, with the facts of such neglect, evasion, or
violation; and also to Congress, if in session; and if not
in session, at the commencement of its session next after
the violation takes place,

LAWS CONCERNING MONEY, BANKING, AND LOANS.

141

(Section 20 forbids any disbursing officer to make any
exchange of funds other than an exchange for gold and
silver, and requires every such officer, when the means of
disbursement are furnished to him in gold and silver, to
make his payments in the same; and when the means are
furnished in drafts to make his payments in the money
received therefor, unless he can exchange the means in
his hands for gold and silver at par. But disbursing
officers having credits in the banks may be allowed until
January 1, 1847, to check on the same, allowing the public creditors to receive their pay from the banks either in
specie or in bank notes.
(Section 21 makes it the duty of the Secretary of the
Treasury to make regulations prescribing the time within
which drafts on the depositaries shall be presented for
payment, but requires him " to guard, as far as may be,
against those drafts being used or thrown into circulation
as a paper currency or medium of exchange." And no
officer shall sell, for a premium, any Treasury note, draft,
warrant, or other public security, not his private property,
or sell the proceeds of any such note or security in his
hands for disbursement, without charging such premium
in his accounts to the credit of the United States, under
penalty of dismissal.
(Section 22 provides for salaries of assistant treasurers;
additional compensation for treasurers of the mint and
branch mints, and that no officer shall charge or receive
any commission, etc., for official services under pain of
fine or imprisonment.
(Section 23 makes an appropriation to carry this act
into effect.)
SEC. 24. And be it further enacted, That all acts, or Conflicting
parts of acts, which come in conflict with the provisions a c S r e p e a
of this act be, and the same are hereby, repealed.
Approved, August 6, 1846.
A C T O F A U G U S T 10, 1846.
CHAP. C L X X X . — A n act to provide for the Payment of
the Evidences of public Debt in certain Gases.
Be it enacted by the Senate and House of Representor
tives of the United States of America in Congress assembled^ That whenever it shall appear, to the satisfaction of the Secretary of the Treasury, upon due proof

9 stat. L.,

142

NATIONAL MONETARY COMMISSION.

secretary of taken in the manner hereinafter directed, that any treasTreasury to re-

notes ^wlfTclur^ no*e? w ^ich has been, before the passage of this act,
h
toiene and6 eut rece ^ ve( ^ o r redeemed by any authorized officer of the govtion ° ndirnUlat e r n m e n ^ j ^ a s ^ e e n subsequently purloined or stolen, and
cancelled.
p U t into circulation, without having upon it any evidence
or marks of having been cancelled, and has been received
by any person or institution, for a full consideration, in
the usual course of business, without notice or knowledge
of the same having been redeemed or received as aforesaid, or having been cancelled, or having been purloined
or stolen as aforesaid, and without any circumstances
existing to create suspicion of the good faith or due caution with which the same may have been received by
such person or institution, he shall be, and hereby is,
authorized to cause the amount of such note to be paid
to the innocent holder thereof, out of any money in the
Proviso as to treasury not otherwise appropriated: Provided, That the
nature of evl-

r r

-,-, \

dence required facts upon which any such payment shall be made
to prove t h e

facts.

shall be proved by the oath or affirmation of a credible
witness or witnesses, taken before any judge of the United
States, or of the highest court of record, or of the presiding judge of any court, exercising unlimited jurisdiction in amount, of any State, Territory, or district, and
of the taking of which testimony due notice shall previously be given to the district attorney of the United
States for the district in which such testimony is taken,
wTho shall be at liberty to appear and propound questions
to such witnesses; all which evidence shall be transmitted
to the Secretary of the Treasury, and preserved in his
i FatlseD|we|Jldepartment; and all wilful false swearing upon such
jury.
examination shall be and hereby is declared to be perjury,
and liable to the punishment for that offence prescribed
by the laws of the United States: And provided further,
be submitted to That a statement of all treasury notes paid under the proCongress.
visions of this act, within the preceding year, shall be
submitted to Congress with the annual report of the Secretary of the Treasury in relation to the finances.
officers and gEC# 2. And he it further enacted, That when any officer
agentsof

w^^ha^^r or a S e n ^ °^ th e United States, duly authorized to receive,
sucn notes ivto re deem, o r cancel, any treasury notes issued by authority
with e thVip 0 ^ * a w ' k a s received, or shall receive, or has paid, or shall
amount.
p a y ? a ny treasury note which had been previously received or redeemed by any officer or agent having authority to receive or redeem such note, and which had subsequently thereto been purloined and put into circulation,

LAWS CONCERNING MONEY, BANKING, AND LOANS.

143

the Secretary of the Treasury, upon full and satisfactory
proof that the same had been received or paid in good
faith, and in the exercise of ordinary prudence, may allow
a credit for the amount of such note to the officer or agent
so receiving or paying the same; and all credits which t0 C De di s\Tc*
have, before the passage of this act, been allowed in such t i o n e d cases, and under such circumstances, are hereby sanctioned.
SEC. 3. And be it further enacted. That all acts and Repeal of
'

a c t s supplied

parts of acts heretofore enacted, which are supplied by by this act if
r

not

l i i

acted on;

this act, so far as the same may not have been acted on £* acted o^n,
are hereby repealed, and so far as they may have been confirmed,
acted on, they are ratified and confirmed.
Approved, August 10, 1846.
ACT O F J A N U A E Y 28, 1847.
CHAP. V.—An act authorizing the issue of Treasury notes,
a loan, and for other purposes.

| stat. L.,

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the President of the United States is hereby Twenty-three
7

million dollars

authorized to cause Treasury notes, for such sum or sums ° *
.

notes

Treasury
author-

as the exigencies of the Government may require, but not ize<*.
exceeding, in the whole amount of notes issued, the sum
of twenty-three millions of dollars, and of denominations
not less than fifty dollars for any one note, to be prepared,
signed, and issued, in the manner hereinafter provided.
SEC. 2. And be it further enacted, That the said Treas- a i ^ h e n t 0 be
ury notes authorized to be issued by the first section of
this act, shall be reimbursed and redeemed by the United
States, at the Treasury thereof, after the expiration of
one year or two years from the dates of the said notes
respectively; from which said dates they shall bear such tere*£te of In"
interest, until they shall be respectively redeemed, as
shall be expressed upon the face of the said notes; which
rate of interest upon each several issue of the said notes
shall be fixed by the Secretary of the Treasury, by and
with the advice and approbation of the President; but
shall in no case exceed the rate of interest of six per
centum per annum: Provided, That after the maturity interest to
0

0 ii

•i

• i

cease

sixty

ox any of the said notes, such interest shall cease at the days after
expiration of sixty days' notice, to be given at any time

144

NATIONAL MONETARY COMMISSION.

by the Secretary of the Treasury, in one or more of the
principal papers published at the seat of Government,
of a readiness to redeem the same. The reimbursement
herein provided for shall be made at the Treasury of the
United States to the holders of the said notes respectively,
upon presentment, and shall include the principal of each
note, and the interest which may be due thereon at the
time of payment. For this reimbursement, at the time
and times herein specified, the faith of the United States
is hereby solemnly pledged.
(Section 3, providing for the signing of notes, follows
#
closely the language of section 3 of the act of October
12,1837.)
a
sue<? to credit"- ®EC' *• ^n^ ^e ^ fUT^iev exacted, That the Secretary
ors.
of the Treasury is hereby authorized, with the approbation of the President of the United States, to cause to be
issued such portion of the said Treasury notes as the
President may think expedient in payment of debts due
by the United States, to such public creditors, or other
persons, as may choose to receive such notes in payment,
May b e as aforesaid, at par. And the Secretary of the Treasury
is further authorized, with the approbation of the President of the United States, to borrow from time to time
such sums as the President may think expedient on the
But not for credit of such notes: Provided, however. That no Treasury notes shall be pledged, hypothecated, sold, or disposed of in any wise for any purpose whatever, directly
or indirectly, for any sum less than the amount of such
notes, including the principal and interest thereon when
disposed of.
ferabir trans " ^EC# ^' ^n^ ^e ^ further enacted, That the said Treas. ury notes shall be transferable, by delivery and assignment endorsed thereon, by the person to whose order the
same shall on the face thereof have been made payable.
To be re- gEC# 6# And he it further enacted. That the said TreasIAQQ T O f t T l

D&.1*

ceivable for all

public dues.

'
U ry

notes shall be received m payment of all duties and
taxes laid by the authority of the United States, of all
public lands sold by the said authority, and of all debts
to the United States of any character whatsoever, which
may be due and payable at the time when said Treasury
notes may be so offered in payment; and on every such
payment credit shall be given for the amount of the principal and interest which, on the day of such payment,
may be due on the note or notes thus given in payment.

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

145

SEC. 7. And be it further enacted, That every collector, a S2eiptySeSe
receiver of public moneys, or other officer or agent of the taken»
United States, shall, on the receipt of any Treasury notes
in payment for the Government, take from the holder
thereof a receipt on the back of each of said notes, stating
distinctly the date, and the amount received; and shall
keep, according to such forms as shall be prescribed by
the Secretary of the Treasury, entries of whom r e c e i v e d , j j ^ entry
the number, date, and respective amounts of principal and
interest of each and every Treasury note thus received;
and on delivering the same to the Treasury shall receive
credit for the amount paid as prescribed by the last section : Provided, No error shall appear.
(Sections 8 to 10, providing for the reimbursement or
purchase of the notes, and for the punishment of counterfeiting and the like offenses, follow the language of sections 9 to 11 of the act of October 12,1837.
(Section 11, authorizing the Secretary of the Treasury
to make rules for the safe-keeping, return, and canceling
of notes received by any officers for the United States, is
nearly identical with section 12 of the same act, but
omits the provision forbidding the reissue of notes.)
SEC. 12. And be it further enacted, That, in lieu of the Reissue,
notes authorized by this act which may be redeemed, other
notes may be issued: Provided, however, The amount of x A m o u n t *5?t
J

to exceed $23,-

such notes outstanding, together with the stock issued by 000,000.
virtue of the thirteenth and sixteenth sections of this act,
shall not exceed the sum of twenty-three millions of
dollars.
SEC. 13. And be it further enacted, That it shall be law- May be conful for the holders of the aforesaid Treasury notes to stock.
present them, at any time, to the Treasury of the United
States, or to any assistant treasurer, or to such collectors
of the customs and receivers of public moneys as may be
designated by the Secretary of the Treasury; and the
holders of the said Treasury notes shall be entitled to
receive therefor the amount of the principal of the said
notes in a certificate or certificates of funded stock, bearing interest at six per centum per annum, from the date
of such presentment of said Treasury notes, and for the
interest, shall be paid in money; and the stock thus to be
issued shall be transferable on the books of the Treasury:
Provided, however, and be it further enacted, That it^reimbursableen
shall be lawful for the United States to reimburse the

146

NATIONAL MONETARY COMMISSION.

stock thus created, at any time after the last day of December, one thousand eight hundred and sixty-seven,
same subject. gEC# 14. ^ ^ j e {t fUTther enacted, That it shall and
may be lawful for the holder of any Treasury notes issued,
or authorized to be issued, under this act or any laws
heretofore passed, to convert the same into certificates of
funded stock, upon the same terms and in the same manner hereinbefore provided in relation to the Treasury
notes authorized by the first section of this act.
c itct60£ 1e4x6- ®EC* !&• ^d be it further enacted, That the authority
tended.
to issue Treasury notes authorized by the "Act authorizing an issue of Treasury notes and a loan," approved
July twenty-second, one thousand eight hundred and
forty-six, be and the same is hereby, extended to the same
period fixed for the Treasury notes authorized by this act,
and upon the same terms and conditions herein specified:
Provided, That the Treasury notes authorized by this
section shall not exceed five million of dollars.
(Sections 16 to 18 authorize the President, in lieu of
Treasury notes, to issue stock of the United States, bearing interest at a rate not exceeding six per cent, and redeemable after December 31, 1867, provided, that the
whole amount of Treasury notes and of stock together
shall not exceed twenty-three millions of dollars, and
" Provided further, That no stock shall be issued at a less
rate than par.")
Proceeds o f SEC. 19. And be it further enacted, That for the paypublic l a n d s
T I - I
,
,
T
i
.
P i e d ged for ment of the stock which may be created under the proviredemption.

sions of this act the sales of the public lands are hereby
pledged, and it is hereby made the duty of the Secretary
of the Treasury to use and apply all moneys which may
be received into the Treasury for the sales of the public
lands after the first day of January, eighteen hundred and
forty-eight, first, to pay the interest on all stocks issued
by virtue of this act; and, secondly, to use the balance of
said receipts, after paying the interest aforesaid, in the
purchase of said stocks at their market value: Provided,
No more than par shall be paid for said stocks.
(The proviso to section 19 was repealed by section 3 of
the act of March 3, 1849 (9 Stat. L., 369).
(Section 20 makes an appropriation for preparing and
issuing said notes and stock.)

LAWS CONCERNING MONEY, BANKING, AND LOANS.

147

SEC. 21. And be it further enacted, That it shall be, and g u ^ 0U Sr irehereby is, made the duty of the Secretary of the Treasury p^^fj l\£%
to cause a statement to be published monthly of themonthlyamount of all Treasury notes issued or redeemed in pursuance of the provisions of this act; and that the power
to issue Treasury notes conferred on the President of the
United States by this act shall cease and determine six
months after the exchange and ratification of a treaty of
peace with the Eepublic of Mexico.
SEC. 22. And be it further enacted, That it shall be the c *ne/r0eU £t
duty of the Secretary of the Treasury to report to Con-each sessiongress at the commencement of each session the amount of
Treasury notes which have been issued under the provisions of this act, the amount redeemed, and the manner
in which redeemed, the amount purchased and of whom,
and at what time purchased, and the amount reissued,
stating in lieu of which redemption they are reissued,
with the date of such reissue, during the preceding year.
Approved, January 28, 1847.
ACT OF FEBRUARY 9, 1847.
CHAP.

VII.—An act to provide for the payment of any 1 2 |
interest, falling due, on the public debt.

stat

Be it enacted by the Senate and House of Representor in^l^e^f £ |
tives of the United States of America in Congress assem- Public d e b t
bled, That the Secretary of the Treasury be, and he is
hereby, authorized and directed to cause to be paid, out
of any money in the Treasury not otherwise appropriated,
any interest falling due, or accruing on, any portion of
the public debt authorized by law.
Approved, February 9, 1847.
ACT OF MARCH 31, 1848.
CHAP.

XXVI.—An act to authorize a loan not to exceed 2 1 |
the sum of sixteen millions of dollars.

(Section 1 authorizes the President to borrow on the
credit of the United States, within one year from the
passage of this act, a sum not exceeding sixteen millions
of dollars, at a rate of interest not exceeding six per cent,
and reimbursable at any time after twenty years from
July 1,1848.)

stat

148

KATI0NAL MONETARY COMMISSION.

of ^tock^0^68

^EC. 2. And be it further enacted, That the Secretary
of the Treasury be, and he is hereby authorized, with the
consent of the President of the United States, to cause to
be prepared certificates of stock, which ^hall be signed by
the Kegister of the Treasury, and sealed with the seal of
the Treasury Department, for the sum to be borrowed as
aforesaid, or any part thereof, bearing an interest not to
exceed six per centum per annum, and transferable and
reimbursable as aforesaid, and to cause said certificates of
How sold, stock to be sold: Provided, That no part of said stock be
interei£°ns f o r s °ld below par: And provided, also, That, whenever required so to do, the Secretary of the Treasury shall cause
to be attached to any certificate or certificates to be issued
under this act, coupons of interest; and any certificate
having such coupons of interest attached to it, may be
certificates transferable by delivery of the certificate, instead of betransferable by.

•*

1 1 1

<• 1

delivery.

mg assignable on the books of the Treasury; but no certificate of stock shall be issued for a less amount than
fifty dollars.
(By section 3 the Secretary of the Treasury is directed,
before disposing of this stock, to advertise for sealed proposals, to be handed in after not less than twenty nor
more than sixty days, and in the advertisement to state
the amount required and the conditions fixed for its payment into the Treasury.
(Section 4 pledges the faith of the United States for
the provision of sufficient revenues to secure the payment
of the interest and redemption of the principal.)
Purchase of SEC. 5. And be it further enacted, That the Secretary

stock

when

there are sur-of the Treasury be, and he is hereby, authorized to purthe Treasury, chase, at any time before the period herein limited for
the redemption of the stock hereby created, such portion
thereof at the market price, not below par, as the funds
of the Government may admit of, after meeting all the
demands on the Treasury; and any surplus that hereafter
may be in the Treasury is hereby appropriated to that
object.
(Section 6 provides for a report to be made to Congress of all transactions under this act, in language identical with that of section 6 of the act of April 15, 1842.)
Approved, March 31, 1848.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

149

ACT OF SEPTEMBER 9, 1850.
XLIX.—An act proposing to the State of Texas the g stat. L.,
establishment of her northern and western boundaries,
the relinquishment by the said State of all territory
claimed by her exterior to said boundaries, and of all
her claims upon the United States, and to establish a
territorial government for New Mexico.

CHAP.

SECTION 1. Clause fourth. The United States, in con- _o ITen
million
•
•T
i T i
0j
i
•
* « I a r s in stock
sideration of said establishment of boundaries, cession of bearing 5 per
•

.»,

cent interest to

claim to territory, and relinquishment of claims, will pay ggpaw to Texas
to the State of Texas the sum of ten millions of dollars
in a stock bearing five per cent, interest, and redeemable
at the end of fourteen years, the interest payable halfyearly at the Treasury of the United States.
Fifth. Immediately after the President of the United, stock to be
o.

•

issued

when

States shall have been furnished with an authentic copyjexas snail
nave

accepted

of the act of the general assembly of Texas accepting these proposithese propositions, he shall cause the stock to be isued ingresident of
101
rry
• t -, i»
* -, i*
United
States
favor of1 .the
State oft> Texas,
as provided
for m
the fourth notified
thereof.
Proviso.
article of this agreement: Provided, also, That no more
than five millions of said stock shall be issued until the
creditors of the State holding bonds and other certificates
of stock of Texas for which duties on imports were specially pledged, shall first file at the Treasury of the United
States releases of all claim against the United States
for or on account of said bonds or certificates in such
form as shall be prescribed by the Secretary of the Treasury and approved by the President of the United States:
Approved, September 9, 1850.
ACT OF AUGUST 31, 1852.
CVIII.—An act making appropriations for the io stat. L.,
civil and diplomatic expenses of the Government for
the year ending the thirtieth of June, eighteen hundred and fifty-three, and for other purposes.

CHAP.

SEC. 10. And be it further enacted, That where any unexpended
'.

_ \

* appropriations,

moneys shall have remained unexpended upon any appro-when to becarpriations by law, other than for the payment of interest plus fund."
on the funded debt, or the payment of interest and reim

150

KATIONAL MONETAEY COMMISSION.

bursement according to contract of any loan or loans
made on account of the United States, as likewise moneys
appropriated for a purpose in respect to which a larger
duration is specially assigned by law, for more than two
years, after the expiration of the fiscal year in which the
act shall have been passed, all and any such appropriations shall be deemed to have ceased and been determined,
and the moneys so unexpended shall be immediately thereafter carried, under the direction of the Secretary of the
Treasury, to the account on the books of the Treasury
denomianted the " surplus fund," to remain like other unsurpius fund appropriated moneys in the Treasury, and it shall not
piled to other be lawful,
for any cause or pretence whatsoever, to transpurposes.
.
fer, withdraw, apply, or use for any purpose whatever^
any moneys carried as aforesaid to the surplus fund without further and specific appropriations by law.
*

•

Approved, August 31, 1852.
ACT OF MAECH 2, 1853.
10 stat.

LXXXIX.—An act to provide compensation to
such persons as may he designated by the Secretary of
the Treasury to receive and keep the public money,
under the fifteenth section of the act of sixth August,
1846, ch. 90. eighteen hundred and forty-six, for the additional
services required under that act.
L., CHAP.

(Provides compensation for designated depositaries
for payments received by them from miscellaneous
sources other than the transaction of the respective offices
for which they were commissioned.)
Approved, March 2, 1853.
ACT OF MARCH 3, 1853.
IO

stat. L., CHAP.
civil
year
and

Purchase of
United

stock.

States

XCVII.—An act making appropriations for the
and diplomatic expenses of Government for the
ending the thirtieth of June, eighteen hundred
fifty-four.

*
*
*
*
*
SEC. 9. And be it further enacted, That the Secretary
„ ,

-i i

• i

, ,

of the Treasury be and he is hereby authorized to purchase at the current market price any of the outstanding
stocks of the United States as he may think most advis-

LAWS CONCERNING MONEY, BANKING, AND LOANS*

151

able, from any surplus funds in the Treasury: Pro- Proviso.
vided, That the balance in the Treasury shall not at
any time be reduced below six millions of dollars.
3fS

3|5

Sj%

3|5

Approved, March 3, 1853.
A C T O F M A E C H 3, 1857.
CHAP. C X I V . — A n act to amend an act entitled "An act

n stat. L.,
249

to provide for the better organization of the Treasury, i846, en. 90.
and for the collection, safe-keeping, transfer, and dis-m. °* ' p*
bursement of the public revenue"
(Section 1 requires disbursing officers or agents to
deposit moneys intrusted to them with the Treasurer,
or one of the assistant treasurers, or public depositaries,
etc.)
SEC. 2. And be it further enacted, That the Treasurer Custody o f
of the United States, assistant treasurers, and public s u c h d e p o s ts*
depositaries, shall safely keep all moneys deposited by
any disbursing officer or disbursing agent of the United
States, as well as any moneys deposited by any receiver,
collector, or other person which shall be the moneys of
or due or owing to the United States, and for a failure
so to do shall be held guilty of the crime of embezzlement of said moneys, and subject to the punishment penalty,
provided for embezzlement in the act to which this is
an amendment.
(Section 3 requires all persons having moneys of the
United States to deposit the sum with the Treasurer, an
assistant treasurer, or a public depository, etc., and provides a penalty for failure to comply with the law.)
Approved, March 3,1857.
A C T O F D E C E M B E E 23,1857.
CHAP. I.—An act to authorize the issue of Treasury notes.

stat. L.,

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the President of the United States is hereby issue of not
ji
.
, j_
™
,
o
i
$20,000,authorized to cause Ireasury notes tor such sum or sums ooo authorized
over

<, ,,

,,."

denomina-

as the exigencies or the public service may require, but not tions of not
,

f e

, ,

.less than $100

to exceed, at any time, the amount of twenty millions of each,
dollars, and of denominations not less than one hundred

152

NATIONAL MONETARY COMMISSION.

dollars for any such note, to be prepared, signed, and
issued in the manner hereinafter provided.
How, when, SEC. 2. And be it further enacted, That such Treasury
whom issued, notes shall be paid and redeemed by the United States at
deemed.
the Treasury thereof after the expiration of one year
from the dates of said notes, from which dates, until they
shall be respectively paid and redeemed, they shall bear
such rate of interest as shall be expressed in said notes,
not^to* exceed w ^ ^ r a * e °^ ^ n ^ e r e s ^ upon the first issue, which shall not
$6,000,000.
exceed six millions of dollars of such notes shall be fixed
by the Secretary of the Treasury, with the approbation
Rate of in-of the President, but shall in no case exceed the rate of
terest not over
6

Rei\Sent*u

Residue, how .

i x P e r centum per annum.
,

•

The residue shall be issued
iT

-i

•

issued.

m whole or m part, after public advertisement of not less
than thirty days, as the Secretary of the Treasury may
direct, by exchanging them at their p a r value for specie
to the bidder or bidders who shall agree to make such exchange at the lowest rate of interest, not exceeding six
Proviso.
per centum, upon the said notes: Provided, That after
when torcease! the maturity of any of said notes, interest thereon shall
cease at the expiration of sixty days' notice of readiness
to pay and redeem the same, which may at any time or
times be given by the Secretary of the Treasury in one or
more newspapers published at the seat of Government.
The payment or redemption of said notes herein provided
shall be made to the lawful holders thereof, respectively,
upon presentment at the Treasury, and shall include the
principal of each note and the interest which shall be due
Faith of the thereon. And for such payment and redemption, at the
pledged for time or times herein specified, the faith of the United
their

redemp-

"on.

States is hereby solemnly pledged.
(Section 3 provided for the signing of the notes, and
the accounts to be kept of their preparation, redemption,
and cancellation.
(Sections 4 to 7, providing for the issue, transfer, receipt, and payment of the notes, follow the language of
sections 4 to 7 of the act of January 28,1847.
(Section 8 authorizes the establishment of-rules for the
custody and disposal of notes received; and section 9
makes the same provision for the redemption of the notes
at maturity and their purchase at any time as section 8
of the act of October 12,1837.)
*
*
*
*
#
sued^in^iace ^ EC * 1 0 # ^n^ ^e *' further enacted, That, in place of
deemed°se r e " s u c ^ Treasury notes as may have been paid and redeemed,

LAWS CONCERNING MONEY, BANKING, AND LOANS.

153

other Treasury notes to the same amount may be issued:
Provided, That the aggregate sum outstanding, under the sta ^§i*j a \x°^
authority of this act, shall at no time exceed twenty mil- S|ge0(J§ $§eed
lions of dollars: And provided further, That the power to Not to be isissue and reissue Treasury notes, conferred on the Presi- *> 1859.
dent of the United States by this act, shall cease and determine on the first day of January, eighteen hundred
and fifty-nine.
*

(Sections 12 and 13 provide for the punishment of
counterfeiting and of the like offenses; and section 14
requires the publication of a monthly statement of the
amount of Treasury notes issued, paid, redeemed, and
outstanding under this act.)
*
Approved, December 23, 1857.
A C T O F J U N E 14, 1858.
CHAP.

CLXV.—An act to authorize a loan not exceedingg^1
the sum of twenty millions of dollars.

stat

- L»

(Section 1 empowers the President to borrow on the
credit of the United States, within one year from the
passage of this act, a sum not exceeding twenty millions
of dollars, provided that the loan thus made shall be
reimbursable at any time after fifteen years from January
1, 1859.)
SEC. 2. And be it further enacted, That stock shall be ^ stock issued
i

therefor shall

issued for the amount so borrowed, bearing interest not bear not over
7

. 5 per cent in-

exceedmg five per centum per annum, payable semi-terest, payable
annually, with coupons for the semi-annual interest at-with coupons.'
tached to the certificates of stock thus created, and the
Secretary of the Treasury be, and hereby is, authorized,
with the consent of the President, to cause certificates of certificates,
stock to be prepared, which shall be signed by the Regis- and signed, and
ter, and sealed with the seal of the Treasury Department,
for the amount so borrowed in favor of the parties lending the same, or their assigns, Provided, That no certificate shall be issued for a less sum than one thousand
dollars.
(By section 3 the Secretary of the Treasury is required
before awarding the loan to advertise that sealed proposals for the stock will be received until a date not less
than thirty days distant, and to " accept the most favorable proposals offered by responsible bidders; " and he is
also required to report to Congress, at its next session, all

154

NATIONAL MONETARY COMMISSION.

transactions under this act, "Provided, That no stock shall
be disposed of at less than its par value.")
unTtaedb states' S E C * 4* And ie if) further enacted, That the faith of the
P ed
a mentfor lts United States is hereby pledged for the due payment of
the interest and the redemption of the principal of said
stock.
(Section 5 appropriates for the expenses of preparing
said certificates of stock, etc.)
Approved, June 14, 1858.
ACT OF MAECH 3, 1859.
4251

Stat

LXXXII.—An act making appropriations for
sundry civil expenses of the Government for the year
ending the thirtieth of June, eighteen hundred and
sixty.

"CHAP.

lsst^and^reis^ ^ E 0 , **• An<^ ^e ^ further enacted, That the power to
s ue Treasury issue and reissue Treasury
notes, conferred on the PresiJ
notes under act

i857DexCtenle8dc'ent °^ ^ e United States, by the act entitled "An act to
to July 1^860. authorize the issue of Treasury notes," approved the
twenty-third December, eighteen hundred and fifty-seven,
be, and the same hereby is, revived and continued in force
from the passage of this act until the first day of July
Expenses eighteen hundred and sixty; and to defray the expenses
Proviso.
thereof the sum of five thousand dollars is hereby appropriated: Provided, That the said notes may be issued
bearing an interest not exceeding six per centum per annum ; and that it shall not be necessary, as directed by the
original act, aforesaid, after advertisement to exchange
them for specie to the bidder or bidders who shall agree
to make such exchange at the lowest rate of interest upon
said notes; and that in all other respects the reissue of
said Treasury notes shall be subject to the terms and
conditions of the act aforesaid,
c o u p o n or jgEC# 6. And he it farther enacted, That the Secretary of
stock may be the Treasury is hereby authorized, under the act of June
1858, en. 165. fourteenth, eighteen hundred and fifty-eight, to issue
coupon or registered stock, as the purchaser may elect.
Approved, March 3, 1859.

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

155

ACT OF JUNE 22, 1860.
CHAP.

CLXXX.—An act authorizing a loan providing
for the redemption of Treasury notes.

12 stat
79

- L»»

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled^ That the President of the United States be, and
hereby is, authorized, at any time within twelve months
from the passage of this act, to borrow, on the credit of
the United States, a sum not exceeding twenty-one mil- mini^n dollars
lions of dollars, or so much thereof as, in his opinion, f^ed \ 0 b0£
the exigencies of the public service may require, to be ^ ^ ^tc.asury
used in the redemption of Treasury notes now outstanding and to replace in the Treasury any amount of said
notes which shall have been paid and received for public
dues, and for no other purposes.
SEC. 2. And be it further enacted. That stock shall be, stock to be
issued for the amount so borrowed, bearing interest, not est of not over
,.

6 per cent.

exceeding six per centum per annum, and to be reim- certificates,
bursed within a period not beyond twenty years and not
less than ten years; and the Secretary of the Treasury
be, and is hereby authorized, with the consent of the
President, to cause certificates of stock to be prepared,
which shall be signed by the Eegister, and sealed with
the seal of the Treasury Department, for the amount so
borrowed, in favor of the parties lending the same, or
their assigns, which certificates may be transferred on
the books of the Treasury, under such regulations as may
be established by the Secretary of the Treasury; Provided, That no certificate shall be issued for a less sum
than one thousand dollars; And provided also, That,ofTobeJ^sums
whenever required, the Secretary of the Treasury may ^ { ^ coupons
cause coupons of semiannual interest payable thereon to when rcw1*™^
be attached to certificates issued under this act; and any thereof.
certificate with such coupons of interest attached may be
assigned and transferred by delivery of the same, instead
of being transferred on the books of the Treasury.
(Section 3 provides for sealed proposals, and the acceptance of the most favorable, and for a report of all
transactions to Congress, as in section 3 of the act of
June 14, 1858: "Provided, That no stock shall be disposed of at less than its par value.")
15712°—10

156

NATIONAL MONETARY COMMISSION.

united1 sftates S E C - 4 - And he it; further
enacted, That the faith of the
pledged.
United States is hereby pledged for the due payment of
the interest and the redemption of the principal of said
stock.
Approved, J u n e 22,1860.
A C T O F D E C E M B E R 17,1860.
12 stat. L., CHAP. I.—An act to authorize the issue of
notes, and for other purposes.

Treasury

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemnotilehowVtlWed, That the President of [the] United [States] be
amount,8 Vifd hereby authorized to cause Treasury notes, for such sum
denomination. o r s u m s a s the exigencies of the public service may require, but not to exceed at any time the amount of ten
millions of dollars, and of denominations not less than
fifty dollars for any such note, to be prepared, signed, and
issued in the manner hereinafter provided.
To be re- SEC. 2. And be it further enacted, That such Treasyear from their ury notes shall be paid and redeemed by the United States
at the Treasury thereof after the expiration of one year
from the date of issue of such notes; from which dates^
until they shall be respectively paid and redeemed, they
shall bear such rate of interest as shall be expressed in
such notes, which rate of interest shall be six per centum
Rate of in- per annum: Provided, That, after the maturity of any of
t erest

and

when interest said notes, interest thereon shall cease at the expiration
of sixty days' notice of readiness to redeem and pay the
same, which may at any time or times be given by the
Secretary of the Treasury in one or more newspapers at
who to re-the seat of government. The redemption and payment
ceive payment.

of said notes, herein provided, shall be made to the lawful holders thereof respectively upon presentment at the
Treasury, and shall include the principal of each note and
the interest which shall be due thereon. And for the payFaith of the ment and redemption of such notes at the time and times
pledged.
therein specified, the faith of the United States is hereby
solemnly pledged.
(Section 3 provides for the signing of the Treasury
notes and the accounts to be kept thereof.)
isiued^^pa? S E C - 4 - And he {t farther enacted, That the Secretary
cred?toraPUblic °f ^ i e Treasury is hereby authorized, with the approbation of the President, to cause such portion of said

LAWS CONCERNING MONEY, BANKING, AND LOANS.

Treasury notes as may be deemed expedient, to be issued
by the Treasurer in payment of warrants in favor of
public creditors, or other persons lawfully entitled to
payment, who may choose to receive such notes in payment at par; and the Secretary of the Treasury is hereby
authorized, with the approbation of the President, to
issue the notes hereby authorized to be issued, at such rate

157

Rate of interest on such

of interest as may be offered by the lowest responsible notes, how to
bidder or bidders who may agree to take the said notes
at par after public advertisement of not less than ten
days in such papers as the President may direct, the said
advertisement to propose to issue such notes at par to
those who may offer to take the same at the lowest rate
of interest. But in deciding upon those bids no fraction
shall be considered which may be less than one-fourth
per centum per annum.
(Sections 5 to 9, providing for the transfer, receipt,
custody, redemption, and cancellation of the notes, are
identical with sections 5 to 9 of the act of December 23,
1857.)
SEC. 10. And be it further enacted, That in place of New notes
such Treasury notes as may have been paid and redeemed,in place of
other Treasury notes to the same amount may be issued: ed.
Provided, That the aggregate sum outstanding under the But n o t a t
authority of this act shall at no time exceed the sum of S^io^oo*ten millions of dollars: And provided further, That the00Nor after
power to issue and reissue Treasury notes conferred byis63. u a r y lf
this act shall cease and determine on the first day of
January, in the year eighteen hundred and sixty-three.
(Sections 11, 12, and 13 make an appropriation for the
expenses of preparing and issuing said notes, provides
against forging, counterfeiting, engraving plates to print
forged notes, etc., and having in possession blank notes,
etc.
(Section 14 requires the publication of a monthly statement of the amount of notes issued, paid, redeemed, and
outstanding under this act, as in section 14 of the act
last mentioned.
(Section 15 requires that all money hereafter contracted for under the act of June 22, 1860, shall be used
for the redemption of treasury notes now outstanding or
to be issued.)
Approved, December 17,1860.

158

NATIONAL MONETAKY COMMISSION.

A C T O F F E B K U A R Y 8, 1861.
129.2

Stat

* L"

CHAP. X X I X . — A n act authorizing

a loan.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress asmillion ^dollar sembled) That the President of the United States be, and
Led nbe^ftor1e hereby is, authorized, at any time before the first day of
July I, i86i. j u | y n e x ^ to borrow, on the credit of the United States,
a sum not exceeding twenty-five millions of dollars, or
so much thereof as, in his opinion, the exigencies of the
public service may require, to be used in the payment of
Purpose o fthe current demands upon the Treasury and for the reoan
*
demption of Treasury notes now outstanding, and to replace in the Treasury any amount of said notes which
shall have been paid and received for public dues.
(Section 2 provides that stock shall be issued, bearing
interest not exceeding six per cent, and " to be reimbursed
within a period not beyond twenty years and not less than
ten years," the stock being transferable on the books of
the Treasury, and no certificate being issued for less than
one thousand dollars.
(Section 3 provides for sealed proposals, to be received
for a period of not less than ten days, for the acceptance
of the most favorable offers made by responsible bidders,
and for a report of all transactions to Congress.)
b
unrted state? S E C ' 4* And i e ii} further
enacted, That the faith of the
pledged.
United States is hereby pledged for the due payment of
the interest and the redemption of the principal of said
stock.
(By section 5 the residue of the loan authorized by the
act of June 22,1860, is to be applied to the redemption of
Treasury notes issued under the act of December 17,
1860; and bonds authorized by said first-mentioned act
may be exchanged at par for said Treasury notes and
their accrued interest.
(Section 6 makes appropriation for expense of preparing said stock, etc.)
secretary of SEC. 7. And be it further enacted. That the Secretary
t h e Treasury

, ,

r T

i i

i i•

need not accept of the Treasury shall not be obliged to accept the most
bids unless etc

favorable bids as hereinbefore provided, unless he shall
consider it advantageous to the United States to do so,
but for any portion of such loan, not taken under the
first advertisement, he may advertise again at his discretion.
Approved, February 8, 1861.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

159

ACT OF MARCH 2, 1861.
LXVIII.—An act to provide for the payment 'of 12 stat. L.,
outstanding Treasury notes, to authorize a loan to regulate and fix the duties on imports, and for other
purposes.

CHAP.

Be it enacted by the Senate and House of Representa0

*•

President
may b o r r o w

tives of the United States of America in Congress as- within[twelve
'

m o n t h s not

sembled, That the President of the United States be, and over $10,000,hereby is, authorized, at any time within twelve months
from the passage of this act, to borrow, on the credit of
the United States, a sum not exceeding ten millions of
dollars, or so much thereof as, in his opinion, the exigencies of the public service may require, to be applied How to be
to the payment of appropriations made by law, and the
balance of Treasury notes now outstanding, and no other
purposes, in addition to the money received, or which
may be received, into the Treasury from other sources:
Provided, That no stipulation or contract shall be made
to prevent the United States from reimbursing any sum
borrowed under the authority of this act at any time after when to be
redeemed

the expiration of ten years from the first day of July
next, by the United States giving three months' notice,
to be published in some newspaper published at the seat
of Government, of their readiness to do so; and no contract shall be made to prevent the redemption of the same
at any time after the expiration of twenty years from
the said first day of July next, without notice.
(Section 2 provides for the issue of either registered
or coupon certificates as may be required, bearing interest
not exceeding six per cent, in language identical with that
of section 2 of the act of February 8, 1861, omitting,
however, any provision as to the time of reimbursement.
(Section 3 provides for sealed proposals, to be received
within a period of not less than thirty days, for the acceptance of the most favorable offers made by responsible
bidders, and for a report of all transactions to Congress:
"Provided, That no stock shall be disposed of at less than
its par value: And provided further, That no part of the
loan hereby authorized shall be applied to the service of
the present fiscal year.")
SEC. 4. And be it further enacted, That in case the pro- f0*f £anpos£re
posals made for said loan, or for so much thereof as the J® * saTreasexigencies of the public service shall require, shall not begJJMJJgJ may

160

NATIONAL MONETARY COMMISSION.

satisfactory, the President of the United States shall be,
and hereby is, authorized to decline to accept such offer
if for less than the par value of the bonds constituting
the said stock, and in lieu thereof, and to the extent and
amount of the loan authorized to be made by this act, to
issue Treasury notes for sums not less than fifty dollars,
bearing interest at the rate of six per centum per annum
payable semi-annually on the first days of January and
July in each year, at proper places of payment to be prescribed by the Secretary, with the approval of the President; and under the like circumstances and conditions,
the President of the United States is hereby authorized to
substitute Treasury notes of equal amount for the whole
or any part of any of the loans for which he is now by
Amount, law authorized to contract and issue bonds. And the
when payable,

etc.

Treasury notes so issued under the authority herein given
shall be received in payment for all debts due to the
United States when offered, and in like manner shall be
given in payment for any sum due from the United
States, when payment in that mode is requested by the
person to whom payment is to be made, or for their par
Faith of the value in coin. And the faith of the United States is
pledged,
hereby pledged for the due payment of the interest and
the redemption of the principal of the stock or Treasury
notes which may be issued under the authority of this act;
Appropria- and the sum of twenty thousand dollars is hereby appropenses.
priated, out of any money in the Treasury not otherwise
appropriated, to pay the expenses of preparing the certificates of stock or Treasury notes herein authorized, to be
done in the usual mode and under the restrictions as to
employment and payment of officers contained in the laws
authorizing former loans and issues of Treasury notes; and
May be ex- ft shall be at the option of holders of the Treasury notes
c h a n g e d for

bonds, etc.

•*

hereby authorized by this act, to exchange the same for
the stock herein authorized at par, or for bonds, in lieu
Proviso.
of which said Treasury notes were issued: Provided, That
no certificate shall be exchanged for Treasury notes, or
Notes not to bonds, in sums less than five hundred dollars: And probe issued after . ,
,
,
r*,,
,
, ..
.
.,
• -i m
June, 1862. vtded further, That the authority to issue the said Ireasury notes, or give the same in payment for debts due from
the United States, shall be limited to the thirtieth day of
Redemption. June, eighteen hundred and sixty-two; and that the
same may be redeemable at the pleasure of the United
States at any time within two years after the passage of

LAWS CONCERNING MONEY, BANKING, AND LOANS.

161

this act; and that said notes shall cease to bear interest interest.
after they shall have been called in by the Secretary of
the Treasury under the provisions of this act.
SEC. 31. And be it further enacted, That all acts and cla ^ e 3 *! ealing
parts of acts repugnant to the provisions of this act, be,
and the same are hereby, repealed.
*
*
*
#
*
Approved, March 2, 1861.
ACT OF MAECH 2, 1861.
LXX.—An act to provide for the payment of expenses incurred by the Territories of Washington and
Oregon, in the suppression of Indian hostilities therein, 198.
in the years eighteen hundred and fifty-five and eighteen hundred and fifty-six.

CHAP.

* "

SEC. 4. And be it further enacted, That for the payment
of claims provided for in this act, the Secretary of the
Treasury may, if he deem it expedient, issue to the claim-beB<jn^edmJ0;J
ants, or their legal representatives, bonds of the United theseacSms.of
States of a denomination not less than fifty dollars, redeemable in twenty years, and bearing interest at the rate
of six per cent, per annum, with coupons attached, and
payable annually or semi-annually at the discretion of the
Secretary of the Treasury.
Approved, March 2, 1861.
ACT OF JULY 17, 1861.
V.—An act to authorize a national loan, and for
other purposes.

CHAP.

12 stat.

L.,

Be it enacted"bythe Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury be, and he is jfl^reasur*
hereby, authorized to borrow on the credit of the United may , b ° Er 9 w
J

within twelve

States, within twelve months from the passage of t h i s m o n t b ? not
T

i /••

over $250,000,-

act, a sum not exceeding two hundred and fifty millions000of 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 couponor
such proportions of each as he may deem advisable; bonds or Treasthe bonds to bear interest not exceeding seven per centum be Issued \herl
per annum, payable semi-annually, irredeemable for

162

NATIONAL MONETARY COMMISSION.

redeemable*11611 * w e n t y years, and after that period redeemable at the
T r e a s u r y pleasure of the United States; and the Treasury notes to
notes, denomi- J-

nation, inter-be or any denomination fixed by the Secretary ox the
able.
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 centum per annum, payable semicertainTreas- annually. And the Secretary of the Treasury may also
ury notes m a y .

„

, « , i i

be issued inissue in exchange tor com, and as part of the above loan,
coin, etc.
or may pay for salaries or other dues from the United
utes, 3589.
States, Treasury 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 bearProviso.
ing interest as specified above: Provided, T h a t no exchange of such notes in any less amount than one hundred
Proviso.
dollars shall be made at any one time: And provided further, 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,
bo^d? anow ^EC. ^" ^n^ ^e ^ further enacted, That the Treasury
signed, etc. notes and bonds issued under the provisions of this act
shall be signed by the First or Second Comptroller, or
the Register of the Treasury, and countersigned by such
other officer or officers of the Treasury as the Secretary of
the Treasury may designate; and all such obligations, of
the denomination of fifty dollars and upwards, shall be
ferabicT t r a n s " i s s u e ( l under the seal of the Treasury Department. The
registered bonds shall be transferable on the books of the
Treasury on the delivery of the certificate, and the coupon
bonds and Treasury notes shall be transferable by delivery. The interest coupons may be signed by such person
or persons, or executed in such manner as may be designated by the Secretary of the Treasury, who shall fix the
compensation for the same.
(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.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

(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.)
SEC. 6. And he it further enacted. That whenever any

163

Treasury
notes

ii n d <* i*

Treasury notes of a denomination less than fifty dollars, $50 may be reauthorized to be issued by this act, shall have been re-December si,
1862

deemed, 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 amount of bonds Proviso,
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
thirty-first of December, eighteen hundred and sixty-two.
SEC. 7. And he it further enacted, That the Secretary n o teg e m | u r b ^
of the Treasury is hereby authorized, whenever he shall *s£u^* !£ exdeem it expedient, to issue in exchange for coin, or in coin» Repayment 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.
SEC. 8. And he it further enacted, That the Secretary of t £f r f$gl s ° r 1
the Treasury shall report to Congress, immediately after Jf n r e J > o r t t 0
the commencement of the next session, the amount he has
borrowed under the provisions of this act, of whom, and
on what terms, with an abstract of all the proposals, designating those that have been accepted and those that
have been rejected, and the amount of bonds or Treasury
notes that have been issued for the same.
SEC. 9. And he it further enacted, That the faith of the U n ^ h | f ta *^
United States is hereby solemnly pledged for the pay-P led s ed ment of the interest and redemption of the principal of
the loan authorized by this act.

164

NATIONAL MONETARY COMMISSION.

vis?onsai?f pa?t S E C - i a And he il farther enacted, That all the prorevive5!' ch* lf v i s i ° n s °t the a c t entitled "An act to authorize the issue
of Treasury notes," approved the twenty-third day of
December, eighteen hundred and fifty-seven, so far as the
same can or may be applied to the provisions of this act,
and not inconsistent therewith, are hereby revived or reenacted.
(Section 11 makes an appropriation to defray the expenses attending this act.)
Approved, July 17, 1861.
ACT O F A U G U S T 5,1861.
3132

Stat

* L '' CHAP. X L V I . — A n act supplementary to an act entitled
"An act to authorize a national loan, and for 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.)
T r e a s u r y SEC. 2. And be it further enacted. That the Treasury
notes, how exe-

cuted.

- i - i - i

••

* -i

• n

notes issued under the provisions of the said act to authorize a national loan, and for other purposes, or of any
other act now in force authorizing the issue of such notes,
shall be signed by the Treasurer of the United States,
or by some officer of the Treasury Department, designated
by the Secretary of the Treasury, for said Treasurer, and
countersigned by the Register of the Treasury, or by some
g<Need not have officer of the Treasury Department, designated by the
Secretary of the Treasury, for said Register, and no
Treasury notes, issued under any act, shall require the
seal of the Treasury Department.
(Section 3 provides that the demand notes issued under
the previous act may be of denominations not less than
five dollars.
(Section 4 makes an appropriation for the expenses
authorized by this act.)

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

165

SEC. 5. And be it further enacted, That the Treasury m a ^ t e s *jj\ cde"
notes authorized by the act to which this is supple- "efvabf 1° for
mentary, of a less denomination than fifty dollars, pay- pURevistdestatable on demand without interest, and not exceeding in utes> 3473amount the sum of fifty millions of dollars, shall be receivable in payment of public dues.
SEC. 6. And be it further enacted, That the provisions BUw? etia s u r y
of the act entitled "An act to provide for the better a c t suspended,
organization of the Treasury, and for the collection, safekeeping, transfer, and disbursements of the public revenue," passed August six, eighteen hundred and forty-six, 1846, en. 90.
be and the same are hereby suspended, so far as to allow
the Secretary of the Treasury to deposit any of the goi?ent sistpeci5
moneys obtained on any of the loans now authorized by p a y i n g banks law, to the credit of the Treasurer of the United States,
in such solvent specie-paying banks as he may select;
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 b 0 ^ p|uece?n
of the Treasury may sell or negotiate, for any portion of J^ 111 ^ j year f
the loan provided for in the act to which this is supple- for certain 7
*

per cent bonds.

mentary, bonds payable not more than twenty years from
date, and bearing interest not exceeding six per centum
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.
ACT O F F E B K U A R Y 25, 1862.
CHAP. X X X I I I . — A n act to authorize the issue of United 12 stat. L.,
States notes, and for the redemption or funding thereof,
and for funding the floating debt of the United States.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury is hereby a n 2 n | f h t ^ n ^
authorized to issue, on the credit of the United States, T?easdu0ryanotes
one hundred and fifty millions of dollars of United States authorized.
notes, not bearing interest, payable to bearer, at the Treasury of the United States, and of such denominations as

166

NATIONAL MONETABY COMMISSION.

$5 N each S S t h a n ^ e m a y deem expedient, not less than five dollars each:
ute\!V35e7diStat" Provided, however, That fifty millions of said notes shall
donars7 ^""be ^ e * n ^ e u °^ ^ e demand Treasury notes authorized to be
mandU notes" i s s u e ( J by the act of J u l y seventeen, eighteen hundred and
Tbehredeemed *° sixty-one; which said demand notes shall be taken up as
ut?sevi3473Stat" r a p i d l y as practicable, and the notes herein provided for
pa^?nt a of e aSsubstituted for them: And provided further, That the
states0except a m o u n t °f the two kinds of notes together shall at no time
poJtsS and lTt e x c e e ( l the sum of one hundred and fifty millions of dolciaims against l a r s a n ( j such notes herein authorized shall be receivable
the U n i t e d ,
6

P m

tatwest Ynd a VaJmen^ °$ a ^ taxes, internal duties, excises, debts, and
legal tender in demands of every kind due to the United States, except
all c a s e s o f

ReVised stat- duties on imports, and of all claims and demands against
ut
H ' ofd'e r s *^ e United States of every kind whatsoever, except for
thereof may de- interest upon bonds and notes, which shall be paid in coin,
positany

i m °thn * $50 a n ( ^ S ^ a ^ a ^ S 0 b e lsi^vfiil money and a legal tender in paywith the Treas- m ent of all debts public and private, within the United
urer or assist-

ant treasurer, States, except duties on imports and interest as aforesaid.
and receive cer-

*•

tificates con-And any holders of said United States notes depositing
v e r t i b l e into

/»*

i -M

i•

united states 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.
^5?^oK?i?«-And such United States notes shall be received the same
receivable in

Poans^to* the a s c 0 * n > a t ^ e i r P a r v a ^ u e ? i n payment for any loans that
U
Revisedt|tat' m a y ^ e h e r e a ; fter sold o r negotiated by the Secretary of
utes, 3579.
the Treasury, and may be reissued from time to time as
the exigencies of the public interest shall require.
muiionhdoUa?s ^ Ec * 2* ^n^ ^e ^ furt^er
enacted, That, to enable the
bf Is Author* Secretary of the Treasury to fund the Treasury notes and
fleatint0 deb?d flowing debt °^ * n e 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
hen p a y
abie
"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

LAWS CONCERNING MONEY, BANKING, AND LOANS.

167

bonds herein authorized shall be of such denominations, nSfnJ£j,l^I!2
not less than fifty dollars, as may be determined upon by $50the Secretary of the Treasury. And the Secretary of the
Treasury may dispose of such bonds at any time, at the May be dismarket value thereof, for the coin of the United States,coin or at
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 securi- Exempt from
ties of the United States held by individuals, corporations, Revised stator associations within the United States, shall be exempt
from taxation by or under State authority.
SEC. 3. And be it further enacted, That the United JJ'jJ£jgnotes
States notes and the coupon or registered bonds authorized by this act shall be in such form as the Secretary
of the Treasury may direct, and shall bear the written
or engraved signatures of the Treasurer of the United How signed,
States and the Eegister of the Treasury, and also, as
evidence of lawful issue, the imprint of a copy of the
seal of the Treasury Department, which imprint shall
be made under the direction of the Secretary after the
said notes or bonds shall be received from the engravers
and before they are issued; or the said notes and bonds
shall be signed by the Treasurer of the United States,
or for the Treasurer by such persons as may be specially
appointed by the Secretary of the Treasury for that
purpose, and shall be countersigned by the Register of
the Treasury, or for the Register by such persons as the
Secretary of the Treasury may specially appoint for
that purpose; and all the provisions of the act entitledacfofVi857Schf
"An act to authorize the issue of Treasury notes," ap- *|VJJL llf re"
proved the twenty-third day of December, eighteen hundred and fifty-seven, so far as they can be applied to
this act, and not inconsistent therewith, are hereby
revived and re-enacted; and the sum of three hundred
thousand dollars is hereby appropriated, out of any tiotPof °?30oamoney in the Treasury not otherwise appropriated, to p ^ / ° J f **:
enable the Secretary of the Treasury to carry this act sravins» etc.
into effect.
SEC. 4. And be it further enacted, That the Secretary po^ia&dbwith
of the Treasury may receive from any person or persons, state? Trevor any corporation, United States notes on deposit for Jjjg ^""Jim
not less than thirty days, in sums of not less than one fifi^t&nbearhundred dollars, with any of the assistant treasurers orjgf^^gjgjf
designated depositaries of the United States authorized therefor -

168

NATIONAL MONETARY COMMISSION.

by the Secretary of the Treasury to receive them, who
Ma5ree2 ai867°f 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
beDwithdraw1f 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
deA(fs1tsgnot to °^ ^ e Secretary of the Treasury: And provided further,
ooocoood $25, "That the aggregate of such deposit shall at no time
exceed the amount of twenty-five millions of dollars.
Duties to be gec% 5# An& fte {$ further enacted. That all duties on
received in coin #

••

•• i

nnte8? e m a n d imported goods shall be paid in com, or in notes payable
on demand heretofore authorized to be issued and by
Revised stat- 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:
coin, how First. To the payment in coin of the interest on the
terest.
bonds and notes of the United States.
utes, 3694.
Second. To the purchase or payment of one per centum
To create a of the entire debt of the United States, to be made
Revised stat- within each fiscal year after the first day of July, eighteen hundred and sixty-two, 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 payment of the
public debt as the Secretary of the Treasury shall from
time to time direct.
Third. The residue thereof to be paid into the Treasury of the United States.
(Sections 6 and 7 prescribe penalties for forging, etc.,
Treasury notes or bonds, and for using, engraving, etc.,
plates in similitude; or for selling or bringing into the
United States, or having plates or blank notes in possession, etc.)
Approved, February 25, 1862.
ACT OF MARCH 1, 1862.
12 stat.

XXXV.—An act to authorize the Secretary of
the Treasury to issue certificates of indebtedness to
public creditors.

L., CHAP.

Be it enacted by the Senate and House of Representor
tives of the United States of America in Congress assembled, That the Secretary of the Treasury be, and he is

LAWS CONCERNING MONEY, BANKING, AND LOANS.

169

hereby authorized to cause to be issued to any public tl$*££ °^t cf£
creditor who may be desirous to receive the same, upon ££orized!ss au"
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 $1^ooo!ess t h a n
Treasurer of the United States, and countersigned as may How signed,
be directed by the Secretary of the Treasury; which certificates shall be payable in one year from date or earlier, a b ^ h e n pay "
at the option of the Government, and shall bear interest gix er cent
at the rate of six per centum per annum.
interest.
Approved, March 1,1862.
ACT OF MAKCH 17, 1862.
CHAP.

XLV.—An act to authorize the purchase of coin 12 stat.
and for other purposes.-

L.,

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury may purchase coJ^^^an*
coin with any of the bonds or notes of the United States, £nij;ed sta*es
J

bonds or notes

authorized by law, at such rates and upon such terms asaURevTsedstathe may deem most advantageous to the public interest; uceeSr'tffi^a0tes of
and may issue, under such rules and regulations as he indebtedness
mayJ rprescribe,7 certificates. or indebtedness,7 such as are*?
holders of
checks, etc.
authorized by an act entitled " An act to authorize the
Secretary of the Treasury to issue certificates of indebtedness to public creditors," approved March 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.
SEC. 2. And be it further enacted, That the demand Demand notes
notes authorized by the act of July seventeen, eighteen able and a ie.,

•/»

<»

•

ffal

1 S S U e d

tender as

hundred and sixty-one, and by the act of February notes issued
twelfth, eighteen hundred and sixty-two, shall, in ad-February 25,
dition to being receivable in payment of duties on imports, Revised statbe receivable, and shall be lawful money and a legal ten- utes '
der, in like manner, and for the same purposes, and to
the same extent, as the notes authorized by an act entitled
" A n act to authorize the issue of United States notes,
and for the redemption or funding thereof, and for fund-

170

NATIONAL MONETARY COMMISSION.

ing the floating debt of the United States," approved
February twenty-fifth, eighteen hundred and sixty-two.
thl^rfasu^y SEC. 3- ^nd be it further enacted, That the limitation
receiveiZdedo^llPon temporary deposits of United States notes with
U
r °noteseato a n y assistant treasurers or designated depositaries,
$50 ooVooo ° f 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 Secre-*
tary of the Treasury not exceeding the annual rate of
five per centum.
May issue SEC. 4. And be it farther enacted, That, in all cases
place of those where the Secretary of the Treasury is authorized by law
worn out.

Revised stat- to reissue notes, he may replace such as are so mutilated
or otherwise injured as to be unfit for use with others of
the same character and amount; and such mutilated
notes, and all others which by law are required to be taken
up and not reissued, shall, when so replaced, or taken up,
be destroyed in such manner and under such regulations
as the Secretary of the Treasury may prescribe.
Approved, March 17,1862.
ACT OF APEIL 21, 1862.
12 stat.

LIX.—An act to establish a branch mint of the
United States at Denver, in the Territory of Colorado.

L., CHAP.

toBblnCde^t SEC. 5. And be it further enacted, That said branch
moneys."b * *c m ^ shall be a place of deposit for such public moneys
as the Secretary of the Treasury may direct. And the
superintendent of the said branch mint, who shall perform the duties of treasurer, thereof, shall have the custody of the same, and also perform the duties of assistant
treasurer; and for that purpose shall be subject to all the
vofSk ch' 59' P r o v i s i ° n s contained in an act entitled "An act to provide for the better organization of the treasury, and for
the collection, safe-keeping, transfer, and disbursement of
the public revenue," approved August six, eighteen hundred and forty-six, which relates to the treasury of the
branch mint at New Orleans.
*
*
*
*
*
Approved, April 21, 1862.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

171

ACT OF JULY 1, 1862.
CHAP.

CXX.—An act to aid in the construction of a rail- 12 stat L.,
489

road and telegraph line from the Missouri River to the
Pacific Ocean, and to secure to the Government the use
of the same for postal, military, and other purposes.
(Section 1 creates the*corporation of the " Union Pacific Railroad Company " and prescribes details of management, etc.
(Section 2 grants right of way.
(Section 3 grants alternate sections of land on each
side of railroad except mineral lands, etc.
(Section 4 prescribes conditions upon which patents
shall issue.)
SEC. 5. And be it further enacted. That for the pur- Government
poses herein mentioned, the Secretary of the Treasury see section 8,
i

j . - n \ •

-x-

. J act 1864; also

-i

shall, upon the certificate m writing 01 said commis- section 10.
/» xi

i ^

•

£. £

Now 20 miles.

sioners of the completion and equipment 01 forty con- section. 10,
secutive miles of said railroad and telegraph, in accord- Revised stat. .
„ ,_ .
, . &,
.,
utes, 3689.
tJ1 ,_
ance with the provisions of this act, issue to said company
bonds of the United States of one thousand dollars each,0f tnSTacFfor
payable in thirty years after date, bearing six per centum |||;ooo *per
per annum interest (said interest payable semi-annually),milewhich interest may be paid in United States Treasury
notes or any other money or currency which the United
States have or shall declare lawful money and a legaltender, to the amount of sixteen of said bonds per mile
for such section of forty miles; and to secure the repayment to the United States, as hereinafter provided, of
the amount of said bonds so issued and delivered to said
company, together with all interest thereon which shall
have been paid by the United States, the issue of said
bonds and delivery to the company shall ipso facto constitute a first mortgage on the whole line of the railroad U n ^ | n g t £ f
and telegraph, together with the rolling-stock, fixtures, j ^ ^ I , m a d e
and property of every kind and description, and in con"10SactsOfCiJ641
sideration of which said bonds may be issued; and on refusal or failure of said company to redeem said bonds or
any part of them, when required to do so by the Secretary
of the Treasury, in accordance with the provisions of this
act, the said road, with all the rights, functions, immunities, and appurtenances thereunto belonging, and also all
lands granted to the said company by the United States,
which, at the time of said default, shalf remain in the
15712°—10

172

NATIONAL MONETARY COMMISSION.

ownership of the said company, may be taken possession
of by the Secretary of the Treasury for the use and benes?edsefic^on5,fit o f t h e United States: Provided, This section shall not
act of 1864. apply to that part of any road now constructed.
and°nhowl>aid? SEC - 6- And ie ii} farther enacted, That the grants
aforesaid are made upon condition that said company
shall pay said bonds at maturity, and shall keep said railroad and telegraph line in repair and use, and shall at
all times transmit dispatches over said telegraph line,
and transport mails, troops, and munitions of war, supplies, and public stores upon said railroad for the Government whenever required to do so by any Department
thereof, and that the Government shall at all times have
the preference in the use of the same for all the purposes
aforesaid, (at fair and reasonable rates of compensation,
not to exceed the amounts paid by private parties for the
same kind of service); and all compensation for services
rendered for the Government shall be applied to the payment of said bonds and interest until the whole amount
trans^ortauon! *s ^n^J Paid- Said company may also pay the United
u^cash!* paid States, wholly or in part, in the same or other bonds,
Treasury notes, or other evidences of debt against the
United States, to be allowed at par; and after said road
is completed, until said bonds and interest are paid, at
least five per centum of the net earnings of said road
shall also be annually applied to the payment thereof.
tfebY^ove^the SEC - 1 L And be ** farther enacted, That for three
sierra Nevada hundred miles of said road, most mountainous and diffiMountains. c u j ^ 0 f construction, to wit, one hundred and fifty miles
westwardly from the eastern base of the Rocky Mountains, and one hundred and fifty miles eastwardly from
the western base of the Sierra Nevada Mountains, said
points to be fixed by the President of the United States,
the bonds to be issued to aid in the construction thereof
shall be treble the number per mile hereinbefore provided, and the same shall be issued, and the lands herein
granted be set apart, upon the construction of every twenty
miles thereof, upon the certificate of the commissioners
as aforesaid that twenty consecutive miles of the same
Subsidy bonds are completed: and between the sections last named of
double between.

the mountains, one hundred and fifty miles each, the bonds to be issued
to aid in the construction thereof shall be double the
number per mile first mentioned, and the same shall be

LAWS CONCERNING MONEY, BANKING, AND LOANS.

173

issued, and the lands herein granted be set apart, upon
the construction of every twenty miles thereof, upon the
certificate of the commissioners as aforesaid that twenty
consecutive miles of the same are completed: Provided,
That no more than fifty thousand of said bonds shall be
issued under this act to aid in constructing the main line
of said railroad and telegraph.
• SEC. 17. And be it further enacted. That in case said congress may
.

n P •!

-i

compel speedy

company or companies shall fail to comply with the terms ^ ^ l e t i o n of
and conditions of this act, by not completing said road
and telegraph and branches within a reasonable time, or
by not keeping the same in repair and use, but shall permit the same for an unreasonable time to remain unfinished or out of repair and unfit for use, Congress may
pass any act to insure the speedy completion of said road
and branches, or to put the same in repair and use, and
may direct the income of said railroad and telegraph line
to be thereafter devoted to the use of the United States
to repay all such expenditures caused by the default or
neglect of such company or companies: Provided, That
if said roads are not completed, so as to form a continuous. Main line to
f

,-.*-.

. T*.

wished in

line of railroad, ready for use, from the Missouri Kiver 1876.
to the navigable waters of the Sacramento Kiver in Cali- a n | e | **;{!• 0 |
fornia, by the first day of July, eighteen hundred and 1864 - '
seventy-six, the whole of all of said railroads before
mentioned, and to be constructed under the provisions of
this act, together with all their furniture, fixtures, rollingstock, machine shops, lands, tenements, hereditaments,
and property of every kind and character, shall be forfeited to and taken possession of by the United States:
Provided, That of the bonds of the United States in this
act provided to be delivered for any and all parts of the
roads to be constructed east of the one-hundredth meridian of west longitude from Greenwich, and for any part
of the road west of the west foot of the Sierra Nevada
Mountains, there shall be reserved of each part and installment twenty-five per centum, to be and remain in Repealed,
the United States Treasury, undelivered, until said road act of 1864. '
and all parts thereof provided for in this act are entirely
completed; and of all the bonds provided to be delivered
for the said road, between the two points aforesaid, there
shall be reserved out of each installment fifteen per
centum, to be and remain in the Treasury until the whole
of the road provided for in this act is fully completed;

174

NATIONAL MONETAKY COMMISSION.
and if the said road or any part thereof shall fail of
completion at the time limited therefor in this act, then
and in that case the said part of said bonds so reserved
shall be forfeited to the United States.
3j»

5j»

JJ*

•!•

Approved, July 1,1862.
NOTE.—By joint resolution, No. 19, of April 10, 1869, an amount
of the subsidy bonds provided for are to be withheld sufficient to
secure the full completion, as a first-class road, of all sections of
such road, etc.

ACT OF JULY 11, 1862.
12 stat. L., CHAP. CXLII.—An act to authorize an additional issue
of United States notes, and for other purposes.
Limit to de-

s EC . 3. And fre it further enacted. That the limitation

posits of notes

' .

i5oeooodoooroto u P o n temporary deposits of United States notes with any
$100,000,000. 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 inay
prescribe, to such amount as he may deem expedient, 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
Fifty minion the return of the certificate of deposit. And of the
dollars of notes

. __. .

_ _,

reserved to pay 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.
AH certm-And certificates of deposit and of indebtedness issued
posit and of in- under this or former acts may be received on the same
vertibie into terms as United States notes in payment for bonds redeemable after five and payable in twenty years.
Time of ob- SEC. 4. And be it further enacted, That the Secretary
authorized b y of the Treasury may, at any time until otherwise ordered
act of July 17,.

-1

• „•

i ,

1861, extended, 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

LAWS CONCERNING MONF.Y, BANKING, AND LOANS.

175

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.
*
*
*
*
*
Approved, July 11, 1862.
A C T O F M A E C H 3, 186,3.
CHAP.

L X X I I I . — A n act to provide ways and means for
the support of the Government.

12 stat.

L.,

709.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembledj That the Secretary of the Treasury be, and t jSecretary of
he is hereby, authorized to borrow, from time to time, on m a y b^row
the credit of the United States, a sum not exceeding three 000,000 for
hundred millions of dollars for the current fiscal year, and $600,000,000
six hundred millions for the next fiscal year, and to issue
therefor coupon or registered bonds, payable at the pleas- Bonds,
ure 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 m Denominaless than fifty dollars as he may deem expedient, bearing
interest at a rate not exceeding six per centum per annum, raLl£lfes* a ^
payable on bonds not exceeding one hundred dollars, *n coin,
annually, and on all other bonds semi-annually, in coin;
and he may, in his discretion, dispose of such bonds at Bonds may
**

be disposed of.

any time, upon such terms as he may deem most advisable,
for lawful money of the 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„f r oTo
be exempt
m
,0.
•
1
n i
• •
i»i«
taxation.
United States notes issued under the provisions of this u t e Revised
statS
. . . .

„

» 3701.

act shall be exempt from taxation by or under State or
municipal authority: Provided, That there shall be out- gt^Sg^* n o*t
standing of bonds, Treasury notes, and United States |90o,ooo,oooe d
notes, at any time, issued under the provisions of this act,
no greater amount altogether than the sum of nine hundred millions of dollars.
SEC. 2. And be it further enacted. That the Secretary secretary
mav

issue

of the Treasury be, and he is hereby, authorized to issue, $400,000,000
on the credit of the United States, four hundred millions notes.
of dollars in Treasury notes, payable at the pleasure of when paythe United States, or at such time or times not exceeding of interest.

1*76

NATIONAL. MONETARY COMMISSION.

three years from date as may be found most beneficial tp
the public interests, and bearing interest at a rate not
exceeding six per centum per annum, payable at periods
abie nt fn e iawfJi ex P resse( i o n t h e f a c e oi said Treasury notes; and the
money.
interest on the said Treasury notes and on certificates of
indebtedness and deposit hereafter issued, shall be paid
tions^nffhow^11 l a w f i d money. The Treasury notes thus issued shall
disposed of. j ^ 0 f SVLCii denomination as the Secretary may direct, not
utes!V3476. a 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.
tender! 5tc.egal An& s a ^ Treasury notes may be made a legal tender to
ntes?3590.8tat" tk° s a m e extent a s United States notes, for their face
For what ex- value, excluding interest; or they
J may
J be made exchangechangeable.
° .
*
°
able under regulations 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 premaytbbe issued c e ding s u c h exchange. And in lieu of any amount of
changed.86 ex s a *^ 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 deandnflttyn<mff- stroyed a s t h e Secretary may direct. I n order to secure
notes mars be € e r ^ a ^ n a n ( ^ P r o m P t exchanges of United States notes for
gsued for ex-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 shall be issued for or applied to any other purwhen issued poses than said exchanges; and whenever any amount
how replaced.' 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.
The secretary g E C . 3. And he it further enacted. That the Secretary
J

if necessary to

pay the army,0f the Treasury be, and he is hereby, authorized, it reetc, may issue

„ ,

, T

•

$150,000,000 in quired by the exigencies of the public service, tor the payinterest,
ment of the Army and Navy, and other creditors of the
utes, 3571.
Government, to issue on the 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

LAWS CONCERNING MONEY, BANKING, AND LOANS.

177

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 tions?nomina"
one dollar, as he may prescribe, which notes so issued shall
be lawful money and a legal tender in payment of all debts, e x^ a l foTddupublic or private, within the United States, except for*^ and lnter~
duties on imports and interest on the public debt; and any u t ^ l § | | s t a t of the said notes, when returned to the Treasury, may be
reissued from time to time as the exigencies of the public R^lel'gtatservice may require. And in lieu of any of said notes, or ut ||» g ^J| n lieu
any other United States notes, returned to the Treasury, °£le£otes canand 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 Repeal of
of United States notes, and for other purposes, approved ?h.r 33, 1862;
February twenty-five, eighteen hundred and sixty-two, stricting 'negoand of the act to authorize an additional issue of United ket value.
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 when former
7

notes must be

by virtue of said acts, shall present the same for the P ^ ' J ^ S S ^ for
pose 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 he it further enacted, That in lieu of post- po|nagellec u £'
age and revenue stamps for fractional currency, and of tionai yn oft eCs
fractional notes, commonly called postage currency, issue(lm^evisedSstator to be issued, the Secretary of the Treasury may issueg^!8* 3574»
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 ex- c^lelbi^ana
changeable by the assistant treasurers and designated de- payable.
positaries 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 five dollars, except duties on imports, and shall be redeemed on 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 e ^ ^
currency issued, including postage and revenue stamps 000>000

178

NATIONAL MONETAEY COMMISSION.

issued as currency, shall not exceed fifty millions of
dollars.
maycrreceive SEC. 5. And he it further enacted, That the Secretary
positdandnis«ie °^ ^ i e Treasury is hereby authorized to receive deposits
therefor ficates °^ & 0 ^ c o * n a n c * ^ u ^ i ° n w ^ h ^ e Treasurer or any assistRevjsed stat- a n t treasurer of the United States, in sums not less than
utes, 254.

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
cafe"chmayrtibe ^ o r ^ e P a ynient of the same on demand. And certifiInterest^n ^he c a ^ s representing coin in the Treasury may be issued in
and b d l uties debt P a y men ^ °^ M e r e s t on the public debt, which certificates,
together with those issued for coin and bullion deposited,
amountU o f s ^ a H n°t> a ^ a n y time exceed twenty per centum beyond
utes6^!73 s t a t - 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,
d eStCeermfne ^ EC# ^' ^n^ ^e ^ further enacted, That the coupon or
anTnotesbonds ^gistered bonds, Treasury notes, and United States notes
authorized by this act shall be in such form as the Secreprhited1 therS ^2iT7- °^ ^ e Treasury may direct, and shall have printed
on
upon them such statements, showing the amount of accrued or accruing interest, the character of the notes, and
the penalties or punishment for altering or counterfeiting
them, as the Secretary of the Treasury may prescribe, and
How signed. s h a i i bear the written or engraved signatures of the
Treasurer of the United States and the Register of the
Treasury, and also as evidence of lawful issue, the imprint ofaIeaiim" W^ °f a C 0 Py °^ the seal of the Treasury Department,
which imprint shall be made, under the direction of the
Secretary, after the said notes or bonds shall be received
from the engravers and before they are issued; or the
signature, said notes and bonds shall be signed by the Treasurer of
the United States, or for the Treasurer by such persons
as may be specially appointed by the Secretary of the
Treasury for that purpose, and shall be countersigned by
the Register of the Treasury, or for the Register by such
persons as the Secretary of the Treasury may specially
fisl??i0hS if a P P ° i n t for ^ a t purpose. And all the provisions of the
revived.'
' act entitled "An act to authorize the issue of Treasury
notes," approved the twenty-third day of December,
eighteen hundred and fifty-seven, so far as they can be

LAWS OONCETWmCJ MONEY, BANKTNG, AND LOANS,

applied to this act, and not inconsistent therewith, are
hereby revived and re-enacted.
*
*
*
*
*
(Section 7, after providing for taxes to be laid upon
the circulation of all banks and corporations, whether
established under state laws or under the act of February 70^f
25, 1863, directs that all banks, corporations, or individuals issuing notes for any fractional part of a dollar
after April 1,1863, shall be taxed ten per cent per annum
upon the amount of such fractional notes.
(Section 8 makes penalties of former act against counterfeiting, etc., applicable, and provides an appropriation
to carry this act into effect.)
Approved, March 3, 1863.
ACT OF MAECH 3, 1863.
LXXIV.—An act to amend an act entitled "An 12
act to provide internal revenue to support the Government and pay interest on the public de~bt? approved
July firsts eighteen hundred and sixty'-two, and for
other purposes.
*
*
*
*
#
(Section 4, after prescribing that all contracts for the
purchase or sale of coin or bullion, and all contracts for
loans upon the pledge thereof, if to be performed after
a period exceeding three days, shall be in writing and
shall be taxed, provides as follows:
" And no loan of currency or money on the security of
gold or silver coin of the United States, as aforesaid, or
of any certificate or other evidence of deposit payable in
gold or silver coin, shall be made exceeding in amount the
par value of the coin pledged or deposited as security;
and any such loan so made, or attempted to be made,
shall be utterly void: Provided, That if gold or silver
coin be loaned at its par value it shall be subject only to
the duty imposed on other loans: Provided, however.
That nothing herein contained shall apply to any transaction by or with the government of the United States."
(•Section 5 declares that all transactions not in accordance with the preceding section shall be void, and provides
for suits by any party to such contracts.)
CHAP.

«|c

Approved, March 3, 1863.

•!»

180

NATIONAL MONETARY COMMISSION.

A C T O F M A R C H 3, 1864.
i3stat.ii.,i3.£j HAP# X V I I . — A n act supplementary to an act entitled
"An act to provide ways and means for the support of
the Government" approved March third, eighteen hundred and sixty-three.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemSecretary otbled. That in lieu of so much of the loan authorized by
the

Treasury

, i • -i

• i

T T

T • i

mayborrownotthe act of March third, eighteen hundred and sixty-three,
over $200,000,-

ooo and issue to which this is supplementary, the secretary o i the
therefor

five-

forty bonds.

Treasury is authorized to borrow, from time to time, on
the credit of the United States, not exceeding two hundred millions of dollars during the current fiscal year, and
to prepare and issue therefor coupon or registered bonds
See section 3. of the United States, bearing date March first, eighteen
hundred and sixty-four, or any subsequent period, redeemable at the pleasure of the Government after any
period not less than five years, and payable at any period
Denomina-not more than forty years from date, in coin, and of such
denominations as may be found expedient, not less than
interest not gf ty dollars, bearing interest not exceeding six per centum

over 6 per cent,

= >

payable in coin. a year, payable on bonds not over one hundred dollars,
How disposed annually, and on all other bonds semi-annually, in coin;
and he may dispose of such bonds 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 deExempt from posit, issued under any act of Congress; and all bonds
Revised stat- issued under this act shall be exempt from taxation by or
under State or municipal authority. And the Secretary
titn pr for ri ex" 0 ^ ^h.e Treasury shall pay the necessary expenses of the
exceed one^ha*? preparation, issue, and disposal of such bonds out of any
of 1 per cent. m oney in the Treasury not otherwise appropriated, but the
amount so paid shall not exceed one-half of one per centum
of the amount of the bonds so issued and disposed of.
(Section 2 authorizes the 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

LAWS C0NCEKN1NG MONEY, BANKING, AND LOANS.

181

JOINT RESOLUTION OF MAECH 17, 1864.
[No. 20.] Joint resolution to authorize the Secretary of 4(Jg
the Treasury to anticipate the payment of the interest
on the public debt, and for other purposes.

stat L

Be it resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury be authorized t secretary^of
to anticipate the payment of interest on the public ^ebt^ay^aimdpate
by a period not exceeding one year, from time to time, th^put^Hc debt,
either with or without a rebate of interest upon the cou- utes, 3699.
pons, as to him may seem expedient; and he is hereby
authorized to dispiose 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 ere- Proviso,
ate the sinking fund according to the act of February
twenty-fifth, eighteen hundred and sixty-two, shall not 1862, <*. 33.
be impaired thereby.
Approved, March 17, 1864.
ACT OF JUNE 3, 1864.
CVI.—An act to provide a national currency, se-9£3
cured by a pledge of United States bonds, and to provide for the circulation and redemption thereof.

CHAP.

stat L

SEC. 45. And be it further enacted, That all a s s o c i a - ^ 8 0 ^ * ^ :
tions under this act, when designated for that purpose bySJJ*®^^** *g
the Secretary of the Treasury, shall be depositaries of ^eptTetcf;
public money, except receipts from customs, under such^f a ^| nt g nan *
regulations as may be prescribed by the Secretary; and ut^vi|ff3stat
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 Desjgnateddex

p o s 1 taries to

safe-keeping and prompt payment of the public money ?ayr^e^ptnadeposited with them, and for the faithful performance tionai currency
<,

•

t»

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

P a r

182

NATIONAL MONETARY COMMISSION.

currency bills, by whatever association issued, which have
been paid in to the Government for internal revenue, or
for loans or stocks.
*
*
«
*
*
Approved, June 3, 1864.
A C T O F J U N E 17, 1864.
1^3 stat. L., £j H A P # C X X V I I . — A n 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 default 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 default 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 delivery 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, 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

LAWS CONCERNING MONEY, BANKING, AND LOANS.

183

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
offence in any prosecution instituted subsequent to the
recovery of such judgment, but shall not be a bar to the
infliction of punishment by imprisonment, as provided
by said fourth section.
SEC. 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.
NOTE.—The above act w a s repealed by t h e act approved J u l y 2,
1864.
(See 13 Stat. L„ 344.)

ACT OF JUNE 30, 1864.
CLXXII.—An act to provide ways and means for 13 stat i*.,
the support of the Government, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That the Secretary of the Treasury be, and h e . secretary of

CHAP.

.it

i»

t h e Treasury

is hereby, authorized to borrow, irom time to time, on themay borrow
•J *

$400,000,000,

credit of the United States, four hundred millions of dol- and issue bonds
etc.

lars, and to issue therefor coupon or registered bonds of
the United States, redeemable at the pleasure of the Gov

184

NATIONAL MONETARY COMMISSION.

aw»hen redeem- ernment, after any period not less than five, nor more than
thirty years, or, if deemed expedient, made payable at any
enomina
" p e r i o d not more than forty years from date. And said
ti0n
bonds shall be of such denominations as the Secretary of
an^T^ifl^nthe Treasury shall direct, not less than fifty dollars, and
com
*
bear an annual interest not exceeding six per centum,
m^°yVe°dnu^PayaM© semi-annually in coin. And the Secretary of the
posed of.
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
o^the^nitedany act of Congress. And all bonds, Treasury notes, and
exempt f°r o m other obligations of the United States shall be exempt
ta
Revised stat- from taxation by or under State or municipal authority.
utes, 3701.
g EC> 2. And be it further enacted. That the Secretary
issuer1nariieuo?of the Treasury may issue on the credit of the United
$2roo,ofoo!ooo States, and in lieu of an equal amount of bonds authorT
Reavisednstat-lz^ by the preceding section, and as a part of said loan,
ut
Den4o7mina-n°t exceeding two hundred millions of dollars, in Treaspayabfend w h e n u r y notes of any denomination not less than ten dollars,
payable at any time not exceeding three years from date,
or, if thought more expedient, redeemable at any time
after three years from date, and bearing interest not exinterest pay- ceeding the rate of seven and three-tenths per centum
able in lawful

money.

5* .

payable m 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
How may be the Treasury, on the best terms that can be obtained, for
lawful money; and such of them as shall be made payHow far to be able, principal and interest, at maturity, shall be a legal
e
Reviseend e stat-tender to the same extent as United States notes for
u
Revised stat- their face value, excluding interest, and may be paid to
utes 3
' ' '
any creditor of the United States at their face value,
excluding interest, or to any creditor willing to receive
noTestoabelcon^^em a * P ar > C h i d i n g interest; and any Treasury notes
vertibie into issued under the authority of this act may be made
convertible, at the discretion of the Secretary of the
Treasury, into any bonds issued under the authority of
stitufed^fo/the this act. And the Secretary of the Treasury may redeem
viouseiSssues^re" 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,

LAWS CONCERNING MONEY, BANKING, AND LOANS.

185

in lieu thereof, an equal amount of Treasury notes such
as are authorized by this act, or of other United States
notes: Provided, That the total amount of bonds and A m o u n t of
Treasury notes authorized by the first and second sec- not to exceed
tions 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 Notes not to
.

exceed, etc.

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 required for
the redemption of temporary loan; nor shall any Treas- in10*®^"1*6^
ury note bearing interest, issued under this act, be a legal ^gai tender for
*

to
#

' .

the

redemp-

tender m payment or redemption of any notes issued by tjon of circuiaany 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 the interest is payable annually, for others bearing interest payable semiannually. The 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
maturity shall be paid in lawful money. So much of the
act of March 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. And he it further enacted, That the Secretary secretary of
of the Treasury may authorize the receipt, as a temporary may receive
loan, of United States notes or the notes of national e m p o r a i y oan*
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 depositories
designated for that purpose other than national banking
associations, who shall issue certificates of deposit in such certiflcatesof
form as the Secretary of the Treasury shall prescribe, issued therefor!
bearing interest not exceeding six per centum annually,
and payable at any time after the term of deposit, and when payaafter ten days' subsequent notice, unless time and notice est! a n
be waived by the Secretary of the Treasury; and the Secretary of the Treasury may increase the interest on de

186

NATIONAL MONETARY COMMISSION.

posits 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 agtoAfIceedtl5o-Srega^e °^ s u c h deposits shall not exceed one hundred and
000,000.
' 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
ser e f
th?fr a m entrreserve s ^ a ^ ^e use( ^ on^ w ^ e n 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 the 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; but the whole amount of all notes
or stamps less than one dollar issued as currency shall not
exceed fifty millions of dollars.)
re°Tste*ed ^ E a ®- ^n^ ^e ^ further enacted, That the coupon and
bonds, to be of registered bonds shall be in such form and bear such inwhat form and

how signed,

scriptions as the Secretary of the Treasury may direct,
and shall be signed by the Eegister of the Treasury, or
for the Register, by such person or persons as may be
specially designated for that purpose by the Secretary of
the Treasury, and shall bear as evidence of lawful issue,
seal.
the imprint of the seal of the Treasury Department, to
madeere to be ^ e ma< ^ e u n der the direction of the Secretary of the Treasury, in a room set apart especially and exclusively for
that purpose, under the care of some person appointed
coupons.
directly by him. And the coupons attached to such bonds
shall bear the engraved signature of the Eegister of the
Treasury, and such other device or safeguard against
counterfeiting as the Secretary may approve; and it is
madeTariid°nds hereby declared that all bonds hereto[fo]re issued, bearing the signature of the Eegister, shall have the same
force, effect, and validity as if signed also by the Treasurer, and all bonds bearing the signature of the Eegister,
erroneously described as Treasurer of the United States,
shall have the same force, effect, and validity, as if his
official designation had been correctly stated; and all
coupons bearing the engraved signature of the Eegister
of the Treasury in office at the time when such signatures

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

187

were authorized and engraved, shall have full force,
validity, and effect, notwithstanding such Register may
have subsequently ceased to hold office as such, when
issued in connection with bonds duly authorized and
signed by or for the successor or successors of said Register. And the Treasury notes and United States notes FormofTreasauthorized by this act shall be m such form as the Secretary of the Treasury shall direct and shall bear the written or engraved signatures of the Treasurer of the United
States and the Register of the Treasury, and shall have
printed upon them such statements, showing the amount
of accrued or accruing interest and the character of the
notes, as the Secretary of the Treasury may prescribe;
and shall bear, as a further evidence of lawful issue, the
imprint of the seal of the Treasury Department, to be
made under the direction of the Secretary of the Treasury, as before directed.
(Section 7 authorizes the issue of registered bonds in 13 stat. L.,
lieu of coupon bonds, already or hereafter to be issued.) instructions,
SEC. 8. And be it further enacted, That the Secretary officers0 recew0of the Treasury is hereby authorized and required toing united
make and issue, from time to time, such instructions, rules, etc.
and regulations, to the several collectors, receivers, de- utes, 251.
positaries, officers, and others, who may receive Treasury
notes, United States notes, or other securities in behalf
of the United States, or who may be in any way engaged
or employed in the preparation and issue of the same, as
he shall deem best calculated to promote the public convenience and security, and to protect the United States,
as well as individuals, from fraud and loss.
(Sections 9, 10, 11, and 12 provide for the expenses
of preparing and issuing bonds, notes, etc., and prescribe penalties for counterfeiting, altering, uttering,
using plates, for engraving, printing, bringing into the
United States, etc., and retaining and using plates, etc.)
SEC. 13. And be it further enacted, That the words words "ot>u" obligation or other security of the United States," used security," etc.,
,P

, n i

t i l l *

I T

include

m this act, shall be held to include and mean all bonds, what. #
coupons, national currency, United States notes, Treas-utes, 5413.
ury notes, fractional notes, checks for money of authorized officers of the United States, certificates of indebtedness, certificates of deposit, stamps, and other representatives of value of whatever denomination, which have
been or may be issued under any act of Congress.
Approved, June 30,1864.
15712°—10

188

NATIONAL MONETARY COMMISSION.

ACT OF JUNE 30, 1864.
13 stat.

CLXXIII.—An act to provide internal revenue
to support the Government, to pay interest on the public debt, and for other purposes.

L„ CHAP.

Act of 1846, SEC. 51. And be it further enacted, That the provisions
to'appiy to per- of the sixteenth section of the act approved August sixth,
sons h s. T i ii s

public moneys eighteen hundred and forty-six, entitled "An act to prounder this act.

vol. ix, p. 63. vide for the better organization or the treasury, and tor
the collection, safe-keeping, transfer, and disbursement
of the public revenue," are hereby applied to, and shall
be construed to include, all officers of the internal revenue,
charged with the safe-keeping, transfer, or disbursement
of the public moneys arising therefrom, and to all other
persons having actual charge, custody, or control of
moneys or accounts arising from the administration of
the internal revenue.
(Section 99 imposes a duty on brokers and bankers of
one-twentieth of one per centum upon sales of gold and
silver bullion and coin, etc. Section 99 was amended
March 3, 1865. (13 Stat. L., 478.)
(Section 116 levies a duty on incomes, including interest on notes, bonds, and other securities of the United
States, and allows deductions up to six hundred dollars
of moneys from dividends, etc., of banks, etc., provided
for in section 120.)
Approved, June 30, 1864.
(This act of June 30, 1864 (13 Stat. L., 281), was
amended July 4, 1864, by Joint Eesolution No. 77 (13
Stat. L., 417); act of March 3, 1865 (13 Stat. L., 479,
486); March 10, 1866 (14 Stat. L., 4 ) ; July 13, 1866 (14
Stat. L., 136, 138); March 2, 1867 (14 Stat. L., 477).)
ACT OF JANUAEY 28, 1865.
13 stat.

XXII.—An act to amend an 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.

L., CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress as-

LAWS CONCERNING MONEY, BANKING, AND LOANS.

189

sembled, That in lieu of any bonds authorized to be issued tP **£Jy ^ s t "|
by the first section of the act entitled "An act to provide £*tesPal5g £Jose
ways and means for the support of thev Government," gec^d^section
approved June thirtieth, eighteen hundred and sixty-four, ju n e h lo a 1*864*
that may remain unsold at the date of this act, the Secre-{^ nd ^* eu ° '
tary 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,no^hf0eae^ceed
That the whole amount of bonds authorized as aforesaid, $400,000,000.
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 certificate?61©?
lawful money, or for any other Treasury notes or eertifi- CertificatesSS of
cates of indebtedness or certificates of deposit issued Jjgjj1* i n pay "
under any previous act of Congress; and such notes shallBt]tee?ndfm™
be exempt from taxation by or under State or municipal £ionpal * a x a "
anfhnritv

Revised Stat-

auuioray.

uteg 3701
TIT *» XT

issue

SEC. 2. And be it further enacted, That any bonds any 5-£o bonds
known as five-twenties, issued under the act of twenty-$4,000,000 refifth February, eighteen hundred and sixty-two, remain-of the act of
ing unsold to an amount not exceeding four millions of 1862.
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, J 4 ** s e n
"

b o n a s

1 n

construed as to give any authority for the issue of any unged states
legal-tender notes, in any form, beyond the balance un- lgg*![e0 J^^l
issued of the amount authorized by the second section aphorized0 t e s
of the act to which this is an amendment.
Approved, January 28, 1865.
ACT O F F E B R U A R Y 13, 1865.
CHAP. X X X I I . — A n act to provide for acting assistant 13 stat. L.,
treasurers or depositaries of the United States in certain cases.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That in case of the sickness or unavoidable Acting a s absence of any assistant treasurer or depositary of the l u e F s a n d de :
-r-r .

T ci

<»

•

positaries

United States from his office, he may, with the approval|^e
of the Secretary of the Treasury, authorize the chief
clerk, or some other clerk employed therein, to act in his
place, and to discharge all the duties required by law of

united

190

NATIONAL MONETARY COMMISSION.

such assistant treasurer or depositary: Provided, That the
official bond given by the principal of the office shall be
held to cover*and apply to the acts of the person appointed to act in his place in such cases: And provided
cersCsui§ect0?o fur^erj
That such acting officer shall, for the time being,
penalties.
be subject to all the liabilities and penalties prescribed
by law for the official misconduct in like cases, of the
assistant treasurer or depositary respectively for whom
he shall act.
Approved, February 13, 1865.
Bond.

ACT O F M A E C H 3, 1865.
3 Stat

468

* " C H A P . L X X V I I . — A n act to provide ways and means for
the support of the Government.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemthSeecrTrlasu?y^^^' Thsit the Secretary of the Treasury be, and he is
authorized to hereby, authorized to borrow, from time to time, on the
borrow s u m s . *

7 7

l^t feeding credit of the United States, in addition to the amounts
heretofore authorized, any sums not exceeding in the
aggregate six hundred millions of dollars, and to issue
therefor bonds or Treasury notes of the United States, in
Bonds or such form as he may prescribe: and so much thereof as
Treasurv notes

may be issued may be issued in bonds shall be of denominations not less
therefor.

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 denpminations—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 semibonds6™^ able annually; and on Treasury notes authorized by this act
semi-annually, 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 or Treasury notes, when payable in coin shall
not exceed six per centum per annum; and when not payable in coin shall not exceed seven and three-tenths per

LAWS COKCERNING MONEY, BANKING, AND LOANS.

191

centum per annum; and 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 Treasury
obligations bearing interest, issued under any act of Con- InteresY-bear*
gress, may, at the discretion of the Secretary of the Treas-may bfa con?
ury, and with the consent of the holder, be converted into bonds authorany description of bonds authorized by this act; and no act! y
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, 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.
ACT OF APRIL 7, 1866.
XXYIII.—An act making additional appropria- 25^4
tions, and to supply the deficiencies in the appropriations for sundry civil expenses of the Government for
the fiscal year ending the thirtieth of June, eighteen
hundred and sixty-six, and for other purposes.

CHAP.

stat

- L-»

SEC. 12. * * * : Provided, That no portrait o r o f g o i n | o ^ t
likeness of any living person hereafter engraved, shall be ^ ^engraved
placed upon any of the bonds, securities, notes, fractional
or postal currency of the United States. * * *
Approved, April 7, 1866.

192

HATIOKAL MONETAKY COMMISSION.

ACT OF APKIL 12, 1866.
14 stat
31

- L-> CHAP. XXXIX.—An act to amend an act entitled "An
act to provide ways and means to support the Government" approved March third, eighteen hundred and
sixty-five.

Be it enacted by
tives of the United
t hSeCrTreasur* ^d, That the act
empowered to me ans to support
receive Treas-

the Senate and House of RepresentaStates of America in Congress assementitled "An act to provide ways and
the Government," approved March

ury notes, etc., third, eighteen hundred and sixty-five, shall be extended
in exchange for

°Re 'ised stat
construed to authorize the Secretary of the Treasury,
utes, 3582. 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 amendBonds mayment; and also to dispose of any description of bonds
the proceeds authorized by said act, either in the United States or elseretiring Treas-where, to such an amount, in such manner, and at such
other obiiga-rates as he may think advisable, for lawful money of the
under act of United States or for any Treasury notes, certificates of
ongress.
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 obligaPubiic debt tions issued under any act of Congress; but nothing herein
creased.
contained shall be construed to authorize any increase of
Proviso.
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.
(Section 2 requires the Secretary of the Treasury to
report to Congress at its next session all transactions
under this act and the act to which this is an amendment.)
Approved, April 12, 1866.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

193

ACT OF JUNE 14, 1866.
CXXII.—An act to regulate and secure the safe- 14 stat.
keeping of public money intrusted to disbursing officers
of the United States.

CHAP.

L.,

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That from and after the passage of this act it s h a l l ^ J ^ ^ J 8 1 ^
be the duty of every disbursing officer of the United g ^ 1 * ffiPh
States having any public money intrusted to him for d i s - * ^ ^ ^ ^
bursement, to deposit the same with the treasurer or some a(nt d *1™BU™&
one of the assistant treasurers of the United States, and as squired,
to draw for the same only as it may be required for payments to be made by him in pursuance of law; and all
transfers from the treasury of the United States to a ^ ^ ^ / t t0
disbursing officer shall be by draft or warrant on the
treasury or an assistant treasurer of the United States:
Provided. That in places where there is no treasurer nor Deposits
w h e r e to be

assistant treasurer of the United States, the Secretary of made, if there
the Treasury may, when he deems it essential to the public or assistant,
interest, specially authorize in writing the deposit of
such public money in any other public depository, or, in
writing, authorize the same to be kept in any other manner, and under such rules and regulations as he may deem
most safe and effectual to facilitate the payments of
public creditors.
SEC. 2. And be it further enacted, That if any disburs- Depositing
ins: officer of the United States shall deposit any public or converting
°

• , , ! « ! • •

•

or loaning, or

money intrusted to him m any place or in any manner,d rawing, or
except as authorized by law, or shall convert to his own the same exuse an any way whatever, or shall loan, with or withoutfeed,to be eminterest, or shall for any purpose not prescribed by law
withdraw from the treasurer or any assistant treasurer,
or any authorized depository, or shall for any purpose
not prescribed by law, transfer or apply any portion of
the public money intrusted to him, every such act shall
be deemed and adjudged an embezzlement of the money
so deposited, converted, used, loaned, withdrawn, transferred, or applied, and every such act is hereby declared
a felony, and upon conviction thereof shall be punished Penalty,
by imprisonment for a term not less than one year nor
more than ten years, or by fine not more than the amount
embezzled nor less than one thousand dollars, or by both
such fine and imprisonment, at the discretion of the court.

194

NATIONAL MONETARY COMMISSION.

rec?ivi°nIl?i?om S E C . 8 - And ^e ^ further enacted, That if any banker,
officer i S o r r S c o i ^ r o ^ e r ' o r a n y P e r s o n ? n ° t a n authorized depositary of
public0 r money P u k l i c moneys, shall knowingly receive from any disburson aepioan' or *n& °fficer5 o r collector of internal revenue, or other agent
mone^SforUany °^ *ke United States any public money on deposit or by
p u ^ p o s e ^ o r W °^ ^ o a n o r accommodation, with or without interest,
d ^ n g1 *to Sbe o r otherwise than in payment of a debt against the United
bezziement em" States; or shall use, transfer, convert, appropriate or
apply any portion of the public money for any purpose
not prescribed by law; or shall counsel, aid, or abet any
disbursing officer or collector of internal revenue or
other agent of the United States in so doing, every such
act shall be deemed and adjudged an embezzlement of
the money so deposited, loaned, transferred, used, cono/officers 1 ^verted, appropriated, or applied; and any president,
fating thfs act" cashier, teller, director, or other officer of any bank or
banking association who shall violate any of the provisions of this act shall be deemed and adjudged guilty of
embezzlement of public money, and punished as provided
in section two of this act.
Approved, June 14, 1866.
A C T O F J U L Y 3, 1866.
14 stat. L., CHAP. C L I X . — A n act to amend an act entitled "An act to
amend an act entitled 'An act to aid in the construction
of a railroad and telegraph line from the Missouri
River to the Pacific Ocean, and to secure to the Government the use of the same for postal, military, and other
purposes? approved July 1, 1862," approved July 2,
1864.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemRadiwa11 Pcon> bled, That the Union Pacific Railway Company, Eastern
pany to desig- Division, is hereby authorized to designate the general
n a t e general

« \ .

.-•

«i

route of road, route of their said road, and to file a map thereof, as now
etc., before De-

cember i, 1866. required by law, at any time before the first day of December, eighteen hundred and sixty-six; and upon the
ofLroad°?onbefiling °f the s a i d map, showing the general route of said
saie.rved f r o m r o a d , the lands along the entire line thereof, so far as the
same may be designated, shall be reserved from sale by orbotTsUnto 'beder of the Secretary of the Interior: Provided, That said
etc. same a s if* company shall be entitled to only the same amount of
the bonds of the United States to aid in the construction of

LAWS CONCEENING MONEY, BANKING, AND LOANS.

195

their line of railroad and telegraph as they would have
been entitled to if they had connected their said line with
the Union Pacific Kailroad on the one-hundredth degree
of longitude as now required by law: * * *
*
*
*
*
*
Approved, July 3, 1866.
ACT OF JULY 26, 1866.
CCLXV.—An act to authorize the issue of certain25*4
bonds in denominations greater than one thousand dollars.

CHAP.

stat L

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That hereafter the bonds of the United States au- i n ^ r s ^f« e e r d
thorized by the act of July first, eighteen hundred and^mpan^mly
sixty-two, " To aid in the construction of a railroad and ^ Inomina^fons
telegraph line from the Missouri River to the Pacific than S1*000Ocean," and by all acts amendatory thereof, may be issued
in denominations greater than one thousand dollars, at
the discretion of the Secretary of the Treasury: Provided, is^d?.' 120,
however, That it shall at all times be optional with any JgJ; XI1, p
railroad company whether they will receive bonds of a voi864xni,21p!
35
larger denomination than one thousand dollars.
i865, ch.
Approved, July 26, 1866.
J00]; i m »
ACT OF FEBRUARY 5,1867.
XXVI.—An act to punish certain crimes in rela- 38*4
tion to the public securities and currency, and for
other purposes.

CHAP.

stat

- L>

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That if any person or persons shall buy, sell, ex- bu ^nalgte7lli£or
change, transfer, receive or deliver, any false, f°rged?|ondsf °notes^
counterfeited or altered bond, bill, certificate of indebt-Jtc- 'with m'

tent that they

edness, certificate of deposit, coupon, draft, check, bill of *hpa11 u|egassed
exchange, money order, indorsement, United States note,senuineTreasury note, circulating note, postage stamp, revenue
stamp, postage-stamp note, fractional note, or other obligation or security of the United States, or circulating note
of any banking association organized or acting under the
laws of the United States, which has been issued or may
hereafter be issued under any act of Congress heretofore
passed, or which may hereafter be passed, with the intent,

196

NATIONAL MONETAKY COMMISSION.

expectation, or belief, that the same shall or will be
passed, altered, published or used as true and genuine,
such person or persons so offending shall be deemed
guilty of felony, and on conviction thereof shall be imprisoned not more than ten years, or fined not exceeding
five thousand dollars, or both, at the discretion of the
court.
orTusingTakrds! SEC - 2- And he ii} further enacted, That it shall not be
?£rctherssimm-lftW^ul *° design, engrave, print, or in any manner make
united0f statesor execu * e ? or to utter, issue, distribute, circulate or use,
cfaredty unlaw" a n y business or professional card, notice, placard, cirful
cular, handbill, or advertisement, in the likeness or similitude of any bond, certificate of indebtedness, certificate
of deposit, coupon, United States note, Treasury note, circulating note, fractional note, postage-stamp note, or
other obligation or security of the United States, or of
any banking association organized or acting under the
laws thereof, which has been or may be issued under or
authorized by any act of Congress heretofore passed or
recovered' and w ^^ c ^ m a y hereafter be passed. And any person or perto whose use. sons offending against the provisions of this section shall
be subject to a penalty of one hundred dollars, to be recovered by an action of debt, one half to the use of the
informer.
Reprinting, g E a 3. ^n^ ie {t further enacted, That it shall not be
orSrK>et1ce e t e d ^ a w ^ *° w r ^ e ? print, or otherwise impress upon any
2no?JLy0J£ii.^kond, certificate of indebtedness, or other instrument
States security

made unlaw-specified in the last preceding section, any business or
professional card, notice or advertisement, or any notice
or advertisement of any goods, wares, or merchandise, or
of any drug or medicine, or of any invention or patent,
Penalty, how or of any other matter or thing whatsoever: and any perrecovered and

•

to whose 'use. son or persons offending against the provisions of this
section, shall be subject to a penalty of one hundred dollars, to be recovered by an action of debt, one half to the
use of the informer.
Penalty for SEC. 4. And he it further enacted, That if any person
impressions up-shall, without authority from the United States, take,
ai by any tool, procure, make, or cause to be taken, procured or made,
etc. used etc.

in*'printing upon lead, foil, wax, plaster, paper, or any other subetc, or in mak- *

. 1

•

• j

ing other tools, stance or material, an impression, stamp, or imprint 01,
in "printing, from, or by the use of, any bed-plate, bed-piece, die, roll,
curity, etc., to plate, seal, type, or other tool, implement, instrument or
be issued by orf. .

l*-

• .

j j f

•

• i.-

for the united thing, used, or fitted or intended to be used, in printing,

stamping or impressing, or in making other tools, imple

LAWS CONCEBNING MONEY, BANKING, AND LOANS.

197

ments, instruments or things to be used, or fitted or intended to be used, in printing, stamping or impressing
any kind or description of bond, bill, note, certificate,
coupon, or other paper, obligation, security or instrument
now authorized, or hereafter to be authorized, by law, to
be executed, altered, delivered, given, issued or put in circulation by, for, or in behalf of the United States, such
person shall be deemed guilty of felony, and, on conviction, be punished by imprisonment not more ten years,
or by fine not exceeding five thousand dollars, or both,
at the discretion of the court.
SEC. 5. And be it further enacted, That if any person Penalty for
shall, with intent to defraud, have in his possession, keep- session, ^ t h ing, custody, or control, without authority from the and with intend
TT \L i n i x

•

• x

•

- x i

defraud, any

United btates, any imprint, stamp or impression, taken or impression,etc.,
made upon any substance or material whatsoever, of any etc., used or
tool, implement, instrument, or thing used or fitted, or in- printing, etc.1;
tended to be used, for any or either of the purposes men-Se^ssueYby or
tioned in the last foregoing section; or if any person shall, s°tates;
with intent to defraud, sell, give, or deliver any such imprint, stamp or impression to any other person; such person, so offending, shall be deemed guilty of felony, and
on conviction be punished by imprisonment not more than
ten years, or by fine not exceeding five thousand dollars.
SEC. 6. And be it further enacted, That if any person, for secreting,
whether employed under the United States or not, shall, e t c . , without
without authority from the United States, secrete within, any place of
deiDOSlt
any
embezzle, or take and carry away from any building, tool, etc., used
'

ir.

or intended for

room, office, apartment, vault, sate, or other place where printing, etc.,
the same is kept, used, employed, placed, lodged, or de-tools, etc., to
posited by authority of the United States, any bed-piece, printing, etc.,
bed-plate, roll, plate, die, seal, type, or other tool, imple- currency, uretl',
I

XT--

JLJ. J x

•

to be issued by

ment, or thing used, or fitted to be used, m stamping or or for the
. '
.
,.
,,
, T
-.
.
i United States;
printing, or m making some other tool or implement used for taking, etc.,
or fitted to be used in stamping or printing, any kind orthority, any
description of bond, bill, note, certificate, coupon, postage pared anS in,

j»

,•

tended t o b e

stamp, revenue stamp, fractional currency note, or other used in makpaper, instrument, obligation, device, or document, now stamps or "curauthorized or hereafter to be authorized by law to b e ^ y , e t c . f r ? n
printed, stamped, sealed, prepared, issued, uttered, or put ^art? and* in^
in circulation by or on behalf of the United States; or circulation and
shall, without such authority, so secrete, embezzle, or take currency, etc0.;
and carry away any paper, parchment, or other material
prepared and intended to be used in the making of any
or either of such papers, instruments, obligations, devices,

198

NATIONAL MONETARY COMMISSION.

or documents; or shall, without such authority, so secrete,
embezzle, or take and carry away any paper, parchment,
or other material printed or stamped, in whole or in part,
and intended to be prepared, issued, or put in circulation,
by or on behalf of the United States, as one of the papers,
instruments, or obligations hereinbefore named, or printed
or stamped, in whole or in part, in the similitude of any
such paper, instrument, or obligation, whether it be intended to issue or put the same in circulation or not; such
person or persons so offending shall, on conviction, be
punished by imprisonment not exceeding ten years, or by
fine not exceeding five thousand dollars, or both, at the
discretion of the court.
w°ithoauVav? SEC. 7. And be it further enacted, That if any person
anyplace11 of°dS shall take and carry away, without authority from the
per^repa^or United States, from the place where it has been filed,
useetod procure lodged, or deposited, or where it may for the time being
moen?yyf?om, of actually be kept by authority of the United States, any
ciaims^^Snst! certificate, affidavit, deposition, written statement of
spates? 1wiheth^ac^:s? power of attorney, receipt, voucher, assignment,
hasSor hhasanotor °ther document, record, file, or paper, prepared, fitted,
sucS ciaimdnasor intended to be used or presented in order to procure
fo anowed.been ^ e payment of money from or by the United States,
or any officer or agent thereof, or the allowance or payment of the whole or any part of any claim, account, or
demand against the United States, whether the same
has or has not already been so used or presented, and
whether such claim, account, or demand, or any part
thereof, has or has not already been allowed or paid;
Penalty f o r or, if any person shall present or use or attempt to use
u s i n g or at-

tempting to use any such document, record, file, or paper, so taken and
any such paper.

carried away m order to procure the payment ot any
money from or by the United States, or any officer or
agent thereof, or the allowance or payment of the whole
or any part of any claim, account, or demand against
the United States; such person, so offending, shall be
deemed guilty of felony, and on conviction be imprisoned not more than ten years, or fined not exceeding
five thousand dollars, at the discretion of the court.
Approved, February 5, 1867.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

199

A C T O F MAKCH 2, 1867.
CHAP. C L X I I I . — A n act supplemental to "An act to es- 4 3 | 4 s t a t - L-»
iablish the Treasury Department"
approved the sec- vo?.9i,Cp'. 65*
ond of September, seventeen hundred and eighty-nine.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury shall have
^ f T ^
power, by an appointment under his hand and official^/0a*$£*%£
seal, to delegate to one of the assistant secretaries of the l^^1 toSesCig&
treasury, authority to sign in his stead all warrants for ^* r£*£*£ et*?
the payment of money into the public treasury, and all
warrants for the disbursement from the public treasury
of money certified by the proper accounting officers of
the treasury to be due upon accounts duly audited and
settled by them; and such warrants so signed shall be
in all cases of the same validity as if they had been
signed by the Secretary of the Treasury himself.
Approved, March 2, 1867.
ACT O F MAKCH 2, 1867.
CHAP.

CXCIV.—An act to provide ways and means for
the payment of compound-interest notes.

55|

4 stat L

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That for the purpose of redeeming and retiring any Temporary
compound interest notes outstanding, the Secretary of eatesmaybeisthe Treasury is hereby authorized and directed to issue compound-interest notes

temporary loan certificates in the manner prescribed by
section four 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, bearing interest at a Rate of interrate not exceeding three per centum per annum, principal
and interest payable in lawful money on demand; and Principal and
said certificates of temporary loan may constitute and be able in lawful
held by any national bank holding or owning the same, certificates
4. £4.1.
- J J J! •
i.'
x i - J.
'maybe held by
ar a part of the reserve provided for m sections thirty-one b a n k s as reserve

and thirty-two of 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 three, eighteen hundred and

200

NATIONAL MONETARY COMMISSION.

Proviso.

sixty-four: Provided, That not less than two-fifths of
the entire reserve of such bank shall consist of lawful
money of the United States: And provided further, That
the amount of such temporary certificates at any time
outstanding shall not exceed fifty millions of dollars.
Approved, March 2,1867.
ACT OF FEBRUARY 4,1868.

15 s t a t L

'CHAP.

VI.—An act to suspend further reduction of the
currency.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemPowerofSec-5fe^9 That, from and after the passage of this act, the
Treasury to re- authority of the Secretary of the Treasury to make any
duce currency

<» ,-,

.* •

n«

by, etc., s u s - reduction or the currency, by retiring or cancelling
United States notes, shall be, and is hereby, suspended;
Mutilated but nothing herein contained shall prevent the cancellanotes may betion and destruction of mutilated United States notes,
reolaced

Revised scat- and the replacing of the same with notes of the same
utes 3582

character and amount.
SCHUYLER COLFAX,

Speaker of the House of Representatives.
B. F. WADE,

President of the Senate pro tempore.
Indorsed by the President: " Received, January 23,1868."
NOTE BY THE DEPARTMENT OF STATE.—The foregoing act having
been presented to the President of the United States for his approval, and not having been returned by him to the house of
Congress in which it originated within the time prescribed by the
Constitution of the United States, has become a law without his
approval.

ACT OF JULY 25, 1868.
is stat. L „ C H A P # CCXXXVIL—An act to provide for a further
183.
issue of temporary loan certificates, for the purpose of
redeeming and retiring the remainder of the outstanding compound-interest notes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemioMience?tffriy- ^rf, That for the sole purpose of redeeming and retiring
to**^authorized*'16 r e m a i n d e r of the compound -interest notes outstandstand?nlmcom-^nS? ^ e Secretary of the Treasury is hereby authorized
notesd-interes*an^ directed to issue an additional amount of temporary

LAWS CONCERNING MONEY, BANKING, AND LOANS.

201

loan certificates, not exceeding twenty-five millions of
dollars; said certificates to bear interest at the rate of esfateofinter"
three per centum per annum, principal and interest payable in lawful money on demand, and to be similar in
all respects to the certificates authorized by the act entitled "An act to provide ways and me^ns for the payment of compound-interest notes," approved March second, eighteen hundred and sixty-seven; and the said cer- May form
tificates may constitute and be held by any national bank serve of national banks.

holding or owning the same as a part of the reserve, in
accordance with the provisions of the above-mentioned
act of March second, eighteen hundred and sixty-seven.
Approved, July 25,1868.
ACT OF MAECH 3, 1869.
CXXIII.—An act making appropriations to sup- J | stat.
ply deficiencies in the appropriations for the service
of the Government for the fiscal year ending June
thirtieth, eighteen hundred and sixty-nine, and for
other purposes.

CHAP.

•jj

«i*

jfe

L.,

jfe

For necessary expenses in carrying into effect the sev- xJ^^*Tfi£l
eral acts of Congress, authorizing loans and the issue of ury notes.
treasury notes, four hundred thousand dollars: Provided,
That no work shall be done in the engraving and print- d o ^ w ^ t o ^
vate
ing bureau for private parties.
parties.
5JC

3|C

*|*

Approved, March 3, 1869.
ACT OF MARCH 18, 1869.
CHAP.

I.—An act to strengthen the public credit.

16 stat. L., I.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That in order to remove any doubt as to the The faith of
purpose of the Government to discharge all just obliga- States pledged
tions to the public creditors, and to settle conflicting in cl^or^k
questions and interpretations of the laws by virtue of a?" obligations
which such obligations have been contracted, it is hereby states! etc"1 exprovided and declared that the faith of the United States ceRev!sed statis 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

202

NATIONAL MONETARY COMMISSION.

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 and
ingntoebu|atkmss^ver* But n o n e °^ s a ^ interest-bearing obligations not
notatoebeypawa^rea(iy due shall be redeemed or paid before maturity
ruy^un^s^^etc] 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 bearing a lower rate
of interest than the bonds to be redeemed can be sold at
ofR tt?ee United P a r *n c °i n - And the United States also solemnly pledges
coin?8 notes in its faith to make provision at the earliest practicable
period for the redemption of the United States notes in
coin.
Approved, March 18,1869.
ACT OF MARCH 25, 1870.
16 stat L., 77. CHAP. XXX.—An act prescribing the duty of the Secretary of the Treasury in certain cases therein named.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress asfr^thevniteasem^e^
That whenever any State shall have been, or
i^a6? etotoabemay be, in default in the payment of interest or principal
if^state' iset hi o n investments in stocks or bonds issued or guaranteed
mlnt^of^infer'-by such State and held by the United States in trust, it
on%Tocki?citc.!sha11 b<> the duty of the Secretary of the Treasury to
Itf'ami lei'd i£ retain the whole, or so much thereof as may be necessary,
unfted bitates!°f a n y moneys due on any account from the United States
to such State, and to apply the same to the payment of
such principal and interest, or either, or to the reimbursement, with interest thereon, of moneys advanced by the
United States on account of interest due on such stocks or
bonds.
Approved, March 25,1870.
ACT OF JULY 8, 1870.
16 stat

CCXXIX.—An act providing for refunding the
interest paid by the State of Massachusetts on money
expended by her on account of the war of eighteen
hundred and twelve to eighteen hundred and fifteen.

L.,CHAP.

(This act provides for the payment to Massachusetts
of an allowance for interest on money expended by said

LAWS CONCERNING MONEY, BANKING, AND LOANS.

203

State on account of the war of 1812-1815 with Great
Britain by an issue of United States certificates of indebtedness, of the denomination of one thousand dollars each,
to run for five years, with interest at four per cent per
annum, payable semiannually.)
ACT OF JULY 14, 1870.
CHAP.

CCLVI.—An act to authorize the refunding of the 2 7 | 6
national debt.

stat

- L»

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That the Secretary
of the Treasury is hereby
secretary of
J
,,
. , . .
.
.
T
• , , J t h e Treasury
authorized to issue, in a sum or sums not exceeding m the may issue not
, ,

i - i i

i n

over

•

$200,000,-

aggregate two hundred million dollars, coupon or regis- ooo coupon or
tered bonds of the United States, in such form as he m a y per cent bonds,
redeemable Af.*~

prescribe, and of denominations of fifty dollars, or some ter ten years;
multiple of that sum, redeemable in coin of the present principal and
standard value, at the pleasure of the United States, after ble in coin*; ^
ten years from the date of their issue, and bearing inter- c em be r° 11\
est, payable semi-annually in such coin, at the rate of five Also, not over
j.

$300,000,000

per cent, per annum; also a sum or sums not exceeding Ij per cent
in the aggregate three hundred million dollars of like abfeds,aftereenf"
bonds, the same in all respects, but payable at the pleasure teen years*
of the United States, after fifteen years from the date of
their issue, and bearing interest at the rate of four and a
half per cent, per annum; also a sum or sums not exceed- «^ooo^oVooo
ing in the aggregate one thousand million dollars of l i k e ^ ^ e r ^ ^ n t
bonds, the same in all respects, but payable at the pleasure abie^after thir"
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 AH to be ex^

, ,, ,

emptfrom

and the interest thereon shall be exempt
from the xpay- United states
.
.x
r . o r state taxes.
ment of all taxes or duties of the United States, as well Revised stat«

„

• •

utes

» 3701.

as from taxation m any form by or under btate, municipal, or local authority: and the said bonds shall have set Bonds to set
»

•

-n

f o r t n

w n a t

a n d

forth and expressed upon their lace the above specified when payable,
conditions, and shall, with their coupons, be made payable at the Treasury of the United States. But nothing Bonded debt
, i i

•

i»

i ni

° not to be in-

in this act, or m any other law now m torce, shall be con- creased,
strued to authorize any increase whatever of the bonded
debt of the United States.
SEC. 2. And be it further enacted, That the Secretary of
the Treasury is hereby authorized to sell and dispose of

http://fraser.stlouisfed.org/
15712°—10
Federal Reserve Bank of St. Louis

204

NATIONAL MONETARY COMMISSION.

boandSmltany o f t h e b o n d s i s s u e d u n d e r t h i s act > at not less than
for coiS7 a n d t h e i r P a r v a l u e f o r c o i n > a n d t o a PPty t h e proceeds thereof
e8s}( pr(5ceeds 'to the redemption of any of the bonds of the United
ju^eee2oai874°f^tates o u t s t a n d i n g , and known as five-twenty bonds at
r
cha ^ ge ^y fl ex-their par value, or he may exchange the same for such
twentiesatpar.five-twenty bonds, p a r for p a r ; but the bonds hereby
authorized shall be used for no other purpose whatsoever.
t i t n P forriex-And a sum not exceeding one-half of one per cent, of the
pe
Revfsed stat- bonds herein authorized is hereby appropriated to pay the
utes, 3689.
expense of preparing, issuing, advertising, and disposing
of the same.
(Section 3 provides that, after the maturity of any of
the bonds herein authorized, payment thereof shall be
made at the discretion of the Secretary of the Treasury,
the bonds to be called for by public notice specifying
their dates and numbers, beginning with the bonds last
dated and numbered, and the interest on bonds thus selected ceasing three months after the date of such notice.
(Section 4 authorizes the Secretary, with any coin that
is lawfully applicable, to pay at par and cancel any of the
five-twenty bonds that may become redeemable by the
terms of their issue; the bonds to be called for by public
notice as above, interest ceasing in like manner, and the
bonds to be called in numerical order, beginning with the
bonds first numbered and issued.)
s e c r e t a r y s E C # 5. And he it further enacted. That the Secretary
S en

may, w i t h i n

. , .

two years, re- 0 f the Treasury is hereby authorized, a t any time within
on deposit and two years from the passage of this act, t o receive gold
cates therefor, c o i n 0 f the United States on deposit for not less than
L

bearing interest

at not oyer 2j thirty days, in sums of not less than one hundred dollars.
per

cent

per

annum.

Tvith the Treasurer or any assistant treasurer of t h e
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 a t a rate not exceeding two and

when P and Slow a ^ ^ P e F
be witn

o?rawn

Per

a n n u m

a n dan

y amount of gold Coin

- so deposited may be withdrawn from deposit at any time
after thirty days from the date of deposit, and after ten
c e a s V ' w h e ^ ^ y 8 ' n °ti c e 5 and on the return of said certificates: Proetc
videdj That the interest on all such deposits shall cease
ce?veddon° de" a n d determine at the pleasure of the Secretary of t h e
EeSappiiedW t o 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 pay

LAWS CONCERNING MONEY, BANKING, AND LOANS.

205

ment of said certificates; and the excess beyond twentyfive per cent, may be applied, at the discretion of the
Secretary of the Treasury, 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 afore- certificates of
,
.
. ,
,
deposit, etc., resaid, may be received at p a r with the interest accruedmceived
in payent o f
,

i n

bonds

thereon, m payment ior any bonds authorized to be issued hereby authorby this act.
SEC. 6. And be it further enacted. That the United ^ united states
Donas p u r -

States bonds purchased and now held in the Treasury in chased and now
. ,

• •

•

held

the

accordance with the provisions relating to a sinking fund, Treasury to be
of section five of the act entitled "An act to authorize the Revised' statutes, 3695.
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 Secretary of the Treasury, with surplus funds in the Treasury, and now held in
the Treasury of the United States shall be cancel [l]ed
and destroyed, a detailed record of such bonds so cancelled 0f Rt§orbVhflrst
and destroyed, to be first made in the books of the Treas- m a d e ury Department. Any bonds hereafter applied to said such bonds so
sinking fund, and all other United States bonds redeemed chased and held
or paid hereafter by the United States, shall also in like recorded and
manner be recorded, cancel [l]ed, and destroyed, and the
amount of the bonds of each class that have been cancel [l]ed and destroyed shall be deducted respectively
from the amount of each class of the outstanding debt of
the United States. I n addition to other amounts that An amount
may be applied to the redemption or payment of theest on aii
public debt, an amount equal to the interest on all bonds ing to sinking
belonging to the aforesaid sinking fund shall be applied, p'lied to epayas the Secretary of the Treasury shall from time to time debt. ° p u
direct, to the payment of the public debt as provided forutes, 3696.
in section five of the act aforesaid. And the amount so Amount to be
to be applied is hereby appropriated annually for thatpriated.
purpose, out of the receipts for duties on imported goods.
Approved, July 14, 1870.

206

NATIONAL MONETAKY COMMISSION.

ACT OF JANUARY 20, 1871.
399.6 s t a t L" CHAP. XXIII.—An act to amend an act entitled "An act
to authorize the refunding of the national debt"
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assempet^eSfbondsued, T h a t t h e amount of bonds authorized by the act
crVa sVd * to approved July fourteen, eighteen hundred and seventy,
I n7,0inter0e°st entitled "An act to authorize the refunding of the national
quarteriy!yable debt," to be issued bearing five per centum interest per
ut?sVi3689.Stat" annum, be, and the same is, increased to five hundred
millions of dollars, and the interest of any portion of the
bonds issued under said act, or this act, may, at the discretion of the Secretary of the Treasury, be made payable
^tal i amount^ uar * er "y ear ly : Provided, however, That this act shall
etc* to exceed, not be construed to authorize any increase of the total
i7S1&7^ctsec.e2! amount of bonds provided for by the act to which this act
is an amendment.
Approved, January 20,1871.
ACT OF MAY 23, 1872.
17 stat.

CXOVII.—An act defining and limiting the appropriation of certain moneys for the preparation, issue,
and reissue of the securities of the United States, and
for other purposes.

L.,CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemth?xFsesueeSetc.f^^^? That the expenses of the issue, reissue, transfer,
rfties^tc. to°be delivery, redemption, and destruction of securities, legala^p/opHa^on!^11^1* notes, fractional currency, checks, certificates,
ceed n^tc!0 ex commissions, and for any plate and seal engraving and
ut^sVi3689Stat"Panting required by the Treasury Department, shall be
secR4peactSunePa^ fr°m and shall not exceed the appropriation of one
20,1874.
p e r centum of the amount of legal-tender notes, fractional currency and securities issued during each fiscal
year: Provided, That nothing herein contained shall be
m tation
'construed to increase or enlarge the appropriation conet£ * *
see sec. 4. tained in the second section of the act entitled "An act
to authorize the refunding of the national debt," approved
July fourteenth, eighteen hundred and seventy.
Approved, May 23, 1872.

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

207

ACT OF JUNE 1, 1872.
CCLIV.—An act to provide for the issue of bonds IT stat. L..
in lieu of destroyed or defaced bonds of the United
States.

CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That whenever it shall appear to the Secretary of Bonds of the
the Treasury, by clear and unequivocal proof, that any may be issued
interest-bearing bond of the United States has, without destroyed or
defaced.

bad faith upon the part of the owner, been destroyed, Revised statwholly or in part, or so defaced as to impair its value
to the holder, and which bond shall be identified by
number and description, the Secretary of the Treasury
shall, under such regulations and with such restrictions
as to time and retention for security or otherwise as he
may prescribe, issue a duplicate of such bond, having
the same time to run, bearing like interest as the bond
so proved to have been destroyed or defaced, and so
marked as to show the original number of the bond
destroyed and the date thereof: Provided, That where Called bonds
such destroyed or defaced bonds shall appear to have
been of such a class or series as has been or may, before
such application, be called in for redemption, instead
of issuing duplicates thereof they shall be paid, with
such interest only as would have been paid if presented
in accordance with such call.
SEC. 2. That the owner of such destroyed or defaced owners of deJ

s t r o y e d , etc.,

bond shall surrender the same, or so much thereof as may {Jo^o/Tnlem*
remain, and shall file in the Treasury a bond in a penal***? with suresum double the amount of said destroyed or defaced
bond, and the interest which would accrue thereon until
the principal thereof is due and payable, with two good
and sufficient sureties, residents of the United States,
to be approved by the Secretary of the Treasury, with
condition to indemnify and save harmless the United
States from any claim upon the said destroyed or defaced
bond.
Approved, June 1, 1872.
NOTE.—A more restricted provision for the issuance of lost or
destroyed bonds was contained in Joint Resolution No. 49, of
March 3, 1871 (16 Stat. L., 600).

208

NATIONAL MONETAKY COMMISSION.

ACT OF MARCH 3, 1873.
5o!7

Stat

* L" CHAP. CCXXVI.—An act making appropriations for the
legislative, executive, and judicial expenses of the Government for the year ending June thirtieth, eighteen
hundred and seventy-four, and for other purposes.

theST?efsury to SEC. 2. That the Secretary of the Treasury is directed
menhts0lto Pcer" to withhold all payments to any railroad company and
eompavAe^to r ^ s assigns, on account of freights or transportation, over
freight, etc. their respective roads, of any kind, to the amount of
payments made by the United States for interest upon
bonds of the United States issued to any such company,
and which shall not have been reimbursed together with
the five per cent, of net earnings due and unapplied as
maCObrinansueit P r o v ^ e ( ^ ^y * a w ' an( ^ s u c ' 1 c o m P a n y m a y bring suit in
claimsurt °f ^ e c o u r * °^ c l a i m s to recover the price of such freight
and transportation; and in such suit the right of such
company to recover the same upon the law and the facts
of the case shall be determined and also the rights of the
United States upon the merits of all the points presented
by it in answer thereto by them and either party to such
SupremeCourt° s u ^ m a y appeal to the Supreme Court; and both said
have aU rece°- cour * s s n a ^ g*ve s u c n cause or causes precedence of all
dence.
other business.
*
*
*
*
*
Approved, March 3, 1873.
ACT OF MAECH 3, 1873.
60i7

Stat

* L" CHAP. CCLXI.—An act for the creation of a court for
the adjudication and disposition of certain moneys
received into the Treasury under an award made by the
tribunal of arbitration constituted by virtue of the first
article of the treaty concluded at Washington the eighth
of May, anno Domini eighteen hundred and seventyone, between the United States of America and the
Queen of Great Britain.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That immediately upon the payment of the sum of
money awarded to the United States by the tribunal of

LAWS COKCEKKING MONEY, BANKING, AND LOANS.

209

arbitration at Geneva to be paid by the Government of p ^he t Jf^fJ
Great Britain, the same shall be paid into the Treasury, J^<^atSMt?
and used to redeem, so far as it may, the public debt of ^ *ribunaiat
the United States, and the amount equal to the debt so g^jgjft *g*to
redeemed shall be invested in the five per cent, registered ,Tun|e23ai874 '
bonds of the United States to be held subject to the future *«* g* A*>ril n>
disposition of Congress.
Approved, March 3, 1873.
ACT OF MAECH 3, 1873.
CHAP. CCLXVIII.—An act to establish tlie custom-house n stat. L.,
value of the sovereign or pound sterling of Great Britain, and to fix the Par of Exchange.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the value of foreign coin as expressed in the , Value of for7

eign coin in

money of account of the United States shall be that of united states
^

money of ac-

the pure metal of such coin of standard value: and the count,to be,etc.
x

V a l u e s of

values of the standard coins in circulation of the various standard coins
in circulation

nations or the world shall be estimated annually by the to be estimated
v

annually

and

director of the mint, and be proclaimed on the first day proclaimed,
of January by the Secretary of the Treasury.
SEC. 2. That in all payments by or to the treasury, jThe soverwhether made here or in foreign countries, where it be- sterling to be
°

equal to wbat.

comes necessary to compute the value of the sovereign or
pound sterling, it shall be deemed equal to four dollars
eighty-six cents and six and one-half mills, and the same
rule shall be applied in appraising merchandise imported
where the value is, by the invoice, in sovereigns or pounds
sterling, and in the construction of contracts payable in
sovereigns or pounds sterling; and this valuation shall ti0™ts ^aIua"
be the par of exchange between Great Britain and the of c ^. n r an *?- t s
United States; and all contracts made after the first day $S*y Jan- *>
• i

- i - i - i T

« . i

1874, upon any

of January, eighteen hundred and seventy-four, based ot&|r Par to **
on an assumed par of exchange with Great Britain of
fifty-four pence to the dollar, or four dollars forty-four
and four ninths cents to the sovereign or pound sterling,
shall be null and void.
SEC. 3. That all acts and parts of acts inconsistent Repealing
with these provisions be, and the same are hereby, re- c
pealed.
Approved, March 3, 1873.
NOTE.—For previous determinations of the value of the pound

sterling see the acts of July 14, 1832 (4 Stat. L., 593), and July
http://fraser.stlouisfed.org/
27, 1842 (5 ibid., 496).
Federal Reserve Bank of St. Louis

210

NATIONAL MONETARY COMMISSION.
BEVISED STATUTES APPLICABLE TO THE SUBJECT OF
FINANCE.

tiefTtSe stc- S E C - 2 4 8 # T h e Secretary of the Treasury shall, from
retary.
time to time, digest and prepare plans for the improvement and management of the revenue, and for the support of the public credit; shall superintend the collection
of the revenue; shall, from time to time, prescribe the
forms of keeping and rendering all public accounts and
making returns; shall grant, under the limitations herein
established, or to be hereafter provided, all warrants for
moneys to be issued from the Treasury in pursuance of
appropriations by law; shall make report, and give information to either branch of the legislature in person or
in writing, as may be required, respecting all matters referred to him by the Senate or House of Eepresentatives,
or which shall appertain to his office; and generally shall
perform all such services relative to the finances as he
shall be directed to perform.
SEC. 257. The Secretary of the Treasury shall make the
following annual reports to Congress:
First. A report on the subject of finance, containing
estimates of the public revenue and public expenditures
for the fiscal year then current, and plans for improving
and increasing the revenues from time to time, for the
purpose of giving information to Congress in adopting
modes of raising the money requisite to meet the public
expenditures.
o t h ^ S w / t o SEC. 3473. All duties on imports shall be paid in gold
Itates^in!whatan(^ s ^ v e r c ° i n o n ty? [ o r c ° i n certificates], or in demand
currency to be Treasury notes, issued under the authority of the acts of
bracllts d S iS ^ u ^y seventeen, eighteen hundred and sixty-one, chapter
^ePbe27>yi87t7°f^ve5 a n ( ^ February twelve, eighteen hundred and sixtych690Ufec8ii' *w0> chapter twenty; and all taxes and all other debts and
V0
23Dec 1857 d e m a n ( l s than duties on imports, accruing or becoming
voi li sec* 6 ' ^ u e *° *^ e United States, shall be paid in gold and silver
i86i7 ch a I y 5 , c 0 ^ n ' Treasury notes, United States notes, or notes of
seC
2&§ voL 1 2 , > n a tional banks; and upon every such payment credit shall
ch5 ie^Sec86!' ^ e g i y e n f ° r the amount of principal and interest due on
v
°2* Fei/'itel' a n y Treasury note [or notes] not received in payment on
ch 2
* 338^L "^d**16 day when the same are received.
^eb., 1862, ch. 33, sees. 1, 5, vol. 12, pp. 345, 346; 11 July, 1862, ch.
142, sec. 1, vol. 12, p. 532; 1 March, 1863, ch. 73, sees. 3, 5, vol. 12,
pp. 710, 711, 147, 149; 3 June, 1864, ch. 306, sec. 23, vol. 13, p. 106;
30 June, 1864, ch. 172, sec. 2, vol. 13, p. 218. Amended and part repealed
by act, Feb. 27, 1877.
The words in ordinary roman type in brackets were added, and
those in italics, were struck out by act of February 27, 1877.

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

211

SEC. 3476. Treasury notes bearing interest may be paid notese payable
to any creditor of the United States at their face value, unitedebstates*
excluding interest, or to any creditor willing to receive c h 3 ^gec? 6 !*
them at par, including interest.
^g1 junePi864'
ch. 172, sec. 2, vol. 13, p. 218!

SEC. 3481. Whenever any State is in default in the m detention ^
payment of interest or principal on investments in stocks f *£{£s i n d e '
or bonds issued or guaranteed by such State and held by 18 | 0 5 c^^voV
the United States in trust, the Secretary of the Treasury 16» P- *7. '
shall retain the whole, or so much thereof as may be necessary, of any moneys due on any account from the United
States to such State, and apply the same to the payment
of such principal and interest, or either, or to the reimbursement, with interest thereon, of moneys advanced
by the United States on account of interest due on such
stocks or bonds.
SEC. 3576. No portrait shall be placed upon any of the livwtraen3ons
bonds, securities, notes, fractional or postal currency of p^cedoVbonds
the United States, while the original of such portrait is or 7 n <* es / 1866
living.
voi2i4S<*c* 12 '
SEC. 3591. The rooms provided in the Treasury Build- o f ^ *^S|gJ
ing at the seat of Government for the use of the Treasurer s t | t ^ 1846
of the United States, his assistants, and clerks, and occu- £ 90'KAS-' *» v7

9, p. 59.

pied by them, and the fire-proof vaults and safes erected y co°| e |* »}•
therein for the keeping of the public moneys in the pos- s., 3*89.'
session and under the immediate controll of the Treasurer,
and such other apartments as are provided as places of
deposit of the public money, shall be the Treasury of the
United States.
SEC. 3592. The mints at Carson City, and at Denver, ^ " J S y ™ 1 ^
and the assay-office at Boise City, shall be places of d e - * ^ ^ * * de~
posit for such public moneys as the Secretary of the c 2\$pl'' g86^
Treasury may direct.
12,/'- 383.' &
96, s. 5, v. 12, p. 770. 19 Feb., 1869, c. 33, s. 4, v. 15, p! 271. ' 12
Feb., 1873, c. 131, ss. 65, 66, v. 17, p. 435.

SEC. 3593. All public moneys paid into any depository P l ^ c e c ^ 0 ^
shall be subject to the draft of the Treasurer of the|J*J*ul£* t h e
United States, drawn agreeably to appropriations made c l o ^ ' i 1 8 4 ! '
by law.
P- 59. * ' * '
SEC. 3594. The superintendent of the mint at Carson entuJferminetUat
City, and the superintendent of the assay-office at Boise ^| r |°. n 0 l |^ a |City, shall be assistant treasurers of the United States, a n d ^ 1 ^ * ^ ^
shall respectively have the custody and care of all publictr|fSAp?rsi862
moneys deposited therein, and shall perform all the duties £2 5jJ» |835» ^
required of them in reference to the receipt, safe-keeping, f^
l 8 ^ 3 ^!;
p. 770. 19 Feb., 1869, c. 33, s. 4, v. 15, p. 271. 3 Mar., i871,'c. 113,'
s. 1, v. 16, p. 485. 12 Feb,, 1873, c. 131, ss. 65, 66, v. 17, p. 435.

212

NATIONAL MONETARY COMMISSION.

transfer, and disbursement of all such moneys, as provided by law.
et£?Pofnlmseist- ^EC. 3595. There shall be assistant treasurers of the
an
6 Aul? 1846,' United States, appointed from time to time by the Presi9 9p' S605' V7 dent, by and with the advice and consent of the Senate,
28prs i486v'if'*° s e r v e f ° r the term °f f ° u r years, as follows:

Si*™ c^lfet

0 n e at B S t 0 n

v ITS^!'
c JSf's'58T£
"fa&SSi' in
iug* 1 1876, Xc

0 n e at

lifv* 19, p*

Philadelphia,
Baltimore.
( ^ at Charleston.)
0 n e at New
Orleans.
0 n e at

0 n e at Saint Louis

One at San Francisco.
One at Cincinnati.
One at Chicago.
(By statute of August 15, 1876, c. 287, v. 19, p. 155, so
much of this section as authorizes the appointment of an
assistant treasurer at Charleston was repealed.)
NOTE.—For list of acts providing for assistant treasurers of
the United States, see note to section 5, act of August 6, 1846
(9 Stat. L., 59).

(Sec. 3596 prescribes the salaries of assistant treasurers.)
Ee e lp
£ i JL«£ SEC. 3597. The salaries named in the preceding section
commissions

i8ites

r
#

totbimen shall be * ^ 1 ^ the services of the respective officers,
c *9<f T^ 1 ! 4 ?' an( ^ n o n e °^ them shall charge or receive any commission,
9, p. 65.
p a y 5 o r perquisite, for any official service of any character
or description whatsoever. Every such officer who makes
any such charge, or receives any such compensation, shall
be deemed guilty of a misdemeanor, and shall be fined or
imprisoned, or both.
o fRoo?ssfistant ^EC# 3598- The rooms assigned by law to be occupied by
tr a
6 sUjersi846 the assistant treasurers, together with the fire-proof
v S°' *%i' li v a u l t s therein, or connected therewith, shall be approprii§o% 287v°'i6 ate( * t o ^ e u s e °^ ^ e a s s i s t a n t treasurers, and for the
p. 152. '
' safe-keeping of the public moneys deposited with them,
respectively.
Their care gEC# 3599. The assistant treasurers shall have the
and the use of

the ™°ms^846 charge and care of the rooms, vaults, and safes assigned
v 90' s |^ 3 , is* 0 them, respectively, and shall there perform the duties
i"S% 287v0,i6 r e ( l u ^ r e ( ^ °^ them relating to the receipt, safe-keeping,
p. 152. '
' transfer, and disbursement of the public moneys.

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

213

(Sections 3600 and 3601 require the assistant treasurers
to give bonds, and provide for subordinate officers, etc.)
SEC. 3602. The assistant treasurer at New York may, Deputy aswith the approval of the Secretary of the Treasury, ap-urer at New
point from among his clerks a competent person to be 6 Mar., 1862,
c. 37 s. 2 v

called the deputy assistant treasurer of the United States. 12, p.' 353. '
Such deputy assistant treasurer, in addition to other
duties performed by him, and the duties which he may be
required to perform by the assistant treasurer, is authorized to witness the execution of all transfers of Government stock and powers of attorney, and to sign all bullionreceipts, with like effect as if the same were witnessed or
signed by the assistant treasurer in person.
(Sections 3603 to 3612, inclusive, authorize the employment of subordinate officers, etc., at various subtreasuries.)
SEC. 3613. I n case of the sickness or unavoidable ab- Deputies in
«

. case

sick-

sence 01 any assistant treasurer or depositary irom his ness or absence.
office, he may, with the approval of the Secretary of the c^ 32, v. "13, p!
Treasury, authorize the chief clerk, or some other clerk
employed therein, to act in his place, and to discharge all
the duties required by law of such assistant treasurer or
depositary. The official bond given by the principal of
the office shall be held to cover and apply to the acts of
the person appointed to act in his place in such cases.
Such acting officer shall moreover, for the time being, be
subject to all the liabilities and penalties prescribed by
law for the official misconduct, in like cases, of the assistant treasurer or depositary, respectively, for whom
he acts.
SEC. 3615. All collectors and receivers of public money collectors of
of every description, within the District of Columbia,?"pay o?erneys
shall, as often as they may be directed by the Secretary c. 69^,uf/ Ifv!
of the Treasury or the Postmaster-General so to do, pay9,i%Feb.,i873,
over to the Treasurer of the United States, at the Treas-iY^p!'!^ 5 ' v"
ury, all public moneys collected by them or in their
hands. All such collectors and receivers of public moneys
within the cities of New York, Boston, Philadelphia, New
Orleans, San Francisco, Baltimore, Charleston, and Saint
Louis shall, upon the same direction, pay over to the
assistant treasurers in their respective cities, at their
offices, respectively, all the public moneys collected by
them, or in their hands; to be safely kept by the respective
depositaries, until otherwise disposed of according to law.

214

NATIONAL MONETARY COMMISSION.

I t shall be the duty of the Secretary and PostmasterGeneral, respectively, to direct such payments by the collectors and receivers at all the said places, at least as often
as once in each week, and as much oftener as they may
think proper.
(See section 5490.)
shSsWan<? dfs- SEC. 3616. All marshals, district attorneys, and other
maCy pay*^nto persons than those mentioned in the preceding section,
Tr a
6 iugT,' 1846, having public money to pay to the United States, may
9, j) 0, 62. 15 ' v ' P a y the same to any depositary constituted by or in purc 230,lys 1 i i i ' suance of law, which may be designated by the Secretary
V. 16, i>. *2i6. ' o f t h e Treasury.
(See sections 5504, 5505.)
derated3 with^ ®EC# ^617. The gross amount of all moneys received from
0U
I Ma?cti849 w n a t e v e r source for the use of the United States, except
o 11(398 1 ' v * a s otherwise provided in the next section, shall be paid
2 Se )t 1 5
c ' | 8 | g | ^by the officer or agent receiving the same into the Treasp. 507. '
' ury, at as early a day as practicable, without any abatement or deduction on account of salary, fees, costs,
charges, expenses, or claim of any description whatever.
But nothing herein shall affect any provision relating to
the revenues of the Post-Office Department.
buS?ng office^ S E C - 3 6 2 ° - x t s n a 1 1 b e t h e d u t y o f e v e i 7 disbursing
c.1ii2)n^,1i86v! °ffi cer having any public money intrusted to him for dis14 P
27 Feb.',i877,kursement, t o deposit the same with the Treasurer or
249.9, v* 19, p * s o m e o n e °f the assistant treasurers of the United States,
and to draw for the same only as it may be required for
payments to be made by him in pursuance of law [and
draw for the same only in favor of the persons to whom
payment is made;] and all transfers from the Treasurer
of the United States to a disbursing officer shall be by
draft or warrant on the Treasury or an assistant treasurer of the United States. I n places, however, where
there is no treasurer or assistant treasurer, the Secretary
of the Treasury may, when he deems it essential to the
public interest, specially authorize in writing the deposit of such public money in any other public depository,
or, in writing, authorize the same to be kept in any other
manner, and under such rules and regulations as he may
deem most safe and effectual to facilitate the payments to
public creditors.
(See section 5488.)
(The words in brackets were added in accordance with
the act of February 27,1877.)

LAWS COSTCEBNING MONEY, BANKING, AND LOANS.

215

SEC. 3621. Every person who shall have moneys of the m J®**** £*
United States in his hands or possession shall pay t h e ^ r ^ r 1857
same to the Treasurer, an assistant treasurer, or some Ji,1"*249.8, v*
public depositary of the United States, and take his receipt for the same, in duplicate, and forward one of them
forthwith to the Secretary of the Treasury.
(See section 5492.)
SEC. 3639. The Treasurer of the United States, all J*** J*scu°sf
assistant treasurers, and those performing the duties of iS?mSne^pub"
assistant treasurer, all collectors of the customs, all sur- c fo^gf^ 4 !'
veyors of the customs, acting also as collectors, all re- P- |°^ u l y 1 8 5 2
ceivers of public moneys at the several land-offices, all j- 0 54> ^ 7» vpostmasters, and all public officers of whatsoever char- c \$*rg 1285J»
acter, are required to keep safely, without loaning, using, 1 1 ^ 2^\m2
depositing in banks, or exchanging for other funds than j- 2 59> j^25> ••
as specially allowed by law, all the public money collected ^ aiar., i863»
by them, or otherwise at any time placed in their pos-12, P.' 770.'
session and custody, till the same is ordered, by the proper 5o 2 4 2 , 3 | 3 5 ' v*
Department or officer of the Government, to be trans- is Feb., 1869,
ferred or paid out; and when such orders for transfer is, 271/
or payment are received, faithfully and promptly to make
the same as directed, and to do and perform all other
duties as fiscal agents of the Government which may be
imposed by any law, or by any regulation of the Treasury Department made in conformity to law. The President is authorized, if in his opinion the interest of the
United States requires the same, to regulate and increase
the sums for which bonds are, or may be, required by
law, of all district attorneys, collectors of customs, naval
officers, and surveyors of customs, navy agents, receivers
and registers of public lands, paymasters in the army,
commissary-general, and by all other officers employed in
the disbursement of the public moneys, under the direction of the W a r or Navy Departments.
(See sections 5489-5497.)
SEC. 3640. The Secretary of the Treasury may, except moTnfyDssffro°mf
as provided in the next section, transfer the moneys inTreasu? rles aS
the hands of any depositary of public moneys to the t h ^ J ? ^ 1846
Treasury of the United States to the credit of the Treas- g. 90*s. '10, v.
urer; and he may transfer moneys in the hands of one
depositary to any other depositary, as the safety of the
public moneys and the convenience of the public service
shall seem to him to require.
SEC. 3641. The Postmaster-General may transfer money Transfer of
IT

•

„

. ,

J
rry

postal deposits.

belonging to the postal service between the Ireasurer, .June 8, i|72.
assistant treasurers, and designated depositaries, at his 17* p. '202.

216

NATIONAL MONETARY COMMISSION.

discretion, and as the safety of the public money and the
convenience of the service may require.
ey^iS^Treas- ^EC. 3 6 4 4 : - ^
moneys paid into the Treasury of the
?to^iesndsub?ectUnite(i States shall be subject to the draft of the TreasTresLsurer o f u r e n ^ ^ ^ o r ^ e purpose of payments on the public
tog* 6,i1o84v a c c o u n ^ t h e Treasurer is authorized to draw upon any of
9, p. fci. the depositaries, as he may think most conducive to the
public interest and to the convenience of the public creditors. Each depositary so drawn upon shall make returns
to the Treasury and Post-Office Departments of all
moneys received and paid by him, at such times and in
such forms as shall be directed by the Secretary of the
Treasury or the Postmaster-General.
f o*eguw2mE ^ EC# 3 6 4 5 # T t s h a 1 1 b e t h e d u t y o f t h e Secretary of the
ment of drafts. Treasury to issue and publish regulations to enforce the
speedy presentation of all Government drafts, for payment, at the place where payable, and to prescribe the
time, according to the different distances of the depositaries from the seat of Government, within which all
drafts upon them, respectively, shall be presented for
payment; and, in default of such presentation, to direct
any other mode and place of payment which he may
deem proper; but, in all these regulations and directions,
it shall be his duty to guard, as far as may be, against
those drafts being used or thrown into circulation as a
paper currency or a medium of exchange.
(See sections 5495, 5496.)
Examination SEC. 3649. The Secretary of the Treasury is authorized
Au|°6,1846,' to cause examinations to be made of the books, accounts,
9, p. 62.' ' * and money on hand, of the several depositaries; and for
J
Mar. 3,1875, ,, ,
,
. ,
. -,
,
c. 129, T. 18, p. that purpose to appoint special agents, as occasion may
require, with such compensation, not exceeding six dollars
per day and traveling expenses, as he may think reasonable, to be fixed and declared at the time of each appointment. The agent selected to make these examinations
shall be instructed to examine as well the books, accounts,
and returns of the officer, as the money on hand, and the
manner of its being kept, to the end that uniformity and
accuracy in the accounts, as well as safety to the public
moneys, may be secured thereby.
Examination S E C . 3650. I n addition to the examinations provided
custodians o f for in the preceding section, it shall be the duty of each
public moneys.

/*.

i i

• j_ ±

Aug. 6,1846, naval officer and surveyor, as a check upon the assistant
9, p. '62.' ' ' treasurers, or the collector of the customs, of their respective districts; of each register of a land-office, as a check

LAWS CONCERNING MONEY, BANKING, AND LOANS.

217

upon the receiver of his land-office; and of the director
and superintendent of each mint and branch-mint, when
separate officers, as a check upon the treasurers, respectively, of the mints, or the persons acting as such, at the
close of each quarter of the year, and as much oftener as
they are directed by the Secretary of the Treasury to do
so, to examine the books, accounts, returns, and money
on hand, of the assistant treasurers, collectors, receivers
of land-offices, treasurers of the Mint and each branchmint, and persons acting as such, and to make a full, accurate, and faithful return of their condition to the Sec
retary of the Treasury.
SEC. 3651. No exchange of funds shall be made by any Exchange of
disbursing officer or agent of the Government, of any stricted.
grade or denomination whatsoever, or connected with any c. 9of's.'2o, v!
branch of the public service, other than an exchange for ' Feb. 22,1862,
gold, silver, United States notes, and national-bank notes; 12, p.' 345.'
and every such disbursing officer, when the means for his c. l ^ , s. 1, v!
disbursements are furnished to him in gold, silver, United Mar. 3, is63,
States notes, or national-bank notes, shall make his pay-12, p.' 710.'
ments in the moneys so furnished: or when thev are fur- c. 106, s/23, v!
nished to him in drafts, shall cause those drafts to be u. 's. v.' city
presented at their place of payment, and properly paid Lean, 130.
according to law, and shall make his payments in the
money so received for the drafts furnished, unless, in
either case, he can exchange the means in his hands for
gold and silver at par. And it shall be the duty of the
head of the proper Department immediately to suspend
from duty any disbursing officer or agent who violates
the provisions of this section, and forthwith to report the
name of the officer or agent to the President, with the fact
of the violation, and all the circumstances accompanying
the same, and within the knowledge of the Secretary, to
the end that such officer or agent may be promptly removed from office, or restored to his trust and the performance of his duties, as the President may deem just
and proper.
SEC. 3652. No officer of the United States shall, either Premium on
directly or indirectly, sell or dispose of to any person, moneys* tobbe
for a premium, any Treasury note, draft, warrant, or ac^ug.te, 1846,'
other public security, not his private property, or sell or 9, p°'65.' 21, v*
dispose of the avails or proceeds of such note, draft, warrant, or security, in his hands for disbursement, without
making return of such premium, and accounting therefor
by charging the same in his accounts to the credit of the

218

NATIONAL MONETARY COMMISSION.

United States; and any officer violating this section shall
be forthwith dismissed from office,
^^estmentof g E C . 3659. All funds held in trust by the United States,
lsfi 6 ^* 25 1 s' a n c * ^ e a n n u a l interest accruing thereon, when not other2, v.'5, p. 465. w i s e required by treaty, shall be invested in stocks of the
United States, bearing a rate of interest not less than five
per centum per annum.
nnuaimaner£ SEC. 3689. There are appropriated, out of any moneys
priations.
in the Treasury not otherwise appropriated, for the purposes hereinafter specified, such sums as may be necessary for the same respectively; and such appropriations
shall be deemed permanent annual appropriations.

UNDER THE TREASURY DEPARTMENT.

ch?7FevoL19,4p'.
123
-

Interest on the public debt:
For payment of interest on the public debt, under the
several acts authorizing the same.
Bonds issued to Pacific Eailway:
l July 1862 ^ o r payment of interest on bonds issued by authority
voi 1i22°,pe492'of l a w t o Pacific Railway.
2°July/l864, ch. 216, sees. 7, 8, vol. 13, p. 359.

23May, 1872,
Expenses of national loan:
p. 156.' ' ' To pay the expenses of the issue, re-issue, transfer, delivery, redemption, and destruction of securities, legaltender notes, fractional currency, checks, certificates, commissions, and for any plate and seal engraving and printing required by the Treasury Department, one per centum
of the amount of legal-tender notes, fractional currency,
and securities issued during each fiscal year.
ch14256fsec872:
Refunding the national debt:
v l
°26 jan P i87i' ^ one-half of one per centum of the amount of bonds
ph'399' voh 16 ' authorized under the act of J u l y fourteen, eighteen hundred and seventy, to pay the expenses of preparing, issuing, and disposing of the same.
eh25l3:Vc86l:
Sinking fund:
vol. 12, p. 346. Qf o n e p e r centum of the entire debt of the United
States, to be set apart as a sinking fund for the purchase
or payment of the public debt, in such manner as the Secretary of the Treasury shall from time to time direct.
payment in g EC# 3593, The faith of the United States is solemnly
if69, P^dged to the payment in coin or its equivalent of all the
obligations of the United States not bearing interest,

coin.
ch188iMvof

LAWS CONCERNING MONEY, BANKING, AND LOANS.

219

known as United States notes, and of all the interestbearing 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 and silver. But
none of the interest-bearing obligations not already due
shall be redeemed or paid before maturity, unless at such
time United States notes are convertible into coin at the
option of the holder, or unless at such time bonds of the
United States bearing a lower rate of interest than the
bonds to be redeemed can be sold at par in coin. The
faith of the United States is also solemnly pledged to
make provisions at the earliest practicable period for the
redemption of the United States notes in coin.
SEC. 3694. The coin paid for duties on imported goods oftcSSpaid^fo?
shall be t.et apart as a special fund, and shall be applied duties as follows:
First. To the payment in coin of the interest on the in^resteonnpublic debt
bonds and notes of the United States.
25 Feb., 1862, ch. 33, sec. 5, vo). 12, p. 346.

Second. To the purchase or payment of one per centum §{£ki£s ftun^
of the entire debt of the United States, to be made within Mar - 3> 1875each fiscal year, which is to be set apart as a sinkingfund, and the interest of which shall in like manner be
applied to the purchase or payment of the public debt,
as the Secretary of the Treasury shall from time to time
direct.
Third. The residue to be paid into the Treasury.
SEC. 3695. All bonds applied to the sinking-fund, and Cancellation
all other United States bonds redeemed or paid by the deemed or paid.
United States, shall be canceled and destroyed. A de- ch. 256, sec. 6,'
tailed record of the bonds so canceled and destroyed shall v ° *
be first made in the books of the Treasury Department.
The amount of the bonds of each class that have been
canceled and destroyed shall be deducted respectively
from the amount of each class of the outstanding debt
of the United States.
SEC. 3696. I n addition to other amounts that may be Addition to
applied to the redemption or payment of the public debt, s n n g
an amount equal to the interest on all bonds belonging
to the sinking-fund shall be applied, as the Secretary of
the Treasury shall from time to time direct, to the payment of the public debt.
SEC. 1*697. The Secretary of the Treasury is authorized, o f R | d ^ P c e n t
with any coin in the Treasury which he may lawfully bonds 15712°—10

220

NATIONAL MONETARY

COMMISSION.

apply to such purpose, or which may be derived from the
sale of any of the bonds which he may be authorized to
dispose of for that purpose, to pay at par and cancel any
six per centum bonds of the United States of the kind
known as five-twenty bonds, which have become or shall
hereafter become redeemable by the terms of their issue.
But the particular bonds so to be paid and canceled shall
in all cases be indicated and specified by class, date, and
number, in the order of their numbers and issue, beginning with the first numbered and issued, in a public notice
to be given by the Secretary of the Treasury, and, in
three months after the date of such public notice, the
interest on the bonds so selected and advertised to be paid
shall cease.
inters?611* of SEC. 3698. The Secretary of the Treasury shall cause
9 Feb^ 1847, to be paid, out of any money in the Treasury not otherwise appropriated, any interest falling due, or accruing,
on any portion of the public debt authorized by law.
Anticipation S E C . 3699. The Secretary of the Treasury may anticiof interest.

* •

•

-i V

17 Mar., 1864, pate the payment of interest on the public debt, by a
p. 404.'
' 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 authorized to
dispose of any gold in the Treasury of the United States,
not necessary for the payment of interest of the public
debt. The obligation to create the sinking-fund shall
not, however, be impaired thereby.
Purchase of SEC. 3700. The Secretary of the Treasury may purco
i7*Mar., 1862, chase coin with any of the bonds or notes of the United
voi. 12', p. 370! States, authorized by law, at such rates and upon such
terms as he may deem most advantageous to the public
interest.
from^ation.11 S E C - 3 7 0 1 - ^ stocks, bonds, Treasury notes, and other
obligations of the United States, shall be exempt from
1864, cnU ^72' taxation by or under State or municipal or local authority.
sec. i, vol. 13,' p. 218; 28 Jan., 1865, ch. 22, sec. 1, vol. 13, p. 425; 3
ch. 73, sec. 1, vol. 12, p. 710; 25 Feb., 1862, ch. 33, sec. 2, vol. 12, p. 346;
vol. 16, p. 272; 3 Mar., 1864, ch. 17, sec. 1, vol. 13, p. 13; 3 Mai*., 1863,
Mar., 1865, ch. 77, sec. 2, vol. 13, p. 469; 14 July, 1870, ch. 256, sec. 1,
Bank v. Supervisors, 7 Wall., 26.

for^bolid^de^ ^EC. ^ 0 2 - Whenever it appears to the Secretary of the
str
i°5une 1872 Treasury, by clear and unequivocal proof, that any
«*} # i7%fi96'interest-bearing bond of the United States has, without
bad faith upon the part of the owner, been destroyed,
wholly or in part, or so defaced as to impair its value to
the owner, and such bond is identified by number and
description, the Secretary of the Treasury shall, under

LAWS CONCERNING MONEY, BANKING, AND LOANS.

221

such regulations and with such restrictions as to time and
retention for security or otherwise as he may prescribe,
issue a duplicate thereof, having the same time to run,
bearing like interest as the bond so proved to have been
destroyed or defaced, and so marked as to show the original number of the bond destroyed and the date thereof.
But when such destroyed or defaced bonds appear to have
been of such a class or series as has been or may, before
such application, be called in for redemption, instead of
issuing duplicates thereof, they shall be paid, with such
interest only as would have been paid if they had been
presented in accordance with such call.
SEC. 3703. The owner of such destroyed or defaceddIendge°1rI10ty^
bond shall surrender the same, or so much thereof as may b o n d s remain, and shall file in the Treasury a bond in a penal
sum of double the amount of the destroyed or defaced
bond, and the interest which would accrue thereon until
the principal becomes due and payable, with two good and
sufficient sureties, residents of the United States, to be
approved by the Secretary of the Treasury, with condition to indemnify and save harmless the United States
from any claim upon such destroyed or defaced bond.
SEC. 3704. Whenever it is proved to the Secretary of the Duplicate of
Treasury, by clear and satisfactory evidence, that any bond may be
duly registered bond of the United States, bearing inter- 3 Mar., i87i,
, .

-I*

i l l

-1

•

<.!

res. 49, vol. 16,

est, issued tor valuable consideration m pursuance 01 law, P. 600.
has been lost or destroyed, so that the same is not held by
any person as his own property, the Secretary shall issue
a duplicate of such registered bond, of like amount, and
bearing like interest and marked in the like manner as
the bond so proved to be lost or destroyed.
SEC. 3705. The owner of such missing bond shall first m ? ^ m n ^ o r
file in the Treasury a bond in a penal sum equal to the
amount of such missing bond, and the interest which
would accrue thereon, until the principal thereof becomes
due and payable, with two good and sufficient sureties,
residents of the United States, to be approved by the Secretary of the Treasury, with condition to indemnify and
save harmless the United States from any claim because
of the lost or destroyed bond.
SEC. 3706. The Secretary of the Treasury is hereby au- Exchange of
thorized to issue, upon such terms and under such regula-coupon bonds,
tions as he may from time to time prescribe, registered ch. 172, sec. i\
.

bonds in exchange for and in lieu of any coupon-bonds
which have been or may be lawfully issued; such regis

vol 13

220

222

NATIONAL MONETAEY COMMISSION.

tered bonds to be similar in all respects to the registered
bonds issued under the acts authorizing the issue of the
coupon-bonds offered for exchange,
officers*io? SEC. 3707. When any officer or agent duly authorized
st
iolug^ilie, t° receive, redeem, or cancel any Treasury notes issued by
voi.19^°p.si07.2'au^or^y °^ ^ a w ' shall r e c e i y e 5 o r Pay? a n y Treasury note
which has been previously received or redeemed by any
officer or agent having authority to receive or redeem such
note, and which has subsequently thereto been purloined
and put into circulation, the Secretary of the Treasury,
upon full and satisfactory proof that the same has been
received or paid in good faith, and in the exercise of
ordinary prudence, may allow a credit for the amount of
such note, to the officer or agent so receiving or paying the
same.
Section 3708, as codified in section 177 of the Penal
Code of the United States, March 4, 1909 (35 Stat. L.,
1122):
imitating se- It shall not be lawful to design, engrave, print, or in
curities

printing adver- any manner make or execute, or to utter, issue, distribute,
thereon.
circulate, or use, any business or professional card, notice,
placard, circular, handbill, or advertisement, in the likeness or similitude of any bond, certificate of indebtedness,
certificate of deposit, coupon, United States note, Treasury note, gold certificate, silver certificate, fractional note,
or other obligation or security of the United States which
has been or may be issued under or authorized by any
Act of Congress heretofore passed or which may hereafter be passed; or to write, print, or otherwise impress
upon any such instrument, obligation, or security, any
business or professional card, notice, or advertisement,
or any notice or advertisement of any matter or thing
Punishment whatever. Whoever shall violate any provision of this
section shall be fined not more than five hundred dollars.
Hawiities a * f ®EC* ^153. All national banking associations, desigassoci at ions nated for that purpose by the Secretary of the Treasury,
nated as depos-shall be depositaries of public money, except receipts from
itanes of pub-

MI,

lie moneys. customs, under such regulations as may be prescribed by
en. 106, sec. 45', 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. The Secretary of the Treasury shall require the associations thus designated to give satisfactory
security, by the deposit of United States bonds and other

LAWS CONCERNING MONEY, BANKING, AND LOANS*

223

wise, for the safe-keeping and prompt payment of the
public money deposited with them, and for the faithful
performance of their duties as financial agents of the
Government. And every association so 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 into the
Government for internal revenue, or for loans or stocks.
(See sees. 3639-3649, 5489.)
SEC. 5158. The term " U n i t e d States bonds," as used. united states
7

bonds denned.

throughout this chapter, shall be construed to m e a n c June s, 1864,
registered bonds of the United States.
13, p. 'iob.'
SEC. 5260. The Secretary of the Treasury is directed m Secretary of
.

-i

Treasury

to withhold all payments to any railroad company and withhold payL

ments to cer-

lts assigns, on account of freights or transportation over tain railroads,
their respective roads of any kind, to the amount of c. 22e| a, 2, v!
payments made by the United States for interest upon June 22, i874,
bonds of the United States issued to any such company, P! 200/
and which shall not have been re-imbursed, together with
the five per centum of net earnings due and unapplied,
as provided by law.
SEC. 5413, as codified in section 147 of the Penal Code
of the United States, March 4, 1909 (35 Stat. L., 1115):
The words "obligation or other security of the United "Obligation
States " shall be held to mean all bonds, certificates of curity of the
indebtedness, national-bank currency, coupons, United de^ned.States
States notes, Treasury notes, gold certificates, silver certificates, fractional notes, certificates of deposit, bills,
checks, or drafts for money, drawn by or upon authorized
officers of the United States, stamps and other representatives of value, of whatever denomination, which
have been or may be issued under any act of Congress.
Section 5414, as codified in section 148 of the Penal
Code of the United States, March 4, 1909 (35 Stat. L.,
1115) :
Whoever, with intent to defraud, shall falsely make, c 0 ^ nterfeuinl
forge, counterfeit, or alter any obligation or other security securities,
of the United States shall be fined not more than five
thousand dollars and imprisoned not more than fifteen
years.
Section 5415, as codified in section 149 of the Penal
Code of the United States, March 4, 1909 (35 Stat. L.,
1115):
Whosoever shall falsely make, forge, or counterfeit, or l n ^ o u n ^§J^£
cause or procure to be made, forged, or counterfeited, or M n k n o t e s *

224

NATIONAL MONETARY COMMISSION.

shall willingly aid or assist in falsely making, forging,
or counterfeiting, any note in imitation of, or purporting
to be in imitation of, the circulating notes issued by any
banking association now or hereafter authorized and acting under the laws of the United States; or whoever shall
pass, utter, or publish, or attempt to pass, utter, or publish, any false, forged, or counterfeited note, purporting
to be issued by any such association doing a banking business, knowing the same to be falsely made, forged, or
counterfeited; or whoever shall falsely alter, or cause or
procure to be falsely altered, or shall willingly aid or
assist in falsely altering, any such circulating notes, or
shall pass, utter, or publish, or attempt to pass, utter, or
publish as true, any falsely altered or spurious circulating
note issued, or purporting to have been issued, by any
such banking association, knowing the same to be falsely
altered or spurious, shall be fined not more than one
thousand dollars and imprisoned not more than fifteen
years.
Section 5430, as codified in section 150 of the Penal
Code of the United States, March 4, 1909 (35 Stat. L.,
1116):
using plates Whoever, having control, custody, or possession of any
to print notes, , ,

,,.

J» j»

without author-plate, stone, or other thing, or any part thereof, from
y e c
' '
which has been printed, or which may be prepared by
direction of the Secretary of the Treasury for the purpose
of printing, any obligation or other security of the United
States, shall use such plate, stone, or other thing, or any
part thereof, or knowingly suffer the same to be used for
the purpose of printing any such or similar obligation
or other security, or any part thereof, except as may be
printed for the use of the United States by order of the
proper officer thereof; or whoever by any way, art, or
means shall make or execute, or cause or procure to be
made or executed, or shall assist in making or executing
any plate, stone, or other thing in the likeness of any
plate designated for the printing of such obligation or
other security; or whoever shall sell any such plate, stone,
or other thing, or bring into the United States or any
place subject to the jurisdiction thereof, from any foreign place, any such plate, stone, or other thing, except
under the direction of the Secretary of the Treasury or
other proper officer, or with any other intent, in either
case, than that such plate, stone, or other thing be used
for the printing of the obligations or other securities of

LAWS CONCERNING MONEY, BANKING, AND LOANS.

225

the United States; or whoever shall have in his control,
custody, or possession any plate, stone, or other thing in
any manner made after or in the similitude of any plate,
stone, or other thing, from which any such obligation or
other security has been printed, with intent to use such
plate, stone, or other thing, or to suffer the same to be
used in forging or counterfeiting any such obligation or
other security, or any part thereof; or whoever shall have
in his possession or custody, except under authority from
the Secretary of the Treasury or other proper officer,
any obligation or other security made or executed, in
whole or in part, after the similitude of any obligation or other security issued under the authority of
the United States, with intent to sell or otherwise
use the same; or whoever shall print, photograph, or
in any other manner make or execute, or cause to be
printed, photographed, made, or executed, or shall aid in
printing, photographing, making, or executing any engraving, photograph, print, or impression in the likeness
of any such obligation or other other security, or any
part thereof, or shall sell any such engraving, photograph,
print, or impression, except to the United States, or shall
bring into the United States or any place subject to the
jurisdiction thereof, from any foreign place any such
engraving, photograph, print, or impression, except by
direction of some proper officer of the United States;
or whoever shall have or retain in his control or pos- Distinctive
session, after a distinctive paper has been adopted by the authority.
Secretary of the Treasury for the obligations and other
securities of the United States, any similar paper adapted
to the making of any such obligation or other security,
except under the authority of the Secretary of the Treasury or some other proper officer of the United States,
shall be fined not more than five thousand dollars, or im- M Punishment
for.

prisoned not more than fifteen years, or both.
Section 5431, as codified in section 151 of the Penal
Code of the United States, March 4, 1909 (35 Stat. L.,
1116):
Whoever, with intent to defraud, shall pass, utter, pub- f J ^ f j ^ f £:
lish, or sell, or attempt to pass, utter, publish, or sell, or tion s.
shall bring into the United States or any place subject
to the jurisdiction thereof, with intent to pass, publish,
utter, or sell, or shall keep in possession or conceal with
like intent, any falsely made, forged, counterfeited, or

226

NATIONAL MONETARY COMMISSION.

altered obligation or other security of the United States,
Punishmentshall be fined not more than five thousand dollars and
for.

imprisoned not more than fifteen years.
Section 5432, as codified in section 152 of the Penal
Code of the United States, March 4, 1909 (35 Stat. L.,
1117):
Taking im- Whoever, without authority from the United States,
pressions of

mentsSetcmple" s ^ a ^ take, procure, or make, upon lead, foil, wax, plaster,
paper, or any other substance or material, an impression,
stamp, or imprint of, from, or by the use of any bedplate,
bedpiece, die, roll, plate, seal, type, or other tool, implement, instrument, or thing used or fitted or intended to
be used in printing, stamping or impressing, or in making other tools, implements, instruments, or things to be
used or fitted or intended to be used in printing, stamping, or impressing any kind or description of obligation
or other security of the United States now authorized
or hereafter to be authorized by the United States, or
circulating note or evidence of debt of any banking assoPunishment ciation under the laws thereof, shall be fined not more
for.

than five thousand dollars, or imprisoned not more than
ten years, or both.
Having nn- Section 5433, as codified in section 153 of the Penal
lawful

posses-

siongof impres- Code of the United States, March 4, 1909 (35 Stat. L.,
1117):
Whoever, with intent to defraud, shall have in his
possession, keeping, custody, or control, without authority from the United States, any imprint, stamp, or
impression, taken or made upon any substance or material whatsoever, of any tool, implement, instrument, or
thing, used or fitted or intended to be used, for any of
the purposes mentioned in* the preceding section; or whoever, with intent to defraud, shall sell, give, or deliver
Punishment any such imprint, stamp, or impression to any other person, shall be fined not more than five thousand dollars, or
imprisoned not more than ten years, or both.
Dealing in Section 5434, as codified in section 154 of the Penal
counterfeit se-

curities.

Code of the United States, March 4, 1909 (35 Stat. L.,
1117):
Whoever shall buy, sell, exchange, transfer, receive,
or deliver any false, forged, counterfeited, or altered
obligation or other security of the United States, or
circulating note of any banking association organized
or acting under the laws thereof, which has been or

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

227

may hereafter be issued by virtue of any Act of Congress, with the intent that the same be passed, published,
or used as true and genuine, shall be fined not more fo Punishment
than five thousand dollars, or imprisoned not more than
ten years, or both.
S v
SEC. 5435. Every person who falsely personates any
&tf^ Q{ ^^
ub l i c
true and lawful holder of any share or sum in the public gt£c£g
stocks or debt of the United States, or any person entitled ch 3 ^ g ^ i f '
to any annuity, dividend, pension, prize-money, wages, or vo1- 4>'P- I 20 - '
other debt due from the United States, and, under color
of such false personation, transfers or endeavors to transfer such public stock or any part thereof, or receives or
endeavors to receive the money of such true and lawful
holder thereof, or the money of any person really entitled
to receive such annuity, dividend, pension, prize-money,
wages, or other debt, shall be punished by a fine of not
more than five thousand dollars, and by imprisonment at
hard labor not more than ten years. (Amended, 35
Stat. L., 1095.)
SEC. 5436. Every person who knowingly or fraudu- False demand
lently demands or endeavors to obtain any share or sumpower of attorin the public stocks of the United States, or to have any riw.
part thereof transferred, assigned, sold, or conveyed, or
to have any annuity, dividend, pension, prize-money,
wages, or other debt due from the United States, or any
part thereof, received or paid by virtue of any false,
forged, or counterfeited power of attorney, authority, or
instrument, shall be punished by a fine of not more than
five thousand dollars, and by imprisonment at hard labor
not more than ten years. (Amended, 35 Stat. L., 1095.)
Section 5437, as codified in section 174 of the Penal Ulgir0*^JJggf
Code of the United States, March 4, 1909 (35 Stat. L., b a n k s 1122) :
In all cases where the charter of any corporation
which has been or may be created by act of Congress
has expired or may hereafter expire, if ariy director,
officer, or agent of the corporation, or any trustee thereof,
or any agent of such trustee, or any person having in
his possession or under his control the property of the
corporation for the purpose of paying or redeeming
its notes and obligations, shall knowingly issue, reissue,
or utter as money, or in any other way knowingly put in
circulation any bill, note, check, draft, or other security Punishment
purporting to have been made by any such corporation
whose charter has expired, or by any officer thereof, or

228

NATIONAL MONETARY COMMISSION.

purporting to have been made under authority derived
therefrom, or if any person shall knowingly aid in any
such act, he shall be fined not more than ten thousand
dollars, or imprisoned not more than five years, or both.
But nothing herein shall be construed to make it unlawful
for any person, not being such director, officer, or agent
of the corporation, or any trustee thereof, or any agent
of such trustee, or any person having in his possession
or under his control the property of the corporation for
the purpose hereinbefore set forth, who has received or
eSlirttedIation m a ^ hereafter receive such bill, note, check, draft, or
other security, bona fide and in the ordinary transactions
of business, to utter as money or otherwise circulate the
same.
embeezdzfinr Section 5453, as codified in section 155 of the Penal
to?is eand ma^Code of the United States,7 March 4, 1909 v(35 Stat. L.,7

terialsfor
printing securi- 1 H 7 ) :
ties.
'

Whoever, without authority from the United States,
shall secrete within, embezzle, or take and carry away
from any building, room, office, apartment, vault, safe,
or other place where the same is kept, used, employed,
placed, lodged, or deposited by authority of the United
States, any bedpiece, bedplate, roll, plate, die, seal, type,
or other tool, implement, or thing used or fitted to
be used in stamping or printing, or in making some
other tool or implement used or fitted to be used in stamping or printing, any kind or description of bond, bill,
note, certificate, coupon, postage stamp, revenue stamp,
fractional currency note, or other paper, instrument,
obligation, device, or document, now or hereafter authorized by law to be printed, stamped, sealed, prepared,
issued, uttered, or put in circulation on behalf of the
United States; or whoever, without such authority, shall
so secrete, embezzle, or take and carry away any paper,
parchment, or other material prepared and intended to be
used in the making of any such papers, instruments, obligations, devices, or documents; or whoever, without such
authority, shall so secrete, embezzle, or take and carry
away any paper, parchment, or other material printed or
stamped, in whole or part, and intended to be prepared,
issued, or put in circulation on behalf of the United
States as one of the papers, instruments, or obligations
hereinbefore named, or printed or stamped, in whole or
part, in the similitude of any such paper, instrument, or
obligation, whether intended to issue or put the same in

LAWS CONCERNING MONEY, BANKING, AND LOANS.

229

circulation or not, shall be fined not more than five thou- fo Punishment
sand dollars, or imprisoned not more than ten years, or
both.
SEC. 5488. Every disbursing officer of the United States Disbursing
,
,
..
IT
• ,
. i , i •
•*
officer unlawwho deposits any public money intrusted to him in any f miy deposit.

;

, 1 - T i i

ing, converting,

place or in any manner, except as authorized by law, or 1 o a n i n g, or
converts to his own use in any way whatever, or loans public money.
. , * . . , ,
i
i
14June,1866,
with or without interest, or xor any purpose not pre- en. 122, sec. 2,
scribed by law withdraws from the Treasurer or any
assistant treasurer, or any authorized depository, or for
any purpose not prescribed by law transfers or applies
any portion of the public money intrusted to him, is, in
every such act, deemed guilty of an embezzlement of the
money so deposited, converted, loaned, withdrawn, transferred, or applied; and shall be punished by imprisonment with hard labor for a term not less than one year
nor more than ten years, or by a fine of not more than
the amount embezzled or less than one thousand dollars,
or by both such fine and imprisonment. (Amended, 35
Stat. L., 1105.)
(See sections 3620, 5497.)
SEC. 5489. If the Treasurer of the United States, or Failure of
Treasurer etc
any assistant treasurer, or any public depositary, fails to safely'keep
ii

-i. i u

J- u

•

public moneys.

sarely to keep all moneys deposited by any disbursing 3 Mar., 1857,
officer or disbursing agent, as well as all moneys depos- vol 11/ p. 2*49.'
ited by any receiver, collector, or other person having
moneys of the United States, he shall be deemed guilty
of embezzlement of the moneys not so safely kept, and
shall be imprisoned not less than six months nor more
than ten years, and fined in a sum equal to the amount
of money so embezzled. (Amended, 35 Stat. L., 1105.)
(See section 3639.)
SEC. 5490. Every officer or other person charged by Custodians of
.

public m o n e y

any act of Congress with the safe-keeping of the public failing to safemoneys, who fails to safely keep the same, without loan- loaning, etc.
mg, using, converting to his own use, depositing m banks, c 90, s. 16, v.
or exchanging for other funds than as specially allowed
by law, shall be guilty of embezzlement of the money so
loaned, used, converted, deposited, or exchanged; and
shall be imprisoned not less than six months nor more
than ten years, and fined in a sum equal to the amount of
money so embezzled. (Amended, 35 Stat. L., 1105.)
(See section 3639.)
SEC. 5491. Every officer or agent of the United Statesfl<**1^rerend°efr
who, having received public money which he is not au-acg°JJg*s* ^ j e

c. 90, s. 16, v. 9,' P. 63l

230

NATIONAL MONETARY COMMISSION.

1862 l i99yg!*korized t o r e t a i n a s salary, pay, or emolument, fails to
2 Mar.pii67* r e n ( ^ e r h*s accounts for the same as provided by law, shall
p:e5*7i48, v" 14, ^ e deemed guilty of embezzlement, and shall be fined in a
1870 <?295ys!sum e ( l u a l t° the amount of the money embezzled, and
15, v/i6, p. .3k. s h a ii be imprisoned not less than six months or more than
ten years. (Amended, 35 Stat. L., 1095.)
« FS??".? r!' (See sections 3622, 3633.)
1, V

p o s i t as reqU r

6 I1ig., 1846, SEC. 5492. Every person who, having moneys of the
9 p°63S* 16' v* United States in his hands or possession, fails to make
c ii4ars 1 ^ 5 T' deposit of the same with the Treasurer, or some assistant
n, p. 249. ' treasurer, or some public depositary of the United States,
when required so to do by the Secretary of the Treasury,
or the head of any other proper Department, or by the
accounting officers of the Treasury, shall be deemed guilty
of embezzlement thereof, and shall be imprisoned not less
than six months nor more than ten years, and fined in a
sum equal to the amount of money embezzled. (Amended,
35 Stat. L., 1105.)
re<SmnJfetcy SEC. 5497. Every banker, broker, or other person not
ment em^ezzle" an authorized depositary of public moneys, who know1866 c 122 V *ngty receives from any disbursing officer, or collector of
3, v.* 14, p. 65. internal revenue, or other agent of the United States, any
public money on deposit, or by way of loan or accommodation, with or without interest, or otherwise than in payment of a debt against the United States, or who uses,
transfers, converts, appropriates, or applies any portion
of the public money for any purpose not prescribed by
law, and every president, cashier, teller, director, or other
officer of any bank or banking association, who violates
any of the provisions of this section, is guilty of an act
of embezzlement of the public money so deposited, loaned,
transferred, used, converted, appropriated, or applied,
and shall be punished as prescribed in section fifty-four
hundred and eighty-eight. (Amended, 35 Stat. L., 1106.)
(See sections 3639,- 3651.)
ACTS S U B S E Q U E N T TO T H E R E V I S E D STATUTES.

ACT OF DECEMBER 17,1873.
is stat.

L.,CHAP,

I.—An act to provide for the redemption of the
loan of eighteen hundred and fifty-eight.

of^oan^StS? ^e ^ enac^
by the Senate and House of Representee
ii* 16 % $$'- tives of the United States of America in Congress assemse8c596 Coi ii'^ 6 ^? That for the purpose of redeeming the bonds issued
p.43o! ' 'under the act entitled 'An act to authorize a loan not

LAWS CONCERNING MONEY, BANKING, AND LOANS.

231

exceeding the sum of twenty millions of dollars,5 approved June fourteenth, eighteen hundred and fifty-eight,
as amended March third, eighteen hundred and fifty-nine,
called the loan of eighteen hundred and fifty-eight, it is
hereby declared to be the pleasure of the United States to m a°a e°pa^aWe
pay all the coupon bonds of said loan on the first day of ^8a7n u a r y *»
January, eighteen hundred and seventy-four, at which ^ ^ ^ ^ t0
date the interest thereon shall cease, and coin in the Appropriation
1

of com.

Treasury sufficient to redeem said coupon bonds is hereby
appropriated for that purpose.
SEC. 2. That the Secretary of the Treasury may issue bonds6 ma^be
an equal amount, at par of principal and interest, of five- cXge tot any
per-centum bonds of the funded loan under the act for ££ ^f|80f loan
refunding the national debt, approved July fourteenth, vo|870, ch. 256,
eighteen hundred and seventy, and the act amendatory J8TJ» C\H'
thereof, approved January twentieth, eighteen hundred
and seventy-one, for any of the bonds of the loan of
eighteen hundred and fifty-eight, which the holders
thereof may on. or before February first, eighteen hundred and seventy-four, elect to exchange for the five-percentum bonds of the said funded loan, with interest from No^commis.,

, i -, mi

• •

sions, etc., to

said January first: Provided. That no commissions or t>e allowed on
47

_ exchanges.

allowances whatever shall be paid for the exchange of
bonds hereby authorized, and no interest shall be allowed
on the new bonds for any time for which interest is paid
on the bonds exchanged.
Approved, December 17, 1873.
ACT OF JUNE 20, 1874.
CHAP. 328.—An act making appropriations for the legislative, executive, and judicial expenses of the Government for the year ending June thirtieth, eighteen hundred and seventy-five, and for other purposes.
*
*
*
*
$
SEC. 4. That the act entitled "An act limiting the ap-mfnePneta1^^:r
propriation of certain moneys, for the preparation, issue, gatlonai^oan!
and re-issue of certain securities of the United States,
and for other purposes," approved May twenty-third, ^ f ^ ^ j g j
eighteen hundred and seventy-two, and all other acts and
parts of acts making permanent appropriations for the
expenses of the national loan, except the second section g ^voi^ii^t9
of the act approved July fourteenth, eighteen hundred272^
and seventy, entitled "An act to authorize the refunding
of the national debt," are hereby repealed, this repeal to
take place on the first day of July next; and hereafter

232

NATIONAL MONETARY COMMISSION.

the Secretary of the Treasury shall annually submit to
be^ubmutS^ 0 1 1 ^ 6 8 8 detailed estimates of appropriations required
annually.
for s a id expenses; and for the fiscal year ending June
thirtieth, eighteen hundred and seventy-five, the following sums, or so much thereof as may be necessary, are
nafiona^ioa0^6116^ appropriated to defray the expenses of the naJuneeloe^875g^ona^ *oan> ^ o r ^ e f°U° w i n g clerical and other employees,
to wit: * * *
•I*

5j%

*|C

3|5

Approved, June 20, 1874.
ACT OF JUNE 23, 1874.
pt 1 ! pSt#48 LM

459.—An act for the creation of a court for
the adjudication and disposition of certain moneys received into the Treasury under an award made by the
tribunal of arbitration constituted by virtue of the first
article of the treaty concluded at Washington the eighth
of May, anno Domini eighteen hundred and seventyone, between the United States of America and the
Queen of Great Britain.

CHAP.

out u of m whiS ^EC# 15# ^ a t ^ e Secretary of the Treasury is hereby
money paid, authorized and required to pay the said respective judgments of said court, out of any such money in the Treasury
Secretary of not otherwise appropriated; and for that purpose he is
authorized to hereby authorized when necessary to issue and sell at pubsell bonds f o r , .

„

** -

<•

the purpose. iiC sale, after ten days notice of the time and place oi
sale, at not less than par in coin, a sufficient amount of
A S?ieiiaci876f c o u P o n o r registered bonds of the United States, in such
form as he may prescribe, 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 quarterly in such coin at the rate
of five per centum per annum; and upon the payment,
from time to time, of the said respective judgments of
said court as before provided, the bonds of the United
2 1873, ch. States mentioned in the act approved March third,
601! ' ' * eighteen hundred and seventy-three, entitled "An act for
the creation of a court for the adjudication and disposition of certain moneys received into the Treasury under
an award made by the tribunal of arbitration constituted
873 °L 17t p 'ky vi^ue of the first article of the treaty concluded at
Washington the eighth of May, anno Domini eighteen

LAWS CONCERNING MONEY, BANKING, AND LOANS.

233

hundred and seventy-one, between the United States of
America and the Queen of Great Britain," shall be canceled and extinguished to the amount of such payments;
and when all such payments shall have been made, any c e r t a i n
such bonds remaining shall be also canceled and extin- canceled ° and
guished; and after the payment of the said judgments,eXBa?ancee reand the re-imbursement of the expenses as herein pro-jf **" mge nat *of
vided, if there shall remain any part of the said money, relmbursenfenl;
the same shall be and remain a fund from which Congress constitute *a
may hereafter authorize the payment of other claims fund ' etc thereon. * * *
Approved, June 23, 1874.
ACT OF JANUARY 14, 1875.
CHAP

15.—An act to provide for the resumption of specie 18 stat.
payments.

Be it enacted by the Senate and House of Reyresenta-

L.,

issue of siiver coins for

tives of the United States of America in Congress as- the redemption
semhledj That the Secretary of the Treasury is hereby currency auauthorized and required, as rapidly as practicable, to
cause 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-offices 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 Repeal of auhundred and twenty-four of the Kevised Statutes of the charge a percentasre for
United States as provides for a charge of one-fifth of one conversion of
t>

-i

-i -i i

• i

• bullion into

per centum for converting standard gold bullion into com coin.
is hereby repealed; and hereafter no charge shall be made statutes, 3524.
for that service.
* SEC. 3. That section five thousand one hundred and Repeal of
seventy-seven of the Revised Statutes of the Unitedaggregate
States, limiting the aggregate amount of circulating notes cuiating notes.
of national banking associations, be, and is hereby, re- statutes, 5177.
pealed; and each existing banking association may in

234

NATIONAL MONETARY COMMISSION.

crease its circulating notes in accordance with existing
law without respect to said aggregate limit; and new
banking associations may be organized in accordance with
Repeal of existing law without respect to said aggregate limit; and
wr?rS'd'rawai the provisions of law for the withdrawal and redistrition.
bution of national bank currency among the several States
statutes, 5181. and Territories are hereby repealed. And whenever, and
so often, as circulating notes shall be issued to any such
states notes in banking association, so increasing its capital or circuoooooo* to°be bating notes, or so newly organized as aforesaid, it shall
TcerSfn ratio ^ ^ e ^ u ty °* ^ e Secretary of the Treasury to redeem
nationaf^Sbank ^ e legal-tender United States notes in excess only of
circulation, three hundred million of dollars, to the .amount of
eighty per centum of the sum of national-bank notes
so issued to any such banking association as aforesaid
and to continue such redemption as such circulating
notes are issued until there shall be outstanding the
tio^ ofd united sum °^ three hundred million dollars of such legalfofneafte°rteja^ ^ en( ^ er United States notes, and no more. And on and
uary i, isxa 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
Appropria-the office of the assitant 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 revesaieofbonds nues, from time to time, in the Treasury not otherwise
to provide

means of re- appropriated, and to issue, sell and dispose of, at not less
united states than par, in coin, either of the descriptions of bonds of
see 187(^ ch. the United States described in the act of Congress ap27k * ' proved 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.
Approved, January 14, 1875.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

235

ACT OF MAECH 3, 1875.
130.—An act making appropriations for sundry is stat.
civil expenses of the Government for the fiscal year^'i- '
ending June thirtieth, eighteen hundred and seventysix, and for other purposes.

CHAP.

SEC. 3. That to carry into effect the provisions of sec.,-,,,

jT.

F re

? * .t0

L.,

employed in car-

tion three of the act entitled "An act fixing the amount ryjns ou* P™o.

•T

i«

visionsof 1874,

of United States notes, providing for a redistribution of c- 343, s. 3.
the national-bank currency, and for other purposes " approved June twentieth, eighteen hundred and seventyfour, the Secretary of the Treasury is authorized to appoint the following force, to be employed under his direction, namely:
* * * And at the end of each month, the Secretary office of the
of the Treasury shall reimburse the Treasury to the full the currency.
amount paid out under the provisions of this section by
transfer of said amount from the deposit of the national
banking-associations with the Treasury of the United
States; and at the end of each fiscal year he shall transfer from said deposit to the Treasury of the United
States such sum as may have been actually expended
under his direction for stationery, rent, fuel, light, and
other necessary incidental expenses which have been incurred in carrying into effect the provisions of the said
section of the above named act.
$

jjs

ijs

!$«

sje

>!<

H«

SEC 11. That the Secretary of the Treasury is hereby
Red empJ
ii

•

-i

tion of bonds.

authorized, at such times as may be necessary, for the pur- R. s., 3694pose of obtaining bonds for the sinking-fund, in compliance with sections three thousand six hundred and ninetyfour to three thousand six hundred and ninety-seven, inclusive, of the Revised Statutes of the United States, to
give public notice that he will redeem, in coin, at par, any
bonds of the United States, bearing interest at the rate of
six per centum, of the kind known as five-twenties; and in
three months after the date of such public notice, the interest on the bonds so selected and called for payment
shall cease.
*
*
*
*
#
Approved, March 3, 1875.
15712°—10

236

NATIONAL MONETARY COMMISSION.

A C T O F M A R C H 3. 1875.
if stat^ L., CHAP. 134.—An act making appropriations for the repair, preservation, and completion of certain public
works on rivers and harbors, and for other purposes.
J a m e s B. SEC. 4. That James B. Eads, of Saint Louis, Missouri,
e r s to c'o n - be, and he is hereby, authorized, with such others as may
etc"c to emafn- be associated with him, on the conditions hereinafter
between south mentioned, to construct such permanent and sufficient
Pass of Missis- . , .

-i

±.

sippi River and jettees and such auxiliary works as are necessary to create
Gulf of Mexico.

• , •

•

J*X

± J» J.I_

and permanently maintain, as hereinafter set forth, a
wide and deep channel between the South Pass of the
Mississippi River and the Gulf of Mexico, and for that
purpose he may construct, in the river, outlet, or pass,
and likewise in the Gulf of Mexico, such walls, jettees,
dikes, levees, and other structures, & employ such boats,
rafts, and appliances, as he may, in the prosecution of
said work deem necessary: Provided,
* * *
o b l i g a - SEC. . That the option of discharging the obligations
charged in herein assumed bv the United States, either in money or
bonds.
bonds, is expressly reserved; and the Secretary of the
Treasury is hereby directed to issue the bonds of the
United States, bearing five per centum interest, of the
character and description set out in the act entitled "An
act to authorize the refunding of the public debt," approved J u l y fourteenth, eighteen hundred and seventy,
to said Eads or his legal representatives, in payment at par
of the aforesaid warrants of the Secretary of War, unless
the Congress of the United States shall have previously
provided for the payment of the same by the necessary
U n i t e d appropriations of money: Provided, That in no case shall
ble* forn?osses, the Government of the United States be liable for any
etc
'
losses incurred by said Eads and his associates in the
performance of the work herein mentioned, nor shall any
payments thereon be made in excess of the sums nor contrary to the terms hereinbefore prescribed.
Approved, March 3,1875.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

237

ACT OF MARCH 3, 1875.
167.—An act to authorize the Secretary of the
Treasury to adjust and remit certain taxes and penalties claimed to be due from mining and other corporations and for other purposes.

CHAP.

1
t

sta t L
5 Q7 -»

Be it enacted by the Senate and House of Representa- m
tives of the United States of America in Congress assembled. That the Secretary of the Treasury be, and he is certain peni

alties on mm-

hereby, authorized and directed to settle and release any ing and manuxacturinsr cor*

claims for tax on circulation of evidences of indebtedness porations re.

. .

mitted.

made against any mining, manufacturing or other corporations other than against any national banking-association, State bank, or banking-association, by such corporations paying the tax, without penalty, that shall
have accrued thereon since November first, eighteen hundred and seventy-three; and that the provisions of sec- §7f"/option three thousand four hundred and twelve of the Ee- s*ruedvised Statutes of the United States shall not be construed in pending cases, except as to national bankingassociations, to apply to such evidences of indebtedness
issued and reissued prior to the passage of this act, but
said section shall be construed as applying to such evidences of indebtedness issued after the passage hereof.
Approved, March 3, 1875.
ACT OF APEIL 11, 1876.
19 stat L
CHAP. 55.—An act to enable the Secretary of the Treas- 32
- -»
ury to pay judgments provided for in an act approved
February fifteenth, eighteen hundred and seventy-six,
entitled "An act providing for the payment of judgments rendered tinder section 11 of chapter 1^59 of the
laws of the first session of the Forty-third Congress"
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury, for the purpose Judgments
of paying the judgments provided for in an act approved claims court,
February fifteenth, eighteen hundred and seventy-six, en-for payment of.
titled "An act providing for the payment of judgments
rendered under section eleven, of chapter four hundred 1876»cn-10and fifty-nine of the laws of the first session of the Fortythird Congress," is hereby authorized to convert into
coupon-bonds, and to sell, after five days' notice, so many

238

NATIONAL MONETARY COMMISSION.

as may be necessary for this purpose of the five per
centum registered bonds of the United States now held
subject to the disposition of Congress under the provi1873, ch. sions of the act approved March third, eighteen hundred
261, vol. 17, p.
^r
' fe .
60i.
and seventy-three, chapter two hundred and sixty-one.
.1874, ch. gEC# 2. That so much of section fifteen of the act ap4&y.

sec,

RI JSed"

20 s t a t
87

-*-*^>
248#

P r o v e c * J u n e twenty-third, eighteen hundred and seventy*four, chapter four hundred and fifty-nine, as conflicts
with this act, is hereby repealed.
Approved, April 11, 1876.
ACT OF MAY 31, 1878.
L
-» CHAP. 146.—An act to forbid the further retirement of
United States legal-tender notes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemncJtlf11 further ^e^ That from and after the passage of this act it shall
M-ohfSt^ °f' no * e ^ a w ^ u l ^ o r ^ l e Secretary of the Treasury or other
see act of officer under him to cancel or retire any more of the
J

February 4,
Re

stafutes 358 i 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
Proviso.. again and kept in circulation: Provided That nothing
utes,T3582. herein shall prohibit 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 and parts of acts in conflict herewith are
hereby repealed.
Approved, May 31, 1878.
ACT OF JUNE 8, 1878.
20 stat. L.,CHAP. 170.—An Act to authorize the Secretary of the
102.

Treasury to constitute Superintendents of Mints or
Assayers in Assay-offices, Assistant Treasurers of the
United States.
Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assemenfsUPoef inm1£ts & ^ > T h a t t h e Secretary of the Treasury be and he is
mayd b^colstl hereby authorized to constitute any superintendent of a
treasurersStant m i n ^ o r assayer of any assay-office, an assistant treasurer
pose!what pur" °^ *he United States without additional compensation,

LAWS CONCERNING MONEY, BANKTNG, AND LOANS.

239

to receive gold coin and bullion on deposit for the purposes provided for in section two hundred and fiftyfour of the Eevised Statutes.
Approved, J u n e 8,1878.
A C T O F J U N E 11, 1878.
CHAP.

180.—An act providing a permanent form
government for the District of Columbia.

20 stat.

L.,

SEC. 7. That the offices of sinking-fund commissioners offices of sinkare hereby abolished, and all duties and powers possessed m issioners abol1

•i

•

x - f l - i j .

I T

ished and du-

by said commissioners are transierred to, and shall be ties transferred
exercised by the Treasurer of the United States, who unitedasitate°s.
shall perform the same in accordance with the provisions
of existing laws.
*
*
*
*
*
Approved, June 11, 1878.
A C T O F J A N U A E Y 25, 1879.
CHAP. 24.—An act to facilitate the refunding
tional debt.

the na-

20 stat. L.,

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. T h a t the Secretary of the Treasury is hereby au- Public debt,
thorized in the process of refunding the national debt
under existing laws to exchange directly at par the Exchange of
bonds of the United States bearing interest at four per cent bonds.
centum per annum authorized by law for the bonds of
the United States commonly known as five-twenties outstanding and uncalled, and, whenever all such five-twenty
bonds shall have been redeemed, the provisions of this
section and all existing provisions of law authorizing
the refunding of the national debt shall apply to any
bonds of the United States bearing interest at five per
centum per annum or a higher rate, which may be redeemable. I n any exchange made under the provisions interest,
of this section interest may be allowed, on the bonds
redeemed, for a period of three months.
Approved, January 25, 1879.

240

NATIONAL MONETARY COMMISSION.

ACT O F F E B R U A R Y 26, 1879.
20 stat. L., CHAP. 102.—An act to authorize the issue of certificates
of deposit in aid of the refunding of the public debt.
Be> it enacted by the Senate and House of Representatives of the United States of America in Congress assemPubiic debt, bled, That the Secretary of the Treasury is hereby authorized and directed to issue, in exchange for lawful money
of the United States that may be presented for such excertificates change, certificates of deposit, of the denomination of ten
funding.
dollars, bearing interest at the rate of four per centum
per annum, and convertible at any time, with accrued
interest, into the four per centum bonds described in the
Proceeds, refunding act; and the money so received shall be applied
only to the payment of the bonds bearing interest at a
rate of not less than five per centum in the mode prescribed by said act, and he is authorized to prescribe suitable rules and regulations in conformity with this act.
Approved, February 26, 1879.
ACT O F M A R C H 3, 1879.
383°

Stat

IA,

182.—An act making appropriations for sundry
civil expenses of the government for the fiscal year ending June thirtieth, eighteen hundred and eighty, and
for other purposes.

CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemtions? propria " bled, That the following sums be, and the same are hereby,
expensed civ11 appropriated for the objects hereinafter expressed, for
the fiscal year ending June thirtieth, eighteen hundred
and eighty, namely:
MISCELLANEOUS OBJECTS UNDER THE TREASURY DEPARTMENT.
1879, en. 329. * * *; and so much of the act " making appropriations for the legislative, executive, and judicial expenses
of the government for the fiscal year ending June thirtieth, eighteen hundred and seventy-nine, and for other
purposes," approved June nineteenth, eighteen hundred
and seventy-eight, as authorizes the Secretary of the
Bunion cer- Treasury to issue coin certificates in exchange for bullion
deposited for coinage at mints and assay-offices other than

LAWS CONCEENING MONEY, BANKING, AND LOANS.

241

those mentioned in section thirty-five hundred and forty- R. s., 3545.
five of the Eevised Statutes, be, and the same is hereby,
repealed; said repeal to take effect at the end of the
present fiscal year.
*
*
*
#
*
Approved, March 3, 1879.
ACT OF MARCH 3, 1879.
CHAP.

186.—An act to promote the education of the blind. 20 stat. L.,

(This act provides an appropriation of $250,000 to be
invested in 4 per cent bonds, the interest on said bonds to
be paid over to the trustees of the American Printing
House for the Blind; the trustees to make report to the
Secretary of the Treasury.)
Approved, March 3, 1879.
ACT OF MARCH 3, 1881.
133.—An act making appropriations for sundry 21 stat - **,
civil expenses of the government for the fiscal year
ending June thirtieth, eighteen hundred and eightytwo, and for other purposes.

CHAP.

JJ:

SEC. 2. That the Secretary of the Treasury may at any secretary of
time apply the surplus money in the Treasury not other- pfya^rrp°iuPs
wise appropriated, or so much thereof as he may con-Treasury to
sider proper, to the purchase or redemption of United §empatsfonr rof
States bonds: Provided, That the bonds so purchased or bopr0Viso.
redeemed shall constitute no part of the sinking fund,
but shall be canceled.
Approved, March 3,1881.
ACT OF JULY 12,1882.
CHAP.

290.—An act to enable national-banking associ- 22 stat. L.,
162

ations to extend their corporate existence, and for other
purposes.
•|4

<•

5|»

9{S

SEC. 11. That the Secretary of the Treasury is hereby
•

Three ana a
half per cent

authorized to receive at the Treasury any bonds of the bonds received
United States bearing three and a half per centum in- three0 pSg cent
terest, and to issue in exchange therefor an equal amount bonds.
of registered bonds of the United States of the denomi

242

NATIONAL MONETARY COMMISSION.

ta| X et m . ptfrom
Proviso.

nations of fifty, one hundred, five hundred, one thousand,
and ten thousand dollars, of such form as he may prescribe, bearing interest at the rate of three per centum
per annum, payable quarterly at the Treasury of the
United States. Such bonds shall be exempt from all
taxation by or under State authority, and be payable at
the pleasure of the United States: Provided, That the
bonds herein authorized shall not be called in and paid
so long as any bonds of the United States heretofore
issued bearing a higher rate of interest than three per
centum, and which shall be redeemable at the pleasure
of the United States, shall be outstanding and uncalled.
The last of the said bonds originally issued under this
act, and their substitutes, shall be first called in, and this
order of payment shall be followed until all shall have
been paid.
Approved, July 12, 1882.
ACT O F M A Y 16, 1884.

23 s t a t
90

- L> CHAP. 52.—An act to prevent and punish the counterfeiting within the United States of notes, "bonds, and
other securities of foreign
Governments.
(This act provides penalties for counterfeiting within
the United States the notes, bonds, or securities of foreign
governments.)
(This act was amended by the act of March 4, 1909
(chap. 321, 35 Stat. L., pp. 1117 to 1119). See sections
156 to 162 inclusive.)
A C T O F M A R C H 31, 1886.

24 stat. L., 9. CHAP. 41.—An act to amend section three hundred and
four of the Revised Statutes of the United States, authorizing the temporary appointment of an Acting
Assistant
Treasurer.
Be it enacted by the Senate and House of Representa. tives of the United States of America in Congress assemo„?- s-» ¥?• bled, That section three hundred and four of the Revised
304,

51,

amended.
T A s S urer t a n t

Statutes of the United States be, and the same is hereby,
amended so as to read as follows :
" ^ EC - ^ ^ ' ^ e Treasurer may, in his discretion, and
with the consent of the Secretary of the Treasury, au-

LAWS CONCERNING MONEY, BANKING, AND LOANS.

243

thorize the Assistant Treasurer to act in the place and
discharge any or all the duties of the Treasurer of the
United States; and in the event of the absence or illness
of either the Treasurer or the Assistant Treasurer, or
both, the Secretary of the Treasury may, on the recommendation of the Treasurer appoint for a term not exceeding thirty days at one time, from among the clerks in the
Treasury, any one of said clerks to be Acting Assistant sigfantng treaSsTreasurer during such absence or illness: Provided, how-™*^ d ^ ties pe 5
ever, That no such appointment shall be made until theTr|*surer.
official bond given by the principal of the office shall be
made in terms to cover and apply to the acts and defaults
of every such person so appointed from time to time.
Such acting officer shall, moreover, for the time being,
be subject to all the liabilities and penalties prescribed by
law for the official misconduct in like cases of the Assistant Treasurer, for whom he acts."
Approved, March 31, 1886.
A C T O F MAKCH 3, 1887.
CHAP. 345.—An act authorizing an investigation of the4Sl4
books, accounts, and methods of railroads which have
received aid from the United States, and for other
purposes.

stat

(Sections 1, 2, and 3 provide for a commission to investigate the books, workings, and consolidation, etc., of
said railroads and to report whether the interests of the
United States require any extension of the time for performance of their obligations to the Government.)
SEC. 4. That whenever, in the opinion of the President,o^ffgVteS
it shall be deemed necessary to the* protection of the inter- 1 ^* es e tc p r i o r
ests and the preservation of the security of the United
States in respect of its lien, mortgage, or other interest in
any of the property of any or all of the several companies
upon which a lien, mortgage, or other incumbrance paramount to the right, title, or interest of the United States
for the same property, or any part of the same, may exist
and be then lawfully liable to be enforced, the Secretary
of the Treasury shall, under the direction of the President, redeem or otherwise clear off such paramount lien,
mortgage, or other incumbrance by paying the sums lawfully due in respect thereof out of the Treasury; and the
United States shall thereupon become and be subrogated
to all rights and securities theretofore pertaining to the

244

NATIONAL MONETARY COMMISSION.

debt, mortgage, lien, or other incumbrance in respect of
to P prote^t in tle wn ^ cn s u c n P a y m e n t shall have been made. I t shall be
united Itatesf ^ e ^ u ^ °^ ^ e Attorney-General, under the direction of
the President, to take all such steps and proceedings, in
the courts and otherwise, as shall be needful to redeem
such lien, mortgage, or other incumbrance, and to protect
and defend the rights and interests of the United States
in respect of the matters in this section mentioned, and to
take steps to foreclose any mortgages or liens of the
United States on any such railroad property,
of^sin^ifg
S EC - *>. That the sinking-funds which are or may be
funds.
held i n the Treasury for the security of the indebtedness
of either or all of said railroad companies may, in addition to the investments now authorized by law, be invested in any bonds of the United States heretofore issued
for the benefit of either or all of said companies, or in
any of the first-mortgage bonds of either of said companies which have been issued under the authority of any
law of the United States and secured by mortgages of
their roads and franchises, which by any law of the
United States have been made prior and paramount to
the mortgage, lien, or other security of the United States
in respect of its advances to either of said companies as
provided by law.
Approved, March 3, 1887.
A C T O F M A E C H 2, 1889.
#

25 stat.

portraits?8

411.—An act making appropriations for sundry
civil expenses of the Government for the fiscal year
ending June thirtieth, eighteen hundred and ninety,
and for other purposes.

L.,CHAP.

* * * : And provided further, That hereafter the
name of each person whose portrait shall be placed upon
any of the plates for bonds, securities, notes and silver
certificates of the United States shall be inscribed below
such portrait: * * *

Approved, March 2, 1889.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

245

ACT OF OCTOBER 1, 1890.
1246.—An act to provide for the incorporation tf/62§6
trust, loan, mortgage, and certain other corporations
within the District of Columbia.

CHAP.

stat

* L"

Be it enacted by the Senate and House of Representa- District o t
tives of the United States of America in Congress as- corporations
sembled, That corporations may be formed within the
District of Columbia for the purposes hereinafter mentioned in the following manner:
Any time hereafter any number of natural persons, Minimum
citizens of the United States, not less than twenty-five, porators.
may associate themselves together to form a company for
the purpose of carrying on in the District of Columbia
any one of three classes of business herein specified, to
wit:
First. A safe deposit, trust, loan, and mortgage busi-etcSafeu^e°gsgit:'
ness.
Second. A title insurance, loan, and mortgage busi- Title. i*sur1'

ness.

ance, etc., business
-

Third. A security, guaranty, indemnity, loan, and buffneJs^'etc"
mortgage business: Provided, That the capital stock of Provisos.
any of said companies shall not be less than one million
of dollars: Provided further, That any of said companies
may also do a storage business when their capital stock Minimum
amounts to the sum of not less than one million two hun- storage business.
dred thousand dollars.
(The remaining sections 2 to 34, inclusive, prescribe
method of organization, etc., establish rules for the conduct of business, etc.)
Approved, October 1, 1890.
ACT OF FEBRUARY 10, 1891.
127.—An act further to prevent counterfeiting or^
manufacture of dies, tools, or other implements used
in counterfeiting, and providing penalties therefor, and
providing for the issue of search warrants in certain
cases.

CHAP.

stat

- L»

SEC. 4. That all counterfeits of any of the obligations or o £ou#ff\ le*|
other securities of the United States or of any foreign states obiiga. Government, or counterfeits of any of the coins of the
United States or of any foreign Government, and all ma-

246

NATIONAL MONETARY COMMISSION.

issue
search

terial or apparatus fitted or intended to be used, or that
shall have been used, in the making of any such counterfeit obligations or other securities or coins hereinbefore
mentioned, that shall be found in the possession of any
person without authority from the Secretary of the Treasury or other proper officer to have the same, shall be taken
possession of by any authorized agent of the Treasury
Department and forfeited to the United States, and disposed of in any manner the Secretary of the Treasury may
direct,
of SEC. 5. T h a t the several judges of courts established

war~

rants in such under the laws of the United States and the commissioners of such courts may, upon proper oath or affirmation,
within their respective jurisdictions, issue a search warrant authorizing any marshal of the United States, or any
other person specially mentioned in such warrant, to enter
any house, store, building, boat, or other place named in
such warrant, in the daytime only, in which there shall
appear probable cause for believing that the manufacture of counterfeit money, or the concealment of counterfeit money, or the manufacture or concealment of counterfeit obligations or coins of the United States, or of any
foreign government, or the manufacture or concealment
of dies, hubs, molds, plates, or other things fitted or intended to be used for the manufacture of counterfeit
money, coins, or obligations of the United States or of
any foreign government, or of any bank doing business
under the authority of the United States or of any State
or Territory thereof, or of any bank doing business under
the authority of any foreign government or of any political division of any foreign government, is being carried
on or practiced, and there search for any counterfeit
money, coins, dies, hubs, molds, plates, and other things,
Seizures.
and for any such obligations, and if any such be found to
seize and secure the same, and to make return thereof to
the proper authority; and all such counterfeit money,
coins, dies, hubs, molds, plates, and other things and all
such counterfeit obligations so seized shall be forfeited to
the United States.
Approved February 10, 1891.
(This act was amended by the act of March 4, 1909
(chap. 321, 35 Stat. L., pp. 1120 and 1121). See sections
169 to 173, inclusive.)

LAWS CONCEENING MONEY, BANKING, AND LOANS.

247

ACT OF AUGUST 13, 1894.
281.—An act to subject to state taxation national 28 stat. L.,
bank notes and United States Treasury notes.

CHAP.

Be it enacted by the Senate and House of Representa- statetaxation
/. .-,

T n.

•

s-i

national

tives of the United States of America in Congress assem-currency and
bled. That circulating notes of national banking associa- notes autnortions and United States legal tender notes and other notes
and certificates of the United States payable on demand
and circulating or intended to circulate as currency and
gold, silver or other coin shall be subject to taxation as
money on hand or on deposit under the laws of any State
or Territory: Provided, That any such taxation shall be Pr°viso.
exercised in the same manner and at the same rate that sTo obe taxed
s
any such State or Territory shall tax money or currency *money.
°t n e
circulating as money within its jurisdiction.
SEC. 2. That the provisions of this Act shall not be Existing laws,
deemed or held to change existing laws in respect of the
taxation of national banking associations.
Approved, August 13, 1894.
ACT OF AUGUST 15, 1894.
290.—An act making appropriations for current 28 stat. L.,
and contingent expenses of the Indian Department and"
fulfilling treaty stipulations with various Indian tribes
for the fiscal year*ending June thirtieth, eighteen hundred and ninety-five, and for other purposes.
*
*
*
*
*
SEC. 19. * * *. And the Secretary of the Treasury Cherokee Nais hereby authorized to issue to the Cherokee Nation or to °Bonds to be
for Ppay
its assigns evidences of indebtedness of the United States issued
ingU|ns°ta
iafments.
of America, bearing interest at the rate of four per^
centum per annum, payable annually on the fourth day
of March of each year, in amounts of one thousand and
ten thousand dollars, respectively, for the respective
amounts of the second, third, fourth, and fifth installments, maturing respectively on the fourth day of March,
eighteen hundred and ninety-six, the fourth day of March,
eighteen hundred and ninety-seven, the fourth day of
March, eighteen hundred and ninety-eight, and the
fourth day of March, eighteen hundred and ninety-nine,
and amounting in the aggregate to six million six hunCHAP.

248

640.°'

NATIONAL MONETARY COMMISSION.

dred and forty thousand dollars, as specified in said act of
' P* March third, eighteen hundred and ninety-three; and this
provision shall not be construed to extend the time nor
to increase the amount of the liability of the Government
as provided in section ten of the said Act of March third,
eighteen hundred and ninety-three.
Approved, August 15, 1894.
ACT OF MAY 28, 1896.

29 Stat. L.., CHAP.
179.

252.—An act making appropriations for the legislative^ executive, and judicial expenses of the Government for the fiscal year ending June thirtieth, eighteen
hundred and ninety-seven, and for other purposes.

SEC. 5. That section thirty-six hundred and twenty-one
of the Revised Statutes is amended to read as follows:
deMo^ed°iii " ®EC# ^621. Every person who shall have moneys of
taHes deposi" the United States in his hands or possession, and disburs36?i %' 714* * n £ °ffi cers having moneys in their possession not required
amended.
' for current expenditure, shall pay the same to the Treasurer, an Assistant Treasurer, or some public depositary
of the United States, without delay, and in all cases
within thirty days of their receipt. And the Treasurer,
the Assistant Treasurer, or the pubiic depositary shall
issue duplicate receipts for the moneys so paid, transmitting forthwith the original to the Secretary of the
Treasury, and delivering the duplicate to the depositor:
Proviso.
Provided. That Dostal revenues and debts due to the Postrv>stal rev-

enues.

"""

Office Department shall be paid into the Treasury in the
manner now required by law."
He

Approved, May 28, 1896.
ACT OF JUNE 13, 1898.
30 stat.

448.—An act to provide ways and means to meet
war expenditures, and for other purposes.

L„CHAP.
*

issue of cer-

•

SEC. 32. That the Secretary of the Treasury is author-

tificates of in5 .

debtedness au- ized to borrow from time to time, at a rate of interest not
thorized.

exceeding three per centum per annum, such sum or sums
as, in his judgment, may be necessary to meet public ex-

LAWS CONCERNING MONEY, BANKING, AND LOANS.

249

penditures, and to issue therefor certificates of indebtedness in such form as he may prescribe and in denominations of fifty dollars or some multiple of that sum; and
each certificate so issued shall be payable, with the interest
accrued thereon, at such time, not exceeding one year from
the date of its issue, as the Secretary of the Treasury may
prescribe: Provided, That the amount of such certificates Proviso,
outstanding shall at no time exceed one hundred millions
pf dollars; and the provisions of existing law respecting
counterfeiting and other fraudulent practices are hereby counterfeitextended to the bonds and certificates of indebtedness
authorized by this act.
SEC. 33. That the Secretary of the Treasury is hereby i s s u e of
authorized to borrow on the credit of the United States cure loan aufrom time to time as the proceeds may be required to
defray expenditures authorized on account of the existing war (such proceeds when received to be used only for
the purpose of meeting such war expenditures) the sum
of four hundred million dollars, or so much thereof as
may be necessary, and to prepare and issue therefor,
coupon or registered bonds of the United States in such
form as he may prescribe, and in denominations of twenty i r d e n o m i n a dollars or some multiple of that sum, redeemable in coin
at the pleasure of the United States after ten years from
the date of their issue, and payable twenty years from
such date, and bearing interest payable quarterly in coin
at the rate of three per centum per annum; and the bonds
herein authorized shall be exempt from all taxes or duties
of the United States, as well as from taxation in any
form by or under State, municipal, or local authority:
Provided, That the bonds authorized by this section shall Provisos.
be first offered at par as a popular loan under such regula- ropuiar loan,
tions, prescribed by the Secretary of the Treasury, as will
give opportunity to the citizens of the United States to
participate in the subscriptions to such loan, and in
allotting said bonds the several subscriptions of individuals shall be first accepted, and the subscriptions for
the lowest amounts shall be first allotted: Provided further, That any portion of any issue of said bonds not ^IJ^jffisxfiZ
subscribed for as above provided may be disposed of by scribed for.
the Secretary of the Treasury at not less than par, under
such regulations as he may prescribe, but no commissions
shall be allowed or paid thereon; and a sum not exceed- Expenses.
ing one-tenth of one per centum of the amount of the
bonds and certificates herein authorized is hereby appro-

250

NATIONAL MONETARY COMMISSION.

priated out of any money in the Treasury not otherwise
appropriated, to pay the expense of preparing, advertising, and issuing the same.
Approved, June 13, 1898.
ACT OF JULY 1, 1898.
Stat

* L ' C H A P . 546.—An act making appropriations for sundry
civil expenses of the Government for the fiscal year
ending June thirtieth, eighteen hundred and ninetynine, and for other purposes.

6oi°

Prefs

d roller

es "

* * *• Provided further, That hereafter all bonds,
notes, and checks shall be printed from hand-roller
presses.
3|*

Sg«

«]*

3|C

Approved, July 1, 1898.
ACT OF JULY 7, 1898.
659° Stat* L" CHAP. 571.—An act making appropriations to supply deficiencies in the appropriations for the fiscal year ending
June thirtieth, eighteen hundred and ninety-eight, and
for prior years, and for other purposes.

ciflceandaWest-

SETTLEMENT WITH THE CENTRAL PACIFIC AND WESTERN

?oa<Sacificrail"PACIFIC RAILROADS: That the Secretary of the Treasury,
toC°sett!eSSiiS^ie Secretary of the Interior, and the Attorney-General,
Government * ° an( * ^^e^r successors in office, be, and they are hereby, appointed a commission with full power to settle the indebtedness to the Government growing out of the issue
of bonds in aid of the construction of the Central Pacific
and Western Pacific bond-aided railroads, upon such
terms and in such manner as may be agred upon by them,
or by a majority of them, and the owners of said railProvisos. roads: Provided, That any and all settlements thus made
the Resident/ shall be submitted in writing to the President for his approval or disapproval, and unless approved by him shall
not be binding.
Minimum That said commission shall not agree to accept a less
sum to be ac-

cepted.

sum in settlement of the amount due the United States
than the full amount of the principal and interest and

LAWS CONCERNING MONEY, BANKING, AND LOANS.

251

all amounts necessary to reimburse the United States
for moneys paid for interest or otherwise: And also provided, That said commission are hereby empowered to ments!e of pay"
grant such time or times of payment by installment, and
at such rates of interest, to be not less than three per
centum per annum, payable semiannually, and with such
security as to said commission may seem expedient:
Provided, however, That in any settlement that may be CbSr«e.a f dls
made the final payment and full discharge of said indebtedness shall not be postponed to exceed ten years and the
whole amount, principal and interest, shall be paid in
equal semiannual installments within the period so limited, and in any settlement made it shall be provided
that if default shall be made in any payment of either pa^J^t!* l n
principal or interest or any part thereof then the whole
sum and all installments, principal and interest, shall
immediately become due and payable, notwithstanding any other stipulation of said settlement: Provided
further, That unless the settlement herein authorized be
perfected within one year after the passage of this Act
the President of the United States shall at once proceed
to foreclose all liens now held by the United States in F ^ a c u 1 1 ° t su ^
against said railroad companies and to collect the indebt- settlement,
edness herein sought to be settled, and nothing in this
Act contained shall be held to waive or release any right, eJ^in^fens*
lien, or cause of action already held by the United States, etc.
That there is hereby appropriated, out of any money Appropriain the Treasury not otherwise appropriated, the sum of penses of comtwenty thousand dollars to defray the expenses of said msson *
commission in making the said settlement.
*
#
*
*
$
Approved, July 7,1898.
JOINT RESOLUTION, JULY 7, 1898.
(No. 55.) Joint resolution to provide for annexing the 30 stat. L.,
Hawaiian Islands to the United States.

The public debt of the Republic of Hawaii, lawfully united states
...

„ ,

„ , . . .

i i »

assume the

existing at the date of the passage of this joint resolution, pubiic^debt of
including the amounts due to depositors in the Hawaiian
Postal Savings Bank, is hereby assumed by the Government of the United States; but the liability of the United —limit.
States in this regard shall in no case exceed four million
15712°—10

252

— interest,

NATIONAL MONETARY COMMISSION.

dollars. So long, however, as the existing Government
and the present commercial relations of the Hawaiian
Islands are continued as hereinbefore provided said Government shall continue to pay the interest on said debt.
jt*

*J#

*£g

•$•

jfe

Approved, July 7, 1898.
ACT OF MAECH 14, 1900.
31 stat. L., CHAP. 41.—An act to define and fix the standard of value,
2 Supp. R. s., to maintain the parity of all forms of money issued or
coined by the United States, to refund the public debt,
and for other purposes.
vafue axed1 of ^e ^ enacted by the Senate and House of Representa~R O1 | d?35ii tives of the United States of America in Congress assem261^9h' 945P u ^ ^ ' That the dollar consisting of twenty-five and eights'«PP- R. s.,tenths grains of gold nine-tenths fine, as established by
—parity of section thirty-five hundred and eleven of the Eevised
v a l u e to be

maintained.

Statutes of the United States, shall be the standard unit
of value, and all forms of money issued or coined by the
United States shall be maintained at a parity of value
with this standard, and it shall be the duty of the Secretary of the Treasury to maintain such parity.
Treasury SEC. 2. That United States notes, and Treasury notes
( 8 e 14,
( 1c9h°!
PPissued under the Act of July fourteenth, eighteen hundred
708
jifiy
R ? s., 774^? and ninety, when presented to the Treasury for redempr
emable
In~ go1d.
tion, shall be redeemed in gold coin of the standard fixed
in the first section of this act, and in order to secure the
prompt and certain redemption of such notes as herein
provided it shall be the duty of the Secretary of the TreasMaintenanee ury to set apart in the Treasury a reserve fund of one
of reserve fund. h u n d r e d a n d fifty m iHi o n dollars in gold coin and bullion,
which fund shall be used for such redemption purposes
only, and whenever and as often as any of said notes shall
be redeemed from said fund it shall be the duty of the
Secretary of the Treasury to use said notes so redeemed
to restore and maintain such reserve fund in the manner
—by exchange following, to wit: First, by exchanging the notes so redeemed for any gold coin in the general fund of the Treaso n o^TtPs* of OT^ s e c o n d 9 by accepting deposits of gold coin at the
—by procuring Treasury or at any subtreasury in exchange for the
g0 d
R 's § 3700. United States notes so redeemed; third, by procuring gold
—by bond is- c o i n by the use of said notes, in accordance with the provisions of section thirty-seven hundred of the Revised
Statutes of the United States. If the {Secretary of the

LAWS CONCERNING MONEY, BANKING, AND LOANS.

253

Treasury is unable to restore and maintain the gold coin
in the reserve fund by the foregoing methods, and the
amount of such gold coin and bullion in said fund shall
at any time fall below one hundred million dollars, then
it shall be his duty t.o restore the same to the maximum
sum of one hundred and fifty million dollars by borrowing
money on the credit of the United States, and for the debt
thus incurred to issue and sell coupon or registered bonds
of the United States, in such form as he may prescribe, in
denominations of fifty dollars or any multiple thereof,
bearing interest at the rate of not exceeding three per prate of incentum per annum, payable quarterly, such bonds to be
payable at the pleasure of the United States after one
year from the date of their issue, and to be payable, principal and interest, in gold coin of the present standard
value, and to 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 gold coin received from the sale of said bonds Disposition of
shall first be covered into the general fund of the Treasury of bonds,
and then exchanged, in the manner hereinbefore provided,
for an equal amount of the notes redeemed and held for
exchange, and the Secretary of the Treasury may, in his
discretion, use said notes in exchange for gold, or to purchase or redeem any bonds of the United States, or for—redemption
,t

a i

«•!

i v

• ,

. o f

bonds, etc.

any other lawtul purpose the public interests may require,
except that they shall not be used to meet deficiencies in
the current revenues. That United States notes when
redeemed in accordance with the provisions of this section
shall be reissued, but shall be held in the reserve fund—notes to be
until exchanged for gold, as herein provided; and the gold reissue *
coin and bullion in the reserve fund, together with the Limit to reredeemed notes held for use as provided in this section,serve
shall at no time exceed the maximum sum of one hundred
and fifty million dollars.
SEC. 3. That nothing contained in this act shall be con- Quality o f
strued to affect the legal-tender quality a s n o w p r o v i d e d etcTfun^ffected!
by law of the silver dollar, or of any other money coined
or issued by the United States.
SEC. 4. That there be established in the Treasury De- Divisions of
partment, as a part of the office of the Treasurer of the demotion e s United States, divisions to be designated and known as tablished the division of issue and the division of redemption, to
which shall be assigned, respectively, under such regulations as the Secretary of the Treasury may approve,

254

NATIONAL MONETARY COMMISSION.

all records and accounts relating to the issue and redemption of United States notes, gold certificates, silver cer—duties.
tificates, and currency certificates. There shall be transferred from the accounts of the general fund of the Treasury of the United States, and taken up on the books of
said divisions, respectively, accounts relating to the reserve fund for the redemption of United States notes and
Treasury notes, the gold coin held against outstanding
gold certificates, the United States notes held against
outstanding currency certificates, and the silver dollars
held against outstanding silver certificates, and each of
the funds represented by these accounts shall be used for
the redemption of the notes and certificates for which
they are respectively pledged, and shall be used for no
other purpose, the same being held as trust funds.
e
n
of °T?e asu? ^EC. 5# T h a t ** s h a U b e t h e d u t y o f t h e Secretary of
notes for sii- the Treasury, as fast as standard silver dollars are coined
ver d o l l a r s

. .

coined, etc.

under the provisions of the acts of July fourteenth, eighteen hundred and ninety, and June thirteenth, eighteen
hundred and ninety-eight, from bullion purchased under
the act of July fourteenth, eighteen hundred and ninety,
to retire and cancel an equal amount of Treasury notes
whenever received into the Treasury, either by exchange
in accordance with the provisions of this act or in the
ordinary course of business, and upon the cancellation
issue of sii- of Treasury notes silver certificates shall be issued against

ver certificates. , . , , , ,

the silver dollars so coined.
Gold certm- SEC. 6. That the Secretary of the Treasury is hereby
sued on de- authorized and directed to receive deposits of gold coin
with the Treasurer or any assistant treasurer of the
United States in sums of not less than twenty dollars, and
to issue gold certificates therefor in denominations of
not less than twenty dollars, and the coin so deposited
shall be retained in the Treasury and held for the payment of such certificates on demand, and used for no other
—to be count- purpose. Such certificates shall be receivable for customs,
serve, etc.
taxes, and all public dues, and when so received may be
reissued, and when held by any national banking association may be counted as a part of its lawful reserve:
Provided, That whenever and so long as the gold coin
held in the reserve ifcind in the Treasury for the redemption of United States notes and Treasury notes shall
fall and remain below one hundred million dollars the
authority to issue certificates as herein provided shall be

LAWS CONCERNING MONEY, BANKING, AND LOANS.

255

suspended: And provided further, That whenever a n d a u ^ P | ^ 0 3 i ^
so long as the aggregate amount of United States notes sue certificates,
and silver certificates in the general fund of the Treasury
shall exceed sixty million dollars the Secretary of the
Treasury may, in his discretion, suspend the issue of the
certificates herein provided for: And provided further.
That of the amount of such outstanding certificates one- Denomination
fourth at least shall be in denominations of fifty dollars
or less: And provided further, That the Secretary of
the Treasury may, in his discretion, issue such certificates in denominations of ten thousand dollars, payable
to order. And section fifty-one hundred and ninety-three Repeal of
R S sec 5193

of the Kevised Statutes of the United States is hereby
repealed.
SEC. 7. That hereafter silver certificates shall be issued Denomination
of silver ccrtifi-

only of denominations of ten dollars and under, except cates.
that not exceeding in the aggregate ten per centum of the
total volume of said certificates, in the discretion of the
Secretary of the Treasury, may be issued in denominations of twenty dollars, fifty dollars, and one hundred
dollars; and silver certificates of higher denomination
than ten dollars, except as herein provided, shall, whenever received at the Treasury or redeemed, be retired and
canceled, and certificates of denominations of ten dollars
or less shall be substituted therefor, and after such sub -—on reissue.
stitution, in whole or in part, a like volume of United
States notes of less denomination than ten dollars shall
from time to time be retired and canceled, and notes of
denominations of ten dollars and upward shall be reissued in substitution therefor, with like qualities and
restrictions as those retired and canceled.
SEC. 8. That the Secretary of the Treasury is hereby silver buiauthorized to use, at his discretion, any silver bullion in used for sub__

sidlarv coina&re

the Treasury of the United States purchased under thei89o, July 14,
Act of July fourteenth, eighteen hundred and ninety, forsupp. R. S.,
coinage into such denominations of subsidiary silver coin
as may be necessary to meet the public requirements for
such coin: Provided, That the amount of subsidiary silver—umit.
coin outstanding shall not at any time exceed in the aggregate one hundred millions of dollars. Whenever any
silver bullion purchased under the act of July fourteenth,
eighteen hundred and ninety, shall be used in the coinage
of subsidiary silver coin, an amount of Treasury notes
issued under said act equal to the cost of the bullion contained in such coin shall be canceled and not reissued. o7note»?llation

256

NATIONAL MONETARY COMMISSION.

un?urrentges?i- ® E a ^' That the Secretary of the Treasury is hereby
ver coins.
authorized and directed to cause all worn and uncurrent
subsidiary silver coin of the United States now in the
Treasury, and hereafter received, to be recoined, and to
—reimburse- reimburse the Treasurer of the United States for the diffrom faceference between the nominal or face value of such coin
value.

and the amount the same will produce in new com from
any moneys, in the Treasury not otherwise appropriated.
jgEC. n # l^hat the Secretary of the Treasury is hereby
authorized to receive at the Treasury any of the outstanding bonds of the United States bearing interest at five per
centum per annum, payable February first, nineteen hundred and four, and any bonds of the United States bearing interest at four per centum per annum, payable July
first, nineteen hundred and seven, and any bonds of the
e SS
~~e
r
cen°t
United States bearing interest at three per centum per
2
bonds.
annum, payable August first, nineteen hundred and eight,
and to issue in exchange therefor an equal amount of
coupon or registered bonds of the United States in such
form as he may prescribe, in denominations of fifty dollars or any multiple thereof, bearing interest at the rate
of two per centum per annum, payable quarterly, such
bonds to be payable at the pleasure of the United States
after thirty years from the date of their issue, and said
bonds to be payable, principal and interest, in gold coin
of the present standard value, and to 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: Provided, That such out— valuation, standing bonds may be received in exchange at a valuation not greater than their present worth to yield an income of two and one-quarter per centum per annum; and
in consideration of the reduction of interest effected, the
Secretary of the Treasury is authorized to pay to the
holders of the outstanding bonds surrendered for exchange, out of any money in the Treasury not otherwise
appropriated, a sum not greater than the difference between their present worth, computed as aforesaid, and
their p a r value, and the payments to be made hereunder
shall be held to be payments on account of the sinking
R. s., § 3694. f u n d created by section thirty-six hundred and ninetyfour of the Kevised Statutes:

Redemption

LAWS CONCBKNING MONEY, BANKING, AND LOANS.

257

And provided further, That the two per centum bonds lgSu™Jdat par**
to be issued under the provisions of this act shall be issued
at not less than par, and they shall be numbered consecutively in the order of their issue, and when payment is
made the last numbers issued shall be first paid, and this
order shall be followed until all the bonds are paid, and
whenever any of the outstanding bonds are called for
payment interest thereon shall cease three months after interest to
i

ixi

* i i

• x I

J. ^

cease on bonds

such call; and there is hereby appropriated out of any called for paymoney in the Treasury not otherwise appropriated, to men *
effect the exchanges of bonds provided for in this act, a
sum not exceeding one-fifteenth of one per centum of the
face value of said bonds, to pay the expense of preparing
and issuing the same and other expenses incident thereto.
Approved, March 14, 1900.
NOTE.—The act of May 26, 1906 (34 Stat. L., 202), amends section 6 of the above act to read as follows:
" Provided, That whenever and so long as the gold coin held in Proviso,
the reserve fund in the Treasury for the redemption of United i f 1 8 ^ * ^ 6 ^
States notes and Treasury notes shall fall and remain below
fi^yl^^olfo^oo7
million dollars the authority to issue certificates as herein provided shall be suspended, but the Secretary of the Treasury is
directed to coin, within reasonable time, any and all gold bullion Bullion to be
held in said reserve fund in excess of fifty million dollars."
coined.

ACT OF JUNE 6, 1900.
CHAP.

780.—An act to create a commission to make settle- rt ?i stat. L.,
274.

ment and adjustment with the Sioux City and Pacific
Railroad Company of its indebtedness to the Government of the United States.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury, the Secre- sioux city
tary of the Interior, and the Attorney-General of the Railroad.
United States are hereby authorized and empowered to to adjust inmake settlement and adjustment of the Sioux City and to Government
created.

Pacific Railroad Company's indebtedness to the Government of the United States; and to that end may receive _ powe rs.
and determine upon any proposition or propositions from
said Sioux City and Pacific Railroad Company or from
any other person or persons, corporation or corporations,
and may sell or assign the mortgage given by said company to the United States and do any and all things

258

NATIONAL MONETARY COMMISSION.

proper and necessary to effect such settlement and adjustment and secure to the United States the largest sum
possible in the payment of said indebtedness up to the
full amount thereof: Provided, That they deem the same
for the best interests of the Government; and when such
settlement is approved by the President it shall become
operative, and the Attorney-General shall make the necessary acquittances to said railroad company.
Approved, June 6, 1900.

Proviso.
tion, etc.

ACT OF JUNE 6, 1900.
31 stat.

797.—An act to provide better facilities for the
safe-keeping and disbursement of public moneys in the
Philippine Islands and in the islands of Cuba and
Porto Rico.

L.,CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress ascuba, Porto sembled, That the Secretary of the Treasury is hereby
ippinesn
authorized to designate one or more banks or bankers in
of depolftories the Philippine Islands and in the islands of Cuba and
eys. publcmon Porto Rico in which public moneys may be deposited:
Provisos. Provided. That the banks or bankers thus designated shall
Security de-

posit.

give satisfactory security for the safe-keeping and prompt
payment of the public moneys so deposited by depositing
in the Treasury, United States bonds to an amount not
less than the aggregate sum at any time on deposit with
Amplication such banks or bankers: And provided further, That this
Act shall apply to Cuba only while occupied by the
United States.
Approved, June 6, 1900.
JOINT RESOLUTION OF JUNE 6, 1900.
31 stat. L., (No. 32.) Joint resolution to authorize and empower the
Banco Espanol de Puerto Rico (Spanish Bank of Porto
Rico) to amend its by-laws.

Resolved by the Senate and House of Representatives
of the United States of America in Congress assembled,
_ Banco Espa-That the Banco Espanol de Puerto Rico (Spanish Bank
r

fiol de Puerto

Rico

may of Porto Rico) be, and the said institution is hereby,

amend its by-

laws.

. .

- .

authorized and empowered to amend article one of its
by-laws, which said by-laws are referred to in, and published with, the royal (Spanish) decree dated May fifth,

LAWS CONCERNING MONEY, BANKING, AND LOANS,

259

anno Domini eighteen hundred and eighty-eight, granting a concession to said bank, so as to change its name
to that of Bank of Porto Rico (Banco de Puerto Rico)
and to substitute for its capital in pesos the equivalent
in money of the United States at the ratio established
by law, and to amend article thirty-one of said by-laws,
so that to be a councilor of said bank it may not be
necessary to be a Spaniard, and further to modify and
amend said by-laws, but always in accordance with existing law, and subject to the approval of the governor
of Porto Rico: Provided, That nothing herein contained p 0 ^ £ s n 0 1
shall be held to enlarge or to permit the enlargement,enlarffedin any manner or to any extent, of any of the rights,
powers, or privileges granted to said Banco Espaiiol de
Puerto Rico (Spanish Bank of Porto Rico) by the Government of Spain: And provided further, That nothingcoFnetrd0Vuan!
herein contained shall be held in any wise to limit orabridged*
curtail any power which the Government or the Congress of the United States possesses in respect of said
bank, its powers, privileges, or franchises.
Approved, June 6, 1900.
ACT OF MARCH 3, 1901.
871.—An act to amend section fifty-one hundred u^
and fifty-three of the Revised Statutes of the United
States.

CHAP.

stat

- L>

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section fifty-one hundred and fifty-three of
the Revised Statutes of the United States be amended
to read as follows:
"SEC. 5153. All national banking associations, desig-ba^|*id03n0|i1.
nated for that purpose by the Secretary of the Treasury, moneysf except
shall be depositaries of public money, except receipts ^ s t * ° m s refrom customs, under such regulations as may be prescribed by the Secretary, but receipts derived from duties—exception not
on imports in Alaska, the Hawaiian Islands, and other HPa w \ i i !
. . . .

Alaska etc

islands under the jurisdiction of the United States may R. S., sec.
be deposited in such depositaries subject to such regula- amended,
tions; and such depositaries 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. The Secretary of the Treasury

260

NATIONAL MONETARY COMMISSION.

shall require the associations thus designated to give
satisfactory security, by the deposit of United States
bonds and otherwise, for the safe-keeping and prompt
payment of the public money deposited with them, and
for the faithful performance of their duties as financial
agents of the Government. And every association so
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 into the Government for internal revenue or for
loans or stocks."
Approved, March 3, 1901.
ACT O F J U N E 28, 1902.
32 stat. L., CHAP. 1302.—An act to provide for the construction of a
canal connecting the waters of the Atlantic and Pacific
oceans.
Bond issue SEC. 8. That the Secretary of the Treasury is hereby audefray ex-thorized to borrow on the credit of the United States
from time to time, as the proceeds may be required to
defray expenditures authorized by this Act (such ^proceeds when received to be used only for the purpose of
meeting such expenditures), the sum of one hundred and
thirty million dollars, or so much thereof as may be necessary, and to prepare and issue therefor coupon or registered bonds of the United States in such form as he may
enomina
?
*
prescribe, and in denominations of twenty dollars or some
tio s
multiple of that sum, redeemable in gold coin at the pleasuse of the United States after ten years from the date of
their issue, and payable thirty years from such date, and
interest.
bearing interest payable quarterly in gold coin at the rate
of two per centum per annum; and the bonds herein auempt f r o m
taxes
thorized shall be exempt from all taxes or duties of the
United States, as well as from taxation in any form by or
proviso.
under State, municipal, or local authority: Provided,
That said bonds may be disposed of by the Secretary of the
price!n {m u m Treasury at not less than par, under such regulations as he
may prescribe, giving to all citizens of the United States
an equal opportunity to subscribe therefor, but no cornExpenses, missions shall be allowed or paid thereon; and a sum not
exceeding one-tenth of one per centum of the amount of
the bonds herein authorized is hereby appropriated, out

LAWS CONCERNING MONEY, BANKING, AND LOANS.

261

of any money in the Treasury not otherwise appropriated,
to pay the expense of preparing, advertising, and issuing
the same.
Approved, June 28, 1902.
ACT OF JULY 1, 1902.
1369.—An act temporarily to provide for the administration of the affairs of civil government in the
Philippine Islands, and for other purposes.

CHAP.

32 stat. L.,

SEC. 85. That the treasury of the Philippine Islands of ^P^tories
and such banking associations in said islands with amoneypaid up capital of not less than two million dollars and
chartered by the United States or any State thereof as
may be designated by the Secretary of War and the
Secretary of the Treasury of the United States shall be
depositories of public money of the United States, subject
to the provisions of existing law governing such depositories in the United States: Provided, That the Treasury Proviso,
of the government of said islands shall not be required to bonds, etc., not
deposit bonds in the Treasury of the United States, or
to give other specific securities for the safe-keeping of
public money except as prescribed, in his discretion, by
the Secretary of War.
*
*
*
*
*
Approved, July 1, 1902.
ACT OF DECEMBER 21, 1905.
3.—An act supplemental to an act entitled "An act 34 stat. L., 5.
to provide for the construction of a canal connecting
the waters of the Atlantic and Pacific oceans" approved
June twenty-eighth, nineteen hundred and two, and
making appropriation for Isthmian Canal construction,
and for other purposes.

CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the two per cent bonds of the United States isthmian caauthorized by section eight of the Act entitled "An Act
to provide for the construction of a canal connecting the
waters of the Atlantic and Pacific oceans," approved
June twenty-eight, nineteen hundred and two, shall have

262

NATIONAL MONETARY COMMISSION.

accor!edSbondsa^ *^e r igbts an( ^ privleges accorded by law to other two
structJn ofCon P e r c e n t bonds °^ ^ i e United States, and every national
banking association having on deposit, as provided by
law, such bonds issued under the provisions of said seco 1 32
4 8 J * > P-tion eight of said Act approved June twenty-eight, nineteen hundred and two, to secure its circulating notes, shall
pay to the Treasurer of the United States, in the months
Taxes.
0 f January and July, a tax of one-fourth of one per cent
each half year upon the average amount of such of its
notes in circulation as are based upon the deposit of said
two per cent bonds; and such taxes shall be in lieu of
existing taxes on its notes in circulation imposed by
0 sec
5214 p "IOOI ' t i ° n fifty-two hundred and fourteen of the Revised
Statutes.
(Section 2 appropriates the sum of eleven million dollars to continue the construction of the Isthmian Canal:
" Provided, That all expenditures from the appropriation
herein made shall be reimbursed to the Treasury of the
United States out of the proceeds of the sale of bonds
l 32 p
J
°
•
»
authorized
in section eight of the said act approved June
48
twenty-eighth, nineteen hundred and two."
(Section 3 requires reports from officers in Canal Zone,
including an itemized account of all moneys received and
expended, etc.)
Approved, December 21, 1905.
NOTE.—The proviso in section 2 of the above act is repeated in
the following acts: February 27, 1906 (34 Stat. L., 33) ; June 30,
1906 (34 Stat. L., 762); March 4, 1907 (34 Stat. L., 1369); May
27,1908 (35 Stat. L., 386) ; March 4, 1909 (35 Stat. L., 1025).

ACT OF JUNE 25, 1906.
34 stat. L.,CHAP. 3536.—An act to modify the requirements of the
act entitled "An act to promote the education of the
blind" approved March third, eighteen hundred and
seventy-nine.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemthe biind tion of ^e^ That the sum of two hundred and fifty thousand
dollars heretofore invested in United States registered
ma^u°rededbonds^our P e r c e n t u m bonds, funded loan of nineteen hundred
m a^d e a trust a n ( j seven, inscribed " Secretary of the Treasury, trustee—
interest to the Treasurer of the United States for credit
of appropriation 'To promote the education of the
blind,'" shall upon the maturity and redemption of said

LAWS CONCERNING MONEY, BANKING, AND LOANS.

263

bonds on the first day of July, nineteen hundred and
seven, in lieu of reinvestment in other Government bonds,
be set apart and credited on the books of the Treasury
Department as a perpetual trust fund; and the sum of
ten thousand dollars, being equivalent to four per centum
on the principal of said trust fund, be, and the same is
hereby, appropriated, out of any moneys in the Treasury
not otherwise appropriated, and such appropriation shall
be deemed a permanent annual appropriation and shall Permanent
,
, , . .,
i«»ii
,,
annual approbe expended m the manner and ior the purposes author- priation in
•

nlace of inter-

ized by the Act approved March third, eighteen hundred est.
spos
and seventy-nine, entitled "An act to promote the education of the blind," approved March third, eighteen hun- 46 J ° l • 20* Pdred and seventy-nine.
Approved, June 25, 1906.
ACT OF MAY 30, 1908.
229.—An act to amend the national hanking laws. 5 4 | 5
*
*
*
*
*

CHAP.

stat

- L>

SEC. 15. That all national banking associations desig- interest paynated as regular depositaries of public money shall pav£eP°sitsofPub°

*•

* * lie moneys.

upon all special and additional deposits made by the
Secretary of the Treasury in such depositaries, and all
such associations designated as temporary depositaries of
public money shall pay upon all sums of public money
deposited in such associations interest at such rate as the
Secretary of the Treasury may prescribe, not less, however, than one per centum per annum upon the average
monthly amount of such deposits: Provided, however, Provisos.
That nothing contained in this Act shall be construed to
change or modify the obligation of any association or
any of its officers for the safe-keeping of public money: n<safe^keeging
Provided further, That the rate of interest charged upon Uniform insuch deposits shall be equal and uniform throughout the
United States.
*
*
*
*
*
SEC. 17. That a Commission is hereby created, to be Mo^etar^com1called the " National Monetary Commission," to be com- j?teSl.ion c r e"
posed of nine members of the Senate, to be appointed by mentf p o I n t "
the Presiding Officer thereof, and nine members of the
House of Representatives, to be appointed by the Speaker
thereof; and any vacancy on the Commission shall be
filled in the same manner as the original appointment.

264

NATIONAL MONETARY COMMISSION.

«H22Si!ft55£

SEC

changes in mon- #

etcapy

T h a t Jt s h a l

the duty of this Commission to
«••

l i i n to a n ( i report to Congress at the earliest date
practicable, what changes are necessary or desirable in
the monetary system of the United States or in the laws
relating to banking and currency, and for this purpose
Authority, they are authorized to sit during the sessions or recess of
Congress, at such times and places as they may deem
desirable, to send for persons and papers, to administer
oaths, to summons and compel the attendance of witnesses,
officials.
and to employ a disbursing officer and such secretaries,
experts, stenographers, messengers, and other assistants
as shall be necessary to carry out the purposes for which
said Commission was created. The Commission shall have
Powers.
the power, through subcommittee or otherwise, to examine
witnesses and to make such investigations and examinations, in this or other countries, of the subjects committed
to their charge as they shall deem necessary.
tion Pproprla " ^EC# ^* That a s u m sufficient to carry out the purposes
of sections seventeen and eighteen of this Act, and to pay
the necessary expenses of the Commission and its members, is hereby appropriated, out of any money in the
Treasury not otherwise appropriated. Said appropriaavaiiaweiately^on s ^ a ^ ^e immediately available and shall be paid out
on the audit and order of the chairman or acting chairman
of said Commission, which audit and order shall be conAccounts, elusive and binding upon all Departments as to the correctness of the accounts of such Commission.
jgEC# 20. That this Act shall expire by limitation on the
ofTermination
thirtieth day of June, nineteen hundred and fourteen.
Approved, May 30, 1908.
ACT OF MARCH 4, 1909.
93 |5

system m< u re

stat.

298.—An act making appropriations to supply deficiencies in the appropriations for the fiscal year ending
June thirtieth, nineteen hundred and nine, and for prior
years, and for other purposes.
*
*
*
*
*

L., CHAP.

Monetary°com- That the members of the National Monetary Commismission.
sion, who were appointed on the thirtieth day of May,
nineteen hundred and eight, under the provisions of section seventeen of the Act entitled "An Act to amend the
national banking laws," approved May thirtieth, nineteen
continued, hundred and eight, shall continue to constitute the National Monetary Commission until the final report of said

LAWS CONCERNING MONEY, BANKING, AND LOANS.

265

commission shall be made to Congress; and said National
Monetary Commission are authorized to pay to such of t i o £ o m p e n s a "
its members as are not at the time in the public service
and receiving a salary from the Government, a salary
equal to that to which said members would be entitled if
they were members of the Senate or House of Representatives. All Acts or parts of Acts inconsistent with this
provision are hereby repealed.
Approved, March 4, 1909.
ACT O F A U G U S T 5, 1909.
CHAP. 6.—An act to provide revenue, equalize duties and
encourage the industries of the United States, and for
other purposes.
SEC. 39. That the Secretary of the Treasury is hereby Panama caauthorized to borrow on the credit of the United States Additional is„

sue of

bonds

from time to time, as the proceeds may be required tof.or construcdefray expenditures on account of the Panama Canal and
to reimburse the Treasury for such expenditures already
made and not covered by previous issues of bonds, the
sum of two hundred and ninety million five hundred and Amount.
.

Vol.

32, p.

sixty-nine thousand dollars (which sum together with the 484.
eighty-four million six hundred and thirty-one thousand
nine hundred dollars already borrowed upon issues of
two per cent bonds under section eight of the Act of
June twenty-eighth, nineteen hundred and two, equals the
estimate of the Isthmian Canal Commission to cover the
entire cost of the Canal from its inception to its completion), and to prepare and issue therefor coupon or registered bonds of the United States in such form as he may
prescribe, and in denominations of one hundred dollars, Denominative hundred dollars, and one thousand dollars, payable
fifty years from the date of issue, and bearing interest Payable in
payable quarterly in gold coin at a rate not exceeding interest
three per centum per annum; and the bonds herein authorized shall be exempt from all taxes or duties of t h e . Exemption
r

from taxation.

United States, as well as from taxation m any form by or
under State, municipal, or local authority: Provided, £i°v*|°i
That said bonds may be disposed of by the Secretary of
the Treasury at not less than par, under such regulations
as he mav prescribe, giving to all citizens of the United

266

NATIONAL MONETARY COMMISSION.

States an equal opportunity to subscribe therefor, but no
commissions shall be allowed or paid thereon; and a sum
not exceeding one-tenth of one per centum of the amount
Appropriation of the bonds herein authorized is hereby appropriated,
for expenses.

, „

•

>*, m

•

out of any money in the Treasury not otherwise appropriated, to pay the expenses of preparing, advertising,
issue of 2 per and issuing the same;
and the authority contained in sec7
cent bonds re- .
. . ° „ .
. _
/ • • i n
.
peaied. ^ tion eight oi the Act of June twenty-eighth, nineteen
484. ' "' ' hundred and two, for the issue of bonds bearing interest
at two per centum per annum, is hereby repealed.
SEC. 40. That section thirty-two of an Act, entitled,
u
An Act providing ways and means to meet war expenditures, and for other purposes," approved June thirteenth,
eighteen hundred and ninety-eight, be, and the same is
hereby, amended to read as follows:
certificates of "That the Secretary of the Treasury is authorized to
indebtedness.

vol. 30, p. borrow from time to time, at a rate of interest not exceed7

466, amended. .

issue author- mg three per centum per annum, such sum or sums as,
cent.
in his judgment, may be necessary to meet public expenditures, and to issue therefor certificates of indebtedness in
such form as he may prescribe and in denominations of
fifty dollars or some multiple of that sum; and each cer^ Payable with-tificate so issued shall be payable, with the interest accrued thereon, at such time, not exceeding one year from
the date of its issue, as the Secretary of the Treasurer
T^oviso.
may prescribe: Provided, That the sum of such certificreased.
cates outstanding shall at no time exceed two hundred
Laws as to millions of dollars; and the provisions of existing law
c o unterfeiting

etc., applicable! respecting counterfeiting and other fraudulent practices
are hereby extended to the bonds and certificates of
indebtedness authorized by this Act."
v

•**

*•»

Approved, August 5, 1909. (5.05 p. m.)
[PUBLIC—No. 33.]
An act prescribing certain provisions and conditions under which bonds and certificates of indebtedness of the
United States may be issued, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That any bonds and certificates of indebtedness of
the United States hereafter issued shall be payable, principal and interest, in United States gold coin of the pres

LAWS CONCERNING MONEY, BANKING, AND LOANS.

ent standard of value; and that such bonds may be issued
in such denominations as may be prescribed by the Secretary of the Treasury.
SEC. 2. That any certificates of indebtedness hereafter
issued shall be exempt from 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 that
a sum not exceeding one-tenth of one per centum of the
amount of any certificates of indebtedness issued is hereby
appropriated, out of any money in the Treasury not
otherwise appropriated, to pay the expenses of preparing, advertising, and issuing the same.
SEC. 3. That all acts or parts of acts inconsistent with
the provisions of this act are hereby repealed.
Approved, February 4, 1910.
15712°—10

267

BANKING.

BANKING.
ACT OF FEBRUARY 25, 1791.
X.—An act to incorporate the subscribers to the * stat - L>
Bank of the United States.
[Expired.]

CHAP.

Whereas, it is conceived that the establishment of a Preamble.
Bank for the United States, upon a foundation sufficiently
extensive to answer the purposes intended thereby, and at
the same time upon the principles which afford adequate
security for an upright and prudent administration
thereof, will be very conducive to the successful conducting of the national finances; will tend to give facility to
the obtaining of loans, for the use of the Government, in
sudden emergencies; and will be productive of considerable advantage to trade and industry in general: Therefore,
SECTION 1. Be is enacted by the Senate and House of
Representatives of the United States of America in Congress assembled. That a Bank of the United States shall Establish.
.
m e n t o f a
be established: the capital stock whereof shall not exceed?ank of the
.,,.
I , ,,
,. .T , .
„
.
_ United States,
ten millions oi dollars, divided into twenty-five
thousand and amount
v
.
and division of
shares, each share being four hundred dollars: and that its stock, and
:

• T

t i m e

o f

s u b

subscriptions, towards constituting the said stock, shall, scribing.
on the first Monday of April next, be opened at the city
of Philadelphia, under the superintendence of such persons, not less than three, as shall be appointed for that
purpose by the President of the United States (who is
hereby empowered to appoint the said persons accordingly) ; which subscriptions shall continue open, until the 0 f^0*^*!*
whole of the said stock shall have been subscribed.
SEC. 2. And be it further enacted, That it shall be law- ^^^crroed 0
ful for any person, co-partnership, or body politic, to
subscribe for such or so many shares, as he, she, or they
shall think fit, not exceeding one thousand, except as shall
be hereafter directed relatively to the United States; and ti( £ g r %f g ^
that the sums, respectively subscribed, except on behalf of gj£ pSu $?£ debt
the United States, shall be payable one fourth in gold and*£baendUbscrib"

269

270

NATIONAL MONETARY COMMISSION.

silver, and three fourths in that part of the public debt,
which, according to the loan proposed in the fourth and
fifteenth sections of the act, entitled "An act making provision for the debt of the United States," shall bear an
accruing interest, at the time of payment, of six per
centum per annum, and shall also be payable in four
equal parts, in the aforesaid ratio of specie to debt, at the
when to be distance of six calendar months from each other; the first
paid.

whereof shall be paid at the time of subscription.
(Section 3 makes the subscribers a corporation by the
name of " t h e president, directors, and company of the
Bank of the United States," to continue until March 4,
1811; and empowers them to hold property not exceeding
fifteen millions of dollars, including the amount of their
capital stock, and to make all convenient regulations, and
to do all necessary things, subject to the limitations and
provisions of this act.
(Section 4 provides for the annual election of twentyfive directors, and requires the directors to choose one of
their number as president.
(Section 5 requires that as soon as four hundred thousand dollars, in gold and silver, shall have been received
from the subscribers, a time shall be fixed for the election
of directors, and the operations of the bank shall then
begin at the city of Philadelphia.
(Section 6 empowers the directors to employ the necessary officers, clerks, and servants, and to govern the
affairs of the corporations.)
conVtitutfon °f ^ EC# ^ ^n^ ^e ^ furtfier
enacted. That the following
rules, restrictions, limitations and provisions, shall form
and be fundamental articles of the constitution of the said
corporation, viz.
hoWers°howkto~ •"•• ^ e n u m b e r of votes to which each stockholder shall
v e
?o orUonWh?o ^ e e n ^*led, shall be according to the number of shares he
scribed Sandb " s ^ a ^ ^ ° ^ 5 * n *^ e proportions following: T h a t is to say,
for one share, and not more than two shares, one vote: for
every two shares above two, and not exceeding ten, one
vote: for every four shares above ten, and not exceeding
thirty, one vote: for every six shares above thirty, and not
exceeding sixty, one vote: for every eight shares above
sixty, and not exceeding one hundred, one vote: and for
every ten shares above one hundred, one vote:—But no
person, co-partnership, or body politic shall be entitled to
a greater number than thirty votes. And after the first

LAWS CONCEENING MONEY, BANKING, AND LOANS.

271

election, no share or shares shall confer a right of suffrage,
which shall not have been holclen three calendar months
previous to the day of election. Stockholders actually
resident within the United States, and none other, mav incertain cases
,

may vote by

vote in elections by proxy.
proxy.
II. Not more than three fourths of the directors in Number of
e l e c t o r s elisi-

office, exclusive of the president, shall be eligible for thefciefor ensuing
next succeeding year: but the director, who shall be president at the time of an election, may always be re-elected.
III. None but a stockholder, being a citizen of the who as directUnited States, shall be eligible as a director.
IV. No director shall be entitled to any emolument
unless the same shall have been allowed by the stockholders at a general meeting. The stockholders shall compen°

„

sation to be al-

make such compensation to the president, tor his extraor- lowed,
dinary attendance at the bank, as shall appear to them
reasonable.
V. Not less than seven directors shall constitute a board How to constitute a board,
for the transaction of business, of whom, the president
shall always be one, except in case of sickness, or necessary
absence; in which case his place may be supplied by any
other director, whom he, by writing under his hand, shall
nominate for the purpose.
VI. Any number of stockholders, not less than sixty, _NuPDer o f
,

^'stockholders

who, together, shall be proprietors of two hundred shares empowered to
_

call a meeting,

or upwards, shall have power at any time to call a general etc.
meeting of the stockholders, for purposes relative to the
institution, giving at least ten weeks notice, in two public gazettes of the place where the bank is kept, and
specifying, in such notice, the object or objects of such
meeting.
VII. Every cashier or treasurer, before he enters upon x cashier and
treas u r e r t o

the duties of his office, shall be required to give bond, give bond,
with two or more sureties, to the satisfaction of the directors, in a sum not less than fifty thousand dollars, with
condition for his good behaviour.
VIII. The lands, tenements and hereditaments which it Limitation of
shall be lawful for the said corporation to hold, shall be
only such as shall be requisite for its immediate accommodation in relation to the convenient transacting of its
business, and such as shall have been bona-fidemortgaged
to it by way of security, or conveyed to it in satisfaction
of debts previously contracted in the course of its deal
ings,
or purchased at sales upon judgments which shall
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have
been
for such debts.
Federal Reserve Bank of St.obtained
Louis

property *

272

NATIONAL MONETAKY COMMISSION.

they °shanebat - ^ ^ e t o t a * a m o u n t of the debts, which the said corany time owe. poration shall at any time owe, whether by bond, bill,
note, or other contract, shall not exceed the sum of ten
millions of dollars, over and above the monies then
actually deposited in the bank for safe keeping, unless
the contracting of any greater debt shall have been prein case of viously authorized by a law of the United States. In
ois accountable case of excess, the directors, under whose administration it
pacities and shall happen, shall be liable for the same, in their natural
and private capacities; and an action of debt may, in
such case, be brought against them, or any of them, their
or any of their heirs, executors or administrators, in any
court of record of the United States, or of either of them,by
any creditor or creditors of the said corporation, and may
™itedbe prose"be prosecuted to judgment and execution; any condition,
covenant, or agreement to the contrary notwithstanding.
But this shall not be construed to exempt the said corporafa^op^SSenh ^ on > o r *ke l a n ds, tenements, goods or chattels of the
excess*tlme °f s a m e ? ^ r o m being also liable for and chargeable with the
said excess. Such of the said directors, who may have
been absent when the said excess was contracted or created, or who may have dissented from the resolution or
act whereby the same was so contracted or created, may
respectively exonerate themselves from being so liable,
by forthwith giving notice of the fact, and of their absence or dissent, to the President of the United States, and
to the stockholders, at a general meeting, which they shall
have power to call for that purpose,
ma^seu^pui? ^ ' ^he said corporation may sell any part of the public debt andii c (jgfot whereof its stock shall be composed, but shall not
pa 1*1

its

stock, but not b e a t liberty to purchase any public debt whatsoever; nor
shall directly or indirectly deal or trade in any thing, except bills of exchange, gold or silver bullion, or in the
sale of goods really and truly pledged for money lent and
not redeemed in due time; or of goods which shall be the
and take not produce of its lands. Neither shall the said corporation
more

than

per cent per take more than at the rate of six per centum per annum,
x

annum.

for or upon its loans or discounts.
HOW and for x i . No loan shall be made by the said corporation, for
what

objects

to make loans, the use or on account of the Government of the United
States, to an amount exceeding one hundred thousand
dollars, or of any particular State, to an amount exceeding fifty thousand dollars, or of any foreign prince or
state, unless previously authorized by a law of the United
States.

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

273

XII. The stock of the said corporation shall be assign- et£™&J$lla*
able and transferable, according to such rules as shall be
instituted in that behalf, by the laws and ordinances of
the same.
XIII. The bills obligatory and of credit, under the
seal of the said corporation, which shall be made to any
person or persons, shall be assignable by indorsement be assignable,
thereupon, under the hand or hands of such person or
persons, and of his, her, or their assignee or assignees,
and so as absolutely to transfer and vest the property
thereof in each and every assignee or assignees successively, and to enable such assignee or assignees to bring and
and maintain an action thereupon in his, her, or their
own name or names.
And bills or notes, which may be issued by order of thewus to be obsaid corporation, signed by the president, and countersigned by the principal cashier or treasurer thereof, promising the payment of money to any person or persons, his,
her, or their order, or to bearer, though not under the seal
of the said corporation, shall be binding and obligatory
upon the same, in the like manner, and with the like
force and effect, as upon any private person or persons, if
issued by him or them, in his, her, or their private or
natural capacity or capacities; and shall be assignable
and negotiable, in like manner, as if they were so issued
by such private person or persons—that is to say, those
which shall be payable to any person or persons, his, her,
or their order, shall be assignable by indorsement, in like
manner, and with the like effect, as foreign bills of exchange now are; and those which are payable to bearer,
shall be negotiable and assignable by delivery only.
XIV. Half yearly dividends shall be made of so much Dividends of
"0

of the profits of the bank, as shall appear to the directors
advisable; and once in every three years, the directors
shall lay before the stockholders, at a general meeting,
for their information, an exact and particular statement
of the debts, which shall have remained unpaid after the
expiration of the original credit, for a period of treble
the term of that credit; and of the surplus of profit, if
any, after deducting losses and dividends. If there shall
be a failure in the payment of any part of any sum, subscribed by any person, co-partnership, or body politic, the
party failing shall lose the benefit of any dividend, which
may have accrued, prior to the time for making such
payment, and during the delay of the same.

profits made.

274

NATIONAL MONETARY COMMISSION.

offices may XV. It shall be lawful for the directors aforesaid, to
within United establish offices wheresoever they shall think fit, within
count'and de-the United States, for the purposes of discount and deposit only, and upon the same terms, and in the same
manner, as shall be practised at the bank; and to commit
the management of the said offices, and the making, of the
said discounts, to such persons, under such agreements,
and subject to such regulations as they shall deem proper;
not being contrary to law, or to the constitution of the
bank,
officer at the XVI. The officer at the head of the Treasury DepartTreasury to bement of the United States, shall be furnished, from time
7

furnished with

statements.

to time, as oiten as he may require, not exceeding once a
week, with statements of the amount of the capital stock
of the said corporation, and of the debts due to the same;
of the monies deposited therein; of the notes in circulation, and of the cash in hand; and shall have a right to
inspect such general accounts in the books of the bank,
Not of pri-as shall relate to the said statements. Provided. That
this shall not be construed to imply a right of inspecting
the account of any private individual or individuals with
the bank.
Penalty for SEC. 8. And he it further enacted. That if the said cor-

buying or sell-

7
i

ing goods, etc. poration, or any person or persons tor or to the use ox the
same, shall deal or trade in buying or selling any goods,
wares, merchandise, or commodities whatsoever, contrary
to the provisions of this act, all and every person and persons, by whom any order or direction for so dealing or
trading shall have been given, and all and every person
and persons who shall have been concerned as parties or
agents therein, shall forfeit and lose treble the value of the
goods, wares, merchandises, and commodities, in which
such dealing and trade shall have been; one half thereof
to the use of the informer, and the other half thereof to
the use of the United States, to be recovered with costs
of suit.
m?yw be10*? ^EC- ®- ^n^ ^e ^ further enacted, That if the said corvanced or lent, poration shall advance or lend any sum, for the use or on
account of the Government of the United States, to an
amount exceeding one hundred thousand dollars; or of
any particular State to an amount exceeding fifty thousand dollars; or of any foreign prince or state, (unless
previously authorized thereto by a law of the United
States,) all and every person and persons, by and with
whose order, agreement, consent, approbation, or conniv

LAWS CONCERNING MONEY, BANKING, AND LOANS.

ance, such unlawful advance or loan shall have been made,
upon conviction thereof, shall forfeit and pay, for every
such offence, treble the value or amount of the sum or
sums which shall have been so unlawfully advanced or
lent; one fifth thereof to the use of the informer, and the
residue thereof to the use of the United States; to be disposed of by law and not otherwise.
SEC. 10. And be it further enacted. That the bills or
.

• •

-II

275

BUIS or notes
made receivable

notes of the said corporation, originally made payable, o r | y united
which shall have become payable on demand, in gold and
2 ch 4 3
silver coin, shall be receivable in all payments to the
United States.
SEC. 11. And be it further enacted, That it shall be mfdebCr^nited
lawful for the President of the United States, at any time gtate?^ h<Jw t 0
or times, within eighteen months after the first day of
April next, to cause a subscription to be made to the stofck
of the said corporation, as part of the aforesaid capital
stock of ten millions of dollars, on behalf of the United
States, to an amount not exceeding two millions of dollars; to be paid out of the monies which shall be borrowed by virtue of either of the acts, the one entitled
"An act making provision for the debt of the United 1790 » ch - 34States;" and the other entitled "An act making provision
for the reduction of the public debt;" borrowing of the 1790, ch. 47.
bank an equal sum, to be applied to the purposes, for
which the said monies shall have been procured; reimbursable in ten years, by equal annual instalments; or
at any time sooner, or in any greater proportions, that
the Government may think fit.
SEC. 12. And be it further enacted. That no other bank No other
shall be established by any future law of the United tabiisned.
States, during the continuance of the corporation hereby
created; for which the faith of the United States is
hereby pledged.
Approved, February 25,1791.
(Paragraph X I of section 7 of this act forbids the
loaning of money by the Bank to the United States in a
greater sum than one hundred thousand dollars; but subsequent acts giving authority for the borrowing of money
authorize the bank to loan the amounts notwithstanding
the said prohibition.
(See act of February 28, 1793, chap. 18, sec. 3, vol. 1,
Stat. L., p. 329; act of March 20, 1794, chap. 8, sec. 1,
vol. 1, Stat. L., p. 345; act of June 9, 1794, chap. 63, sec.
2, vol. 1, Stat. L., p . 395; act of December 18,1794, chap.

276

NATIONAL MONETARY COMMISSION.

4, sec. 2, vol. 1, Stat. L., p. 404; act of February 21,1795,
chap. 25, sec. 1, vol. 1, Stat. L., p. 418; act of March 3,
1795, chap. 45, sec. 19, vol. 1, Stat. L., p. 438; act of
March 3,1795, chap. 46, sec. 6, vol. 1, Stat. L., p . 439; act
of May 30, 1796, chap. 41, sec. 5, vol. 1, Stat. L., p . 487;
act of May 31,1796, chap. 44, sec. 1, vol. 1, Stat. L., p. 488;
act of June 1,1796, chap. 51, sec. 3, vol. 1, Stat. L., p . 494;
act of July 8,1797, chap. 16, sec. 1, vol. 1, Stat. L., p . 534;
act of July 16, 1798, chap. 79, sec. 1, vol. 1, Stat. L., p.
607; act of J u l y 16, 1798, chap. 84, sec. 2, vol. 1, Stat. L.,
p . 609; act of March 2, 1799, chap. 31, sec. 9, vol. 1, Stat.
L., p. 726; act of May 7,1800, chap. 42, sec. 1, vol. 2, Stat.
L., p. 60; act of February 26, 1803, chap. 8, sec. 2, vol. 2,
Stat. L., p . 202; act of November 10, 1803, chap. 3, sec. 3,
vol. 2, Stat. L., p. 247; act of March 26,1804, chap. 46, sec.
4, vol. 2, Stat. L., p. 292; act of February 13,1806, chap. 5,
sec. 2, vol. 2, Stat. L., p. 350; act of June 28,1809, chap. 10,
sec. 1, vol. 2, Stat. L., p. 551; act of May 1,1810, chap. 45,
sec. 1, vol. 2, Stat. L., p. 610.)
A C T O F M A R C H 2, 1791.
l stat. L„ CHAP. X I . — A n act supplementary to the act intituled
"An act to incorporate the subscribers to the Bank of
the United States"
SECTION 1. Be it enacted by the Senate and House of
Representatives of the United States of America in ConSubscrip-pross assembled. That the subscriptions to the stock of
stock p r o - t h e bank of the United States, as provided by the act,
1791, ch. 10. intituled "An act to incorporate the subscribers to the
Bank of the United States," shall not be opened until
the first Monday in July next.
Time of first SEC. 2. And be it further enacted, That so much of the
first payment as by the said act is directed to be in the
six per cent, certificates of the United States, may be
deferred until the first Monday in January next.
Not more SEC. 3. And be it further enacted, That no person, corshares to be poration, or body politic, except in behalf of the United
one time.
States, shall, for the space of three months after the said
first Monday in July next, subscribe in any one day, for
more than thirty shares.
s ecle
ro
J!
£ " SEC. 4. And be it '.further enacted, '. That every
portion,
when
. J subal
scri er
fanure in *ta
"
shall, at the time of subscribing, pay into the
tor?o^fefrsum ^ a n ( ^ s °^ *k e P e r s o n s w ^ ° shall be appointed to receive
first paid.
the same, the specie proportion required by the said act

LAWS CONCERNING MONEY, BANKING, AND LOANS.

277

to be then paid. And if any such subscriber shall fail
to make any of the future payments, he shall forfeit the
sum so by him first paid, for the use of the corporation.
SEC. 5. And be it further enacted. That such part of m^er ^ubHc
the public debt, including the assumed debt, as is funded ^pe/^ntmay
at an interest of three per cent, may be paid to the bank, 5|ntaid t0 the
in like manner with the debt funded at six per cent,
computing the value of the former at one half the value
of the latter, and reserving to the subscribers who shall
have paid three per cent, stock, the privilege of redeeming the same with six per cent, stock, at the above rate
of computation, at any time before the first day of January, one thousand seven hundred and ninety-three;
unless the three per cent, stock shall have been previously
disposed of by the directors.
Approved, March 2,1791.
ACT OF FEBKUAKY 28, 1793.
XVIII.—An act making appropriations for the 3 2 |
support of Government for the year one thousand seven
hundred and ninety-three.

CHAP.

SEC. 3. And be it further enacted. That the President
'

stat

- L»

President
may b o r r o w

of the United States be authorized to borrow, on account got exceeding
of the said States, any sum or sums, not exceeding, in
the whole, eight hundred thousand dollars, at a rate of
interest not exceeding five per centum per annum, and
reimbursable at the pleasure of the United States, to be- ° n w-n a J
x

terms and of

applied for the purposes aforesaid, and to be repaid out whom.
of the said surplus of the duties on imports and tonnage,
to the end of the present year, one thousand seven
hundred and ninety-three: And that it shall be lawful
for the Bank of the United States to lend the said sum.
And the President of the United States shall cause so
much of the loan, made of the Bank of the United States,
pursuant to the eleventh section of the act, by which ofL<g* {J^?
it is incorporated, to be paid off, in sums not less than Jj°,w t0 be Pai<*
fifty thousand dollars, as, in his opinion, the state of t h e
Treasury m a y , from time t o time, admit, out of a n y
monies which m a y be in the Treasury, having due regard
to t h e exigencies of Government, a n d t h e appropriations
made and t o be made by law.
Approved, F e b r u a r y 28, 1793.

278

NATIONAL MONETARY COMMISSION.

ACT OF MAKCH 2, 1793.
1 stat. L., CHAP. XXV.—An act providing for the payment of the
[Obsolete.] -first instalment due on a loan made of the Bank of
the United States.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemPresident&fe<#, That the President of the United States be, and he
tain monies to hereby is authorized and empowered to apply two hun%

payfirstinstall-

ment to Bank dred thousand dollars, of the monies which may have
of

United,

states.

, , . . , .

„

been borrowed, in pursuance ot the fourth section of
the act, intituled "An act making provision for the re1790, en. 47. duction of the public debt," in payment of the first instalment, due to the Bank of the United States, upon a loan
made of the said bank, in pursuance of the eleventh
section of the act for incorporating the subscribers to
the said bank.
Approved, March 2, 1793.
ACT OF JUNE 4, 1794.
l stat. L., CHAP. XL.—An act providing for the payment of the
[Obsolete.]
second instalment due on a loan made of the Bank of
the United States.
SECTION 1. Be it enacted by the Senate and House of
Representatives of the United States of America in Conp r e s i - gress assembled, That the President of the United States
states to pay be, and he hereby is authorized and empowered to apply
ment to the two hundred thousand dollars of the proceeds of foreign
foreign loans, loans heretofore transferred to the United States, in payment of the second instalment due to the Bank of the
United States, upon a loan of the said bank, made pursuant to the eleventh section of the act for incorporating
Annual pe-the subscribers to the said bank: and that the annual
ment of each period for the payment of each instalment of the said
loan, shall be deemed to be the last day of December in
each year.
Appropria- SEC. 2. And be it further enacted, That a sufficient sum
ing interest on of the dividends, which have accrued, or which shall hereafter accrue, on the stock owned by the United States,
in the Bank of the United States, be, and the same is
hereby appropriated to the payment of the interest, which
has, or shall become due, on the loan obtained, as aforesaid.
Approved, June 4, 1794.

LAWS CONCEBNING MONEY, BANKING, AND LOANS.

279

ACT OF JUNE 5, 1794.
CHAP.

XLVI.—An act to authorize the President of the 1 stat.
J

L.,

376.

United States during the recess of the present Congress,
to cause to he purchased or built a number of vessels
to be equipped as galleys, or otherwise, in the service
of the United States. ,
SEC. 3. And be it further enacted, That there be aPPro"ti0nPtger°e?oria"
priated for the purpose aforesaid, the sum of eighty thousand dollars to be paid out of the proceeds of any revenue
of the United States, which now are, or hereafter during
the present session shall be provided, not being otherwise
appropriated. And that the President of the United States d epn * \^^
be authorized to take on loan of the Bank of the United ^^0 borrow
States, or of any other body politic or corporate, person
or persons, the said sum of eighty thousand dollars, to be
reimbursed, principal and interest, out of the said proceeds, appropriated as aforesaid, according to such contract or contracts, which shall be made concerning the
same.
Approved, June 5,1794.
ACT OF JUNE 9, 1794.
CHAP.

LXIII.—An act making appropriations for cer- 39£
tain purposes therein expressed.

stat

- L»

SEC. 2. And be it further enacted, That the President P r e s i of the United States be empowered to borrow, on behalf united states
of the United States, of the Bank of the United States sum.
(which is hereby authorized to lend the same), or of any
other body or bodies politic, person or persons, any sum
not exceeding in the whole, one million of dollars to be a p - Not exceedplied to the purposes aforesaid, and to be reimbursed, as m g
'
well interest as principal, out of the proceeds of the said
revenues.
SEC. 3. Provided always, and be it further enacted, certain sum
That there shall be reserved out of the proceeds of the ° e ieserve *
said revenues, a sum sufficient to pay the interest of whatever monies may be borrowed pursuant to the act, intituled "An act making further provision for the expenses 1794, en. 7.

280

NATIONAL MONETABY COMMISSION.

attending the intercourse of the United States with foreign nations; and further to continue in force the act,
intituled "An act providing the means of intercourse
between the United States and foreign nations;" and
such sum is hereby pledged and appropriated for that
purpose, according to the terms of the contract or contracts which shall or may be made concerning the said
monies. And the faith of the United States is hereby
pledged to make such further provision therefor, as may
be necessary.
Approved, June 9, 1794.
ACT OF JANUAKY 8, 1795.
i s t a t . L . , C H A P . XI.—An act providing for the payment of certain
[Obsolete.]
instalments of foreign debts; and of the third instalment due on a loan made of the Bank of the United
States.
Be it enacted by the Senate and House of Representor
tives of the United States of America, in Congress assemcertain in- bled, That the President of the United States be, and he
debt, how to be hereby is authorized and empowered to cause any instalpa
'
ments of the foreign debts, which may fall due in the
year one thousand seven hundred and ninety-five, and
also the third instalment due on a loan made of the Bank
1791, en. 10. of the United States, in pursuance of the eleventh section of the act for incorporating the subscribers to the
said bank, to be paid out of the proceeds of any foreign
loans heretofore made.
Approved, January 8,1795.
ACT OF FEBEUAEY 21, 1795.
l s t a t. L., CHAP. XXV.—An act for the reimbursement of a loan
[Obsolete.]
authorized by an act of the last session of Congress.
Bank of

1. Be it enacted by the Senate and House of
authorized to Representatives of the United States of America in Congress assembled, That the Bank of the United States be,
and the same is hereby authorized to lend to the United
States, the whole, or any part of the sum of eight hundred thousand dollars (remaining unapplied) in pursuance of the authority granted to borrow one million of
dollars, by the act, intituled "An act making further proSECTION

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

281

vision for the expenses attending the intercourse of the
United States with foreign nations; and further to con- 1794»ch- 7tinue in force the act, intituled "An act providing the
means of intercourse between the United States and foreign nations.
SEC. 2. And be it further enacted. That after reserving CertYinlnrevesuch sums as may be sufficient to satisfy prior appropria- £{JJ£ appropritions, there be further appropriated, in aid of the provision heretofore made, out of the proceeds of the duties
which have arisen, or may arise upon carriages for the
conveyance of persons; upon licenses for selling wines
and foreign distilled spirituous liquors by retail; upon
snuff and refined sugar; and upon property sold at auction ; which were imposed by acts passed during the last
session, and which may be further continued, the present
session of Congress, or from the proceeds of such duties
or revenues as may be established in lieu thereof, a sum
sufficient to the reimbursement, before the year one thousand eight hundred and one, of any loan or loans, which
have been, or which may hereafter be made, in virtue of
the act aforesaid: And that the faith of the United States
be, and the same is hereby pledged, to make good any
deficiency of the said duties.
Approved, February 21, 1795.
ACT OF JUNE 1, 1796.
LI.—An act making appropriations for the sup- i s t a t . L,.,
port of the Military and Naval Establishments for the
year one thousand seven hundred and ninety-six.

CHAP.

(Section 2 makes reference to authority of Bank ot^S* paylwe!
United States to make a loan.)
SEC. 3. And be it further enacted, That the President of
the United States be empowered to borrow, at an interest Un^tl|ids?ates
not exceeding six per centum, of the Bank of the United $eas^ oo°oto sa£
States, which is hereby authorized to lend the same; or ofisfy this actany body or bodies politic, person or persons, any sum or
sums not exceeding in the whole, six hundred and fifty
thousand dollars, and to be applied to the purposes aforesaid, and to be reimbursed, as well interest as principal,
out of the funds aforesaid.
Approved, June 1, 1796,
15712°—10

282

NATIONAL MONETAKY COMMISSION.

ACT OF JUNE 27, 1798.
573.s t a * * Ut

CHAP. LXI.—(This act prescribes a penalty on forging
or uttering counterfeit bills, notes, orders, or checks by or
upon the Bank of the United States, which was repealed
by the act of February 24, 1807 (Chap. XX, 2 Stat. L.,
423) which see.)

ACT OF JULY 16, 1798.
609 S * a * * L#> CHAP. LXXXIV.—An act making certain appropriations; and to authorize the President to obtain a loan on
the credit of the direct tax.
dentemayebor- SEC - 2- And he ii} further enacted, That the President
nl>nsWon"the °^ *^e United States shall be, and he is hereby authorized
%cftaxfthedi~to b o r r o w of the Bank of the United States, who are
hereby enabled to lend the same, or of any other corporation, persons or person, the sum of two millions of dollars, upon the credit, and in anticipation of the direct tax,
laid and to be collected within the United States; which
tax shall be, and is hereby pledged for the repayment of
any loan which shall be obtained thereon, as aforesaid;
and the faith of the United States shall be, and is
hereby pledged to make good any deficiency: Provided,
That the interest to be allowed for such loan, shall not
exceed six per centum per annum; and that the principal
shall be reimbursed at the pleasure of the United States.
Approved, July 16,1798.
ACT OF MARCH 2, 1799.
726. Stat* L*' CHAP. XXXI.—An act giving eventual authority to the
18?2? ch! 9.1 e d President of the United States to augment the Army.
(Sections 1 to 8 provide for augmenting the military
force, including volunteers, etc.)
ftr^tfe^pur1! SEC. 9. And be it further enacted, That for the exactes and ***- ecution of this act, if it shall be found necessary to carry
rowrItmoney^°r **> o r a n y P a r * °^ ** *n*° e^ec*? there be appropriated the
sum of two millions of dollars, and that the President be
authorized to borrow, on behalf of the United States, the
said sum, or so much thereof as he shall deem necessary
(which the Bank of the United States is hereby empowered to lend) and upon such terms and conditions as

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

283

he shall judge most advantageous to the United States:
Provided, That such terms and conditions shall not restrain the United States from paying off the sum which
may be borrowed, after the expiration of fifteen years.
SEC. 10. And be it further enacted, That so much as certain dumay be necessary of the surplus of the duties on imports redeem the
and tonnage, beyond the permanent appropriations heretofore charged upon them by law, shall be, and hereby is
pledged and appropriated for paying the interest of all
such monies as may be borrowed pursuant to this act,
according to the terms and conditions on which the loan
or loans, respectively, may be effected; and also for paying, by discharging the principal sum or sums of any such
loan or loans, according to the terms and conditions to
be fixed as aforesaid.
Approved, March 2,1799.
ACT OF APRIL 29, 1802.
XXXII.—An act making provision for the ^ - 1 6 f
demption of the whole of the Public Debt of the
United States.
*
*
*
*
*

CHAP.

stat

(Section 3 provides that all reimbursements of the
principal of the public debt shall be made under the
superintendence of the commissioners of the sinking fund,
including temporary loans heretofore obtained from the
Bank of the United States.)
SEC. 5. And be it further enacted, That for the purpose erf0^hoSrized
of more effectually securing the reimbursement of the *> nekmplofy S}{;
Dutch debt, the commissioners of the sinking fund may, united states
as

8. cent

and they hereby are empowered, with the approbation of for tnef paythe President of the United States, to contract, either with Dutcb d e b t ,
.

the Bank of the United States, or with any other public
institution, or with individuals, for the payment, in Holland, of the whole, or any part, of the principal of the
said Dutch debt, and of the interest and charges accruing
on the same, as the said demands become due, on such
terms as the said commissioners shall think most advantageous to the United States; or to employ either the
said Bank, or any other public institution, or any individual or individuals, as agent or agents, for the purpose of purchasing bills of exchange, or any other kind

etc.

284

NATIONAL MONETARY COMMISSION.

to^ent18**1011 °^ rem ittances, for the purpose of discharging the interest and principal of said defot, and to allow to such
agent or agents a compensation not exceeding one-fourth
of one per cent, on the remittances thus purchased or
procured by them under the direction of the said commissioners, and as much of the duties on tonnage and merchandise as may be necessary for that purpose is hereby
appropriated towards paying the extra allowance or
commission resulting from such transaction, or transactions, and also to pay any deficiency arising from any
loss incurred upon any remittance purchased or procured
under the direction of the said commissioners, for the
purpose of discharging the principal and interest of the
said debt.
Approved, April 29,1802.
ACT OF FEBRUARY 26, 1803.
2ol

Stat

* L" CHAP. VIII.—An act making further provision for the
expenses attending the intercourse between the United
States and foreign nations.

thor^detoi)or" ^ E0# 2# ^nd ^e ii} furtJter enacted, That the President
ro
T ? ! mterms °^ *^e United States may, if he shall deem it necessary,
a
i mbursementre" an( ^ ^e ^ e r e ^y *s authorized to borrow the whole, or any
part of the said sum, at an interest not exceeding six
per centum per annum, reimbursable before the year one
thousand eight hundred and eleven: and it shall be lawful for the Bank of the United States to lend the whole,
or any part of the same.
Approved, February 26, 1803.
ACT OF FEBEUARY 24, 1804.
2 stat.

XIIL—An act for laying and collecting duties on
imports and tonnage within the territories ceded to the
United States by the treaty of the thirtieth of April,
one thousand eight hundred and three, between the
United States and the French Republic, and for other
purposes.
*
*
*
*
*
other acts SEC. 2. And be it further enacted, That so much of
Louisiana. ° any act or acts of the United States, now in force, or
L., CHAP.

LAWS COETCEBNING MONEY, BANKING, AND LOANS.

285

which may be hereafter enacted, concerning the Bank in^cthe°nBank
of the United States, and for the punishment of frauds |fta^se. Fnite*d
committed on the same; * * * shall extend to? x t e n . d e d t 0
7

Louisiana.

and have full force and effect in the above-mentioned
territories.
*
#
*
#
#
Approved, February 24, 1804.
ACT OF MAECH 23, 1804.
CHAP. XXXII.—An act supplementary to the act intit- 2 stat. L.,
uled "An act to incorporate the subscribers to the [Obsolete.]
Bank of the United States"
ruary is, 1791,
'

eh. 10.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the President and directors of the Bank of Bank of the
the United States shall be, and they are hereby author- authorized t o
establish offices

ized to establish offices of discount and deposit in any of discount and
part of the territories or dependencies of the United
States, in the manner, and on the terms prescribed by
the act to which this is a supplement.
Approved, March 23, 1804.
ACT OF MAECH 26, 1804.
CHAP. XLVI.—An act further to protect the commerce 2 stat. L.,
and seamen of the United States against the Barbary [Expired.]
powers.
*
*
*
*
$
SEC. 4. * * *; or if necessary the President of the^P^esj^ent
United States is hereby authorized to borrow the said^row this
sum, or such part thereof as he may think proper, at a
rate of interest not exceeding six per centum per annum,
from the Bank of the United States, which is hereby em- Bank of the
powered to lend the same, or from any other body or authorized to
bodies politic or corporate, or from any person or persons; and so much of the proceeds of the duties laid by
this act, as may be necessary, shall be and is hereby
pledged for replacing in the treasury, the said sum of one see acts of
million of dollars, or so much thereof as shall have been i8io; en! 5;
thus expended, and for paying the principal and interest
of the said sum, or so much thereof as may be borrowed,
pursuant to the authority given in this section: and an Accounts to
„,

IT,

IT.

lald

before

account or the several expenditures made under this act, congress.
shall be laid before Congress during their next session.
Approved, March 26, 1804.

286

NATIONAL MONETARY COMMISSION.

ACT OF FEBRUARY 13, 1806.
2 stat. L.,
[Obsolete.]

V.—An act making provision for defraying any
extraordinary expenses attending the intercourse between the United States and foreign nations.
*
*
*
*
*

CHAP.

President SEC. 2. And be it further enacted. That the President
cause theof the United States be, and hereby is authorized, if necmoney to be

borrowed.

essary, to borrow the said sum, or any part thereof, m behalf of the United States, at a rate of interest not exceedRates of in- ing six per centum, per annum, redeemable at the will of
the Congress of the United States. And it shall be lawful for the Bank of the United States to lend the whole,
or any part of the same.
Fund made SEC. 3. And be it further enacted, That so much as may
r^mVurse^ be necessary of the surplus of the duties on imports and
pal and* the tonnage, beyond the permanent appropriation heretofore
fnterelt.0 e charged upon them, by law, shall be, and hereby is
pledged and appropriated for the payment of the interest,
and reimbursement of the principal, of all such monies as
may be borrowed in pursuance of this act, according to
the terms and conditions on which the loan or loans may
be effected.
Approved, February 13, 1806.
ACT OF FEBRUARY 24, 1807.
2 stat.

L., CHAP.

XX.—An act to punish frauds committed on the
Bank of the United States.

Act of April Be it enacted by the Senate and House of Representa44; sec. 16. c " tives of the United States of America in Congress assemmentUfor false- bled, That if any person shall falsely make, forge, or
iynga, ovgconn-counterfeit, or cause or procure to be falsely made, forged,
o?rthe Bank of or counterfeited, or willingly aid or assist in falsely maksfcites. n e ing, forging or counterfeiting any bill or note in imitation of, or purporting to be a bill or note issued by order
of the president, directors and company of the Bank of
the United States, or any order or check on the said
bank or corporation, or any cashier thereof, or shall
falsely alter, or cause or procure to be falsely altered, or
willingly aid or assist in falsely altering any bill or note
issued by order of the president, directors and company of
the Bank of the United States, or any order or check, on
the said bank or corporation, or any cashier thereof, or

LAWS CONCEBNING MONEY, BANKING, AND LOANS.

287

shall pass, utter or publish, or attempt to pass, utter or
publish as true, any false, forged, or counterfeited bill, or
note, purporting to be a bill, or note, issued by order of
the president, directors and company of the Bank of the
United States, or any false, forged, or counterfeited order
or check, upon the said bank or corporation, or any
cashier thereof, knowing the same to be falsely forged or
counterfeited, or shall pass, utter, or publish, or attempt
to pass, utter or publish, as true, any falsely altered bill
or note, issued by order of the president, directors and
company of the Bank of the United States, or any falsely
altered order or check, on the said bank or corporation, or checks or
or any cashier thereof, knowing the same to be falselyor erstnereon altered with intention to defraud the said corporation, or
any other body politic, or person; every such person shall
be deemed and adjudged guilty of felony, and being
thereof convicted by due course of law, shall be sentenced
to be imprisoned, and kept to hard labour, for a period
not less than three years, nor more than ten years, or
shall be imprisoned not exceeding ten years, and fined
not exceeding five thousand dollars: Provided, that nothing herein contained shall be construed to deprive the Saving of
courts of the individual states of a jurisdiction under the tion ofUrstate
laws of the several states, over the offence, declaredcour s*
punishable by this act.
SEC. 2. And he it further enacted^ That the act, in- Repeal of
tituled "An act to punish frauds committed on the Bank 1798, en. ei.
of the United States," passed the twenty-seventh day of
June, one thousand seven hundred and ninety-eight, shall
be and the same is hereby repealed: Provided nevertheless, that the repeal of the said act shall not be so construed, as to prevent the trial, condemnation or punishment of any person, or persons, charged with or guilty
of a violation of any of its provisions, previous to the
passing of this act.
Approved, February 24, 1807.
ACT OF JUNE 28, 1809.
X.—An act supplementary to the act, entituled 2 stat. L.,
"An act making further provision for the support of
public credit, and for the redemption of the public
debt."

CHAP.

Be it enacted by the Senate and House of Representor
tives of the United States of America in Congress assembled) That the powers vested in the commissioners of the

288

NATIONAL MONETARY COMMISSION.

3 f795°chM45* s i t i n g fund, by the tenth section of the act to which
"'powers of this act is a supplement, shall extend to all the cases of
r

the commisS

sink!n ° funl reimbursement of any instalments or parts of the capital,
extended.
o r principal, of the public debt now existing, which may
become payable according to law. And in every case
in which a loan may be made accordingly, it shall be lawful for such loan to be made of the Bank of the United
States, any thing in any act of Congress to the contrary
notwithstanding.
Approved, June 28, 1809.
ACT OF FEBEUAEY 15, 1811.
62|

stat

-» CHAP. XV.—An act concerning the Bank of Alexandria.
(This act established the Bank of Alexandria, and in
addition to prescribing its general powers and duties
provided that it should not issue any note for a smaller
sum than five dollars. Other acts in relation to banks
in the District of Columbia and Territories, with some of
the special powers and duties prescribed, are as follows:
February 15, 1811 (chap. 16, 2 Stat. L., 625), incorporated the Bank of Washington. February 16, 1811
(chap. 17, 2 Stat. L., 629), incorporated the Farmers
Bank of Alexandria. February 16, 1811 (chap. 18, 2
Stat. L., 633), incorporated the Bank of Potomac; not to
issue notes of a smaller sum than five dollars. February
18,1811 (chap. 19, 2 Stat. L., 636), incorporated the Union
Bank of Georgetown. May 16, 1812 (chap. 87, 2 Stat.
L., 735), incorporated the Mechanics Bank of Alexandria ; not to issue notes of a smaller sum than five dollars. March 3, 1817 (chap. 93, 3 Stat. L., 383), incorporated the Farmers and Mechanics Bank of Georgetown,
the Central Bank of Georgetown, the Bank of the Metropolis, the Patriotic Bank of Washington, the Real
Estate Bank of the United States, and the Union Bank
of Alexandria.
(Section 14 provided, among other things, that the
banks should in no case buy and sell the funded debt of
the United States, and section 29 prohibited unchartered
banking companies within the District of Columbia issuing notes, etc. May 4, 1820 (chap. 62, 3 Stat. L., 570),
charters of the banks in the District of Columbia pay-

LAWS CONCEDING MONEY, BANKING, AND LOANS.

ing specie, and as long as they pay specie continued until
June 1, 1822; charter of Bank of Columbia limited to
June 1, 1822. March 2, 1821 (chap. 18, 3 Stat. L., 618),
extended the charters of the Bank of Alexandria, the
Farmers Bank of Alexandria, the Bank of Washington,
the Bank of the Metropolis, the Patriotic Bank of Washington, the Union Bank of Georgetown, the Farmers and
Mechanics Bank of Georgetown, and the Bank of Columbia.
(Section 7 prescribed that no note under five dollars
should be issued by any of said banks; other sections provide for the liquidation of the Central Bank of Georgetown and Washington; for the continuance of the Bank
of Potomac; for the consolidation of the Union Bank of
Alexandria and Bank of Potomac; for the consolidation
of any two of the banks whose charters are extended, etc.
February 21, 1823 (3 Stat. L., 727), extended charter
of Mechanics Bank of Alexandria. February 9, 1836
(chap. 5, 5 Stat. L., 1), extended the charters of the
Bank of Potomac, the Farmers Bank of Alexandria, the
Union Bank of Georgetown, the Farmers and Mechanics
Bank of Georgetown, the Bank of the Metropolis, the Patriotic Bank of Washington, and the Bank of Washington.
February 25, 1836 (chap. 40, 5 Stat. L., 4), extended the
charters of the Bank of Columbia, and the Bank of Alexandria. July 2,1836 (chap. 260, 5 Stat. L., 69), extended
charters of banks mentioned in act of February 9, 1836
(supra). March 3, 1837 (chap. 75, 5 Stat. L., 198), the
acts of the legislative assembly of the Territory of Wisconsin incorporating the following banks approved: The
Bank of Milwaukee, the Miners Bank of Dubuque, and
the Bank of Mineral Point, with the condition that
none of said banks should issue bills or notes for circulation until one-half of their capital should be actually
paid in. May 25, 1838 (chap. 88, 5 Stat. L., 229), extended charter of the Union Bank of Georgetown, and
provided for closing its affairs. Charter further extended by act of August 28,1841 (5 Stat. L., 451). May
31, 1838 (chap. 91, 5 Stat. L., 232), continued the corporate existence of the following banks: The Farmers
and Mechanics Bank of Georgetown, the Bank of the
Metropolis, the Patriotic Bank of Washington, the Bank
of Washington, the Farmers Bank of Alexandria, and the

289

KATIOKALt MONETAEY COMMISSION.

Bank of Potomac; provided, said banks cease receiving
or paying out all paper currency of less denomination
than five dollars, redeem all their notes of five dollars in
gold or silver, and resume specie payments in 1839 or
sooner if the principal banks of Baltimore and Richmond
should sooner resume specie payments in full. July 5,
1838 (chap. 154, 5 Stat. L., 254), extended charter of
Bank of Alexandria. July 7, 1838 (chap. 212, 5 Stat. L.,
809), made it unlawful for any individual, company, or
corporation to issue, pass, or offer to pass within the District of Columbia, any note, check, draft, bank bill, or
any other paper currency, of a less denomination than
five dollars. July 3, 1840 (chap. 40, 6 Stat. L., 802),
continued the corporate existence of certain banks in the
District of Columbia and extended the provisions, etc.,
of the act of May 25, 1838 (5 Stat. L., 229), to them.
August 28, 1841 (chap. 12, 5 Stat. L., 449), extended the
charters of the banks mentioned in act of May 31, 1838
(supra), provided, said banks resume and continue the
payments of all their notes and specie liabilities, in specie,
on demand, and prohibited the issuing of notes of less
than five dollars, etc. June 17,1844 (chap. 98, 5 Stat. L.,
677), extended charters of certain banks in the District
of Columbia in order to wind up their affairs. March 2,
1847 (chap. 38, 9 Stat. L., 153), extended charter of the
Union Bank of Georgetown in order to close its affairs.
December 27, 1854 (chap. 15, 10 Stat. L., 599), provided
for suppressing the circulation of notes, etc., of less than
five dollars in the District of Columbia. March 8, 1864
(chap 21, 13 Stat. L., 17), incorporated the Washington
City Savings Bank. May 5, 1870 (chap. 80, 16 Stat L.,
102), section 4, provided for the organization of manufacturing, business, and other corporations in the District of Columbia, and the act of June 17, 1870
(chap. 131,16 Stat. L., 153), provided that savings banks
might be organized thereunder. May 24,1870 (chap. 110,
16 Stat. L., 137), incorporated the National Union Savings Bank of the District of Columbia. January 20,1873
(chap. 43, 17 Stat. L., 412), authorized the Comptroller
of the Currency to examine national banks in the District of Columbia. June 30,1876 (chap. 156,19 Stat. L.,
64), provided that all savings banks or savings and trust
companies organized under any act of Congress shall

LAWS CONCEBNING MONEY, BANKING, AND LOANS.

make to the Comptroller of the Currency the same reports as national banks, and be subject to the banking
laws so far as applicable. October 1, 1890 (chap. 1246,
26 Stat. L., 625), provided for the incorporation of safe
deposit, trust, loan, mortgage, and other companies within
the District of Columbia, and the provisions of which act
were reenacted in the District of Columbia Code March
3, 1891, sections 713 to 748 (31 Stat. L., 1303-1310), as
set out in the next following reference. March 3, 1901
(chap. 854 (Code), 31 Stat. L., 1284), sections 605 to 640
provide for the incorporation of savings bank corporations in the District of Columbia and prescribe the powers
and duties thereof; sections 687 to 700 apply in the same
manner to building associations; sections 713 and 714 to
savings banks, and sections 715 to 748 to trust, loan,
mortgage, and certain other corporations; section 713
provides that all savings banks or savings companies or
institutions organized to do business in the District of
Columbia shall make reports to the Comptroller of the
Currency, and be subject to all the provisions of the Revised Statutes, etc., applicable to national banks; section
714 provides that the Comptroller of the Currency may
cause examination to be made of any bank in the District
of Columbia; section 720 provides that trust, loan, mortgage, and certain other corporations shall report to the
Comptroller of the Currency as in the case of national
banks, and that the Comptroller shall have the same
visitorial powers, etc.; section 713 was amended by act of
June 30, 1902 (32 Stat. L., 534), by omitting the paragraph making such banks subject to the provisions of
law applicable to national banks, etc.; section 713 was
further amended June 25, 1906 (34 Stat. L., 458) to include other banking institutions; to give the Comptroller
of the Currency power to take possession of any such
bank or company as he would a national bank; and to require the making and publication of reports; section 714
was amended by the same act to apply to any bank mentioned in section 713 amended, and to provide for the
payment of the expenses of an examination as in the case
of a national bank.)

292

NATIONAL MONETARY COMMISSION.

A C T O F M A E C H 14, 1812.
694

Stat

* L*'

CHAP.

X L I . — A n act authorizing a loan for a sum not
exceeding eleven millions of dollars.

t hLeaTbfaUnksf °in S E C - 4 - And be itf father enacted. That it shall be lawful
columbia^t'o*01* a n y o f t h e banks in the District of Columbia to lend
orakanyhep a°r t a n y P a r ^ °^ ^he s u m authorized to be borrowed by virtue
thereof.
0 f this act, any thing in any of their charters of incoporation to the contrary notwithstanding.
Approved, March 14,1812.
A C T O F M A R C H 19,1812.
2 stat. L., CHAP. X L I I I . — A n act repealing the tenth section of the
[Obsolete.]
act to incorporate the subscribers to the Bank of the
United States.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress asThe tenthsembled.
That the tenth section of the act, entituled "An
section of the

;

act incorporat-act to incorporate the subscribers to the Bank oi the
repealed.
United States," shall be, and the same is hereby repealed.
Approved, March 19, 1812.
A C T O F F E B R U A R Y 8, 1813.
2 stat.

798.

L., C H A P .

X X I . — A n act authorizing a loan for a sum not
exceeding sixteen millions of dollars.

^ Banks in the S E c. 5. And be it /further enacted. That it shall be lawDistrict of Co. .
lumbia author- f u l f 0 r any
of the banks m the district of Columbia,7 to
J
ized to l e n d

money under lend any p a r t of the sum authorized to be borrowed by
virtue of this act, any thing in any of their charters of
incorporation to the contrary notwithstanding.
Approved, February 8, 1813.
A C T O F A U G U S T 2, 1813.
3 stat. L., 75.

LI.—An act authorizing a loan for a sum not exceeding seven millions -five hundred thousand dollars.

CHAP.

SEC. 5. And be it further enacted, T h a t it shall be lawful for any of the banks in the District of Columbia, to

LAWS CONCERNING MONEY, BANKING, AND LOANS.

293

lend any p a r t of the sum authorized to be borrowed by D i ^ t l ^ t k 0 | £*
virtue of this act, any thing in any of their charters of j ^ M g ^ ^
incorporation to the contrary notwithstanding,
°£ a n r P art °*
Approved, August 2, 1813.
A C T O F A U G U S T 2, 1813.
CHAP. L I I I . — A n act laying duties on notes of banks,
bankers, and certain companies; on notes, bonds, and
obligations discounted by banks, bankers, and certain
companies; and on bills of exchange of certain description.

3Stat L

« -> 77 -

(This act of 14 sections levies stamp duties, as its title
indicates, to be collected, from December 31,1813, and to
continue until the termination of the existing war with
Great Britain, and for one year thereafter, and no
longer.)
A C T O F N O V E M B E E 15, 1814.
CHAP.

IV.—An act to authorize a loan for a sum not
exceeding three millions of dollars.

14|

stat

- L->

SEC. 8. And be it further enacted, That it shall be law- tr£tnok/coi?mful for any of the banks in the District of Columbia, totoaconte8mteto
lend any part of the sum authorized to be borrowed b y t h e loan virtue of this act, any thing in any of their charters to
the contrary notwithstanding.
Approved, November 15,1814.
A C T O F D E C E M B E R 10, 1814.
CHAP. X I . — A n act supplementary
to an act, laying
duties on notes of banks, bankers, and certain companies, on notes, bonds, and obligations, discounted by
banks, bankers, and certain companies, and on bills of
exchange of certain descriptions.
(This act authorizes the Secretary of the Treasury to
make a composition with private bankers, in lieu of the
stamp duties levied by the act of August 2, 1813.)

sstat.L,

294

NATIONAL MONETAEY COMMISSION.

ACT OF DECEMBER 21,1814.
3 stat.

XV.—An act to provide additional revenues for
defraying the expenses of government and maintaining
the public credit, by laying duties on spirits distilled
within the United States, and Territories thereof, and
by amending the act laying duties on licenses to distillers of spirituous liquors.

L.,CHAP.

(Section 25 authorizes the anticipation of the duties
laid by this act, by a loan upon the pledge of the said
duties for its reimbursement, for an amount not exceeding
six millions of dollars and at a rate not above six per
cent, the money so obtained to be applied only to the purposes to which the duties pledged are applicable by law.
The same provision is embodied in the act of January 9,
1815, laying a direct tax. See 3 Statutes at Large, 179.)
Approved, December 21, 1814.
ACT OF JANUARY 9, 1815.
3 stat.

XXI.—An act to provide additional revenues for
defraying the expenses of Government, and maintain[Repealed.] ing the public credit, by laying a direct tax upon the
United States, and to provide for assessing and collecting the same.
*
*
*
*
*
Loans au- SEC. 42. And be it further enacted, That it shall be
L.,CHAP.

179.

Trlrtl*l^PO IT) ATI'-

ticipation of lawful for the President of the United States to authorthe taxes

ize the Secretary of the Treasury to anticipate the collection and receipt of the direct tax laid and imposed by
Act of Aug. this act, and by the said act of Congress, entitled "An act
2,1813, ch. 37. t Q l a y a n d c o l l e c t a d i r e c t t a x w ithin the United States,"
by obtaining a loan upon the pledge of the said direct
taxes, or either of them, for the reimbursement thereof,
to an amount not exceeding six millions of dollars; and
at a rate of interest not exceeding six per centum per
annum. And any bank or banks now incorporated, or
which may hereafter be incorporated, under the authority
of the United States, is, and are hereby authorized to
Proviso.
make such loan: Provided always, and it is expressly
1817, ch. 1.
act^pf
pec. 23^ declared, That the money so obtained upon loan, shall be
applied to the purposes aforesaid, to which the said
direct taxes so to be pledged are by this act applied and
appropriated, and to no other purposes whatsoever.
Approved, January 9, 1815.

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295

ACT OF APEIL 10, 1816.
CHAP.

XLIV.—An act to incorporate the subscribers to | s t a t. L.,
the Bank of the United States.

Be it enacted by the Senate and House of Representa- [Expired.]
tives of the United States of America, in Congress assembled. That a Bank of the United States of America shall 0 Act of Mar.
'

o, loiy, en. 7o.

be established, with a capital of thirty-five millions of th£ B^ank^t
dollars, divided into three hundred and fifty thousand gtatesj j ^ ^ a
shares, of one hundred dollars each share. Seventy thou- 000,000, etc.
sand shares, amounting to the sum of seven millions of
dollars, part of the capital of the said bank, shall be subscribed and paid for by the United States, in the manner
hereinafter specified; and two hundred and eighty thousand shares, amounting to the sum of twenty-eight millions of dollars, shall be subscribed and paid for by individuals, companies, or corporations, in the manner hereinafter specified.
SEC. 2. And be it further enacted, That subscriptions Places, etc.,
for the sum of twenty-eight millions of dollars, towards subscriptions^
constituting the capital of the said bank, shall be opened
on the first Monday in July next, at the following places:
that is to say, at Portland, in the district of Maine; at
Portsmouth, in the State of New Hampshire; at Boston,
in the State of Massachusetts; at Providence, in the
State of Khode Island; at Middletown, in the State of
Connecticut; at Burlington, in the State of Vermont; at
New York, in the State of New York; at New Brunswick, in the State of New Jersey; at Philadelphia, in the
State of Pennsylvania; at Wilmington, in the State of
Delaware; at Baltimore, in the State of Maryland; at
Eichmond, in the State of Virginia; at Lexington, in
the State of Kentucky; at Cincinnati, in the State of
Ohio; at Raleigh, in the State of North Carolina; at
Nashville, in the State of Tennessee; at Charleston, in
the State of South Carolina;, at Augusta, in the State of
Georgia; at New Orleans, in the State of Louisiana;
and at Washington, in the District of Columbia. And
the said subscriptions shall be opened under the superintendence of five commissioners at Philadelphia, and of
three commissioners at each of the other places aforesaid,
to be appointed by the President of the United States,
who is hereby authorized to make such appointments,
and shall continue open every day, from the time of

296

NATIONAL MONETARY COMMISSION.

opening the same, between the hours of ten o'clock in
the forenoon and four o'clock in the afternoon, for the
term of twenty days, exclusive of Sundays, when the
same shall be closed, and immediately thereafter the eomf^fiVfngmissioners, or any two of them, at the respective places
inscriptions, aforesaid, shall cause two transcripts or copies of such
subscriptions to be made, one of which they shall send to
the Secretary of the Treasury, one they shall retain, and
the original they shall transmit, within seven days from
the closing of the subscriptions as aforesaid, to the commissioners at Philadelphia aforesaid. And on the receipt
of the said original subscriptions, or of either of the said
copies thereof, if the original be lost, mislaid, or detained,
the commissioners at Philadelphia aforesaid, or a majority of them, shall immediately thereafter convene, and
proceed to take an account of the said subscriptions. And
if more than the amount of twenty-eight millions of dollars shall have been subscribed, then the said last mentioned commissioners shall deduct the amount of such
excess from the largest subscriptions, in such manner as
that no subscription shall be reduced in amount, while
any one remains larger: Provided, That if the subscriptions taken at either of the places aforesaid shall not
exceed three thousand shares, there shall be no reduction
of such subscriptions, nor shall, in any case, the subscriptions taken at either of the places aforesaid be reduced
below that amount. And in case the aggregate amount of
the said subscriptions shall exceed twenty-eight millions
of dollars, the said last mentioned commissioners, after
having apportioned the same as aforesaid, shall cause lists
of the said apportioned subscriptions, to be made out,
including in each list the apportioned subscription for
the place where the original subscription was made, one
of which lists they shall transmit to the commissioners or
one of them, under whose superintendence such subscriptions were originally made, that the subscribers may
thereby ascertain the number of shares to them respectively apportioned as aforesaid. And in case the aggregate amount of the said subscriptions made during the
period aforesaid, at all the places aforesaid, shall not
amount to twenty-eight millions of dollars, the subscriptions to complete the said sum shall be and remain open
at Philadelphia aforesaid, under the superintendence of
the commissioners appointed for that place; and the subscriptions may be then made by any individual, company,

LAWS CONCERNING MONEY, BANKING, AND LOANS.

297

or corporation, for any number of shares, not exceeding,
in the whole, the amount required to complete the said
sum of twenty-eight millions of dollars.
SEC. 3. And be it further enacted. That it shall be law- Regulations
/»
. ,. . ,
,
.
^
concerning subP ,
ful
for any individual, company, corporation, or State, scnptions and
i

...

, „ ,

'payments on

when the subscriptions shall be opened as herein before tnem»&cdirected, to subscribe for any number of shares of the
capital of the said bank, not exceeding three thousand
shares, and the sums so subscribed shall be payable, and
paid, in the manner following; that is to say, seven
millions of dollars thereof in gold or silver coin of the
United States, or in gold coin of Spain, or the dominions
of Spain, at the rate of one hundred cents for every
twenty-eight grains and sixty hundredths of a grain of
the actual weight thereof, or in other foreign gold or
silver coin at the several rates prescribed by the first section of an act regulating the currency of foreign coins in
the United States, passed tenth day of April, one thou-^g-iMSoe,
sand eight hundred and six, and twenty-one millions of
dollars thereof in like gold or silver coin, or in the funded
debt of the United States contracted at the time of the
subscriptions respectively. And the payments made in
the funded debt of the United States, shall be paid and
received at the following rates: that is to say, the funded
debt bearing an interest of six per centum per annum, at
the nominal or par value thereof; the funded debt bearing an interest of three per centum per annum, at the rate
of sixty-five dollars for every sum of one hundred dollars
of the nominal amount thereof; and the funded debt bearing an interest of seven per centum per annum, at the
rate of one hundred and six dollars and fifty-one cents,
for every sum of one hundred dollars of the nominal
amount thereof; together with the amount of the interest
accrued on the said several denominations of funded debt,
to be computed and allowed to the time of subscribing the
same to the capital of the said bank as aforesaid. And
the payments of the said subscriptions shall be made and
completed by the subscribers, respectively, at the times
and in the manner following; that is to say, at the time of
subscribing there shall be paid five dollars on each share,
in gold or silver coin as aforesaid, and twenty-five dollars more in coin as aforesaid, or in funded debt as aforesaid; at the expiration of six calendar months after the
time of subscribing, there shall be paid the further sum
of ten dollars on each share, in gold or silver coin as
15712°—10

298

NATIONAL MONETAKY COMMISSION.

aforesaid, and twenty-five dollars more in coin as aforesaid, or in funded debt as aforesaid; at the expiration
of twelve calendar months from the time of subscribing,
there shall be paid the further sum of ten dollars on each
share, in gold or silver coin as aforesaid, and twentyfive dollars more, in coin as aforesaid, or in funded debt
as aforesaid.
(Section 4 provides for the payment in coin, to be
made to the commissioners by subscribers at the time of
subscription, for the transfer of certificates of funded
debt subscribed by them, and for the delivery of coin and
certificates by the commissioners to the president and
directors, after the organization of the bank.)
State? nJayU?e- S E C * 5- And he il further enacted, That it shall be lawfunded1 debV* ^ ^ o r ^ e United States to pay and redeem the funded
etc., and thed e bt subscribed to the capital of the said bank at the
bank may sell

silver°et

a n d ra

* aforesaid, in such sums, and at such times, as shall
be deemed expedient, any thing in any act or acts of
Congress to the contrary thereof notwithstanding. And
it shall also be lawful for the president, directors, and
company, of the said bank, to sell and transfer for gold
and silver coin, or bullion, the funded debt subscribed to
the capital of the said bank as aforesaid: Provided
always, That they shall not sell more thereof than the
sum of two millions of dollars in any one year; nor sell
any part thereof at any time within the United States,
without previously giving notice of their intention to the
Secretary of the Treasury, and offering the same to the
United States for the period of fifteen days, at least, at
the current price, not exceeding the rates aforesaid.
ofrhtheeCTere?s^ ^EC* ^' And ^e ^ father enacted, That at the opening of
scribet0on ^subscription to the capital stock of the said bank, the Secuiifted0'states6 r e ^ a r y of the Treasury shall subscribe, or cause to be sub&c.
' scribed, on behalf of the United States, the said number
of seventy thousand shares, amounting to seven millions
of dollars as aforesaid, to be paid in gold or silver coin, or
in stock of the United States, bearing interest at the rate
of five per centum per annum; and if payment thereof, or
of any part thereof, be made in public stock, bearing interest as aforesaid, the said interest shall be payable quarterly, to commence from the time of making such payment on account of the said subscription, and the principal
of the said stock shall be redeemable in any sums, and at
any periods, which the Government shall deem fit. And
the Secretary of the Treasury shall cause the certificates

LAWS CONCERNING MONEY, BANKING, AND LOANS.

299

of such public stock to be prepared, and made in the
usual form, and shall pay and deliver the same to the
president, directors, and company, of the said bank on the
first day of January, one thousand eight hundred and
seventeen, which said stock it shall be lawful for the said
president, directors, and company, to sell and transfer for
gold and silver coin or bullion at their discretion: Provided, They shall not sell more than two millions of dollars thereof in any one year.
SEC. 7. And be it further enacted, That the subscribers The s u bto the said Bank of the United States of America, their bank incorporsuccessors and assigns, shall be, and are hereby, created a a e '
corporation and body politic, by the name and style of
" The President, Directors, and Company, of the Bank of
the United States," and shall so continue until the third
day of March, in the year one thousand eight hundred
and thirty-six, and by that name shall be, and are hereby,
made able and capable, in law, to have, purchase, receive,
possess, enjoy, and retain, to them and their successors,
lands, rents, tenements, hereditaments, goods, chattels and
effects, of whatsoever kind, nature, and quality, to an
amount not exceeding, in the whole, fifty-five millions of
dollars, including the amount of the capital stock aforesaid ; and the same to sell, grant, demise, alien or dispose
of; to sue and be sued, plead and be impleaded, answer
and be answered, defend and be defended, in all State
courts having competent jurisdiction, and in any circuit
court of the United States: and also to make, have, and
use, a common seal, and the same to break, alter, and renew, at their pleasure: and also to ordain, establish, and
put in execution, such by-laws, and ordinances, and regulations, as they shall deem necessary and convenient for
the government of the said corporation, not being contrary to the constitution thereof, or to the laws of the
United States; and generally to do and execute all and
singular the acts, matters, and things, which to them it
shall or may appertain to do; subject, nevertheless, to
the rules, regulations, restrictions, limitations, and provisions, hereinafter prescribed and declared.
SEC. 8. And be it further enacted, That for the man- . Twenty - five
directors * five

agement of the affairs of the said corporation, there shall to be appointed
be twenty-five directors, five of whom, being stockholders, dent, etc.
shall be annually appointed by the President of the
United States, by and with the advice and consent of the
Senate, not more than three of wjiom shall be residents

300

NATIONAL MONETARY COMMISSION.

of any one State; and twenty of whom shall be annually
elected at the banking house in the city of Philadelphia,
on the first Monday of January, in each year, by the
qualified stockholders of the capital of the said bank,
other than the United States, and by a plurality of votes
then and there actually given, according to the scale of
voting hereinafter prescribed: Provided always, That no
person, being a director in the Bank of the United States,
or any of its branches, shall be a director of any other
co?cefn"ngt!the bank; and should any such director act as a director in
bankfetc.0* t h e . a n y other bank, it shall forthwith vacate his appointment
in the direction of the Bank of the United States. And
the directors, so duly appointed and elected, shall be
capable of serving, by virtue of such appointment and
choice, from the first Monday in the month of January
of each year, until the end and expiration of the first
Monday in the month of January of the year next ensuing the time of each annual election to be held by the
stockholders as aforesaid. And the board of directors,
annually, at the first meeting after their election in each
and every year, shall proceed to elect one of the directors
to be president of the corporation, who shall hold the
said office during the same period for which the directors are appointed and elected as aforesaid: Provided also,
That the first appointment and election of the directors
and president of the said bank shall be at the time
and for the period hereinafter declared: And provided
also, That in case it should at any time happen that an
appointment or election of directors, or an election of the
president of the said bank, should not be so made as to
take effect on any day when, in pursuance of this act, they
ought to take effect, the said corporation shall not, for
that cause, be deemed to be dissolved; but it shall be
lawful at any other time to make such appointments, and
to hold such elections, (as the case may be,) and the manner of holding the elections shall be regulated by the bylaws and ordinances of the said corporation: and until
such appointments or elections be made, the directors and
president of the said bank, for the time being, shall continue in office: And provided also, That in case of the
death, resignation, or removal of the president of the said
corporation, the directors shall proceed to elect another
president from the directors as aforesaid: and in case of
the death, resignation, or absence, from the United States,
or removal of a director from office, the vacancy shall be

LAWS CONCERNING MONEY, BANKING, AND LOANS.

301

supplied by the President of the United States, or by the
stockholders, as the case may be. But the President of
the United States alone shall have power to remove any
of the directors appointed by him as aforesaid.
SEC. 9. And be it further enacted. That as soon as the 11 ma<?nof Ithe
sum of eight millions four hundred thousand dollars in fnt^ opfratioif
gold and silver coin, and in the public debt, shall haveetc*
been actually received on account of the subscriptions to
the capital of the said bank (exclusively of the subscription aforesaid, on the part of the United States) notice
thereof shall be given by the persons under whose superintendence the subscriptions shall have been made at the
city of Philadelphia, in at least two newspapers printed in
each of the places, (if so many be printed in such places
respectively,) where subscriptions shall have been made,
and the said persons shall, at the same time, and in like
manner, notify a time and place within the said city of
Philadelphia, at the distance of at least thirty days from
the time of such notification, for proceeding to the election
of twenty directors as aforesaid, and it shall be lawful
for such election to be then and there made. And the
President of the United States is hereby authorized, during the present session of Congress, to nominate, and, by
and with the advice and consent of the Senate, to appoint,
five directors of the said bank, though not stockholders,
anything in the provisions of this act to the contrary notwithstanding; and the persons who shall be elected and
appointed as aforesaid, shall be the first directors of the
said bank, and shall proceed to elect one of the directors
to be president of the said bank; and the directors and
president of the said bank so appointed and elected as
aforesaid, shall be capable of serving in their respective
office, by virtue thereof, until the end and expiration of
the first Monday of the month of January next ensuing
the said appointments and elections; and they shall then
and thenceforth commence, and continue the operations
of the said bank, at the city of Philadelphia.
(Section 10 authorizes the directors to appoint and
govern such officers, clerks, and servants as may be necessary for executing their business.)
SEC. 11. And be it further enacted, That the following arf^a^cntal
rules, restrictions, limitations, and provisions, shall form
and be fundamental articles of the constitution of the
said corporation, to wit:

302

NATIONAL MONETARY COMMISSION.

ceraing voting First. The number of votes to which the stockholders
for directors. s n a u foe entitled, in voting for directors, shall be according to the number of shares he, she, or they, respectively,
shall hold, in the proportions following, that is to say;
for one share and not more than two shares, one vote;
for every two shares above two, and not exceeding ten, one
vote; for every four shares above ten, and not exceeding
thirty, one vote; for every six shares above thirty, and
not exceeding sixty, one vote; for every eight shares above
sixty, and not exceeding one hundred, one vote; and for
every ten shares above one hundred, one vote; but no person, co-partnership, or body politic, shall be entitled to a
greater number than thirty votes; and after the first election, no share or shares shall confer a right of voting,
which shall not have been holden three calendar months
previous to the day of election. And stockholders actually resident within the United States, and none other,
may vote in elections by proxy.
A part of the Second. Not more than three-fourths of the directors
directors

a p-

pointed by the elected by the stockholders, and not more than four-fifths
stockholders

and president, of the directors appointed by the President of the United
alone eligible a

second year, States, who shall be in office at the time of an annual elecs u c c e s s rvelv.

President a i - tion, shall be elected or appointed for the next succeeding
' year; and no director shall hold his office more than three
years out of four in succession: but the director who shall
be the president at the time of an election may always be
re-appointed, or re-elected, as the case may be.
stockholders. Third. None but a stockholder, resident citizen of the

way

citizens, m a y

be pniy ap-United States, shall be a director; nor shall a director be
pointed direct-

o r s. Direct- entitled to any emoluments: but the directors may make
J

ors to have no

compensation, c;UCh compensation to the president for his extraordinary
other than the

president.

attendance at the bank, as shall appear to them reasonable.
seven direc- Fourth. Not less than seven directors shall constitute a
the ' president, board for the transaction of business, of whom the presia board.
dent shall always be one, except in case of sickness or
How his necessary absence: in which case his place may be supplace

is sup- , . , - • '

...

plied in case of plied by any other director whom he, by writing, under
ness.
his hand, shall depute for that purpose. And the director
so deputed may do and transact all the necessary business,
belonging to the office of the president of the said corporation, during the continuance of the sickness or neces
http://fraser.stlouisfed.org/ sary absence of the president.
Federal Reserve Bank of St. Louis

LAWS CONCERNING MONEY, BANKING, AND LOANS.

303

Fifth. A number of stockholders, not less than sixty general meetwho, together, shall be proprietors of one thousand shares ^ " V o e be
or upwards, shall have power at any time to call a general called,
meeting of the stockholders, for purposes relative to the
institution, giving at least ten weeks' notice in two public
newspapers of the place where the bank is seated, and
specifying in such notice the object or objects of such
meeting.
Sixth. Each cashier or treasurer, before he enters u p o n ^ ^ ^ j ^ J J
the duties of his office, shall be required to give bond, withsecuritytwo or more sureties, to the satisfaction of the directors,
in a sum not less than fifty thousand dollars, with a condition for his good behaviour, and the faithful performance of his duties to the corporation.
Seventh. The lands, tenements, and hereditaments, COncSntang,and
which it shall be lawful for the said corporation to t o l d j ^ ^ f t t o ^ g
shall be only such as shall be requisite for its i mme diatej r h^h^nmy^
accommodation in relation to the convenient transacting poration.
of its business, and such as shall have been bona fide mortgaged to it by way of security, or conveyed to it in satisfaction of debts previously contracted in the course of its
dealings, or purchased at sales, upon judgments which
shall have been obtained for such debts.
Eighth. The total amount of debts which the said cor- ^ Maximum of
debts which the

poration shall at any time owe, whether by bond, bill,corporation
J

may

one

note, or other contract, over and above the debt or debts time contract
due for money deposited in the bank, shall not exceed the
sum of thirty-five millions of dollars, unless the contracting of any greater debt shall have been previously authorized by law of the United States. In case of excess, the R « m « <* y
^

. .

against the di-

directors under whose administration it shall happen, actors under
, , , , , • , , , .

' w h o s e adminis-

shall be liable for the same in their natural and private tration.an ex,

cess

°* d e b t

capacities: and an action of debt may in such case began be erebrought against them, or any of them, their or any of
their heirs, executors, or administrators, in any court of
record of the United States, or either of them, by any
creditor or creditors of the said corporation, and may be
prosecuted to judgment and execution, any condition, covenant, or agreement to the contrary notwithstanding.
But this provision shall not be construed to exempt the
said corporation or the lands, tenements, goods, or chattels of the same from being also liable for, and chargeable
with, the said excess.
Such of the said directors, who may have been absent gei^o^mssen^

when the said excess was contracted or created, or whoinsexem*>ted'

304

NATIONAL MONETARY COMMISSION.

may have dissented from the resolution or act whereby the
same was so contracted or created, may respectively exonerate themselves from being so liable, by forthwith giving
notice of the fact, and of their absence or dissent, to the
President of the United States, and to the stockholders, at
a general meeting, which they shall have power to call for
that purpose,
in what the Ninth. The said corporation shall not, directly or indicorporation

•/

may transact rectly, deal or trade in any thing except bills of exchange,
trade.
gold or silver bullion, or in the sale of goods really and
truly pledged for money lent and not redeemed in due
time, or goods which shall be the proceeds of its lands. It
shall not be at liberty to purchase any public debt whatsoever, nor shall it take more than at the rate of six per
centum per annum for or upon its loans or discounts.
ing°acner tCaTn Tenth. No loan shall be made by the said corporation,
rnade the uniS ^or ^ e u s e o r o n a c c o u n t of the Government of the United
i u r S t f c e u i a f ^ e s ' *° a n a m o u n t exceeding five hundred thousand
ejgantestates but dollars, o r °f a n y particular State, to an amount exceedl
?essts °f °° n *nS fifty thousand dollars, or of any foreign prince or
state, unless previously authorized by a law of the United
States.
Rules to he Eleventh. The stock of the said corporation shall be asprescribed

for

making the signable and transferable, according to such rules as shall
able.
be instituted in that behalf, by the laws and ordinances of
the same.
n atorbiand°of Twelfth. The bills, obligatory and of credit, under the
thediseai o"fnthesea* °^ ^ e sa *^ corporation, which shall be made to any
corpora t i o iu person or persons, shall be assignable by endorsement
able.
thereupon, under the hand or hands of such person or
persons, and his, her, or their executors or administrators,
and his, her or their assignee or assignees, and so as absolutely to transfer and vest the property thereof in each
and every assignee or assignees successively, and to enable such assignee or assignees, and his, her or their executors or administrators, to maintain an action thereupon
Proviso.
in his, her, or their own name or names: Provided, That
said corporation shall not make any bill obligatory, or of
credit, or other obligation under its seal for the payment
of a sum less than five thousand dollars. And the bills
or notes which may be issued by order of the said corporation, signed by the president, and countersigned by the
principal cashier or treasurer thereof, promising the payment of money to any person or persons, his, her or their
order, or to bearer, although not under the seal of the said

LAWS CONCEBNING MONEY, BANKING, AND LOANS.

305

corporation, shall be binding and obligatory upon the
same, in like manner, and with like force and effect, as
upon any private person or persons, if issued by him,
her or them, in his, her or their private or natural capacity or capacities, and shall be assignable and negotiable in like manner as if they were so issued by such
private person or persons; that is to say, those which
shall be payable to any person or persons, his, her or their
order, shall be assignable by endorsement, in like manner, and with the like effect as foreign bills of exchange
now are; and those which are payable to bearer shall be
assignable and negotiable by delivery only: Provided, Proviso.
That all bills or notes, so to be issued by said corporation,
shall be made payable on demand, other than bills or
notes for the payment of a sum not less than one hundred
dollars each, and payable to the order of some person or
persons, which bills or notes it shall be lawful for said
corporation to make payable at any time not exceeding
sixty days from the date thereof.
Thirteenth. Half yearly dividends shall be made of Half yearly
so much of the profits of the bank as shall appear to the madeen s
directors advisable; and once in every three years the
directors shall lay before the stockholders, at a general
meeting, for their information, an exact and particular A statement
statement of the debts which shall have remained unpaid of the company
after the expiration of the original credit, for a period fore the stockof treble the term of that credit, and of the surplus of the
profits, if any, after deducting losses and dividends. If Dellnq u e n t
ji

n i

• n

•

£.

subscribers to

there shall be a failure in the payment of any part of any lose the benefit
sum subscribed to the capital of the said bank, by any 0
person, co-partnership or body politic, the party failing
shall lose the benefit of any dividends which may have
accrued prior to the time for making such payment, and
during the delay of the same.
Fourteenth. The directors of the said corporation shall offices to be
establish a competent office of discount and deposit in the the* District of
District of Columbia, whenever any law of the United §2™!?? eVal
States shall require such an establishment; also one such authorized and
office of discount and deposit in any State in which twore<*uiredbylawthousand shares shall have been subscribed or may be ,
held, whenever, upon application of the legislature of
such State, Congress may, by law, require the same: Pro- Proviso.
vided, The directors aforesaid shall not be bound to establish such office before the whole of the capital of the

806

secretary
authorized
bank for
exceeding

NATIONAL MONETARY COMMISSION.

bank shall have been paid up. And it shall be lawful for
the directors of the said corporation to establish offices
of discount and deposit, wheresoever they shall think fit,
within the United States or the Territories thereof, and
to commit the management of the said offices, and the
business thereof, respectively to such persons, and under
such regulations as they shall deem proper, not being
contrary to law or the constitution of the bank. Or instead of establishing such offices, it shall be lawful for
the directors of the said corporation, from time to time,
to employ any other bank or banks, to be first approved
by the Secretary of the Treasury, at any place or places
that they may deem safe and proper, to manage and
transact the business proposed as aforesaid, other than
for the purposes of discount, to be managed and transacted by such offices, under such agreements, and subject
to such regulations, as they shall deem just and proper.
Not more than thirteen nor less than seven managers
or directors, of every office established as aforesaid, shall
be annually appointed by the directors of the bank, to
serve one year; they shall choose a president from their
own number; each of them shall be a citizen of the United
States, and a resident of the State, Territory or District,
wherein such office is established; and not more than
three-fourths of the said managers or directors, in office
at the time of an annual appointment, shall be re-appointed for the next succeeding year; and no director
shall hold his office more than three years out of four, in
succession; but the president may be always re-appointed,
of Fifteenth. The officer at the head of the Treasury Detopartment of the United States shall be furnished, from
a time to time, as often as he may require, not exceeding
aonce a week, with statements of the amount of the capital

weekly one of

its concerns, stock of the said corporation and of the debts due to the
same; of the moneys deposited therein; of the notes in
circulation, and of the specie in hand; and shall have a
right to inspect such general accounts in the books of the
Proviso. bank as shall relate to the said statement: Provided, That
this shall not be construed to imply a right of inspecting
the account of any private individual or individuals with
the bank.
er^ut^tiz^n Sixteenth. No stockholder, unless he be a citizen of the
skte^emainvoete United States, shall vote in the choice of directors.
in choice of directors.
No smaller Seventeenth. No note shall be issued of less amount
notes than $ 5 , ,
-. , ,
to be issued, than nfive dollars.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

307

(Sections 12 and 13 prescribe the penalties to be imposed in case the corporation, or any person to its use,
shall deal in goods, wares, or merchandise contrary to the
provisions of this act, or shall lend any sum of money for
the use of the Government of the United States, or of any
particular State, or any foreign prince or State, except as
allowed above, and without being previously authorized
thereto by law.)
SEC. 14. And be it further enacted. That the bills or _ Notes of the
.

. .

bank receivable

notes of the said corporation originally made payable, or ^ pigments of
which shall have become payable on demand, shall be re- united states,
ceivable in all payments to the United States, unless .Repealed,
!

•

1836, ch. 97.

otherwise directed by act ot Congress.
SEC. 15. And be it further enacted. That during the . The bank to
7

give the neces-

continuance of this act, and whenever required by the s ary facilities
,

•

IT •

w i t h o u t any

Secretary of the Treasury, the said corporation shall give change, ^for
the necessary facilities for transferring the public funds the funds of
from place to place, within the United States, or the Ter- states to difritories thereof, and for distributing the same in pay- ters.
ment of the public creditors, without charging commissions or claiming allowance on account of difference of
exchange, and shall also do and perform the several and
respective duties of the commissioners of loans for the
several States, or of any one or more of them, whenever
required by law.
SEC. 16. And be it further enatced. That the deposits Deposits of
..,

<» ii

T-r »x -i oil J

•

i • i ii

the public mon-

oi the money of the United States, m places in which the p 8 *° *f ™ade
said bank and branches thereof may be established, shall its branches, or
be made in said bank or branches thereof, unless the Sec- be laid before
m

i n

•

-i

•

Congress by the

retary of the Treasury shall at any time otherwise order secretary of
and direct; in which case the Secretary of the Treasury for its not beshall immediately lay before Congress, if in session, and
if not, immediately after the commencement of the next
session, the reasons of such order or direction.
SEC. 17. And be it further enacted. That the said cor- corporation
1

„

prohibited from

poration shall not at any time suspend or refuse payment s ^ s m eSt in i g
in gold and silver, of any of its notes, bills or obligations; specie, by being
&

. -

._&

' made cbarge-

nor of any moneys received upon deposit in said bank, or awe with the
.

payment of in-

in any of its offices of discount and deposit. And if theterestatthe
•i

rate or \JL per

said corporation shall at any time reruse or neglect to pay cent per anon demand any bill, note or obligation issued by the cor
poration, according to the contract, promise or undertakhttp://fraser.stlouisfed.org/
ingBank
therein
or shall
or refuse
to pay
on
Federal Reserve
ofany
St. expressed;
Louis
demand
offices
aforesaid,
moneys
on deposit,
received
to
inneglect
the
saidperson
bank,
or
orin
persons
any
ofenits

308

NATIONAL MONETAKY COMMISSION.

titled to receive the same, then, and in every such case,
the holder of any such note, bill, or obligation, or the person or persons entitled to demand and receive such moneys
as aforesaid, shall respectively be entitled to receive and
recover interest on the said bills, notes, obligations or
moneys, until the same shall be fulty paid and satisfied,
at the rate of twelve per centum per annum from the time
Proviso.
of such demand as aforesaid; Provided, That Congress
may at any time hereafter enact laws enforcing and regulating the recovery of the amount of the notes, bills, obligations or other debts, of which payment shall have
been refused as aforesaid, with the rate of interest above
mentioned, vesting jurisdiction for that purpose in any
courts, either of law or equity, of the courts of the United
States, or Territories thereof, or of the several States, as
they may deem expedient.
(Sections 18 and 19 prescribe the penalties for forging, counterfeiting, or altering bills or notes of the bank
or checks drawn upon it, and for passing any forged,
counterfeited, or altered bill, note, or check, and also for
engraving any plate to be used in forging or counterfeiting, or having in possession any such plate or blank notes
in the similitude of those issued by the corporation, or
any paper for use in counterfeiting.)
Bonus to be SEC. 20. And be it further enacted. That in considerap a i d

the

.-i

-i i

united states tion of the exclusive privileges and benefits conferred by
for this char-

ter.

this act, upon the said bank, the president, directors, and
company thereof, shall pay to the United States, out of
the corporate funds thereof, the sum of one million and
five hundred thousand dollars, in three equal payments;
that is to say: five hundred thousand dollars at the expiration of two years; five hundred thousand dollars at
the expiration of three years; and five hundred thousand
dollars at the expiration of four years after the said bank
shall be organized, and commence its operations in the
manner herein before provided,
congress to SEC. 21. And be it further enacted, That no other bank
other bank ex-shall be established by any future law of the United States
trict of coium- during the continuance of the corporation hereby created,
for which the faith of the United States is hereby pledged.
Provided, Congress may renew existing charters for banks
in the District of Columbia, not increasing the capital
thereof, and may also establish any other bank or banks
in said district, with capitals not exceeding, in the whole,
six millions of dollars, if they shall deem it expedient.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

309

And, notwithstanding the expiration of the term for
which the said corporation is created, it shall be lawful to
use the corporate name, style, and capacity, for the pur- us^{^2*me Jg
pose of suits for the final settlement and liquidation of ^1c%tcpofor
the affairs and accounts of the corporation, and for the J^o y^^after
sale and disposition of their estate, real, personal, and shal1 expire.
mixed: but not for any other purpose, or in any other
manner whatsoever, nor for a period exceeding two years
after the expiration of the said term of incorporation.
SEC. 22. And be it further enacted. That if the subscrip- timeprorcrSbed
tions and payments to said bank shall not be made and |oLgh1nto nopScompleted so as to enable the same to commence its opera- nation,
tions, or if the said bank shall not commence its operations on or before the first Monday in April next, then,
and, in that case, Congress may, at any time, within
twelve months thereafter, declare, by law, this act null
and void.
SEC. 23. And be it further enacted, That it shall, at all otc£$*l£**l*
times, be lawful, for a committee of either house of Con- of congress
.

„

may inspect the

gress, appointed for that purpose, to inspect the books, books, etc., of
and to examine into the proceedings of the corporation For what
hereby created, and to report whether the provisions of
this charter have been, by the same, violated or not; and
whenever any committee, as aforesaid, shall find and
report, or the President of the United States shall have
reason to believe that the charter has been violated, it may
be lawful for Congress to direct, or the President to order
a scire facias to be sued out of the circuit court of the
district of Pennsylvania, in the name of the United States,
(which shall be executed upon the president of the corporation for the time being, at least fifteen days before
the commencement of the term of said court,) calling on
the said corporation to show cause wherefore the charter
hereby granted, shall not be declared forfeited; and it
shall be lawful for the said court, upon the return of the
said scire facias, to examine into the truth of the alleged
violation, and if such violation be made appear, then to
pronounce and adjudge that the said charter is forfeited
and annulled. Provided, however. Every issue of fact Proviso,
which may be joined between the United States and the
corporation aforesaid, shall be tried by a jury. And it
shall be lawful for the court aforesaid to require the production of such of the books of the corporation as it may
deem necessary for the ascertainment of the controverted
facts: and the final judgment of the court aforesaid, shall
be examinable in the Supreme Court of the United States,

310

NATIONAL MONETARY COMMISSION.

by writ of error, and may be there reversed or affirmed,
according to the usages of law.
Approved, April 10, 1816.
(Paragraph X of section 11 of this act provides that
no loans shall be made by the bank for the use of the
Government of the United States to an amount exceeding
five hundred thousand dollars, but subsequent acts giving
authority for the borrowing of money authorize the bank
to loan the amounts notwithstanding the said prohibition.
See act of May 15,1820, chap. 103, sec. 2, vol. 3, Stat. L.,
p. 583; act of March 3, 1821, chap. 38, sec. 2, vol. 3, Stat.
L., p. 636; act of May 24, 1824, chap. 140, sec. 1, vol. 4,
Stat. L., p. 33; act of May 26,1824, chap. 192, sec. 2, vol.
4, Stat. L., p. 74; act of March 3, 1825, chap. 100, sec. 2,
vol. 4, Stat. L., p. 129.)
NOTE.—By the act of March 3, 1819 (3 Stat. L., 508), the provisions of the above act which relate to the right of voting for
directors are enforced, by prescribing, in every case where more
than thirty votes are offered by any one person, oaths as to the
actual ownership of the shares, to be taken by the person offering
the votes and by the signer of any proxy. And the same act
provides against the bribery by gift or promise of the president or
either of the directors of the bank, or of either of its branches, in
any matter coming before the said president and directors for
decision, by making the briber and the person bribed punishable
on conviction by fine and imprisonment at the discretion of the
court, and further disqualifies them from holding any office of
trust or profit under the corporation, or any office of honor, trust,
or profit under the United States.
3 Stat L., NOTE.—The act of April 20, 1836 (5 Stat. L., 16), repealed all
laws authorizing or requiring the Bank of the United States to
pay pensions.

(The act of June 23,1836 (5 Stat, L., 56, see page 322),
authorized the Secretary of the Treasury to act as the
agent of the United States in all matters relating to their
stock in the Bank of the United States.)
(The resolution of March 3, 1837 (5 Stat. L., 200), authorized the Secretary of the Treasury to accept the proposed settlement of the Bank of the United States, under
the Pennsylvania charter, for the stock of the United
States in the Bank of the United States.)
(The act of March 2, 1838 (5 Stat. L., 211), provided
for the prevention of the abatement of suits, etc., in which
the late Bank of the United States was a party.)
(The act of July 7,1838 (5 Stat. L., 296), authorized
the Secretary of the Treasury to sell the two bonds held
by the United States against the Bank of the United
States chartered by Pennsylvania.)

LAWS CONCERNING MONEY, BANKING, AND LOANS.

311

ACT OF MARCH 3, 1817.
XXXVIII.—An act transferring the duties of 36^
commissioner of loans to the Bank of the United States,
and abolishing the office of commissioner of loans.

CHAP.

stat

Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assembled, That the Bank of the United States, and its several The Bank of
7

tlie U n i t e a

branches, shall be, and they are hereby, required to do
^}^e^a^.
and perform the several duties of commissioners of loans ties of commis*

s i o n e r s of

for the several States; and the Bank of the United loans
loot), en. ou.

States and its several branches, and such State banks as
the Bank of the United States may employ in those States
where no branch bank shall be established, shall observe
and conform to the directions which have been or may
hereafter be prescribed by the Secretary of the Treasury,
with the approbation of the President of the United
States, touching the execution of the duties aforesaid.
SEC. 2. And be it further enacted, That all such duties
and acts as are now done and performed by the commissioners of loans, in transferring stock from the books of
one loan office to another, or to the books of the Treasury, or from the books of the Treasury to the books of
the loan offices, shall be done and performed by the president of the Bank of the United States, the president of
the several branches of the said bank, and by the president of such State banks as the Bank of the United
States may employ, (in States where no branch of the
United States Bank shall be established:) and the acts of
the presidents aforesaid shall be countersigned by the
cashiers of those banks respectively.
SEC. 3. And be it further enacted, That it shall be the aT & <*o fSecreduty of the Secretary of the Treasury to notify the presi- j£ e t a i s f ury t £%
dent of the Bank of the United States, that the duties president of
»

_ .

.,, ,

theBankofthe

now performed by the commissioners of loans will be united states,
transferred to the Bank of the United States, and he shall
direct the commissioners of loans and the agents for military pensions, where there is no commissioner, respectively, in the several States, to deliver to the president of
the Bank of the United States, or to the president of a
branch thereof, or to the president of such State bank as
the Bank of the United States may employ, on such day
or days as he may designate, the register, and all the records and papers of their respective offices; and it shall be

312

NATIONAL MONETARY COMMISSION.

the duty of the said commissioners of loans and agents
for pensioners to comply with the said direction, and also
to take duplicate receipts for the delivery of the records and papers herein described, one of which shall be
transmitted, without delay, to the Secretary of the TreasProviso; as u r y : Provided, however, That the Secretary of the Treasetc.
' ury may designate such time before the first day of January, one thousand eight hundred and eighteen, for the
performance of the duties aforesaid, as the public conproviso; as venience will permit; And provided also. T h a t this act
to States where

no hanks are shall not be construed to extend to any agent for military
law.
pensions in any State where there is no bank established
by law.
officeofcom- g EC# 4. An& ~be n further enacted, That the office of
missioner

. .

» i

I - I T

hjansahoiished. commissioner of loans, upon the delivery of the records
and papers, as herein required, to the Bank of the United
States, or its branches, or to the State banks employed by
the Bank of the United States in those States where there
may be no branch, shall be, and hereby is, abolished; and
the pay and emoluments of the said commissioners of
loans, and the clerks and persons employed by them,
after such delivery, shall respectively cease and determine.
+^\ ^n^l
SEC. 5. And be it further enacted, That the act, entitled
the p r o m p t

uhifcaccounts " ^
^ ^ *k prompt settlement of public accounts,"
i? o°/ce* Bom shall commence, and be in force, on and after the third
7

the 3d of Mar.,

Ict of Mar ^ a y
^ 1 S i n s ^ a n t ? March, any thing in the aforesaid act
3,1817, ch. 45! to the contrary notwithstanding.
Approved, March 3,1817.
AC
MA
R C H 3,1817.
3 stat. L., CHAP. X C I I I . —
AT
n O
actF to
incorporate
the subscribers to
383.
certain banks in the District of Columbia, and to prevent the circulation of the notes of
unincorporated
associations within the said district.
(Sections 1 to 13 provide for the incorporation of the
Farmers' and Mechanics' Bank of Georgetown and prescribes rules, etc.
(Section 14 provides, among other things, that the bank
shall, in no case, buy and sell the funded debt of the
United States.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

313

(Sections 23, 24, 25, 26, and 27 apply said rules, etc.,
to other banks in Washington, Georgetown, and Alexandria.)
ACT OF MAECH 3,1825.
LXV.—An Act more effectually to provide for the 4 stat. L.,
punishment of certain crimes against the United States,
and for other purposes.

CHAP.

SEC. 17. And he it further enacted, That, if any person TrfaSrury notes!
or persons shall falsely make, forge, or counterfeit, or %^^ g " ^
cause or procure to be falsely made, forged, or counter- Un|tcetd 0|* AJ?;
feited, or willingly aid or assist in falsely making, forg-fee.1/®0, ch-9,
ing, or counterfeiting, any paper, writing, or instrument,
in imitation of, or purporting to be, an indent, certificate
of the public stock, or debt, treasury note, or other public
security of the United States, or any letters patent, issued
or granted by the President of the United States, or any
bill, check, or draft for money drawn by, or on the treasurer of the United States, or by, or on, any other public
officer or agent of the United States, duly authorized to
make, draw, accept, or pay the same, on behalf and for
account of the United States, (a) or if any person or
persons shall pass, utter, or publish, or attempt to pass,
utter, or publish, as true, any such false, forged, or counterfeited paper, writing, or instrument, knowing the same
to be false, forged, or counterfeited, with intent to defraud the United States, or any body politic or corporate, or any other person or persons whatsoever; or if any
person or persons shall falsely alter any indent, certificate of the public stock, or debt, treasury note, or other
public security of the United States, or any letters patent,
issued or granted by the President of the United States,
or any bill, check, or draft for money drawn by or on the
treasurer of the United States, or any other public officer
or agent of the United States, duly authorized to make,
draw, accept, or pay such bill, check, or draft, or if any
person or persons shall pass, utter, or publish, or attempt
to pass, utter, or publish, as true and unaltered, any such
falsely altered indent, certificate, treasury note, or other
public security, letters patent, or bill, check, or draft,
knowing the same to be falsely altered, with intent to
defraud the United States, or any body politic or corporate, or any person or persons whatsoever, *(&) every
15712°—10

314

NATIONAL MONETARY COMMISSION.

such person, so offending, shall be deemed guilty of felony,
and shall, on conviction thereof, be punished by fine, not
exceeding five thousand dollars, and by imprisonment
and confinement to hard labour, not exceeding ten years,
according to the aggravation of the offence.
(Section 18 makes it an offense and punishable to
forge Treasury notes or other public securities of the
United States, certificates of stock of the United States,
or certificates of stock of the Bank of the United States.)
Approved, March 3, 1825.
ACT OF APEIL 11, 1836.
5 stat. L., 8. CHAP. L.—An act to repeal so much of the act entitled
"A?i act transferring the duties of Commissioner of
Loans to the Bank of the United States, and abolishing
the office of Commissioner of Loans" as requires the
Bank of the United States to perform the duties of
Commissioner of Loans for the several States.
(Section 1 repeals the provisions of the act of March
3, 1817, which transfer the duties of commissioner of
loans to the United States Bank, its branches and state
banks employed by it, and requires the immediate transfer of all papers and records relating to said duties to the
Secretary of the Treasury.)
Banks to pay SEC. 2. And be it further enacted, That the Bank of
the Treasury the United States and its several branches, and the State
within.

months.

three

Banks employed by the Bank of the United States, performing the duties of Commissioners of Loans, shall be,
and they are hereby required to pay into the Treasury of
the United States, within three months after the passing
of this act, all the money in their possession for the
redemption of the public debt of the United States, and
the interest thereon remaining in their hands, which has
not been applied for by the person or persons entitled to
receive the same.
SEC. 3. And be it further enacted, That it shall be the
duty of the Secretary of the Treasury to pay over to the
person or persons entitled to receive the same, the amount
so received into the Treasury, by virtue of the second section of this act, out of any money in the Treasury not
otherwise appropriated.
SEC. 4. And be it further enacted, That nothing contained in this act shall be construed to authorize the

LAWS CONCERNING MONEY, BANKING, AND LOANS.

315

appointment of a Commissioner or Commissioners of
Loans in any State, District, or Territory of the United
States.
Approved, April 11,1836.
NOTE.—-By the act of April 20, 1836 (5 Stat. L., 16), it is also
provided that all acts and parts of acts enabling the Bank of the
United States or its branches to pay pensions granted under the
authority of the United States are repealed, and that payments of
pensions shall be made by such persons and corporations as the
Secretary of War may direct.

ACT OF JUNE 15, 1836.
XCVII.—An act repealing the fourteenth section 5 stat. L.,
of the "Act to incorporate the subscribers to the Bank
of the United States" approved, April tenth, eighteen
hundred and sixteen.

CHAP.

Be it enacted by the Senate and House of Representa- ge^i^iT***
tives of the United States of America in Congress assem,- peaiea.
bled, That the fourteenth section of the act entitled "An
act to incorporate the subscribers to the Bank of the
United States," approved April tenth, eighteen hundred
and sixteen, shall be, and the same is hereby, repealed.
Approved, June 15,1836.
ACT OF JUNE 23, 1836.
CHAP.

CXV.—An act to regulate the deposites of the r 5 stat. L.,
public

money.

[Repealed.]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That it shall be the duty of the Secretary of the 4 Act ^>f July
Treasury to select as soon as may be practicable and 354.
employ as the depositories of the money of the United ^secretary of
r

•

the

Treasury

States, such of the banks incorporated by the severalto select banks.
States, by Congress for the District of Columbia, or by
the Legislative Councils of the respective Territories for
those Territories, as may be located at, adjacent or convenient to the points or places at which the revenues may
be collected, or disbursed, and in those States, Territories
or Districts in which there are no banks, or in which no
bank can be employed as a deposite bank, and within
which the public collections or disbursements require a
depository, the said Secretary may make arrangements
with a bank or banks, in some other State, Territory or

316

NATIONAL MONETARY COMMISSION,

District, to establish an agency, or agencies, in the
States, Territories or Districts so destitute of banks, as
banks of deposite; and to receive through such agencies
such deposites of the public money, as may be directed to
be made at the points designated, and to make such disbursements as the public service may require at those
points; the duties and liabilities of every bank thus
establishing any such agency to be the same in respect to
its agency, as are the duties and liabilities of deposite
Proviso.
banks generally under the provisions of this act: Provided, That at least one such bank shall be selected in each
State and Territory, if any can be found in each State
and Territory willing to be employed as depositories of
the public money, upon the terms and conditions hereinafter prescribed, and continue to conform thereto; and
that the Secretary of the Treasury shall not suffer to remain in any deposite bank, an amount of the public
moneys more than equal to three-fourths of the amount
of its capital stock actually paid in, for a longer time
than may be necessary to enable him to make the transfers required by the twelfth section of this act; and that
the banks so selected, shall be, in his opinion, safe depositories of the public money, and shall be willing to undertake to do and perform the several duties and services,
and to conform to the several conditions prescribed by
this act.
where there is SEC. 2. And he it further enacted. That if, at anv point
no bank which

the secretary or place at which the public revenue may be collected,
a o D r o v e s or

where banks're-there shall be no bank located, which, in the opinion of the
iiise

a selec~

tion' may be Secretary of the Treasury, is in a safe condition, or where
place adjacent, all the banks at such point or place shall fail or refuse
to be employed as depositories of the public money of the
United States, or to comply with the conditions prescribed by this act, or where such banks shall not have
sufficient capital to become depositories of the whole
amount of moneys collected at such point or place, he
shall and may order and direct the public money collected at such point or place to be deposited in a bank or
banks in the same State, or in some one or more of the
adjacent States upon the terms and conditions hereinafter
Proviso,
prescribed: Provided, That nothing in this act contained
shall be so construed as to prevent Congress at any time
from passing any law for the removal of the public money
from any of the said banks, or from changing the terms
of deposite, or to prevent the said banks at any time from

LAWS CONCERNING MONEY, BANKING, AND LOANS.

317

declining any longer to be the depositories of the public
money upon paying over, or tendering to pay, the whole
amount of public moneys on hand, according to the terms
of its agreement with the said Secretary.
SEC. 3. And be it further enacted. That no bank shall n ?|^ k s *£,££
hereafter be selected and employed by the Secretary of copy* eo?echarthe Treasury as a depository of the public money, until ter»etcsuch bank shall have first furnished to the said Secretary
a statement of its condition and business, a list of its
directors, the current price of its stock; and also a copy
of its charter; and likewise, such other information as
may be necessary to enable him to judge of the safety of
its condition.
SEC. 4. And be it further enacted, That the said banks,
before they shall be employed as the depositories of the
public money, shall agree to receive the same, upon the
following terms and conditions, to wit:
First. Each bank shall furnish to the Secretary of the Terms to be
.

agreed to by

Treasury, from time to time, as often as he may require, the banks,
not exceeding once a week, statements setting forth its
condition and business, as prescribed in the foregoing
section of this act, except that such statements need not,
unless requested by said Secretary, contain a list of the
directors, or a copy of the charter. And the said banks
shall furnish to the Secretary of the Treasury, and to the
Treasurer of the United States, a weekly statement of the
condition of his account upon their books. And the Secretary of the Treasury shall have the right, by himself,
or an agent appointed for that purpose, to inspect such
general accounts in the books of the bank, as shall relate
to the said statements: Provided, That this shall not be rroviso.
construed to imply a right of inspecting the account of
any private individual or individuals with the bank.
Secondly. To credit as specie, all sums deposited therein
to the credit of the Treasurer of the United States, and to
pay all checks, warrants, or drafts, drawn on such deposites, in specie if required by the holder thereof.
Thirdly. To give, whenever required by the Secretary
of the Treasury, the necessary facilities for transferring
the public funds from place to place, within the United
States, and the Territories thereof, and for distributing
the same in payment of the public creditors, without
charging commissions or claiming allowance on account
of difference of exchange.

318

NATIONAL, MONETARY COMMISSION.

Fourthly. To render to the Government of the United
States all the duties and services heretofore required by
law to be performed by the late Bank of the United
States and its several branches or offices.
Banks issuing SEC. 5. And be it further enacted. That no bank shall
notes less than

$5 not to be se- be selected or continued as a place of deposite of the public
money which shall not redeem its notes and bills on demand in specie; nor shall any bank be selected or continued as aforesaid, which shall after the fourth of July,
in the year one thousand eight hundred and thirty-six,
issue or pay out any note or bill of a less denomination
than five dollars; nor shall the notes or bills of any bank
be received in payment of any debt due to the United
States which shall, after the said fourth day of July, in
the year one thousand eight hundred and thirty-six, issue
any note or bill of a less denomination than five dollars,
secretarymay SEC. 6. And be it further enacted. That the Secretary
require

secur-

ity.

of the Treasury shall be, and he is hereby authorized, and
it shall be his duty, whenever in his judgment the same
shall be necessary or proper, to require of any bank so
selected and employed as aforesaid, collateral or additional securities for the safe keeping of the public moneys
deposited therein, and the faithful performance of the
duties required by this act.
secretary au- SEC. 7. And be it further enacted. That it shall be law-

thorized to en- . , „

< » i m

ter into con- ful for the Secretary 01 the Treasury, to enter into contracts in the name and for and on behalf of the United
States, with the said banks so selected or employed,
whereby the said banks shall stipulate to do and perform
the several duties and services prescribed by this act.
No bank se- SEC. 8. And be it further enacted, That no bank which
discontinued shall be selected or employed as the place of deposite of
x

but for certain

causes.

•*

the public money, shall be discontinued as such depository, or the public money withdrawn therefrom, except
for the causes hereinafter mentioned, that is to say: If at
any time, any one of said banks shall fail or refuse to perform any of said duties as prescribed by this act, and
stipulated to be performed by its contract; or, if any of
said banks shall at any time refuse to pay its own notes
in specie if demanded; or shall fail to keep in its vaults
such an amount of specie as shall be required by the Secretary of the Treasury, and shall be, in his opinion, necessary to render the said bank a safe depository of the
public moneys, having due regard to the nature of the

LAWS CONCERNING MONEY, BANKING, AND LOANS.

319

business transacted by the bank; in any and every such
case it shall be the duty of the Secretary of the Treasury
to discontinue any such bank as a depository, and withdraw from it the public moneys which it may hold on deposite at the time of such discontinuance. And in case
of the discontinuance of any of said banks, it shall be the
duty of the Secretary of the Treasury to report to Congress immediately if in session, and if not in session, then
at the commencement of its next session, the facts and
reasons which have induced such discontinuance. And
in case of the discontinuance of any of said banks as a
place of deposite of the public money for any of the
causes herein before provided, it shall be lawful for the
Secretary of the Treasury to deposite the money thus
withdrawn in some other banks of deposite already selected, or to select some other bank as a place of deposite,
upon the terms and conditions prescribed by this act.
And in default of any bank to receive such deposite, the
money thus withdrawn shall be kept by the Treasurer of
the United States, according to the laws now in force;
and shall be subject to be disbursed according to law.
SEC. 9. And he it further enacted. That until the Sec- emp?0neVto0be
retary of the Treasury shall have selected and employed continued until,
the said banks as places of deposite of the public money,
in conformity to the provisions of this act, the several
State and District banks at present employed as depositories of the money of the United States, shall continue
to be the depositories aforesaid upon the terms and conditions upon which they have been so employed.
SEC. 10. And he it further enacted. That it shall be the, secretary to
7

lay a statement

duty of the Secretary of the Treasury to lay before Con- before congress, at the commencement of each annual session, a
statement of the number and names of the banks employed
as depositories of the public money, and of their condition, and the amount of public money deposited in each,
as shown by their returns at the Treasury; and if the selection of any bank as a depository of the public money
be made by the Secretary of the Treasury, while Congress is in session, he shall immediately report the name
and condition of such bank to Congress; and if any such
selection shall be made during the recess of Congress, he
shall report the same to Congress during the first week of
its next session.
SEC. 11. And he it further enacted. That whenever the in ^?st * unSer
amount of public deposites to the credit of the Treasurer £Sn^.clre,im"

320

NATIONAL MONETARY COMMISSION.

of the United States, in any bank shall, for a whole
quarter of a year, exceed the one-fourth part of the
amount of the capital stock of such bank actually paid
in, the bank shall allow and pay to the United States, for
the use of the excess of the deposites over the one-fourth
part of its capital, an interest at the rate of two per
centum per annum, to be calculated for each quarter,
upon the average excesses of the quarter; and it shall be
the duty of the Secretary of the Treasury, at the close of
each quarter, to cause the amounts on deposite in each deposite bank for the quarter, to be examined and ascertained, and to see that all sums of interest accruing under
the provisions of this section, are, by the banks respectively passed to the credit of the Treasurer of the
United States in his accounts with the respective banks.
Transfers un- SEC 12. And be it further enacted. That all warrants
der c e r t a i n

I T O T

cases declared or orders for the purpose of transferring the public funds
from the banks in which they now are, or may hereafter
be deposited, to other banks, whether of deposite or not,
for the purpose of accommodating the banks to which
the transfer may be made, or to sustain their credit, or for
any other purpose whatever, except it be to facilitate the
public disbursements, and to comply with the provisions
of this act, be, and the same are hereby, prohibited and
declared to be illegal; and in cases where transfers shall
be required for purposes of equalization under the provisions of this act, in consequence of too great an accumulation of deposites in any bank, such transfers shall
be made to the nearest deposite banks which are considered safe and secure, and which can receive the moneys
to be transferred under the limitations in this act imposed : Provided^ That it may be lawful for the President
of the United States to direct transfers of public money
to be made from time to time to the mint and branch
mints of the United States, for supplying metal for coining.
Th
tL STreaS ^EC* *'* ^ ^ ^e ^ further enacted, That the money
ury above $5,- which shall be in the Treasury
of the United States, on
J
000,000 to be

deposited with the first day of January, eighteen hundred and thirtystates. * seven, reserving the sum of five millions of dollars, shall
be deposited with such of the several States, in proportion to their respective representation in the Senate and
House of Representatives of the United States, as shall,
by law, authorize their Treasurers, or other competent
authorities to receive the same on the terms hereinafter
specified; and the Secretary of the Treasury shall deliver

LAWS CONCEKNIKG MONEY, BANKING, AND LOANS.

321

the same to such Treasurers, or other competent authorities, on receiving certificates of deposite therefor, signed
by such competent authorities, in such form as may be
prescribed by the Secretary aforesaid; which certificates Act of Oct.2,
shall express the usual and legal obligations, and pledge
the faith of the State, for the safe keeping and repayment thereof, and shall pledge the faith of the States
receiving the same, to pay the said moneys, and every
part thereof, from time to time, whenever the same shall
be required, by the Secretary of the Treasury, for the
purpose of defraying any wants of the public treasury,
beyond the amount of the five millions aforesaid: Provided, That if any State declines to receive its proportion
of the surplus aforesaid, on the terms before named, the
same shall be deposited with the other States, agreeing
to accept the same on deposite in the proportion aforesaid: And provided further, That when said money, or
any part thereof, shall be wanted by the said Secretary, to
meet appropriations by law, the same shall be called for,
in rateable proportions, within one year, as nearly as conveniently may be, from the different States, with which
the same is deposited, and shall not be called for, in sums
exceeding ten thousand dollars, from any one State, in
any one month, without previous notice of thirty days,
for every additional sum of twenty thousand dollars,
which may at any time be required.
SEC. 14. And be it further enacted, That the said de- Proportionsin
which the de-

posites shall be made with the said States in the follow- posits shall be
ing proportions, and at the following times, to wit: one
quarter part on the first day of January, eighteen hundred and thirty-seven, or as soon thereafter as may be;
one quarter part on the first day of April, one quarter
part on the first day of July, and one quarter part on the
first day of October, all in the same year.
(Section 15 makes provision for additional clerks on
account of this act.)
Approved, June 23, 1836.
NOTE.—By the act of July 5, 1838, the operation of the last
clause of section 5, prohibiting the receipt in payments to the
United States of the notes of any bank which shall issue notes of
less than five dollars after July 4,1836, is suspended until October
1, 1838; but from said last-mentioned dates the notes of no bank
shall be so received, which shall after that date issue, reissue, or
pay out any note of less than five dollars. (5 Stat. L., 255,)

322

NATIONAL MONETAEY COMMISSION.

A C T O F J U N E 23, 1836.
5 stat. u, 56. CHAP. CXVI.—An act authorizing the Secretary of the
Treasury to act as the agent of the United States in all
matters relating to their stock in the Bank of the
United States.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemt h l ^ i S S p y ? o * ^ T h a t f r o m a n d a f t e r t l i e P a s s a g e °f t h i s a c t it s l i a 1 1
e ^ c T s ^ t h e " 3 6 *ke ^ u t y of the Secretary of the Treasury, to assume
agency.
a n ( j exercise the agency and direction in behalf of the
United States, over property in the Bank of the United
States, whether the same be standing on the books of the
bank in the name of the United States, or of the Treasurer
of the United States, for the use of the Secretary of the
Navy, for the payment of navy pensions; and the Secretary of the Treasury is hereby invested with the authority necessary for carrying into effect the duties of
said agency, by voting in behalf of the United States at
any meetings of the stockholders, and performing any
other act in relation to the same which any stockholder
would be authorized to do.
Directors of SEC. 2. And be it further enacted. That, as agent of
the bank to fur-

nish s t a t e - t h e United States, as aforesaid, the Secretary of the
Treasury, shall be furnished, from time to time, as often
as he may require—by the directors of the Bank of the
United States, or by the trustees who shall have been, or
may be, appointed, either by said directors or the stockholders of said bank, or in their behalf, or by such individuals as may have the custody, control, or possession
of the books and effects of the same—with statements of
the amount of the capital stock of the said corporation
undivided, of the debts due beyond the same on account
of said bank, of the moneys remaining on deposite, of the
notes of said bank outstanding, and of the specie on hand
on account of the same, and said Secretary shall have the
same right as any stockholder to inspect and examine, or
cause to be inspected and examined, all such accounts in
the books of said bank, or of any trust arising out of or
holding the effects of said corporation, as shall relate to
the statements hereby required to be made.
mo^ey fromthe ^EC. **• ^n^ ^e ^ further enacted, That the Secretary of
posue «iedsame ^ i e Treasury be authorized and directed to receive and
intheTreasury
« deposite in the Treasury of the United States, any divi

LAWS CONCERNING MONEY, BANKING, AND LOANS.

323

dends which may be made of the capital stock or of the
surplus profits of said bank.
SEC. 4. And be it further enacted. That the Secretary Toreceive
of the Treasury shall be, and he hereby is, authorized and etc.
empowered to receive the capital stock belonging to the
United States, in the late Bank of the United States, in
such instalments, and payable at such times, and with
such rates of interest, as he shall see fit to agree t o ; and
also, to settle and adjust the claim for surplus profits,
accruing on said capital stock, on such terms as he may
think proper, and in like manner to receive the amount
thereof in such instalments, and payable at such times,
and with such rates of interest, as he may agree to.
Approved, June 23, 1836.
A C T O F J U L Y 4, 1836.
CHAP. CCCLIV.—An act supplementary to an act en- n | s * a t • L -»
titled "An act to regulate the deposites of the public [Obsolete.]
money" passed twenty-third (of) June eighteen hundred and thirty-six.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That nothing in the act to which this is a sup- Act of June
plement, shall be so construed as to prevent the Seere- nj>.
Secretary or

tary of the Treasury from making transfers from banks the Treasury
^

maymake

in one State or Territory, to banks in another State or transfers from
™

-i

11 j

• banks in one

Territory, whenever such transfers may be required, m state or Terri.,
'
.,
.
i
.
y
order to prevent large and inconvenient accummulations in another.
in particular places, or in order to produce a due equality,
and just proportion, according to the provisions of said
act.
Approved, July 4, 1836.
A C T O F O C T O B E R 2, 1837.
J

tor

t o

t n o s e

•^5

CHAP. I.—An act to postpone the fourth instalment
deposite with the States.

0/ 2 oi

Stat

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembledy That the transfer of the fourth instalment of 23Aci836 J l $?
deposites directed to be made with the States, under the n p ' 0 ^ t ponea
thirteenth section of the act of June twenty-third, \ ^ Jan - *»

324

NATIONAL MONETARY COMMISSION.

eighteen hundred and thirty-six, be and the same is
hereby postponed till the first day of January, one thoueight hundred and thirty-nine: Provided, That the
fean(j
three first instalments under the said act shall remain on
deposite with the States, until otherwise directed by
Congress.
Approved, October 2, 1837.

Proviso.

A C T O F O C T O B E E 16, 1837.
206

Stat#

L,,

CHAP.

I X . — A n act for adjusting the remaining
upon the late deposite banks.

claims

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemoihtteC?™ZlUed> T h a t t h e Secretary of the Treasury be, and he is
toycontinuleizto^ere^y? authorized to continue to withdraw the public
puWicramoneysmoneys n o w remaining in any of the former deposite
d^posSefbanksr,'3an^s' * n a m a n n e r a s gradual and convenient to the
conve^iaen^ertao institutions as shall be consistent with the pecuniary
beemconsis?eaitwan^s °^ ^he Government, and the safety of the funds
Sf^th^Govern- ^ u s t o ^ e drawn ? a n c * that no further interest than that
me
Act e of'June re( l u ^ re ^ ^y *ke deposite act of the twenty-third of June,
23^ 1836, ch. one thousand eight hundred and thirty-six, under which
those deposites were made, shall be demanded of any
bank which has met, and shall hereafter meet, the requis i t e extend ^ i o n s °f ^ e Department. This provision shall also
whether* standi e x * e n d to such public moneys as may remain in any of
credit * of t t h e ^ e s a *^ banks, whether standing to the credit of the
T^asur ft&tor ^ r e a s u r e r °^ ^ l e United States, or of any disbursing or
any other qffi- other public officer of the Government.
cerofthe

Government.

SEC. 2. A?id be it further enacted. That in case of neg-

In c a s e of

any of saidlect or refusal by any of the said banks to comply with
banks not com-

. . .

* -,

plying with the the requisitions of the Ibecretary of the Treasury, as he
the secretary shall make them, in conformity with the first section of
ury, suits shaii this act, suits shall be instituted, where that has not
unless, etc. ' already been done, to recover the amounts due to the
United States, unless the defaulting bank shall forthwith cause to be executed and delivered to the Secretary
of the Treasury a bond, with security to be approved by
the Solicitor of the Treasury, to pay to the United States
the whole moneys due from it, in three instalments: the
first to be paid on the first day of July next, the second
on the first day of January, eighteen hundred and thirtynine, and the remaining instalment on the first day of
July, eighteen hundred and thirty-nine; and the default

LAWS CONCERNING MONEY, BANKING, AND LOANS.

325

mentioned in this act, on which interest is to commence
at the rate of six per (centum per annum,) shall be
understood to be the neglect or omission of said banks, or
any of them, to answer the drafts or requisitions of the
Secretary of the Treasury made on them according to the
provisions of the first section of this act; and interest
thereon at the rate of six per centum per annum, from
the time of default, together with any damages which
may have accrued to the United States from protests of
drafts drawn upon it, or from any other consequence of
its failure to fulfil its obligations to the public treasury.
Approved, October 16, 1837.
ACT OF JULY 5, 1838.
CLVIII.—An act to modify the last clause of the25^
fifth section of the deposite act of .the twenty-third of
June, eighteen hundred and thirty-six.

CHAP.

stat

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the last clause of the fifth section of the ac^23Aci836 Juhe
entitled "An act to regulate the deposites of the public i i 5, l a s t
money," approved on the twenty-third day of June, eight-fledas' to iseen hundred and thirty-six, declaring that the notes or under $5 .
bills of no bank shall be received in payment of any debt
due to the United States, which shall, after the fourth
day of July, in the year one thousand eight hundred and
thirty-six, issue any note or bill of a less denomination
than five dollars, shall be, and the same is hereby, so far
modified as that the interdiction as to the reception of the
bills and notes shall not continue against any bank which
has, since the said fourth day of July, in the year one
thousand eight hundred and thirty-six, issued bills or
notes of a less denomination than five dollars, or which
shall issue any such bills or notes prior to the first day
of October, in the year eighteen hundred and thirtyeight, but that from and after the said last mentioned
day, the bills or notes of no bank shall be received in payment of any debt due to the United States, which bank
shall, after that date, issue, reissue, or pay out any bill
or note of a denomination less than five dollars.
Approved, July 5, 1838.

326

NATIONAL MONETARY COMMISSION.

ACT OF JULY 7, 1838.
5 stat.

CLXXXV.—An act to prevent the issuing and
circulation of the bills, notes and other securities of
corporations created by acts of Congress which have
expired.

L., CHAP.

(Section 1 makes it a high misdemeanor for any director, agent, or trustee of any corporation created by
act of Congress, the charter whereof has expired, to reissue or knowingly put in circulation any bill, note, check,
draft, or other security of such expired corporation; and
section 2 gives to the circuit courts of the United States
jurisdiction, on bill or petition, to restrain the issue or
transfer of such bills, notes, and other securities when in
the possession or control of any director, agent, or trustee of such expired corporation, and to cause such of said
bills, notes, and securities as have been redeemed to be
delivered up and canceled.)
Approved, July 7, 1838.
ACT OF JULY 7,1838.
5 Stat.
309.

CCXII.—An act to restrain the circulation of
small notes, as a currency, in the District of Columbia,
and for other purposes.

-»CHAP.

(This act made it unlawful after the 10th of April,
1839, to issue, etc., in the District of Columbia, any note,
etc., less than five dollars, and after the passage of this act
to issue, de novo, or knowingly to pass, etc., within the
District, any note, etc., of less than five dollars. The act
of December 27, 1854 (10 Stat. L., 599), contains similar
provisions.)
ACT OF AUGUST 13,1841.
5 S t a t . L*> CHAP.
439.

VII.—An act to repeal the act entitled "An act to
provide for the collection, safe-keeping, transfer, and
disbursement of the public revenue," and to provide for
the punishment of embezzlers of public money, and for
other purposes.

23Aci836 Jlcbe ^EC. 3. And be it further enacted, That the act entitled,
th&teenth^anl"^111 ac ^ *° r e g u l a t e the deposits of the public money,"
t?onseerepeaied" a PP r o v e < l o n the twenty-third day of June, eighteen hun-

LAWS CONCERNING MONEY, BANKING, AND LOANS.

327

dred and thirty-six, excepting the thirteenth and fourteenth sections thereof, be and the same hereby is repealed.
*
*
*
*
*
Approved August 13, 1841.
ACT OF AUGUST 5, 1861.
XLVI.—An act supplementary to an act entitled 3 1 | 2
"An act to authorize a national loan, and for other
purposes."

CHAP.

stat

- L-

SEC. 6. And be it further enacted, That the provisions BJ£rJ*™*7 a°ct
of the act entitled "An act to provide for the better or- suspended,
ganization of the Treasury, and for the collection, safekeeping, transfer, and disbursements of the public reve- voi41xch' IS*
nue," 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; go^t^specie1and the said moneys, so deposited, may be withdrawn payins banks,
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.
*
*
*
*
$
Approved, August 5, 1861.
ACT OF FEBRUARY 25, 1863.
LVIII.—An act to provide a National Currency, 12 stat.
secured by a Pledge of United States Stocks, and to
provide for the Circulation and Redemption thereof.

CHAP.

(This act was repealed and superseded by the act of
similar title approved June 3, 1864, but with so little
change in its leading features as to make it sufficient in
this place to refer to the note appended to the act of
1864, where the principal points of difference are recited,
and to extract here only the sections providing for the

L.,

328

NATIONAL MONETARY COMMISSION.

apportionment of the bank circulation and for the issue
of secured notes by State banks.)
*
*
*
*
*
SEC. 17. And be it further enacted. That the entire
amount of circulating notes to be issued under this aot
shall rot exceed three hundred millions of dollars. One
hundred and fifty millions of which sum 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.
SEC. 61. And be it further enacted, That any banking
association or corporation lawfully in existence as a bank
of circulation on the first day of January, Anno Domini
eighteen hundred and sixty-three, organized in any state,
either under a special act of incorporation or a general
banking law, may, at any time within
years after the
passage of this act become an association under the provisions of this act; that in such case the certificate of
association provided for by this act shall be signed by
the directors of such banking association or corporation,
and in addition to the specifications required by this act,
shall specify that such directors are authorized by the
owners of two-thirds of the capital stock of such banking association or corporation, to make such certificate
of association, and such certificate of association shall
thereafter have the same effect, and the same proceedings
shall be had thereon, as is provided for as to other associations organized under this act. And such association
or corporation thereafter shall have the same powers and
privileges, and shall be subject to the same duties, responsibilities, and rules, in all respects, as is (are) prescribed in this act for other associations organized under
it, and shall be held and regarded as an association under
this act.
SEC. 62. And be it further enacted, That any bank or
banking association, authorized by any State law to engage in the business of banking, and duly organized under
such State law at the time of the passage of this act, and
which shall be the holder and owner of United States

LAWS CONCERNING MONEY, BANKING, AND LOANS.

bonds to the amount of fifty per centum of its capital
stock, may transfer and deliver to the Treasurer of the
United States such bonds, or any part thereof, in the
manner provided by this act; and upon making such
transfer and delivery, such bank or banking association
shall be entitled to receive from the comptroller of the
currency, circulating notes, as herein provided, equal in
amount to eighty per centum of the amount of the bonds
so transferred and delivered.
SEC. 63. And be it further enacted, That upon the failure of any such State bank or banking association, to
redeem any of its circulating notes issued under the provisions of the preceding section, the comptroller of the
currency shall, when satisfied that such default has been
made, and within thirty days after notice of such default,
proceed to declare the bonds transferred and delivered to
the treasurer, forfeited to the United States, and the same
shall thereupon be forfeited accordingly. And thereupon
the circulating notes which have been issued by such bank
or banking association shall be redeemed and paid at the
Treasury of the United States, in the same manner as
other circulating notes issued under the provisions of this
act are redeemed and paid.
SEC. 64. And be it further enacted, That the bonds forfeited, as provided in the last preceding section, may be
cancelled to an amount equal to the circulating notes redeemed and paid, or such bonds may be sold, under the
direction of the Secretary of the Treasury, and after retaining out of the proceeds a sum sufficient to pay the
whole amount of circulating notes, for the redemption of
which such bonds are held, the surplus, if any remains,
shall be paid to the bank, or banking association from
which such bonds were received.
SEC. 65. And be it, further enacted, That Congress reserves the right, at any time, to amend, alter, or repeal
this act.
Approved, February 25, 1863.
ACT OF MAECH 3, 1863.
CHAP.

LXXIII.—An act to provide ways and means for
the support of the Government.

Sfc

ijt

(Section 7, after providing for taxes to be laid upon
the circulation of all banks and corporations, whether es15712°~>10

329

330

NATIONAL MONETARY COMMISSION.

tablished 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 taxed ten per cent per annum
upon the amount of such fractional notes.)
*
*
*
#
*
Approved, March 3, 1863.
ACT OF JUNE 3, 1864.
13 stat

CVI.—An act to provide a national currency, secured by a pledge of United States bonds, and to provide for the circulation and redemption thereof.

L., CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemcurrency Bu-£ w That there shall be established in the Treasury
r e a u estao-

Hsned.

Department a separate Bureau, which shall be charged
with t h e execution of this and all other laws t h a t 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
comptroller the Comptroller of the Currency, a n d shall be under the

of t h e C u r -

-t \»

•

<»ioi

rency.
general direction o t t h e Secretary or the Treasury. H e
Appointment, shall be appointed by the President, on the recommendation of the Secretary of t h e Treasury, by and with the
advice and consent of the Senate, and shall hold his office
Term of office, for the term of five years unless sooner removed by t h e
President, upon reasons to be communicated by him to the
salary.
Senate; he shall receive an annual salary of five thousand
Deputy comp- dollars; he shall have a competent deputy, appointed by
the Secretary, whose salary shall be two thousand five
hundred dollars, and who shall possess the power a n d
perform the duties attached by law to the office of Comptroller during a vacancy in such office and during his
absence or inability; he shall employ, from time to time,
the necessary clerks t o discharge such duties as he shall
cierks.
direct, which clerks shall be appointed and classified by
the Secretary of the Treasury in the manner now protoCt™klr°olth v i d e d b y l a w - Within fifteen days from the time of
time?in w h a t n °ti° e °f his appointment the Comptroller shall take and
subscribe the oath of office prescribed by the Constitution
and laws of the United States; and he shall give to the
Bond.
United States a bond in the penalty of one hundred thousand dollars, with not less than two responsible sureties,

LAWS CONCERNING MONEY, BANKING, AND LOANS.

331

to be approved by the Secretary of the Treasury, conditioned for the faithful discharge of the duties of his
office. The deputy comptroller so appointed shall also
take the oath of office prescribed by the Constitution and ° d a t h d a n d
laws of the United States, and shall give a like bond in comptroller,
the penalty of fifty thousand dollars. The Comptroller Not to be in-iT

T ™

.„

r
n

terested in any

and deputy-comptroller shall not, either directly or mdi- banking assorectly, be interested in any association issuing national
currency under the provisions of this act.
SEC. 2. And be it further enacted, That the Comp- seaiof curtroller of the Currency, with the approval of the Secretary of the Treasury, shall devise a seal, with suitable
inscriptions, for his office, a description of which, with
a certificate of approval by the Secretary of the Treasury, | nd t where t0 be
shall be filed in the office of the Secretary of State with
an impression thereof, which shall thereupon become the
seal of office of the Comptroller of the Currency, and the
same may be renewed when necessary. Every certificate, pe(Jgrt1fn1dpe%
assignment, and conveyance executed by the Comptroller, ^f^j^J1 to be
in pursuance of any authority conferred on him by law,
and sealed with his seal of office, shall be received in
evidence in all places and courts whatsoever; and all
copies of papers in the office of the Comptroller, certified
by him and authenticated by the said seal, shall in all
cases be evidence equally and in like manner as the origi- impression
nal. An impression of such seal directly on the paper paper,
shall be as valid as if made on wax or wafer.
SEC 3. And be it further enacted. That there shall be„ Rooms for
Currency Bu-

assigned to the Comptroller of the Currency by the Secre- reau.
tary of the Treasury suitable rooms in the Treasury building for conducting the business of the Currency Bureau,
in which shall be safe and secure fire-proof vaults, in Fire-proof
which it shall be the duty of the Comptroller to deposit
and safely keep all the plates not necessarily in the possession of engravers or printers, and other valuable things
belonging to his department; and the Comptroller shall
from time to time furnish the necessary furniture, sta- Furniture,
tionery, fuel, lights, and other proper conveniences for ec *
the transaction of the said business.
SEC. 4. And be it further enacted, That the term Term "United
"United States bonds," as used in this act, shall be con-toa include
strued to mean all registered bonds now issued, or that w Revised stat•

may hereafter be issued, on the faith of the United States
by the Secretary of the Treasury in pursuance of law.

utes 5158

332

NATIONAL MONETARY COMMISSION.

sodaSo!?sghow ^EC* 5. And be it further enacted, That associations for
may be formed, carrying on the business of banking may be formed by
any number of persons, not less in any case than five,
who shall enter into articles of association, which shall
specify in general terms the object for which the association is formed, and may contain any other provisions,
not inconsistent with the provisions of this act, which the
association may see fit to adopt for the regulation of the
business of the association and the conduct of its affairs,
which said articles shall be signed by the persons uniting
to form the association, and a copy of them forwarded
to the Comptroller of the Currency, to be filed and preserved in his office.
c rtilanitatito ^ EC# ®' ^n^ ^e ^ fur^er
enacted, That the persons
specify
uniting to form such an association shall, under their
hands, make an organization certificate, which shall
specify—
name,
First. The name assumed by such association, which
name shall be subject to the approval of the Comptroller.
place of busi- Second. The place where its operations of discount and
deposit are to be carried on, designating the State, Territory, or District, and also the particular county and
city, town, or village.
capital and Third. The amount of its capital stock, and the number
of shares into which the same shall be divided.
names, etc., of Fourth. The names and places of residence of the
shareholders

shareholders, and the number of shares held by each of
them.
purpose of cer- Fifth. A declaration that said certificate is made to enable such persons to avail themselves of the advantages
of this act.
certificate to The said certificate shall be acknowledged before a
edged.
judge of some court of record or a notary public, and such
certificate, with the acknowledgment thereof authenticated by the seal of such court or notary, shall be transmitted to the Comptroller of the Currency, who shall record and carefully preserve the same in his office. Copies
seal0 toeSbe nedvi- °^ s u c ^ c e r tifi c a ^ e ? duly certified by the Comptroller, and
dence.
authenticated by his seal of office, shall be legal and sufficient evidence in all courts and places within the United
States, or the jurisdiction of the Government thereof, of
the existence of such association, and of every other matter or thing which could be proved by the production of
the original certificate.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

333

SEC. 7. And be it further enacted, That no association ca^g[f "£* g|
shall be organized under this act, with a less capital than ™£ less 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 Proviso,
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.
SEC. 8. And he it further enacted, That every associa- Associations,
tion formed pursuant to the provisions 01 this act shall, porations and
-

. .

when to com-

from the date ot the execution of its organization cer- mencebusiness.
tificate, be a body corporate, but shall transact no business
except such as may be incidental to its organization and
necessarily preliminary, until authorized by the Comptroller of the Currency to commence the business of
banking. Such association shall have power to adopt a seal,
corporate seal, and shall have succession by the name
designated in its organization certificate, for the period
of twenty years from its organization, unless sooner dis-. Ma? continue
T

. .

- '

twenty y e a r s ,

solved according to the provisions of its articles of asso- unless, etc.
ciation, or by the act of its shareholders owning two
thirds of its stock, or unless the franchise shall be forfeited by a violation of this act; by such name it may G e n e r a l
J

powers.

make contracts, sue and be sued, complain and defend, in
any court of law and equity as fully as natural persons;
it may elect or appoint directors, and by its board of di- 0 ^ Ir ^ t0PS and
rectors appoint a president, vice-president, cashier, and
other officers, define their duties, require bonds of them
and fix the penalty thereof, dismiss said officers or any
of them at pleasure, and appoint others to fill their places,
and exercise under this act all such incidental powers as
shall be necessary to carry on the business of banking by
discounting and negotiating promissory notes, drafts,
bills of exchange, and other evidences of debt; by receiving deposits; by buying and selling exchange, coin, and
bullion; by loaning money on personal security; by obtaining, issuing, and circulating notes according to the
provisions of this act; and its board of directors shall By-laws,
also have power to define and regulate by by-laws, not
inconsistent with the provisions of this act, the manner
in which its stock shall be transferred, its directors elected
or appointed, its officers appointed, its property transferred, its general business conducted, and all the privileges granted by this act to associations organized under

334

NATIONAL MONETARY COMMISSION.

ut?seV5i90Stat~i* S n a ^ be exercised and enjoyed; and its usual business
shall be transacted at an office or banking house located
in the place specified in its organization certificate.
Directors; SEC. 9. And be it further enacted, That the affairs of
qua ca ons, e v e r y a s s o c i a t i 0 n shall be managed by not less than five
one to be presi directors, one of whom shall be the president. Every director shall, during his whole term of service, be a citizen of the United States; and at least three fourths of the
directors shall have resided in the State, Territory, or
District in which such association is located one year next
preceding their election as directors, and be residents of
the same during their continuance in office. Each director
shall own, in his own right, at least ten shares of the capital stock of the association of which he is a director.
Each director, when appointed or elected, shall take an
Oath.
oath that he will, so far as the duty devolves on him,
diligently and honestly administer the affairs of such association, and will not knowingly violate, or willingly
permit to be violated, any of the provisions of this act,
and that he is the bona fide owner, in his own right, of the
number of shares of stock required by this act, subscribed
by him, or standing in his name on the books of the association, and that the same is not hypothecated, or in
any way pledged, as security for any loan or debt; which
oath, subscribed by himself, and certified by the officer before whom it is taken, shall be immediately transmitted
to the Comptroller of the Currency, and by him filed and
preserved in his office.
Term of of- SEC. 10. And be it further enacted. That the directors
fice of direC"

tors.

of any association first elected or appointed shall hold
their places until their successors shall be elected and
Elections, qualified. All subsequent elections shall be held annually on such day in the month of January as may be specified in the articles of association; and the directors so
elected shall hold their places for one year, and until
their successors are elected and qualified. But any director ceasing to be the owner of the requisite amount of
stock, or having in any other manner become disqualified,
vacancies, shall thereby vacate his place. Any vacancy in the board
shall be filled by appointment by the remaining directors,
and any director so appointed shall hold his place until
the next election. If from any cause an election of directors shall not be made at the time appointed, the association shall not for that cause be dissolved, but an election may be held on any subsequent day, thirty days'

LAWS CONCEBNING MONEY, BANKING, AND LOANS.

335

notice thereof in all cases having been given in a newspaper published in the city, town, or county in which the
-association is located; and if no newspaper is published
in such city, town, or county, such notice shall be published in a newspaper published nearest thereto. If the
articles of association do not fix the day on which the
election shall be held, or if the election should not be held
on the day fixed, the day for the election shall be designated by the board of directors in their by-laws, or otherwise : Provided^ That if the directors fail to fix the day,
as aforesaid, shareholders representing two thirds of the
shares may.
SEC. 11. And be it further enacted. That in all elec- voting and
UFOX16S

tions of directors, and in deciding all questions at meetings of shareholders, each shareholder shall be entitled
to one vote on each share of stock held by him. Shareholders may vote by proxies duly authorized in writing;
but no officer, clerk, teller, or book-keeper of such association shall act as proxy; and no shareholder whose liability
is past due and unpaid shall be allowed to vote.
SEC. 12. And be it further enacted. That the capital . ^P 1 *? 1 ?*?<*
•

•

i»

i •

to be divided

stock of any association formed under this act shall be into shares,
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; and every per- Transfer,
son becoming a shareholder by such transfer shall, in proportion to his shares, succeed to all the rights and lia- istinf creditors
m
bilities of the prior holder of such shares, and no change paired?
shall be made in the articles of association by which the
rights, remedies, or security of the existing creditors of
the association shall be impaired. The shareholders of liakiiftividual
each association formed under the provisions of this act,
and of each existing bank or banking association 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; except that shareholders of any
banking association now existing under State laws, having not less than five millions of dollars of capital actually paid in, and a surplus of twenty per centum on hand,
both to be determined by the Comptroller of the Currency, shall be liable only to the amount invested in their

336

NATIONAL MONETARY COMMISSION.

shares; and such surplus of twenty per centum shall be
kept undiminished, and be in addition to the surplus provided for in this act; and if at any time there shall be a
deficiency in said surplus of twenty per centum, the said
banking association shall not pay any dividends to its
shareholders until such deficiency shall be made good;
and in case of such deficiency, the Comptroller of the
Currency may compel said banking association to close
its business and wind up its affairs under the provisions
When comp- of this act. And the Comptroller shall have authority
troller may
withhold cer- to withhold from an association his certificate authorizing
tificate.
the commencement of business, whenever he shall have
reason to suppose that the shareholders thereof have
formed the same for any other than the legitimate objects
contemplated by this act.
Increase of
SEC. 13. And be it further enacted. That it shall be
capital stock.
lawful for any association formed under this act, by its
articles of association, to provide for an increase of its
capital from time to time, as may be deemed expedient,
Maximum.
subject to the limitations of this act: Provided, That the
maximum of such increase in the articles of association
shall be determined by the Comptroller of the Currency;
and no increase of capital shall be valid until the whole
amount of such increase shall be paid in, and notice
thereof shall have been transmitted to the Comptroller of
the Currency, and his certificate obtained specifying the
amount of such increase of capital stock, with his approval thereof, and that it has been duly paid in as part
of the capital of such association. And every association shall have power, by the vote of shareholders owning two thirds of its capital stock, to reduce the capital
of such association to any sum not below the amount
required by this act, in the formation of associations:
Minimum.
Provided, That by no such reduction shall its capital be
brought below the amount required by this act for its outstanding circulation, nor shall any such reduction be
made until the amount of the proposed reduction has
been reported to the Comptroller of the Currency and his
approval thereof obtained.
Amount to be
SEC. 14. And be it further enacted, That at least fifty
paid in before
c o m m e n c i n g per centum of the capital stock of every association shall
business.
be paid in before it shall be authorized to commence
Remainder,
business;
and the remainder of the capital stock of such
when to be
paid.
association shall be paid in instalments of at least ten
per centum each on the whole amount of the capital as

LAWS CONCERNING MONEY, BANKING, AND LOANS.

337

frequently 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. 15. And be it further enacted, That if any share- .f ^are^ofS
holder, or his assignee, shall fail to pay any instalment on s?aifmeiS»y in
the stock when the same is required by the foregoing section to be paid, the directors of such association may sell
the stock of such delinquent shareholder at public auc- l i n | * ^ j|Ja*;:
tion, having given three weeks' previous notice thereof ^mers to be
in a newspaper published and of general circulation in
the city or county where the association is located, and if
no newspaper is published in said city or county, then in
a newspaper published nearest thereto, to any person who
will pay the highest price therefor, and not less than the
amount then due thereon, with the expenses of advertisement and sale; and the excess, if any, shall be paid to the
delinquent shareholder. If no bidder can be found who
will pay for such stock the amount due thereon to the
association, and the cost of advertisement and sale, the
amount previously paid shall be forfeited to the association, and such stock shall be sold as the directors may
order, within six months from the time of such forfeiture,
and if not sold it shall be cancelled and deducted from
the capital stock of the association; and if such cancellation and reduction shall reduce the capital of the association below the minimum of capital required by this
act, the capital stock shall, within thirty days from the
date of such cancellation, be increased to the requirements of the act; in default of which a receiver may be
appointed to close up the business of the association according to the provisions of the fiftieth section of this act.
SEC. 16. And ~be it further enacted. That every associa- united states
tion, after having complied with the provisions of this bonds to be de,

•

±i~

£ u

i •

• Posited with

act, preliminary to the commencement 01 banking busi- Treasurer to
ness under its provisions, and before it shall be authorized equal to oneto commence business, shall transfer and deliver to the capital stock.
Treasurer of the United States any United States regis- utes, 5159.
tered 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 dis-

338

NATIONAL MONETARY COMMISSION.

posed of, in pursuance of the provisions of this act; and
the Secretary of the Treasury is hereby authorized to receive and cancel any United States coupon bonds, and to
issue in lieu thereof registered bonds of like amount,
bearing a like rate of interest, and having the same time
increase^-tobe^0 r u n > an( ^ ^ e deposit °^ 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
m
hedbe dimin"stock actually paid in: Provided, 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.
Comptroller SEC. 17. And he it further enacted. That whenever a
to examine and

determine if certificate shall have been transmitted to the Comptroller
association can

-, ,,

commence bust- of the Currencv, as provided m this act, and the associaness

tion transmitting the same shall notify the Comptroller
that at least fifty per centum of its capital stock has been
paid in as aforesaid, and that such association has complied with all the provisions of this act as required to be
complied with before such association shall be authorized
to commence the business of banking, the Comptroller
shall examine into the condition of such association, ascertain especially the amount of money paid in on account
of its capital, the name and place of residence of each of
the directors of such association, and the amount of the
capital stock of which each is the bona fide owner, and
generally whether such association has complied with all
the requirements of this act to entitle it to engage in the
business of banking; and shall cause to be made and
attested by the oaths of a majority of the directors and
by the president or cashier of such association, a statement of all the facts necessary to enable the Comptroller
to determine whether such association is lawfully entitled
to commence the business of banking under this act.
ciatSon?sfound ^EC# ^ ' ^n^ ^e ^ fur^er
enacted, That if, upon a
entitled tocom- careful examination of the facts so reported,
and of any
r
J

mence business,

comptroller to other facts which may come to the knowledge of the
Comptroller, whether by means of a special commission
appointed by him for the purpose of inquiring into the

LAWS CONCERNING MONEY, BANKING, AND LOANS.

339

condition of such association, or otherwise, it shall appear
that such association is lawfully entitled to commence the
business of banking,, the Comptroller shall give to such
association a certificate, under his hand and official seal,
that such association has complied with all the provisions
of this act required to be complied with before being entitled to commence the business of banking under it, and
that such association is authorized to commence said
business accordingly; and it shall be the duty of the association to cause said certificate to be published in some, Cert1}?lcSte,t0
newspaper published m the city or county where the
association is located for at least sixty days next after the
issuing thereof: Provided, That if no newspaper is published in such city or county the certificate shall be published in a newspaper published nearest thereto.
SEC. 19. And be it further enacted, That all transfers ^ ^ J 1 1 ^ ^ ^
of United States bonds which shall be made by any asso- j£*a°n,totot £%
ciation under the provisions of this act shall be made to £rlfjftsurer *n
the Treasurer of the United States in trust for the association, with a memorandum written or printed on each How executed

bond, and signed by the cashier or some other officer of Revised statthe association making the deposit, a receipt therefor to
be given to said association, or by the Comptroller of the
Currency, or by a clerk appointed by him for that purpose, stating that it is held in trust for the association on
whose behalf such transfer is made, and as security for
the redemption and payment of any circulating notes that
have been or may be delivered to such association. No
assignment or transfer of any such bonds by the Treasurer shall be deemed valid or of binding force and effect
unless countersigned by the Comptroller of the Currency.
It shall be the duty of the Comptroller of the Currency Comptroii e r
to keep in his office a book in which shall be entered the fer took, etc.
name of every association from whose accounts such
transfer of bonds is made by the Treasurer, and the name
of the party to whom such transfer is made; and the
par value of the bonds so transferred shall be entered
therein; and it shall be the duty of the Comptroller, immediately upon countersigning and entering the same, to
advise by mail the association from whose account such
transfer was made of the kind and numerical designation of the bonds and the amount thereof so transferred.
SEC. 20. And he it further enacted, That it shall be the Transfers to
'

becounter-

duty of the Comptroller of the Currency to countersign^^
and enter in the book, in the manner aforesaid, every

a n d en

340

NATIONAL MONETARY COMMISSION.

transfer or assignment of any bonds held by the Treasurer
accessible*0 b e P r e s ented for his signature; and the Comptroller shall
have at all times during office hours access to the books of
the Treasurer, for the purpose of ascertaining the correctness of the transfer or assignment presented to him to
countersign; and the Treasurer shall have the like access
to the book above mentioned, kept by the Comptroller,
during office hours, to ascertain the correctness of the
entries in the same; and the Comptroller shall also at all
times have access to the bonds on deposit with the Treasurer, to ascertain their amount and condition.
Associations, SEC. 21, And be it further enacted, That upon the
after transfer,

may receive cir-transfer and delivery of bonds to the Treasurer, as proculatmg notes.

. • , , . , *

, .

see act ofvided m 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
amount!t o f 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.
he u
iationirnoCtirtUo S E C - 2 2 - And
furth^r
enacted, That the entire
$3 0, a m o i i n
oocfooo °
t of notes for circulation to be issued under this act
comptroiierghgQi n 0 £ eX ceed three hundred millions of dollars. I n
to prepare tne
n

°Revised stat- or^er to furnish suitable notes for circulation, the Comp5175 5 * 7 2 ' t r ° H e r °^ 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 quantio ^enomina-tity 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 entiNot
what e x ^ e ( ^ ^° r e c e * v e 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
Eegister, and by the imprint of the seal of the Treasury;
and shall also express upon their face the promise of the

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

341

association receiving the same to pay on demand, attested
by the signatures of the president or vice-president and Devices.
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: $5 Notes under
Provided, That not more than one sixth part of the notes
furnished to an association shall be of a less denomination
than five dollars, and that after specie payments shall be
resumed no association shall be furnished with notes of
a less denomination than five dollars.
SEC. 23. And be it further enacted, That after any such m™h$? $°*|*
association shall have caused its promise to pay such notes J^* e. d a s
on demand to be signed by the president or vice-president ute*sev!fif2Stat"
and cashier thereof, in such manner as to make them ut ^| vis | i 4 s ^ t "
obligatory promissory notes, payable on demand, at its 3475 place of business, such association is hereby authorized to
issue and circulate the same as money; and the same shall to be received
be received at par in all parts of the United States in except, etc.
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 Post notes,
etc. not to oe

any other notes to circulate as money than such as are issJ£ed;
authorized by the foregoing provisions of this act.
«tes, sm.
SEC. 24. And be it further enacted, That it shall be the worn-out and
'

mutilated

duty of the Comptroller of the Currency to receive worn- notes.
out or mutilated circulating notes issued by any such June p,i874.
banking association, and also, on due proof of the destruc- utes, 5184.
tion of any such circulating notes, to deliver in place
thereof to such association other blank circulating notes
to an equal amount. And such worn-out or mutilated
notes, after a memorandum shall have been entered in the
proper books, in accordance with such regulations as may
be established by the Comptroller, as well as all circulating notes which shall have been paid or surrendered to be
cancelled, shall be burned to ashes in presence of four persons, one to be appointed by the Secretary of the Treasury, one by the Comptroller of the Currency, one by the
Treasurer of the United States, and one by the association,
under such regulations as the Secretary of the Treasury
may prescribe. And a certificate of such burning, signed
by the parties so appointed, shall be made in the books of

342

NATIONAL MONETARY COMMISSION.

the Comptroller, and a duplicate thereof forwarded to
the association whose notes are thus cancelled.
toAe?amiane°an? SEC - 25 - And *>e # further enacted, That it shall be the
bonds1 deposit- ^ u ty °^ e v e r y banking association having bonds deposited
cekifl?atemakein t h e office o f t h e Treasurer of the United States, once or
uteseV5ie^6Stat °ftener in each fiscal year, and at such time or times during the ordinary business hours as said officer or officers
of ai^i^tlo^s! m a y selec*5 to examine and compare the bonds so pledged
with the books of the Comptroller and the accounts of the
association, and, if found correct, to execute to the said
Treasurer a certificate setting forth the different kinds
and the amounts thereof, and that the same are in the possession and custody of the Treasurer at the date of such
certificate. Such examination may be made by an officer
or agent of such association, duly appointed in writing for
that purpose, whose certificate before mentioned shall be
of like force and validity as if executed by such president
or cashier; and a duplicate signed by the Treasurer shall
be retained by the association.
Deposited SEC. 26. And he it further enacted, That the bonds
held exclusive-transferred to and deposited with the Treasurer of the
ly

secure __. .

circulation.
utes, 5167.

, ~

•",„

• -i -• i

i •

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
to interest0 as b e redeemed, except as provided in this act; but the
Comptroller of the Currency shall give to 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
preciabte?dsecu" bonds deposited with the Treasurer of the United States,
made good b G a s 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, from the association receiving
said bills, to be deposited with the Treasurer of the
United States as long as such depreciation continues,
b eB°exctoSS&I, ^n& s a ^ Comptroller, upon the terms prescribed by the
if, etc.
Secretary of the Treasury, may permit an exchange to be
made of any of the bonds deposited with the Treasurer
by an association for other bonds of the United States
authorized by this act to be received as security for circu

LAWS CONCERNING MONEY, BANKING, AND LOANS.

343

lating notes, if he shall be of opinion that such an exchange can be made without prejudice to the United
States, and he may direct the return of any of said bonds tu^*dy £e £*
to the banking association which transferred the same, in£¥rCclu^aTin°g
sums of not less than one thousand dollars, upon the sur- notes render to him and the cancellation of a proportionate
amount of such circulating notes: Provided, T h a t the Proviso remaining bonds which shall have been transferred by
the banking association offering to surrender circulating
notes shall be equal to the amount required for the circulating notes not surrendered by such banking association,
and that the amount of bonds in the hands of the Treasurer shall not be diminished below the amount required
to be kept on deposit with him by this act: And provided,
That there shall have been no failure by such association
to redeem its circulating notes, and no other violation by
such association of the provisions of this act, and that the
market or cash value of the remaining bonds shall not be
below the amount required for the circulation issued for
the same.
SEC. 27. And be it further enacted, That it shall b e c o * g g | ^ ^
unlawful for any officer acting under the provisions of £?r ^u^iTung
this act to countersign or deliver to any association, o r ^ ^ ^ ^ P * ^
to any other company or person, any circulating notes tn|fevfg*a s t a t .
contemplated by this act, except as hereinbefore provided, utes» 5187and in accordance with the true intent and meaning of
this act. And any officer who shall violate the provisions
of this section shall be deemed guilty of a high misdemeanor, and on conviction thereof shall be punished by
fine not exceeding double the amount so countersigned
and delivered, and imprisonment not less than one year
and not exceeding fifteen years, at the discretion of the
court in which he shall be tried.
SEC. 28. And be it further enacted, That it shall be m ^ s £°tf ations
lawful for any such association to purchase, hold, andjggj? 1 r e a *
convey real estate as follows:
First. Such as shall be necessary for its immediate accommodation in the transaction of its business.
Second. Such as shall be mortgaged to it in good faith
by way of security for debts previously contracted.
Third. Such as shall be conveyed to it in satisfaction
of debts previously contracted in the course of its dealings.

344

NATIONAL MONETARY COMMISSION.

Fourth. Such as it shall purchase at sales under judgments, decrees, or mortgages held by such association, or
shall purchase to secure debts due to said association.
Real estate. Such associations shall not purchase or hold real estate
in any other case or for any other purpose than as specified in this section. Nor shall it hold the possession of
any real estate under mortgage, or hold the title and possession of any real estate purchased to secure any debts
due to it for a longer period than five years.
et?.°, Ptors°be SEC - 29 - And he U furtlier enacted, That the total liacfa!t 1*0naslor^^^es *° a n y association, of any person, or of any cornmore than,p a n y ? 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 associacountsanotditSo^on ac * ua Uy P a id * n : Provided, That the discount of
be included, bona 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,
terest* °f In" ^EC* ^ And ^e ^ further enacted, That every association may take, receive, reserve, and charge on any loan
or discount made, or upon any note, bill of exchange, or
other evidences of debt, interest at the rate allowed by the
laws of the State or Territory where the bank is located,
and no more, except that where by the laws of any State
a different rate is limited for banks of issue organized
under State laws, the rate so limited shall be allowed for
associations organized in any such State under this act.
And when no rate is fixed by the laws of the State or
Territory, the bank may take, receive, reserve, or charge
a rate not exceeding seven per centum, and such interest
may be taken in advance, reckoning the days for which
Penalty for the note, bill, or other evidence of debt has to run. And
taking greater

interest.

' .

. .

the knowingly taking, receiving, reserving, or charging
a rate of interest greater than aforesaid shall be held and
adjudged a forfeiture of the entire interest which the
note, bill, or other evidence of debt carries with it, or
which has been agreed to be paid thereon. And in case a
greater rate of interest has been paid, the person or persons paying the same, or their legal representatives may
recover back, in any action of debt, twice the amount of
. the interest thus paid from the association taking or re-

LAWS CONCERNING MONEY, BANKING, AND LOANS.

345

ceiving the same: Provided, That such action is com-COmmenced°in
menced within two years from the time the usurious two yearstransaction occurred. But the purchase, discount, or sale
of a bona fide bill of exchange, payable at another place
than the place of such purchase, discount, or sale, at not
more than the current rate of exchange for sight drafts in
addition to the interest, shall not be considered as taking
or receiving a greater rate of interest.
SEC. 31. And he it further enacted, That every associa- Amount o f
tion in the cities hereinafter named shall, at all times, kept on hand,
have on hand, in lawful money of the United States, anutes, 5191,
amount equal to at least twenty-five per centum of the see act of
aggregate amount of its notes in circulation and its de- sec. 2. '
'
posits; and every other association shall, at all times, have
on hand, in lawful money of the United States, an amount
equal to at least fifteen per centum of the aggregate
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 centum of its circulation and deposits,
and whenever the lawful money of any other association Liabii ities
shall be below fifteen per centum 01 its circulation and de-creased until
.

. - , . . , . .

reserve is made

posits, such associations shall not increase its liabilities good,
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: Pro- Money devided, That three fifths of said fifteen per centum maydemption or
consist of balances due to an association available for the certain cities to
redemption of its circulating notes from associations approved by the Comptroller of the Currency, organized
under this act, in the cities of Saint Louis, Louisville,
Chicago, Detroit, Milwaukee, New Orleans, Cincinnati,
Cleveland, Pittsburg, Baltimore, Philadelphia, Boston,
New York, Albany, Leavenworth, San Francisco, and
Washington City: Provided, also, That clearing-house clearingcertificates, representing specie or lawful money specially S e s ctortibe
deposited for the purpose of any clearing-house associa- nfo^fo^lnis
tion, shall be deemed to be lawful money in the posses- PurDosesion 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
15712°—10

346

NATIONAL MONETARY COMMISSION.

and^mchmond10^ ^ i s section: Provided, That the cities of Charleston
and Richmond 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
if association aforesaid, to make good such reserve: and if such associfails

after

notice, to make ation shall fail for thirty days thereafter so to make
re
serve.
~ good its reserve of lawful 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.
circulation to SEC. 32. And be it further enacted. That each associahe redeemed In •

•

New York at tion organized m any of the cities named in the foregoing
pa
Revised stat-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
certain asso- cities named in the preceding section shall select, subject
lect °piace for to the approval of the Comptroller of the Currency, an
circulation,
association in either of the cities named in the preceding
act of June 20', 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
Proceedinpany association are redeemed. If any association shall
ure.
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,
Each asso-on demand: And provided, further, That everv associa ciation to take

„

...

. .

\ ,, .

notes of other tion formed or existing under the provisions 01 this act
associations

•

shall take and receive at par, for any debt or liability to
said association, any and all notes or bills issued by any
association existing under and by virtue of this act.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

347

SEC. 33. And be it further enacted, That the directors dividends,
of any association may, semi-annually, each year, declare
a dividend of so much of the nett profits of the association
as they shall judge expedient; but each association shall, fu *£ r p 1 u s
before the declaration of a dividend, carry one tenth part
of its nett profits of the preceding half year to its surplus
fund until the same shall amount to twenty per centum of
its capital stock.
SEC. 34. And be it further enacted, That every associa- toAs?epoartioto
tion shall make to the Comptroller of the Currency a re- qUa$eriy.roller
port, according to the form which may be prescribed by
him, verified by the oath or affirmation of the president or
cashier of such association; which report shall exhibit in re^t e n t s ° f
detail, and under appropriate heads, the resources and liabilities of the association before the commencement of
business on the morning of the first Monday of the months
of January, April, July, and October of each year, and
shall transmit the same to the Comptroller within five
days thereafter. And any bank failing to make and fJlf^lifQf °rl
transmit such report shall be subject to a penalty of one port*
hundred dollars for each day after five days that such
report is delayed beyond that time. And the Comptroller
c
1
shall publish abstracts of said reports in a newspaper to
to ^f{^ ^
stracts
be designated by him for that purpose in the city of
Washington, and the separate report of each association
shall be published in a newspaper in the place where such
association is established, or if there be no newspaper at
such place, then in a newspaper published at the nearest
place thereto, at the expense of the association making
such report. In addition to the quarterly reports required
by this section, every association shall, on the first Tuesday of each month, make to the Comptroller of the Cur- s ^meEts* 1 1 y
rency a statement, under the oath of the president or
cashier, showing the condition of the association making
such statement, on the morning of the day next preceding
the date of such statement, in respect to the following
items and particulars, to wit: average amount of loans
and discounts, specie, and other lawful money belonging
to the association, deposits, and circulation. And associations in other places than those cities named in the
thirty-first section of this act shall also return the amount
due them available for the redemption of their circulation.
SEC. 35. And be it further enacted, That no association nof^o^ma^e
shall make any loan or discount on the security of the}.^ n ^ c ^. y on
shares of its own capital stock, nor be the purchaser or* t ^ k ir o w n

348

NATIONAL MONETARY COMMISSION.

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.
indebtedness S EC . 36.% And he it further enacted. That no association
not to exceed

capital stock, shall at any time be indebted, or in any way liable, to an
except etc.

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
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.
Associations SEC. 37. And he it further enacted. That no association
not to hypoth-

ecate circuiat- shall, either directly or indirectly, pledge or hypothecate
ing notes, for,

ix.

etc.

any or its notes or circulation, tor the purpose ot procuring money to be paid in on its capital stock, or to be
Revised Stat- used in its banking operations, or otherwise; nor shall any
u es
'° '
association use its circulating notes, or any part thereof,
in any manner or form, to create or increase its capital
stock.
not to with- SEC. 38. And he it further enacted. That no association,
draw anv nor-

tion of their or any member thereof, shall, during the time it shall
continue its banking operations, withdraw, or permit to
be withdrawn, either in form of dividends or otherwise,
any portion of its capital. And if losses shall at any time
have been sustained by any such association equal to or
exceeding its undivided profits then on hand, no dividend shall be made; and no dividend shall ever be made
by any association, while it shall continue its banking
operations, to an amount greater than its nett profits then
on hand, deducting therefrom its losses and bad debts,
what to be And all debts due to any association, on which interest is
deemed

bad

debts.

past due and unpaid for a period ot six months, unless
the
same shall be well secured, and shall be in process of

collection,
shall be considered bad debts within the mean

LAWS CONCERNING MONEY, BANKING, AND LOANS.

349

ing of this act: Provided, That nothing in this section
shall prevent the reduction of the capital stock of the
association under the thirteenth section of this act.
SEC. 39. And be it further enacted. That no association Associations
7

not to pay out

shall at any time pay out on loans or discounts, or in pur- certato^otes.^
chasing drafts or bills of exchange, or in payment of de- «tes, r»206.
posits, or in any other mode pay or put in circulation the
notes of any bank or banking association which shall not,
at any such time, be receivable, at par, on deposit and in
payment of debts by the association so paying out or
circulating such notes; nor shall it knowingly pay out or
put in circulation any notes issued by any bank or banking association which at the time of such paying out or
putting in circulation is not redeeming its circulating
notes in lawful money of the United States.
SEC. 40. And be it further enacted. That the president List of names
and residences

and cashier of every such association shall cause to be of shareholders
kept at all times a full and correct list of the names and
residences of all the shareholders in the association, and
the number of shares held by each, in the office where its
business is transacted; and such list shall be subject to
the inspection of all the shareholders and creditors of the*0 t» subject to
.

fV>

inspection;

association, and the omcers authorized to assess taxes
under State authority, during business hours of each day
in which business may be legally transacted; and a copy
of such list, on the first Monday of July in each year,
verified by the oath of such president or cashier, shall be*° H s?,nt
J

/» i

Comptroller.

transmitted to the Comptroller of the Currency.
SEC. 41. And be it further enacted, That the plates toCk?eP^oiiand special dies to be procured by the Comptroller of the*^ 1 ^J^f^f
Currency for the printing of such circulating notes shalldies.

j j-

J Ii_

Revised Stat-

remain under his control and direction, and the expenses utes, 5173,
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 Expenses t o
of the taxes or duties now or hereafter to be assessed on associations.
the circulation, and collected from associations organized
under this act. And in lieu of all existing taxes, every
association shall pay to the Treasurer of the United
States, in the months of January and July, a duty of one Duty upon
i in P
i i iV»
1.
1 *
^ circulation, dehalt 01 one per centum each halt year irom and after thep ° sits, and
r » i i
. T
-ii
i - i - .
i .
n
capital stock
first day or January, eighteen hundred and sixty-four,to be paid
_*

* •

'semi-annually.

upon the average amount or its notes m circulation, and
a duty of one quarter of one per centum each half year

350

NATIONAL MONETARY COMMISSION.

upon the average amount of its deposits, and a duty of
one quarter of one per centum each half year, as aforesaid, on the average amount of its capital stock beyond
the amount invested in United States bonds; and in case
i^not^af^in °^ default in the payment thereof of any association, the
time.
duties aforesaid may be collected in the manner provided
for the collection of United States duties of other corporations, or the Treasurer may reserve the amount of
said duties out of the interest, as it may become due, on
the bonds deposited with him by such defaulting assoReturn of cir-ciation. And it shall be the duty of each association,
culation

etc

to be made. " within ten days from the first days of January and July
of each year, to make a return, under the oath of its
president or cashier, to the Treasurer of the United
States, in such form as he may prescribe, of the average
amount of its notes in circulation, and of the average
amount of its deposits, and of the average amount of its
capital stock, beyond the amount invested in United
States bonds, for the six months next preceding said first
defauit!ty f ° r days of January and July as aforesaid, and in default of
such return, and for each default thereof, each defaulting
association shall forfeit and pay to the United States the
sum of two hundred dollars, to be collected either out of
the interest as it may become due such association on the
bonds deposited with the Treasurer, or, at his option, in
the manner in which penalties are to be collected of other
corporations under the laws of the United States; and in
case of such default the amount of the duties to be paid
by such association shall be assessed upon the amount of
notes delivered to such association by the Comptroller of
the Currency, and upon the highest amount of its deposits
and capital stock, to be ascertained in such other manner
h <fr erbS n ex- as ^ e Treasurer may deem best: Provided, That nothing
empted fromj n this act shall be construed to prevent all the shares in
taxation

state author- a n y of the said associations, held by any person or body
corporate, from being included in the valuation of the
personal property of such person or corporation in the
assessment of taxes imposed by or under State authority
at the place where such bank is located, and not elsewhere, but not at a greater rate than is assessed upon
other moneyed capital in the hands of individual citizens
tai lmitof s t a t e of such State: Provided, further, That the tax so imposed under the laws of any State upon the shares of any
of the associations authorized by this act shall not exceed
the rate imposed upon the shares in any of the banks

LAWS CONCERNING MONEY, BANKING, AND LOANS.

351

organized under authority of the State where such association is located: Provided, also, That nothing in thisbeRtaxed.tateto
act shall exempt the real estate of associations from either
State, county, or municipal taxes to the same extent,
according to its value, as other real estate is taxed.
SEC. 42. And be it further enacted, That any associa- ti(^gWma|soci*e
tion may go into liquidation and be closed by the votecl°sed.
of its shareholders owning two thirds of its stock. And Proceedings
7

•

P Revised Stat-

whenever such vote shall be taken it shall be the duty oigtes^ 5 | 9 | 2 ( >,
the board of directors to cause notice of this fact to be
certified, under the seal of the association, by its president or cashier, to the Comptroller of the Currency, and
publication thereof to be made for a period of two months
in a newspaper published in the city of New York, and
also in a newspaper published in a city or town in which
the association is located, and if no newspaper be there
published, then in the newspaper published nearest thereto, that said association is closing up its affairs, and
notifying the holders of its notes and other creditors
to present the notes and other claims against the association for payment. And at any time after the expiration of one year from the time of the publication of
such notice as aforesaid, the said association may pay
over to the Treasurer of the United States the amount of
its outstanding notes in the lawful money of the United
States, and take up the bonds which said association has
on deposit with the Treasurer for the security of its circulating notes; which bonds shall be assigned to the
bank in the manner specified in the nineteenth section of
this act, and from that time the outstanding notes of said
association shall be redeemed at the Treasury of the
United States, and the said association and the shareholders thereof shall be discharged from all liabilities
therefor.
SEC. 43. And be it further enacted, That the Treasurer, Treasurer to
0

. ,•

* *

execute

dupli-

on receiving from an association lawful money for thecate receipts.
X

i.-

£ -j.

i . x T

Revised Stat-

payment and redemption of its outstanding notes, as pro- utes, 5222,
vided for in the preceding section of this act, shall exe-'
cute duplicate receipts therefor, one to the association and
the other to the Comptroller of the Currency, stating the
amount received by him, and the purpose for which it
has been received, which amount shall be paid into the
Treasury of the United States, and placed to the credit Redeemed
of such association upon redemption account. And it mutuated?°ete?
shall be the duty of the Treasurer, whenever he shall re- jtSe Ss,ai874.f

352

NATIONAL MONETARY COMMISSION.

deem any of the notes of said association, to cause the
same to be mutilated, and charged to the redemption account of said association; and all notes so redeemed by the
Treasurer shall, every three months, be certified to and
burned in the manner prescribed in the twenty-fourth
section of this act.
state banks SEC. 44. And be it further enacted, That any bank innationai asso- corporated by special law, or any banking institution
organized under a general law of any State, may, by
authority of this act, become a national association under
its provisions, by the name prescribed in its organization
certificate; and in such case the articles of association
and the organization certificate required by this act may
be executed by a majority of the directors of the bank or
banking institution; and said certificate shall declare that
the owners of two-thirds of the capital stock have authorized the directors to make such certificate and to
change and convert the said bank or banking institution
Mode of pro- into a national association under this act. And a mace ure.
jority of the directors, after executing said articles of
association and organization certificate, shall have power
to execute all other papers, and to do whatever may be
required to make its organization perfect and complete
as a national association. The shares of any such bank
may continue to be for the same amount each as they were
before said conversion, and the directors aforesaid may be
the directors of the association until others are elected or
appointed in accordance with the provisions of this act;
and any State bank which is a stockholder in any other
bank, by authority of State laws, may continue to hold
its stock, although either bank, or both, may be organized
under and have accepted the provisions of this act. When
the Comptroller shall give to such association a certificate,
under his hand and official seal, that the provisions of this
act have been complied with, and that it is authorized to
commence the business of banking under it, the association shall have the same powers and privileges, and shall
be subject to the same duties, responsibilities, and rules,
in all respects as are prescribed in this act for other associations organized under it, and shall be held and regarded as an association under this act: Provided, however, That no such association shall have a less capital
than the amount prescribed for banking associations
under this act,

LAWS CONCERNING MONEY, BANKING, AJSID LOANS.

353

SEC. 45. And be it further enacted, That all associaw£g^$S$_
tions under this act, when designated for that purpose by Jj^foJSg of
the Secretary of the Treasury, shall be depositaries of g ^ ^ e y s ,
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 Gov- Saf agenSnan~
eminent; and they shall perform all such reasonable ut ]^ V 5^f tnt "
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 depositaries to
deposit of United States bonds and otherwise, for the
safe-keeping and prompt payment of the public money
deposited with them, and for the faithful performance
of their duties as financial agents of the Government:
Provided, That everv association which shall be selected to receive naand designated as receiver or depositary of the public bniTatCparr.ncy
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.
SEC. 46. And be it further enacted, That if any such if associaassociation shall at any time fail to redeem, in the lawful deem their cirmoney of the United States, any of its circulating notes, notes may be
when payment thereof shall be lawfully demanded, dur-iess, etc/
ing the usual hours of business, at the office of such as- ut?s!viS5d2S2 cfc
sociation, or at its place of redemption aforesaid, the 5228 *
holder may cause the same to be protested, in one package, by a notary-public, unless the president or cashier of
the association whose notes are presented for payment, or
the president or cashier of the association at the place at
which they are redeemable, shall offer to waive demand
and notice of the protest, and shall, in pursuance of such
offer, make, sign, and deliver to the party making such
demand an admission in writing, stating the time of the
demand, the amount demanded, and the fact of the nonpayment thereof; and such notary-public, on making such Notice of proprotest, or upon receiving such admission, shall forth - forwarded t o
with forward such admission or notice of protest to the C o m p t r o l l e r Comptroller of the Currency, retaining a copy thereof.
And after such default, on examination of the facts by Association
the Comptroller, and notice by him to the association, it n e s s further,
shall not be lawful for the association suffering the same e x c e p ' e °'
to pay out any of its notes, discount any notes or bills,

354

NATIONAL MONETARY COMMISSION.

or otherwise prosecute the business of hanking, except to
receive and safely keep money belonging to it, and to
Notes not to deliver special deposites: Provided, That if satisfactory
certain cases, proof be produced to such notary-public that the payment
of any such notes is restrained by order of any court of
Fees of no- competent jurisdiction, such notary-public shall not proary
*
test the same; and when the holder of such notes shall
cause more than one note or package to be protested on
the same day, he shall not receive pay for more than one
protest.
Upon notice
SEC. 47. And he it further enacted, T h a t on receiving
redeem circula- notice that any such association has failed to redeem any
l e r ' t o ^send of its circulating notes, as specified in the next preceding
to a s c e r f a i n section, the Comptroller of the Currency, with the concura
Revised s t a t - r e n c e °^ the Secretary of the Treasury, may appoint a
5*12 9, 5 2$2ZQ\ special agent (of whose appointment immediate notice
5234
*
shall be given to such association) who shall immediately
proceed to ascertain whether such association has refused
to pay its circulating notes in the lawful money of the
United States, when demanded as aforesaid, and report
to the Comptroller the fact so ascertained; and if, from
such protest or the report so made, the Comptroller shall
be satisfied that such association has refused to pay its
circulating notes as aforesaid and is in default, he shall,
when to de- within thirty days after he shall have received notice of
clare securities

forfeited.

such failure, declare the United States bonds and securities pledged by such association forfeited to the United
States, and the same shall thereupon be forfeited accordh c^fd e r s * o f i n gty* ^ n d thereupon the Comptroller shall immediately
sent8 them Pfor ^ v e notice in such manner as the Secretary of the Treaspayment;
u r y g h ^ by general rules or otherwise, direct, to the
holders of the circulating notes of such association to present them for payment at the Treasury of the United
States, and the same shall be paid as presented in lawful
Jj^j^an2^imoney of the United States; whereupon said Comptrolbonds.
i e r may, in his discretion, cancel an amount of bonds
pledged by such association equal at current market rates,
not exceeding par, to the notes paid. And it shall be lawful for the Secretary of the Treasury, from time to time,
to make such regulations respecting the disposition to be
made of such circulating notes after presentation thereof
for payment as aforesaid, and respecting the perpetuation of the evidence of the payment thereof as may seem
to him proper; but all such notes, on being paid, shall be

LAWS CONCERNING MONEY, BANKING, AND LOANS.

355

cancelled. And for any deficiency in the proceeds of theStJtes%<?haTO
bonds pledged by such association, when disposed of a s P ^ ^ g ^ f o r
hereinafter specified, to reimburse to the United States ^ y ^deficiency
the amount so expended in paying the circulating notes of of circulation,
such association, the United States shall have a first and
paramount lien upon all the assets of such association;
and such deficiency shall be made good out of such assets
in preference to any and all other claims whatsoever,
except the necessary costs and expenses of administering
the same.
SEC. 48. And be it further enacted. That whenever the Bonds piedg'
.
ed as security
Comptroller shall become satisfied, as m the last preced-may be sold at
.

- r » i i

•

< » T . auction;

m g section specified, that any association has refused to Revised statpay its circulating notes as therein mentioned, he may, l l es ' ° - '
instead of cancelling the United States bonds pledged by
such association, as provided in the next preceding section, cause so much of them as may be necessary to redeem
the outstanding circulating notes of such association to be
sold at public auction in the city of New York, after giving thirty days' notice of such sale to such association.
SEC. 49. And be it further enacted, That the Comp-o^ at private
troller of the Currency may, if he shall be of opinion that Revised Statthe interests of the United States will be best promoted l l es '
thereby, sell at private sale any of the bonds pledged by
such association, and receive therefor either money or the
circulating notes of such failing association: Provided,
Proviso.
That no such bonds shall be sold by private sale for less
than par, nor less than the market value thereof at the
time of sale: And provided, further, That no sales of any
such bonds, either public or private, shall be complete
until the transfer thereof shall have been made with the
formalities prescribed in this act.
SEC. 50. And be it further enacted. That on becoming Comptroller
satisfied, as specified in
fv e r ato
' this act, that 7any association has
° re
mayc eappoint
*

, dose affairs of

refused to pay its circulating notes as therein mentioned, defaulting asand is in default, the Comptroller of the Currency may
forthwith appoint a receiver, and require of him s u c h ^ ^ 1 1 ^ a£fJ
bond and security as he shall deem proper, who, under the ceiver > etcdirection of the Comptroller, shall take possession of the u t ^ g e v i s | d 2 ^ t books, records, and assets of every description of such 5 2 3 ^ 5237association, collect all debts, dues^ and claims belonging
to such association, and, upon the order of a court of
record of competent jurisdiction, may sell or compound
all bad or doubtful debts, and, on a like order, sell all the
real and personal property of such association, on such

356

if
tion

NATIONAL MONETARY COMMISSION.

terms as the court shall direct; and may, if necessary to
pay the debts of such association, enforce the individual
liability of the stockholders provided for by the twelfth
section of this act; and such receiver shall pay over all
moneys so made to the Treasurer of the United States,
subject to the order of the Comptroller of the Currency,
and also make report to the Comptroller of the Currency
of all his acts and proceedings. The Comptroller shall
thereupon cause notice to be given, by advertisement in
such newspapers as he may direct, for three consecutive
months, calling on all persons who may have claims
against such association to present the same, and to make
legal proof thereof. And from time to time the Comptroller, after full provision shall have been first made for
refunding to the United States any such deficiency in
redeeming the notes of such association as is mentioned
in this act, shall make a ratable dividend of the money so
paid over to him by such receiver on all such claims as
may have been proved to his satisfaction or adjudicated
in a court of competent jurisdiction; and from time to
time, as the proceeds of the assets of such association
shall be paid over to him, he shall make further dividends, as aforesaid, on all claims previously proved or
adjudicated; and the remainder of such proceeds, if any,
shall be paid over to the shareholders of such association,
or their legal representatives, in proportion to the stock
associa-by them respectively held: Provided, however. That if
denies

. fl

t h at it has such association against which proceedings have been so
deem its notes, instituted, on account of any alleged refusal to redeem
to the courts its circulating notes as aforesaid, shall deny having failed
for an injunc-

tion.

. °.

to do so, such association may, at any time withm ten
days after such association shall have been notified of the
appointment of an agent, as provided in this act, apply
to the nearest circuit, or district, or Territorial court of
Proceedings, the United States, to enjoin further proceedings in the
premises; and such court, after citing the Comptroller of
the Currency to show cause why further proceedings
should not be enjoined, and after the decision of the
court or finding of a jury that such association has not
refused to redeem its circulating notes, when legally presented, in the lawful money of the United States, shall
make an order enjoining the Comptroller, and any receiver acting under his direction, from all further proceedings on account of such alleged refusal.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

357

SEC. 51. And be it further enacted, That all fees for teSeeaSndOIot)her
protesting the notes issued by any such banking associa-|xpenses,^ how
tion shall be paid by the person procuring the protest to be Revised statmade, and such banking association shall be liable therefor; but no part of the bonds pledged by such banking
association, as aforesaid, shall be applied to the payment
of such fees. And all expenses of any preliminary or
other examinations into the condition of any association
shall be paid by such association; and all expenses of any
receivership shall be paid out of the assets of such association before distribution of the proceeds thereof.
SEC. 52. And be it further enacted. That all transfer of Transfers, assiirnments etc

the notes, bonds, bills of exchange, and other evidences of i n contempia.
.
\
.
.
. 11 o n of indent owing to any association, or of deposits to its credit; solvency, etc.,
n

j -

i , i

to be void.

all assignments or mortgages, sureties on real estate, or Revised statof judgments or decrees in its favor;. all deposits of utes '
money, bullion, or other valuable thing for its use; or for
the use of any of its shareholders or creditors; and all
payments of money to either, made after the commission
of an act of insolvency, or in contemplation thereof, with
a view to prevent the application of its assets in the manner prescribed by this act, or with a view to the preference of one creditor to another, except in payment of its
circulating notes, shall be utterly null and void.
SEC. 53. And be it further enacted. That if the di- „ Penalty upon
P

• i-

11 i

•

• i ,

directors

for

rectors or any association shall knowingly violate, or violations of
knowingly permit any of the officers, agents, or servants
of the association to violate any of the provisions of this
act, all the rights, privileges, and franchises of the association derived from this act shall be thereby forfeited.
Such violation shall, however, be determined and ad- violation,
judged by a proper circuit, district, or Territorial court te°rmined.e
of the United States, in a suit brought for that purpose
by the Comptroller of the Currency, in his own name,
before the association shall be declared dissolved. And Personal iiain cases of such violation, every director who participated
in or assented to the same shall be held liable in his personal and individual capacity for all damages which the
association, its shareholders, or any other person, shall
have sustained in consequence of such violation.
SEC. 54. And be it further enacted, That the Comp- comptroller
troller of the Currency, with the approbation of the Sec- person to exretary of the Treasury, as often as shall be deemed neces- fairs of any assary or proper, shall appoint a suitable person or persons to make an examination of the affairs of every bank

358

NATIONAL MONETARY COMMISSION.

ing 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 assoDuty of such ciation, and, in doing: so, to examine any of the officers
examiner.

and agents thereof on oath; and shall make a full and detailed report of the condition of the association to the
Comptroller. And the association shall not be subject
to any other visitorial powers than such as are authorized
by this act, except such as are vested in the several courts
Pay.
of law and chancery. And every person appointed to
make such examination shall receive for his services at
the rate of five dollars for each day by him employed in
such examination, and two dollars for every twenty-five
miles he shall necessarily travel in the performance of his
duty, which shall be paid by the association by him
examined.
Penalty upon SEC. 55. And be it further enacted, That every presiassociation'for dent, director, cashier, teller, clerk, or agent of any assoetc, of funds.' ciation, who shall embezzle, abstract, or willfully
misapply any of the moneys, funds, or credits of the
association, or shall, without authority from the directors,
issue or put in circulation any of the notes of the association, or shall, without such authority, issue or put forth
any certificate of deposit, draw any order or bill of
exchange, make any acceptance, assign any note, bond,
draft, bill of exchange, mortgage, judgment, or decree,
or shall make any false entry in any book, report, or
statement of the association, with intent, in either case, to
injure or defraud the association or any other company,
body politic or corporate, or any individual person, or to
deceive any officer of the association, or any agent appointed to examine the affairs of any such association,
shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by imprisonment not
less than five nor more than ten years.
District at- SEC. 56. And be it further enacted, That all suits and
torneys to con-

...

. .

« ,,

. .

« ,1 .

duct certain proceedings arising out 01 the provisions oi this act, m
which the United States or its officers or agents shall be
parties, shall be conducted by the district attorneys of
the several districts, under the direction and supervision
of the Solicitor of the Treasury,
in what SEC. 57. And be it further enacted, That suits, actions,
c o u r t s suits

etc., under this and proceedings, against any association under this act,
prosecuted e may be had in any circuit, district, or Territorial court

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

359

of the United States held within the district in which acfe®f Jgj §•
such association may be established; or in any State, 1 8 7 3 county, or municipal court in the county or city in which
said association is located, having jurisdiction in similar
cases: Provided, however, That all proceedings to 6nJ0inforpfn°junctioni
the Comptroller under this act shall be had in a circuit, *5u£j?sin w h a t
district, or Territorial court of the United States, held in
the district in which the association is located.
SEC. 58. And he it further enacted, That every P erson m „ e tfi*f tl *| >p
who shall mutilate, cut, deface, disfigure, or perforate notes to make
with holes, or shall unite or cement together, or do any reissue,
other thing to any bank bill, draft, note, or other evidence of debt, issued by any such association, or shall u t B e v J||| s t a t cause or procure the same to be done, with intent to
render such bank bill, draft, note, or other evidence of
debt unfit to be reissued by said association, shall, upon
conviction, forfeit fifty dollars to the association who
shall be injured thereby, to be recovered by action in any
court having jurisdiction.
(Sections 59 and 60 prescribe penalties for counterfeiting, etc., knowingly uttering, etc., for engraving, etc.,
plates for forging notes, etc., for having blank notes and
for having paper, etc.)
SEC. 61. And be it further enacted, That it shall be t h e t o c ^ J g ° « »
duty of the Comptroller of the Currency to report annu- S^s 7 t 0 °° n
ally to Congress at the commencement of its session—
Revised statFirst. A summary of the state and condition of every
association from whom reports have been received the re ££* tents of
preceding year, at the several dates to which such reports
refer, with an abstract of the whole amount of banking
capital returned by them, of the whole amount of their
debts and liabilities, the amount of circulating notes outstanding, and the total amount of means and resources, c^&tea{»ler9*
specifying the amount of lawful money held by t h e m ^ o n to Conat the times of their several returns, and such other information in relation to said associations as, in his judgment,
may be useful.
Second. A statement of the associations whose business has been closed during the year, with the amount of
their circulation redeemed and the amount outstanding.
Third. Any amendment to the laws relative to banking
by which the system may be improved, and the security
of the holders of its notes and other creditors may be
increased.

360

NATIONAL, MONETARY COMMISSION.

Fourth. The names and compensation of the clerks employed by him, and the whole amount of the expenses of
the banking department during the year. And such report shall be made by or before the first day of December
in each year, and the usual number of copies for the use
of the Senate and House, and one thousand copies for the
use of the department, shall be printed by the Public
Printer and in readiness for distribution at the first meeting of Congress.
ofRiIlil ch Is* ^EC. ^' ^n(^ t>e ^ further
enacted. That the act envoi. 12.'
' titled "An act to provide a national currency, secured by
a pledge of United States stocks, and to provide for the
circulation and redemption thereof," approved February
twenty-fifth, eighteen hundred and sixty-three, is hereby
Savingciauses. r e pealed: Provided, That such repeal shall not affect any
appointments made, acts done, or proceedings had, or
the organization, acts, or proceedings of any association
organized or in the process of organization under the act
aforesaid: And provided, also, That all such associations
so organized or in process of organization shall enjoy
all the rights and privileges granted, and be subject to
all the duties, liabilities, and restrictions imposed by this
act, and with the approval of the Comptroller of the
Currency, in lieu of the name specified in their respective
organization certificates, may take any other name preferred by them and duly certified to the Comptroller,
without prejudice to any right acquired under this act,
or under the act hereby repealed; but no such change shall
be made after six months from the passage of this act:
Provided, also, That the circulation issued or to be issued
by such associations shall be considered as a part of the
circulation provided for in this act.
Executors, S E C . 63. And be it further enacted, That persons holdtrustees

etc

holding'stock,inor stock as executors, administrators, guardians, and
not to be per-

sonaiiy liable, 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 own names.
t£rVdayorere- ^ E a ®** ^n^ ^e ^ fUT^her enacted, That Congress may
pealed.
a t any time amend, alter, or repeal this act.
Approved, June 3, 1864.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

(By the act of March 1, 1872, Leavenworth is struck
out from the list of redemption cities in section 31 above.
(17 Stat. L., 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
Stat. L., 603.)
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 denomination than five dollars, took effect at once in the act of 1863.
Under the act of 1863, coupon bonds might be deposited to secure the circulation, but by the act of 1864 only registered bonds.
The act of 1863 required a smaller minimum of capital for a
new bank than the act of 1864, required a smaller 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 Bank of Commerce in the
city of New York.
The act of 1863 failed to provide as to the taxation of shares
by state authority, and permitted loans on real, as well as personal, security.
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.
For changes in the provision made in section 22, as to the
total amount of bank notes and for the apportionment thereof, see
below, pages 364, 369-371, 418^21.
For changes in the limit of circulation allowed to any bank in
section 21, and the amount of bonds to be held, see below,
pages 364, 369-371, 418, 419, 423, 432, 433.
Note to section 55, chapter 106, June 3, 1864 (13 Stat. L. 99) :
" T h e act of April 6, 1869 (16 Stat. L., 7), prescribed a penalty
for aiding and abetting onlcers, etc., of national banks in embezzling, etc., funds of bank."
15712°—10
24

361

362

NATIONAL, MONETARY COMMISSION.
"The act of April 22, 1870 (16 Stat. L., 91) amending the
usury laws of the District of Columbia,- provided that nothing
therein should affect national banking associations."
"The act of July 8, 1870 (16 Stat. L., 195), provided that section 55, above, and all acts amendatory thereof should be construed to apply to every president, director, cashier, teller, clerk,
or agent of any banking association organized, etc."

ACT OF JUNE 30, 1864.
13 stat. L., CHAP. CLXXIII.—An act to provide internal revenue to
support the Government, to pay interest on the pntMic
debt, and for other purposes.
•k

sic

#i>

sfe

(Section 110 levies a duty on deposits, capital, and circulation of banks and bankers.) (Amended 17 Stat. L.,
256.)
Approved, June 30, 1864.
ACT OP MAECH 3, 1865.
13 stat. L., CHAP. LXXVIII.—An act to amend an act entitled "An
act to provide internal revenue to support the Government, to pay interest on the public debt, and for other
purposes" approved June thirtieth, eighteen hundred
and sixty-four.
Tax on bank SEC. 6. And be it further enacted, That every national
ter, etc.
banking 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.
Existing state SEC. 7. And be it further enacted, That any existing
ferred until,bank organized under the laws of any state, having a
?ng'^become 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
1864, en. 106. act entitled "An act to provide a national currency secured by a pledge of the 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

LAWS CONCERNING MONEY, BANKING, AND LOANS.

363

to be in good standing and credit, receive such authority Proviso,
in preference to new associations applying for the same:
Provided, That it shall be lawful for any bank or banking association organized under state laws, and having
branches, the capital being joint and assigned to and used
by the mother bank and branches in definite proportions,
to become a national banking association in conformity
with existing laws, and to retain and keep in operation its branches, or such one or more of them as it may
elect to retain; the amount of the circulation redeemable
at the mother bank and each branch to be regulated by
the amount of capital assigned to and used by each.
SEC. 14. And be it further enacted, That the capital of dJgJ*[ thecal
any state bank or banking association which has ceased, *tal, °* a s t a t e
J

' bank, f o r pur-

or shall cease to exist, or which has been or shall be con- P°ses of this
verted into a national bank, for all the purposes of the act
to which this is an amendment, shall be assumed to be the
capital as it existed immediately before such bank ceased
to exist or was converted as aforesaid. And whenever the
outstanding circulation of any bank, association, corporation, company, or person shall be reduced to an amount
not exceeding five per centum of the chartered or declared
capital existing at the time the same was issued, said circulation shall be free from taxation. And whenever any circulation
state bank or banking association has been converted into tax.
a national banking association, and such national banking
association has assumed the liabilities of such state bank
or banking association, including the redemption of its
bills, such national banking association shall be held to
make the required return and payment on the circulation
outstanding, so long as such circulation shall exceed five
per centum of the capital before such conversion of such
state bank or banking association.
*
*
, *
*
*
Approved, March 3, 1865.
(Section 6 was amended by section 9, act of July 13,
1866 (14 Stat. L., 146), to provide that persons, etc.,
using notes of state banks as circulation after August 1,
1866, to pay a tax of ten per cent thereon.
(Section 14 was amended by the same act and section to
define the capital of certain banks, and providing that
circulation not over five per cent, and banks ceasing to
issue circulation should not be taxed, and that converted
banks should pay tax.)

364

NATIONAL MONETARY COMMISSION.

ACT OF MAECH 3, 1865.
498.3 stat " L" CHAP. LXXXIL—An act to amend an 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 thereofP
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section twenty-one of said act be so amended
that said section shall read as follows:
ciationsng alter SEC* 21. And be it further enacted, That upon the
bondSs? may "re- transfer and delivery of bonds to the Treasurer, as profngVnotesr.eulat"v^e(^ *n ^e 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 transamountof notes ^ erre( ^ an( ^ delivered, but not exceeding ninety per centum
to be received. 0 f the amount of said bonds at the par value thereof, if
statljte^^m^ 681 ^ 11 ^ interest at a rate not less than five per centum
per annum; 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 of dollars, but does not exceed
three millions of dollars, seventy-five per centum of such
capital; to each association whose capital exceeds three
Apportion-millions of dollars, sixty per cent, of such capital. And
ized circulation, 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,

LAWS CONCERNING MONEY, BANKING, AND LOANS.

365

ACT O F M A R C H 2, 1867.
CHAP.

CXCIV.—An act to provide ways and means for
the payment of compound-interest notes.

14 Stat. L.,
658.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemT e m p o rary
bled, That for the purpose of redeeming and retiring any loan
certificates
may
be issued
compound interest notes outstanding, the Secretary of the to redeem
compound-interest
Treasury is hereby authorized and directed to issue tem- notes.
porary loan certificates in the manner prescribed by section four 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 hun*
Rate of interdred and sixty-two, bearing interest at a rate not exceed- est.
Principal and
ing three per centum per annum, principal and interest interest
payable
in lawful
payable in lawful money on demand; and said certificates money.
Certific a t e s
of temporary loan may constitute and be held, by any na- may
be held by
b
a
tional bank holding or owning the same, as a part of the n k s as reserve.
reserve provided for in sections thirty-one and thirty-two
of 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 three, eighteen hundred and sixty-four: Pro- Proviso.
vided, That not less than two-fifths of the entire reserve
of such bank shall consist of lawful money of the United
States: And provided further, That the amount of such
temporary certificates at any time outstanding shall not
exceed fifty millions of dollars.
Approved, March 2, 1867.
NOTE.—A further issue of certificates of indebtedness amounting to twenty-five millions of dollars was authorized by the act of
July 25, 1868, with like privileges as to reserve.

A C T O F F E B E U A E Y 10, 1868.
CHAP. VII.—An act in relation to taxing
national banks.

shares in i5Stat.L.,34.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, T h a t the words " place where the bank is located,+,Sha1re1? i!J n?7

" tional banks to

and not elsewhere," in section forty-one of the " act to ^ l l ^ c i ^ i o e
provide a national currency," approved June third, se v 0 f*xin
eighteen hundred and sixty-four, shall be construed and 1 1 1 -

366

NATIONAL MONETARY COMMISSION.

held to mean the State within which the bank is located;
Ho w to be and the legislature of each State may determine and direct the manner and place of taxing all the shares of
national banks located within said State, subject to the
restriction that the taxation shall not be at a greater rate
than is assessed upon other moneyed capital in the hands
of individual citizens of such State: And provided alsharesof non-Ways, T h a t the shares of any national bank owned bv
non-residents of any State shall be taxed in the city or
town where said bank is located, and not elsewhere.
Approved, February 10, 1868.
ACT O F F E B R U A E Y 19, 1869.
o5

stat

- L-»

CHAP.

X X X I I . — A n act to prevent loaning money
United States notes.

upon

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemsodation lotto Wed, T h a t no national banking association shall hereI o a n money after offer or receive United States notes or national bank
upon United

nor*^A^ofd n o * e s a s s e c u r i t y or as collateral security for any loan of
etcm f r o m use ' m o n e y > o r f° r a consideration shall agree to withhold the
stauite?^?^ s a m e ^r(>m use, or shall offer or receive the custody or
promise of custody of such notes as security, or as collateral security, or consideration for any loan of money;
and any national banking association offending against
the provisions of this act shall be deemed guilty of a misdemeanor, and upon conviction thereof in any United
States court having jurisdiction shall be punished by a
fine not exceeding one thousand dollars, and by a further
sum equal to one-third of the money so loaned; and the
officer or officers of said bank who shall make such loan
or loans shall be liable for a further sum equal to one
quarter of the money so loaned; and the prosecution of
such offenders shall be commenced and conducted as proPenalty.
vided for the punishment of offences in an act to provide
a national currency, approved June third, eighteen hundred and sixty-four, and the fine or penalty so recovered
shall be for the benefit of the party bringing such suit.
Approved, February 19, 1869.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

367

A C T O F M A E C H 3, 1869.
CHAP. C X X X . — A n act regulating the reports of national
banking associations.

15 stat. L.,

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That in lieu of all reports required by section thirty- Banking asfour of the national currency act, every association shall make not less
make to the Comptroller of the Currency not less than ports^each year
five reports during each and every year, according to the ^ ^ " J ^ Q 6
form which may be prescribed by him, verified by the 8ec^f vo1-13>
oath or affirmation of the president or cashier of such R£popts» how
L

verified, and to

association, and attested by the signature of at least three exhibit what.
of the directors; which report shall exhibit, in detail and
under appropriate heads, the resources and liabilities of
the association at the close of business on any past day
to be by him specified, and shall transmit such report to Compt^o?i er
the Comptroller within five days after the receipt of a ^ t h j ^ f i v ^ e
request or requisition therefor from him; and the report thereforr-etoebe
of each association above required, in the same form in 52wspaper,n a
which it is made to the Comptroller, shall be published in
a newspaper published in the place where such association
is established, or if there be no newspaper in the place,
then in the one published nearest thereto in the same
county, at the expense of the association; and such proof llc^ti2n °f p u b
of publication shall be furnished as may be required by
the Comptroller. And the Comptroller shall have power
to call for special reports from any particular association Special rewhenever in his judgment the same shall be necessary in
order to a full and complete knowledge of its condition.
Any association failing to make and transmit any such Penalty for
^

not makingand

report shall be subject to a penalty of one hundred dol- transmitting
lars for each day after five days that such bank shall
delay to make and transmit any report as aforesaid; and
in case any association shall delay or refuse to pay the
penalty herein imposed when the same shall be assessed
by the Comptroller of the Currency, the amount of such J?00iilcteda-y b e
penaltjT may be retained by the Treasurer of the United
States, upon the order of the Comptroller of the Currency, out of the interest, as it may become due to the
association, on the bonds deposited with him to secure
circulation; and all sums of money collected for penalties thebT&arapvto
under this section shall be paid into the Treasury of the
United States.

368

NATIONAL MONETARY COMMISSION.

Additional re-

g EC 2. And be it further enacted. That, in addition to

port to Comp-

am^untro?fdiv? s a ^ r e P o r t s 5 e a c ^ national banking association shall renefearnlngs-°f P or ^ *° ^ i e Comptroller of the Currency the amount of
each dividend declared by said association, and the
mader and°how a m o u n t of net earnings in excess of said dividends, which
verified.
report shall be made within ten days- after the declaration
of each dividend, and attested by the oath of the presiPenaities. (j en t o r cashier of said association, and a failure to comply with the provisions of this section shall subject such
association to the penalties provided in the foregoing
section.
Approved, March 3, 1869.
ACT OF MAECH 3, 1869.
15 stat.

L., CHAP.

CXXXV.—An act in reference to certifying
checks by national banks.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemofficers, etc., bled. That it shall be unlawful for any officer, clerk, or
of

national

banks not to agent of any national bank to certifv any check drawn
certify checks °

• •• i

«•

•>

on such banks, upon said bank unless the person or company drawing:
unless etc

said check shall have on deposit in said bank at the time
such check is certified an amount of money equal to the
tifi°drt hin kseto a m o u n t specified in such check; and any check so certibe good. fied by duly authorized officers shall be a good and valid
penalty for obligation against such bank; and any officer, clerk, or
unlawfully cer-

• i

•

••

tifying checks, agent or any national bank violating the provisions of
this act shall subject such bank to the liabilities and proceedings on the part of the comptroller as provided for
1864, ch.^06, in section fifty of the national banking law, approved
xiri, p. ii4. June third, eighteen hundred and sixty-four.
Approved, March 3, 1869.
ACT OF MARCH 3, 1869.
15 stat. L., CHAP. CXLV.—An act to amend an act entitled^ An act
1863, ch. 58, to provide a national currency secured by a pledge of
xii, p. 680. ' United States bonds, and to provide for the circulation
and redemption thereof" by extending certain penalties to accessories.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assem-

I A W S CONCERNING MONFA*, BANKING, AND LOANS.

369

bled, That every person who shall aid or abet any atetiingin ol
officer or agent of any association in doing any of t h e ^ J ^ f ' ^ g
acts enumerated in section fifty-two of an act entitled ^{Jln tmete<t
"An act to provide a national currency secured by a g ^ ^ ^ ^ l ;
pledge of United States bonds, and to provide for the
circulation and redemption thereof," approved February
twenty-fifth, eighteen hundred and sixty-three, with intent to defraud or deceive, shall be liable to the same
punishment therein provided for the principal.
Approved, March 3, 1869.
ACT OF JULY 12, 1870.
CCLII.—An act to provide for the redemption of i« stat. L.,
the three per cent, temporary loan certificates and for
an increase of national bank notes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That fifty-four millions of dollars in notes for circu- Additional
, ..
,
, .
i« l i i •
• .•
• notes for circulation may be issued to national banking associations, m lation to naaddition to the three hundred millions of dollars author- associations.118
ized by the twenty-second section of the "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 three, eighteen hundred and
sixty-four; and the amount of notes so provided shall Notes to be
be furnished to banking associations organized or to be associations,
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 sixty-five, and the bonds deposited with , what bonds
the Treasurer of the United States, to secure the addi- to secure such
CHAP.

•

-i

-ii i

circulation.

tional 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 cir- New apporculation herein provided for shall be made as soon as basis™! census
practicable, based upon the census of eighteen hundred 0
and seventy: Provided, That if applications for the circu- tio**g ^j? 1 *^
lation herein authorized shall not be made within one circulation are
n o t made in

year after the passage of this act by banking associations 0 ^ ^ ^ ^ J ^
organized or to be organized in States having less than Revised s t a t .
their proportion, it shall be lawful for the Comptroller lltes> 5176«

370

NATIONAL MONETARY COMMISSION.

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 prefNo bank here- erence to such as have the greatest deficiency: And r proafter organized .
_
,
.
f.
. J.
f
Pj
to have over vtded further. mTih a t no banking association
hereafter
or$500,000 circu-

•, v. i

-, ,.

»„

1 1

lation.

ganized shall have a circulation in excess of five hundred
thousand dollars.
(Section 2 provides that a t the end of every month t h e
Secretary of the Treasury shall call in and redeeem an
amount of the three per cent temporary loan certificates
issued under the acts of March 2,1867, and J u l y 25,1868,
not less than the amount of circulating notes issued to national banking associations under the preceding section
during the previous month.)
notes payaMe ®EC* **' ^n(^ ^e ^ farther enacted, That upon the den?agbed issued P o s ^ °^ a n y United States bonds, bearing interest payto associations able in gold, with the treasurer of the United States, in
d e p o s i t ing

united states the manner prescribed in the nineteenth and twentieth
r

bonds paying
in

erest

sections of the national currency act, it shall be lawful for
the comptroller of the currency to issue to the association
Denomina- making the same, circulating notes of different denomina-

tions

and

i r . i i ?

amount of such tions, not less than five dollars, not exceeding in amount
notes.

eighty per centum of the p a r value of the bonds deposited, 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
circulation upon such presentation in such coin: Provided, That n o
bank not to ex-banking association organized under this section shall
ceed $1,3000,-

, ,.

.,,.

„

ooo.
have a circulation in excess of one million of dollars.
Such associa- SEC. 4. And be it further enacted, That every national
on hand not banking association formed under the provisions of the
per cent of cir- preceding section of this act shall at all times keep on
gold and sii- hand not less than twenty-five per centum of its outstanding circulation in gold or silver coin of the United
t re
ar owi^iotes States, and shall receive at p a r in the payment of debts
banksher such ^ i e S0^ 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.
such associa- jg 5. And fa it further enacted. That every associations subject to . EC#
. i * i
• •
ii
national cur-tion organized for the purpose of issuing gold notes as
cept, etc.'
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

LAWS CONCERNING MONEY, BANKING, AND LOANS.

371

hundred millions of dollars; the first clause of section
thirty-two, which, taken in connection 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 thirty-two, 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 ^ Terms" iaw.

'. ,

i i

!•

ful money" and

and requirements of said act to the banking associations "lawful money
herein provided for, the terms "lawful money," and states'* how
u
lawful money of the United States," shall be held and connection
.

herewith.

construed to mean gold or silver coin of the United
States.
SEC. 6. And be it further enacted. That to secure a A Equitable dis.

, , , . . .

t r i b u t i o n of

more equitable distribution of the national banking cur-currency how
to be secured

rency there may be issued circulating notes to banking $%$%£* Jjjjassociations organized in States and Territories having exceeding $25,i
1
i •
! •
i » i A i i
000,000 to be
less than their proportion as herein set forth. And the withdrawn
* .
.
from banks.
amount of circulation in this section authorized shall,
under the direction of the Secretary of the Treasury, as
it may be required for this purpose, be withdrawn, as
herein provided, from banking associations organized in
States having a circulation exceeding that provided for
by the act entitled " An act to amend an act entitled 'An
act to provide for a national banking currency, secured
by pledge of United States bonds, and to provide for the
circulation and redemption thereof,'" approved March
three, eighteen hundred and sixty-five, but the amount so
withdrawn shall not exceed twenty-five million dollars.
The comptroller of the currency shall, under the direction
of the Secretary of the Treasury, make a statement show- statement of
ing the amount of circulation in each State and Territory, each state and
and the amount to be retired by each banking associa-made, and of
tion in accordance with this section, and shall, when such retired, etc.
redistribution of circulation is required, make a requisition for such amount upon such banks, commencing with
the banks having a circulation exceeding one million of ^$§££#£1re"
dollars in States having an excess of circulation, and
withdrawing their circulation in excess of one million of
dollars, and then proceeding pro rata with other banks
having a circulation exceeding three hundred thousand
dollars in States having the largest excess of circulation,
and reducing the circulation of such banks in States hav

372

NATIONAL MONETARY COMMISSION.

ing the greatest proportion in excess, leaving undisturbed
the banks in States having a smaller proportion, until
those in greater excess have been reduced to the same
grade, and continuing thus to make the reduction provided for by this act until the full amount of twenty-five
millions, herein provided for, shall be withdrawn; and
the circulation so withdrawn shall be distributed among
the States and Territories having less than their proporto^ak^^equf tion, so as to equalize the same. And it shall be the duty
siuon f o r f ^ 0 f the comptroller of the currency, under the direction of
am U
if ba nking the Secretary of the Treasury, forthwith to make a requifaSif,° within11! sition for the amount thereof upon the banks above inclitheramountUof cated as herein prescribed. And upon failure of such
quire^^com^- associations, or any of them, to return the amount so reeq0uai amount quired within one year, it shall be the duty of the competc theh b o n d s ' troller of the currency to sell at public auction, having
given twenty days' notice thereof in one daily newspaper printed in Washington and one in New York city,
an amount of bonds deposited by said association, as security for said circulation, equal to the circulation to be
withdrawn from said association and not returned in
compliance with such requisition; and the comptroller of
the currency shall with the proceeds redeem so many of
the notes of said banking association, as they come into
ti No t c ie C with-^ e treasury, as will equal the amount required and not
drawn until, s o returned, and shall pay the balance, if any, to such
banking association: Provided, That no circulation shall
be withdrawn under the provisions of this section until
after the fifty-four millions granted in the first section
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.
ACT O F J U L Y 14, 1870.
97 J

6 stat

- L"

CCLVII.—An act to require national banks going
into liquidation to retire their circulating notes.

CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress an-

LAWS CONCERNING MONEY, BANKING, AND LOANS.

373

sembled, That every bank that has heretofore gone into ^ W s t J a t
liquidation under the provisions of section forty-two of ghViegi°Tnt0o
the national currency act, shall be required to deposit ^posft^awfui
lawful money of the United States for its outstanding ™taSding0ci?cii"
circulation within sixty days from the date of the passage la*J™- Reviged
of this act. And every bank that may hereafter go into f||{£ltes' 5222»
liquidation shall be required to deposit lawful money of
the United States for its outstanding circulation within
six months from the date of the vote to go into liquidation; whereupon the bonds pledged as security for such
circulation shall be surrendered to the association making
such deposit. And if any bank shall fail to make the de- t 0 I f J ^ ^ f |"?
posit and take up its bonds for thirty days after the ex- ^JmpVr on expiration of the time specified, the Comptroller of the ftaJuSctionnfn
Currency shall have power to sell the bonds pledged for New Yorkthe circulation of said bank at public auction in New
York City, and after providing for the redemption and
cancellation of said circulation, and the necessary expenses of the sale, to pay over any balance remaining
from the proceeds to the bank, or its legal representative:
Provided, That banks which are winding up in good exempt bf£m
faith for the purpose of consolidating with other banks t h i s a c t
shall be exempt from the provisions of this act: And pro- r e ^ted! t 0 be
vided further, That the assets and liabilities of banks
so in liquidation shall be reported by the banks with
which they are in process of consolidation.
Approved, July 14, 1870.
ACT OF JUNE 8, 1872.
CCCXLVI.—An act for the better security of bank ^
reserves, and to facilitate bank clearing-house exchanges.

CHAP.

stat

- **»

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury is hereby authorJ^^TV^I
ized to receive United States notes on deposit, without cefve"united
interest, from national banking associations, in sums not fepos1tnotwSiti?
less than ten thousand dollars, and to issue certificates011* Interest,
7

from whom ana

therefor in such form as the Secretary may prescribe, in in w h a t sumsdenominations 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,

374

NATIONAL MONETAKY COMMISSION.

tblrefo?aand SEC - 2- T h a t t h e United States notes so deposited in the
h W a a b
s ee ^ e vfsedTreasury o f t l i e United States shall not be counted as
statutes, 5193. p a r t 0 f the legal reserve ? but the certificates issued therefor may be 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.
to°berexpanded ^EC. *• That nothing contained in this act shall be cong e ^ n t r a c t e d strued ^° authorize any expansion or contraction of the
special8 depo^ c u r r e n c y' an( ^ ^ e United States notes for which such cerits,andhowap-tificates are issued, or other United States notes of like
7

plied.

amount, shall be held as special deposits in the Treasury,
and used only for the redemption of such certificates.
Approved, June 8,1872.
ACT OF JANUARY 20, 1873.
17 stat.

L., CHAP.

XLIII.—An act to authorize the examination of

41z.

certain banks.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembanks * in* ntbe ^ ^ > That the comptroller of the currency, in addition to
District of Co- the powers now conferred upon him by law for the exexamined.
animation of national banks, is hereby further authorized, whenever he may deem it useful, to cause examination to be made into the condition of any bank in the
District of Columbia organized under act of Congress.
Report.
The comptroller, at his discretion, may report to Congress
Expense. the results of such examination. The expense necessarily
incurred in the execution of this act shall be paid out of
any appropriation made by Congress for special bank
examinations.
Approved, January 20, 1873.
ACT OF FEBRUARY 19,1873.
IT

stat.

CLXVI.—An act to provide for obtaining Information of the Condition of Banks organized under
State Laws.

L., CHAP.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress uscomptroiierof sembled. That it shall be the duty of the comptroller of
the Currency to

report annually the currency to report annually to Congress, under apc°ondftion ofpropriate heads, the resources and liabilities, exhibiting
etc.;
'the condition of the tanks, banking companies, and sav-

LAWS CONCERNING MONEY, BANKING, AND LOANS.

375

ings-banks organized tinder the laws of the several States
and Territories, such information to be obtained by the
comptroller from the reports made by such banks, banking companies, and savings-banks to the legislatures or
officers of the different States and Territories. And
where such reports can not be obtained, the deficiency
shall be supplied from such other authentic sources as
may be available.
SEC. 2. That, in order to carry the provisions of the ^ employ an
first section of this act into effect, the comptroller of the cierk if necescurrency is hereby authorized, if it should be necessary,
to employ one clerk of class four, who shall be appointed
by the Secretary of the Treasury in the manner now provided by law.
Approved, February 19, 1873.
ACT O F M A R C H 3, 1873.
CHAP. C C L X I X . — A n act to require national banks to *7
restore their capital when impaired, and to amend the
national-currency act.

stat

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That all national banks which shall have failed th^eflcciaepCiiets^
to pay up their capital stock, as required by law, and all g ^ b°afnksna^
national banks whose capital stock shall have become i m - b e m a d e U.P h l
*

assessment pro

paired by losses or otherwise, shall, within three months rata uponstockafter receiving notice thereof from the Comptroller ofetcthe Currency, be required to pay the deficiency in the
capital stock by assessment upon the shareholders, pro
rata, for the amount of capital stock held by each and the
Treasurer of the United States shall withhold the interest .interest to be
withheld until,

upon all bonds held by him in trust for such associa- etc.
tion, upon notification from the Comptroller of the Currency, until otherwise notified by him; and if such banks Receiver to |>e
shall fail to pay up their capital stock, and shall refuse etc.
•

• i

x«

-i

,-,

1864, ch. 106,

to go into liquidation, as provided by law, for three sec. 50, vol. 1a,
months after receiving notice from the Comptroller, a
receiver may be appointed to close up the business of the
association, according to the provisions of the fiftieth section of the national-currency act.
SEC. 2. That section fifty-seven of said act be amended m e ^ ainjaucnleby adding thereto the following: "And provided further, sJ^before^n'ai
That no attachment, injunction, or execution shall be is- ^ 1 ?ourt in
sued against such association, or its property, before final jud

376

NATIONAL MONETARY COMMISSION.

judgment in any such suit, action, or proceeding in any
State, county, or municipal court."
tionar?rnotnfo ^EC. ^' That all banks not organized, and transacting
tainScomb/an?esbusiness under the national-currency act, and all persons,
°ls0ere0ifev?s° d c o m P a n i e s o r corporations doing the business of bankers,
statutes, 5243. brokers, or savings institutions, except saving-banks, authorized by Congress to use the word " n a t i o n a l " as a part
of their corporate name are prohibited from using the
word " national " as a portion of the name or title of such
usTn^^ucitibank, corporation, firm, or partnership; and every such
word

b a n k , c o r p o r a t i o n , or firm, w h i c h shall use w o r d

"na-

tional " as a portion of their corporate title or partnership name six months after the passage of this act, shall
be subject to a penalty of fifty dollars for each day thereafter in which such word shall be employed as aforesaid
as part of such corporate name or title, such penalty to be
recovered by action in any court having jurisdiction.
g EC# 4# That it shall be the duty of the Comptroller of
tfomptronerof
the^iates eetcy ^G Currency to cause to be examined each year the plates,
bTn rhciCMuia^^es' but-pieces, and other material from which the nation is printed, tional-bank circulation is printed in whole or in part,
and file in his office annually a correct list of the same;
certain mate- and such material as shall have been used in the printing
rial to be de-

stroyed.

Expenses.

. , . . , .

or the notes oi national banks which are m liquidation,
or have closed business, shall be destroyed under such
regulations as shall be prescribed by the Comptroller of
the Currency, and approved by the Secretary of the Treasury; and the expense of such examination and destruction
shall be paid out of any appropriation made by Congress
for the special examination of national banks and bank
plates.
Approved, March 3, 1873
R E V I S E D S T A T U T E S A P P L I C A B L E TO T H E SUBJECT OP
BANKING.

Banks in Dktrict
bia

SEC. 332. The Comptroller of the Currency, in addi-

of Oolum- .

„

- ™ .o™ tion t o t h e p o w e r s conferred u p o n h i m b y l a w t o r t h e
Jan. 20, 1873,
. ,.
,.
, ,
i
• * ^
^
• i
c. 43, v. 17, p. e x a m i n a t i o n of n a t i o n a l b a n k s , is f u r t h e r a u t h o r i z e d ,
7
7
412.

whenever he may deem it useful, to cause examination to
be made into the condition of any bank in the District of
Columbia organized under act of Congress. The Comptroller, at his discretion, may report to Congress the

LAWS CONCERNING MONEY, BANKING, AND LOANS.

377

results of such examination. The expense necessarily
incurred in any such examination shall be paid out of
any appropriation made by Congress for special bank
examinations.
SEC. 333. The Comptroller of the Currency shall make
an annual report to Congress [at the commencement of
its session,] exhibiting—
First. A summary of the state and condition of every
association from which reports, have been received the
preceding year, at the several dates to which such reports refer, with an abstract of the whole amount of banking capital returned by them, of the whole amount of
their debts and liabilities, the amount of circulating notes
outstanding, and the total amount of means and resources,
specifying the amount of lawful money held by them at
the times of their several returns, and such other information in relation to such associations as, in his judgment, may be useful.
(The words in brackets were added by amendment of
February 18, 1875.)
SEC. 380. All suits and proceedings arising out of the^condu^of
provisions of law governing national banking associa-na«oma banks,
tions, in wThich the United States or any of its officers ore. 58, s.'55, vl
1
J
12, p. 680. June
agents shall be parties, shall be conducted by the district^, i|64, c.^106,
attorneys of the several districts under the direction and116-'Kennedy
. .

Gibson

supervision of the Solicitor of the Treasury.
wall., 498).
SEC. 563. The district courts shall have Jiurisdiction as Jurisdiction.
. _,
follows:
*

Suits against
national banks.
June 3,1864,
c. 106, s. 57, v.
1 3 , p. 1 1 6 .

Fifteenth. Of all suits by or against any association f*™f£ waiiu
established under any law providing for national b a n k - 1 0 ^ £adl(Vi
ing associations within the district for which the court isBlatcll'» 101>held.
SEC. 629. The circuit courts shall have original juris- glUit|daCtatSst
diction as f o l l o w s :
*
*

national banks.
June 3, 1864,
c. 106, s. 57, v.
13, p . 1 1 6 .

Tenth. Of all suits by or against any banking a s s o - ^ f f 7 ^ ;
ciation established in the district for which the court is 506) *
held, under any law providing for national banking associations.
15712°—10

378

NATIONAL MONETARY COMMISSION.

•ofn "he comp' Eleventh. Of all suits brought by [or against] any
troiier of the banking association established in the district for which
Currency.

io6 3ss185o' ^ e c o u r ^ * s held, under the provisions of Title " The
^ y.^ 13, FPPI national banks," to enjoin the Comptroller of the Cur18^1875,^80, rency, or any receiver acting under his direction, as provided by said title.
(See sec. 5237.)
(The words in brackets were stricken out by amendment of February 18, 1875.)
andnSpape?senof SEC. ^84. Every certificate, assignment, and conveyofefhTcur°ren-ance executed by the Comptroller of the Currency, in
cy
iune 3 1864 pursuance of law, and sealed with his seal of office, shall
lb^pf'ioo.2' v- be received in evidence in all places and courts; and all
copies of papers in his office, certified by him and authenticated by the said seal, shall in all cases be evidence
equally with the originals. An impression of such seal
directly on the paper shall be as valid as if made on wax
or wafer.
ce?trilcatSti0o? SEC. 8 8 5 - Copies of the organization certificate of
n
june&3 bi864 a n y n a ^ional banking association, duly certified by the
is 106iol* 6 ' v* Comptroller of the Currency, and authenticated by his
seal of office, shall be evidence in all courts and places
within the jurisdiction of the United States of the existence of the association, and of every matter which could
be proved by the production of the original certificate.
(See section 5135.)
words^bank0" SEC. 3407. Every incorporated or other bank, and every
* jSne30 1864 person, firm, or company having a place of business where
13 V 251* 7 j u i y c r e ( ^ s a r e ° P e n e ( i by the deposit or collection of money
13,'1*866, c^i84, o r currency, subject to be paid or remitted upon draft,
i1*?-' i * ' check, or order, or where money is advanced or loaned on
7

Seldenv.

Equitable Trust stocks, bonds, bullion, bills of exchange, or promissory
419); Northup n otes, or where stocks, bonds, bullion, bills of exchange,
v. S h o o k

(10

. • . • • ? .

Biatch., 243); o r promissorv notes are received for discount or for sale,
Clark t7. Bailey _ \ , .

- ,

(li Biatch., shall be regarded as a bank or as a banker,
capital of S E C 3410. The capital of any State bank or banking
hanks exnired

*-*

or converted in-association which has ceased or shall cease to exist, or
hanks.
_ which has been or shall be converted into a national
Mar. 3 , 1 8 6 5 , ,

„ .

1 , 1 . 1

•

1 .

c. 78, s. 14, v. bank, shall be assumed to be the capital as it existed lmjuiy 13,1866, mediatelyJ before such bank ceased to exist or was conc. 18 4, s. 9,
us, v. 14, p. verted as aforesaid.
146.
circulation, SEC. 3411. Whenever the outstanding circulation of
when exempted

from tax.
any bank,

http://fraser.stlouisfed.org/
is reduced
Federal Reserve Bank of St. Louis

association, corporation, company, or person
to an amount not exceeding five per centum oi

LAWS CONCERNING MONEY, BANKING, AND LOANS.

379

the chartered or declared capital existing at the time the
same was issued, said circulation shall be free from taxation; and whenever any bank which has ceased to issue
notes for circulation deposits in the Treasury of the
United States, in lawful money, the amount of its outstanding circulation, to be redeemed at par, under such
regulations as the Secretary of the Treasury shall prescribe, it shall be exempt from any tax upon such circulation.
SEC. 3412. Every national banking association, State Tax on notes
*.

of persons or

bank, or State banking association, shall pay a tax of ten s t a t e banks
&

0used

f o r

c l r c u

per centum on the amount or notes 01 any person, or 01 lation.
any State bank or State banking association, used for 8,1875.
circulation and paid out by them.
SEC. 3413. Every national banking association, State Tax on notes
bank, or banker, or association, shall pay a tax of ten per *es, etc., used
'

for circulation.

centum on the amount of notes of any town, city, or mu- n>Mnicipal corporation, paid out by them.
SEC. 3414. A true and complete return of the monthly x Monthly r e 0

turns of notes

amount of circulation, of deposits, and of capital, as of persons, citj*

* -i

aforesaid, and of the monthly amount of notes of persons, e c Wf i d out*
town, city, or municipal corporation, State banks, or
State banking associations paid out as aforesaid for the
previous six months, shall be made and rendered in duplicate on the first day of December and the first day of
June, by each of such banks, associations, corporations,
companies, or persons, with a declaration annexed thereto,
under the oath of such person, or of the president or
cashier of such bank, association, corporation, or company, in such form and manner as may be prescribed by
the Commissioner of Internal Eevenue, that the same contains a true and faithful statement of the amounts subject to tax, as aforesaid; and one copy shall be transmitted to the collector of the district in which any such
bank, association, corporation, or company is situated,
or in which such person has his place of business, and one
copy to the Commissioner of Internal Eevenue.
SEC. 3415. I n default of the returns provided in the in default
preceding section, the amount of circulation, deposit, c o m missioned
capital, and notes of persons, town, city, and municipal
corporations, State banks, and State banking associations paid out, as aforesaid, shall be estimated by the
Commissioner of Internal Revenue, upon the best information he can obtain. And for any refusal or neglect

380

NATIONAL MONETARY COMMISSION.

to make return and payment, any such bank, association,
corporation, company, or person so in default shall pay a
penalty of two hundred dollars, besides the additional
penalty and forfeitures provided in other cases.
National bank SEC. 3416. Whenever any State bank or banking assoturn and pay- ciation has been converted into a national banking assoment of tax of . , .

-, ,

, .

. ..

converted state ciation, and such national banking association has assumed the liabilities of such State bank or banking association, including the redemption of its bills, by any
agreement or understanding whatever with the representatives of such State bank or banking association, such
national banking association shall be held to make the
required return and payment on the circulation outstanding, so long as such circulation shall exceed five per
centum of .the capital before such conversion of such
State bank or banking association.
Provisions for SEC. 3417. The provisions of this chapter, relating to
c?p°intaeF%ndthe tax on the deposits, capital, and circulation of banks,
circulation, not

., .

. .

to apply to and to their returns, except as contained m sections
'thirty-four hundred and ten, thirty-four hundred and
eleven, thirty-four hundred and twelve, thirty-four hundred and thirteen, and thirty-four hundred and sixteen,
and such parts of sections thirty-four hundred and fourteen and thirty-four hundred and fifteen as relate to the
tax of ten per centum on certain notes, shall not apply to
associations which are taxed under and by virtue of Title
" NATIONAL BANKS."

National-

SEC. 3475. The notes of national banks shall be re-

T)$iT*ilc no1*f*^ 1*6*

ceivabie forceived at par for all debts and demands owing by the
states, except. United States to any person within the United States,
en. 106, sec 23*, except interest on the public debt, or in redemption of
vol. 13, p. 106.,,

the national currency.
(See sec. 5182.)
interest hear- SEC. 3590. Treasury notes issued under the authority

in0" notes.

•

Mar. 3,1863, of the acts of March three, eighteen hundred and sixtyvoi. 12, p. ho! three, chapter seventy-three, and June thirty, eighteen
ch.ui72, sec. 2\ hundred and sixty-four, chapter one hundred and sev'
enty-two, shall be legal tender to the same extent as
United States notes, for their face value, excluding interest: Provided, That Treasury notes issued under the act
last named shall not be a legal tender in payment or redemption of any notes issued by any bank, banking association, or banker, calculated and intended to circulate
as money.

LAWS CONCEBNTNG MONEY, BANKING, AND LOANS.

381

SEC. 5133. Associations for carrying on the business of n j£f ti 1) ° a n n ^
banking under this Title may be formed by any number t?jy i s s o c i a "
of natural persons, not less in any case than five. They c 3™g |» 158G4,
shall enter into articles of association, which shall specify 1 jj 1 ^ e 2o°i874
in general terms the object for which the association is f0|43» v - 18, p*
formed, and may contain any other provisions, not inconsistent with law, which the association may see fit to
adopt for the regulation of its business and the conduct
of its affairs. These articles shall be signed by the persons uniting to form the association, and a copy of them
shall be forwarded to the Comptroller of the Currency,
to be filed and preserved in his office.
(See section 324.)
(The act of June 20, 1874 (c. 343, v. 18, p. 123), declares " that the act entitled 'An act to provide a national
currency secured by a pledge of United States bonds and
to provide for the circulation and redemption thereof,'
approved June third, eighteen hundred and sixty-four,
shall hereafter be known as ' the national-bank act.5")
SEC. 5134. The persons uniting to form such an associa- Requisites of
tion shall, under their hands, make an organization cer- certificate.
tificate, which shall specifically state:
c/ioe, s. c, v!
First. The name assumed by such association; which
name shall be subject to the approval of the Comptroller
of the Currency.
Second. The place where its operations of discount and
deposit are to be carried on, designating the State, Territory, or district, and the particular county and city,
town, or village.
Third. The amount of capital stock and the number of
shares into which the same is to be divided.
Fourth. The names and places of residence of the
shareholders and the number of shares held by each of
them.
Fifth. The fact that the certificate is made to enable
such persons to avail themselves of the advantages of this
Title.
SEC. 5135. The organization certificate shall be ac- How certmc&te slid.ll 1) e

knowledged before a judge of some court of record, or acknowledged
notary public; and shall be, together with the acknowledgement thereof, authenticated by the seal of such court,
or notary, transmitted to the Comptroller of the Currency, who shall record and carefully preserve the same in
his office. (See sec. 885.)

382

NATIONAL, MONETARY COMMISSION.

powers of also* SEC. 513G * Upon duly making and filing articles of
* Abb u s association and an organization certificate, the associaGam mv s' ^ o n s ^ i a ^ become, as from the date of the execution of
iecond^NaSon^^ o r g a n i z a t i o n certificate, a body corporate, and as such,
ca cfTehBiss*"an(^ * n ^ e n a m e designated in the organization certificate,
26
)•
it shall have power—
First. To adopt and use a corporate seal.
Second. To have succession for the period of twenty
years from its organization, unless it is sooner dissolved
according to the provisions of its articles of association,
or by the act of its shareholders owning two-thirds of its
stock, or unless its franchise becomes forfeited by some
violation of law.
Third. To make contracts.
Fourth. To sue and be sued, complain and defend, in
any court of law and equity, as fully as natural persons.
Fifth. To elect or appoint directors, and by its board of
directors to appoint a president, vice-president, cashier,
and other officers, define their duties, require bonds of
them and fix the penalty thereof, dismiss such officers or
any of them at pleasure, and appoint others to fill their
places.
Sixth. To prescribe, by its board of directors, by-laws
not inconsistent with law, regulating the manner in which
its stock shall be transferred, its directors elected or appointed, its officers appointed, its property transferred,
its general business conducted, and the privileges granted
to it by law exercised and enjoyed.
Seventh. To exercise by its board of directors, or duly
authorized officers or agents, subject to law, all such
incidental powers as shall be necessary to carry on the
business of banking; by discounting and negotiating
promissory notes, drafts, bills of exchange, and other
evidences of debt; by receiving deposits; by buying and
selling exchange, coin, and bullion; by loaning money on
personal security; and by obtaining, issuing, and circulating notes according to the provisions of this Title.
But no association shall transact any business except
such as is incidental and necessarily preliminary to its
organization, until it has been authorized by the Comptroller of the Currency to commence the business of
banking.
ci ti

LAWS CONCERNING MONEY, BANKING, AND LOANS.

383

SEC. 5137. A national banking association may pur- rea^ro^rt01*
chase, hold, and convey real estate for the following pur- ch Jl Jo| ^ec8|i'
v
poses, and for no others:
°kan' p ' 1 V'\
First. Such as shall be necessary for its immediately Bag^f7accommodation in the transaction of its business.
371).
Second. Such as shall be mortgaged to it in good faith
by way of security for debts previously contracted.
Third. Such as shall be conveyed to it in satisfaction
of debts previously contracted in the course of its dealings.
Fourth. Such as it shall purchase at sales under judgements, decrees, or mortgages held by the association, or
shall purchase to secure debts due to it.
But no such association shall hold the possession of any
real estate under mortgage, or the title and possession of
any real estate purchased to secure any debts due to it,
for a longer period than five years.
SEC. 5138. No association shall be organized under this Requisite
°

amount of capi-

Title with a less capital than one hundred thousand dol-tai.
lars; except 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. No association shall be organized in a city the population of which exceeds fifty thousand persons with a
less capital than two hundred thousand dollars.
SEC. 5139. The capital stock of each association s t a l l s t o ^ ^ j « « ^
be divided into shares of one hundred dollars each, and be fei^- . „
'

Van Allen v.

deemed personal property, and transferable on the books J ^ Assessors
of the association in such manner as may be prescribed in
the by-laws or articles or association. Every person becoming a shareholder by such transfer shall, in proportion to his shares, succeed to all the rights and liabilities
of the prior holder of such shares; and no change shall
be made in the articles of association by which the rights,
remedies, or security of the existing creditors of the association shall be impaired.
SEC. 5140. At least fifty per centum of the capital me ?t°of P the
stock of every association shall be paid in before it shall muiiMbe *imSie
be authorized to commence business; and the remainder and provedof the capital stock of such association shall be paid in
installments of at least ten per centum each, on the whole
amount of the capital, as frequently as one installment at
the end of each succeeding month from the time it shall
be authorized by the Comptroller of the Currency to commence business; and the payment of each installment

384

NATIONAL MONETAKY COMMISSION.

shall be certified to the Comptroller, under oath, by the
president or cashier of the association.
Proceedings SEC. 5141. Whenever any shareholder, or his assignee,
J

i f shareholder

fails to pay in- fails to pay any installment on the stock when the same is
stallments.

required by the preceding section to be paid, the directors
of such association may sell the stock of such delinquent
shareholder at public auction, having given three weeks'
previous notice thereof in a newspaper published and of
general circulation in the city or county where the association is located, or if no newspaper is published in said
city or county, then in a newspaper published nearest
'thereto, to any person who will pay the highest price
therefor, to be not less than the amount then due thereon,
with the expenses of advertisement and sale; and the
excess, if any, shall be paid to the delinquent shareholder. If no bidder can be found who will pay for such
stock the amount due thereon to the association, and the
cost of advertisement and sale, the amount previously
paid shall be forfeited to the association, and such stock
shall be sold as the directors may order, within six months
from the time of such forfeiture, and if not sold it shall
be cancelled and deducted from the capital stock of the
association. If any such cancellation and reduction shall
reduce the capital of the association below the minimum
of capital required by law, the capital stock shall, within
thirty days from the date of such cancellation, be increased to the required amount; in default of which a
receiver may be appointed, according to the provisions of
section fifty-two hundred and thirty-four, to close up the
business of the association,
increase o f s E c. 5142. Any association formed under this Title
capital stock.

may, by its articles of association, provide for an increase
of its capital from time to time, as may be deemed expedient, subject to the limitations of this Title. But the
maximum of such increase to be provided in the articles
of association shall be determined by the Comptroller of
the Currency; and no increase of capital shall be valid
until the whole amount of such increase is paid in, and
notice thereof has been transmitted to the Comptroller
of the Currency, and his certificate obtained specifying
the amount of such increase of capital stock, with his approval thereof, and that it has been duly paid in as part
of the capital of such association.
caStty^tock.^ SEC. 51 43- Any association formed under this Title
may, by the vote of shareholders owning two-thirds of its

LAWS CONCERNING MONEY, BANKING, AND LOANS.

885

capital stock, reduce its capital to any sum not below
the amount required by this Title to authorize the formation of asociations; but no such reduction shall be allowable which will reduce the capital of the association below the amount required for its outstanding circulation,
nor shall any such reduction be made until the amount of
the proposed reduction has been reported to the Comptroller of the Currency and his approval thereof obtained.
SEC. 5144. In all elections of directors, and in decid- Right of
sliSLreliolclei's to

ing all questions at meetings of shareholders, each share- vote,
holder shall be entitled to one vote on each share of stock
held by him. Shareholders may vote by proxies duly authorized in writing; but no officer, clerk, teller, or bookkeeper of such association shall act as proxy; and no
shareholder whose liability is past due and unpaid shall
be allowed to vote.
SEC. 5145. The affairs of each association shall be dirf*^on o f
managed by not less than five directors, who shall be c J™j| 3'gg869'
elected by the shareholders at a meeting to be held at any ij^ Yt' 13' p*
time before the association is authorized by the Comptroller of the Currency to commence the business of banking ; and afterward at meetings to be held on such day in
January of each year as is specified therefor in the articles of association. The directors shall hold office for one
year, and until their successors are elected and have
qualified.
SEC. 5146. Every director must, during his whole term qi ^f ftkitto£2
of service, be a citizen of the United States, and at least of directors.
three-fourths of the directors must have resided in the
State, Territory, or District in which the association is
located, for at least one year immediately preceding their
election, and must be residents therein during their continuance in office. Every director must own, in his own
right, at least ten shares of the capital stock of the association of which he is a director. Any director who
ceases to be the owner of ten shares of the stock, or who
becomes in any other manner disqualified, shall thereby
vacate his place.
SEC. 5147. Each director, when appointed or elected, oath reQ u i r e d , from

shall take an oath that he will, so far as the duty de- directors,
volves on him, diligently and honestly administer the
affairs of such association, and will not knowingly violate, or willingly permit to be violated, any of the provisions of this Title, and that he is the owner in good

386

NATIONAL MONETARY COMMISSION.

faith, and in his own right, of the number of shares of
stock required by this Title, subscribed my him, or standing in his name on the books of the association, and that
the same is not hypothecated, or in any way pledged, as
security for any loan or debt. Such oath, subscribed by
the director making it, and certified by the officer before
whom it is taken, shall be immediately transmitted to the
Comptroller of the Currency, and shall be filed and preserved in his Office.
candesng v a " ^EC. 5 1 4 8 - ^- n y vacancy in the board shall be filled by
appointment by the remaining directors, and any director
so appointed shall hold his place until the next election.
Proceedings gEC# 5149. If from any cause, an election of directors is
where no elec-

tion is held on n o t made at the time appointed, the association shall not
the proper day.

for that cause be dissolved, but an election may be held
on any subsequent day, thirty days' notice thereof in all
cases having been given in a newspaper published in the
city, town, or county in which the association is located;
and if no newspaper is published in such city, town, or
county, such notice shall be published in a newspaper published nearest thereto. If the articles of association do
not fix the day on which the election shall be held, or if
no election is held on the day fixed, the day for the election shall be designated by the board of directors in their
by-laws, or otherwise; or if the directors fail to fix the
day, shareholders representing two-thirds of the shares
may do so.
pr^sfdeSt of SEC - 5 1 5 ° - ° n e o f t h e directors, to be chosen by the
sofiS7e,^.1i5e!l)0ardJ s h a 1 1 b e t h e P^sident of the board.
individual SEC. 5151. The shareholders of every national-banking
shareholders, association shall be held individually responsible, equally
c. 106, s.' 12, v! and ratably, and not one for another, for all contracts,
13 p 102

' *

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;
except that shareholders of any banking association now
existing under State laws, having not less than five millions of dollars of capital actually paid in, and a surplus
of twenty per centum on hand, both to be determined by
the Comptroller of the Currency, shall be liable only to
the amount invested in their shares; and such surplus of
twenty per centum shall be kept undiminished, and be in
addition to the surplus provided for in this Title; and if
at any time there is a deficiency in such surplus of twenty
per centum, such association shall not pay any dividends

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

387

to its shareholders until the deficiency is made good; and
in case of such deficiency, the Comptroller of the Currency may compel the association to close its business and
wind up its affairs under the provisions of Chapter four
of this Title.
SEC. 5152. Persons holding stock as executors, admin- Executors,
istrators, guardians, or trustees, shall not be personally not 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 such trust-funds would be, if living
and competent to act and hold the stock in his own name.
SEC. 5153. All national banking associations, desig-, t Duties a n d
t ^

P t

rri

liabilities of

nated lor that purpose by the becretary or the Ireasury,associations
shall be depositaries of public money, except receipts nated as atfrom customs, under such regulations as may be pre-public moneys.
scribed by the Secretary; and they may also be employed sec. 45, V 13',
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. The Secretary of the Treasury shall require the associations thus designated to give
satisfactory security, by the deposit of United States
bonds and otherwise, for the safe-keeping and prompt
payment of the public money deposited with them, and
for the faithful performance of their duties as financial
agents of the Government. And every association so
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 into the Government for internal revenue, or for
loans or stocks. (See Sees. 3639-3649, 5489.)
SEC. 5154. Any bank incorporated by special law, or organization
, , . . , . , , .

•

<»of State banks

any banking institution organized under a general law of as national
any State, may become a national association under this cfations.
Title by the name prescribed in its organization certifi-p. 112'.'
cate; and in such case the articles of association and the
organization certificate may be executed by a majority of
the directors of the bank or banking institution; and the
certificate shall declare that the owners of two thirds of
the capital stock have authorized the directors to make
such certificate, and to change and convert the bank or
banking institution into a national association. A majority of the directors, after executing the articles of
association and organization certificate, shall have power

388

NATIONAL MONETARY COMMISSION.

to execute all other papers, and to do whatever may be
required to make its organization perfect and complete
as a national association. The shares of any such bank
may continue to be for the same amount each as they
were before the conversion, and the directors may continue to be the directors of the association until others
are elected or appointed in accordance with the provisions of this chapter; and any State bank which is a
stockholder in any other bank, by authority of State laws,
may continue to hold its stock, although either bank, or
both, may be organized under and have accepted the provisions of this Title. When the Comptroller of the Currency has given to such association a certificate, under his
hand and official seal, that the provisions of this Title
have been complied with, and that it is authorized to commence the business of banking, the association shall have
the same powers and privileges, and shall be subject to
the same duties, responsibilities, and rules, in all respects,
as are prescribed for other associations originally organized as national banking associations, and shall be held
and regarded as such an association. But no such association shall have a less capital than the amount prescribed for associations organized under this Title.
state banks SEC. 5155. It shall be lawful for any bank or bankhaving
b r a n c h - . . . .
es.
ing association organized under State laws, and having
c. 78,V 7, v! branches, the capital being joint and assigned to and
used by the mother-bank and branches in definite proportions, to become a national banking association in
conformity with existing laws, and to retain and keep in
operation its branches, or such one or more of them as it
may elect to retain; the amount of the circulation redeemable at the mother-bank, and each branch, to be regulated
by the amount of capital assigned to and used by each.
Reservation SEC. 5156. Nothing in this Title shall affect any apof

rights o f .

-i

associations or-pomtments
made, acts done, or proceedings had or comganized under x
.
, / , , , . - , • ,
f T
. , ,
,
-. ,
act of 1863. menced prior to the third dayJ 01 June,
eighteen hundred
June 3,1864, , . , *
.
,
, „
'. ,.
«
c 106, s. 62, and sixty-four, in or toward the organization of any national banking association under the act of February
twenty-five, eighteen hundred and sixty-three; but all
associations which, on the third day of June, eighteen
hundred and sixty-four, were organized or commenced
to be organized under that act, shall enjoy all the rights
and privileges granted, and be subject to all the duties,
liabilities, and restrictions imposed by this Title, notwith-

LAWS CONCERNING MONEY, BANKING, AND LOANS.

389

standing all the steps prescribed by this Title for the
organization of associations were not pursued, if such
associations were duly organized under that act.
SEC. 5157. The provisions of chapters two, three, a n d c i ^ t h i a 0 t n s a S a?"
four of this Title, which are expressed without restrictive|o & v ^ned by
words, as applying to " national banking associations," or |nfIe4 of t h i s
to " associations," apply to all associations organized
to carry on the business of banking under any act of
Congress.
SEC. 5158. The term " U n i t e d States bonds," as used^SL^etoSdL8
throughout this chapter, shall be construed to mean registered bonds of the United States.
SEC. 5159. Every association, after having complied b ^s t e to beadeS
with the provisions of this Title, preliminary to the com-P^sit^^before
mencement of the banking business, and before it shall business.
be authorized to commence banking business under this
Title, 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 and not less than one-third of the capital stock
paid in. Such bonds shall be received by the Treasurer
upon deposit, and shall be by him safely kept in his office,
until they shall be otherwise disposed of, in pursuance of
the provisions of this Title.
SEC. 5160. The deposits of bonds made by each associa- Bonds to be
tion shall be increased as its capital may be paid up or in-1 n c r e a s e of
creased, 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. And any association that may de- Maybe din

., ••

., minished upon

sire to reduce its capital or to close up its business and reduction of
dissolve its organization, may take up its bonds upon returning to the Comptroller its circulating notes in the
proportion hereinafter required, or may take up any excess of bonds beyond one-third of its capital stock, and
upon which no circulating notes have been delivered.
SEC. 5161. To facilitate a compliance with the two Exchange of
preceding sections, the Secretary of the Treasury is au- istered bonds.
thorized to receive from any association, and cancel, any
United States coupon bonds, and to issue in lieu thereof
registered bonds of like amount, bearing a like rate of interest, and having the same time to run.
SEC. 5162. All transfers of United States bonds, made Manner of
.

. .

<»

making trans-

by any association under the provisions of this Title, shall f e r | pf \°^s's
be made to the Treasurer of the United States in trust for ww, sec. 19.'

390

NATIONAL, MONETAKY COMMISSION.

the association with a memorandum written or printed on
each bond, and signed by the cashier, or some other officer
of the association making the deposit. A receipt shall be
given to the association, by the Comptroller of the Currency, or by a clerk appointed by him for that purpose,
stating that the bond is held in trust for the association
on whose behalf the transfer is made, and as security
for the redemption and payment of any circulating notes
that have been or may be delivered to such association.
No assignment or transfer of any such bond by the Treasurer shall be deemed valid unless countersigned by the
Comptroller of the Currency.
R^i^try
o
i
SEC. 5163. The Comptroller of the Currency shall keep
tr
in his Office a book in which he shall cause to be entered,
immediately upon countersigning it, every transfer or
assignment by the Treasurer, of any bonds belonging to
a national banking association, presented for his signature. He shall state in such entry the name of the association from whose accounts the transfer is made, the
name of the party to whom it is made, and the par value
of the bonds transferred.
Notice of SEC. 5164. The Comptroller of the Currency shall,
transfer to be

given to asso- immediately upon countersigning and entering any transested.
fer or assignment by the Treasurer, of any bonds belonging to a national banking association, advise by mail the
association from whose accounts the transfer is made, of
the kind and numerical designation of the bonds, and the
amount thereof so transferred.
Examination SEC. 5165. The Comptroller of the Currency shall have
of resristrv and

bonds.

at all times, during office-hours, access to the books of
the Treasurer of the United States for the purpose of
ascertaining the correctness of any transfer or assignment of the bonds deposited by an association, presented
to the Comptroller to countersign; and the Treasurer
shall have the like access to the book mentioned in section
fifty-one hundred and sixty-three, during office-hours, to
ascertain the correctness of the entries in the same; and
the Comptroller shall also at all times have access to the
bonds on deposit with the Treasurer to ascertain their
amount and condition.
Annual e x - SEC. 5166. Every association having bonds deposited in
bonds by asso-the office of the Treasurer of the United States shall,
ciations.

„

once or ottener m each liscal year, examine and compare
the bonds pledged by the association with the books of
the Comptroller of the Currency and with the accounts of

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

391

the association, and, if they are found correct, to execute
to the Treasurer a certificate setting forth the different
kinds and the amounts thereof, and that the same are in
the possession and custody of the Treasurer at the date of
the certificate.
Such examination shall be made at such time or times,
during the ordinary business hours, as the Treasurer and
the Comptroller, respectively, may select, and may be
made by an officer or agent of such association, duly
appointed in writing for that purpose; and his certificate
before mentioned shall be of like force and validity as if
executed by the president or cashier. A duplicate of such
certificate, signed by the Treasurer, shall be retained by
the association.
SEC. 5167. The bonds transferred to and deposited with. Bonds to be
c
#

held to secure

the Treasurer of the United States, by any association, circuiation.
for the security of its circulating notes, shall be held
exclusively for that purpose, until such notes are redeemed, except as provided in this Title. The Comptrol- ^ ^ ^ c° £
ler of the Currency shall give to any such associationlectedpowers of attorney to receive and appropriate to its own
use the interest on the bonds which it has so transferred
to the Treasurer; but such powers shall become inoperative whenever such association fails to redeem its circulating notes. Whenever the market or cash value of any if bonds de—

oreci&te

d e-

bonds thus deposited with the Treasurer is reduced below posit to' be incresLsed

the amount of the circulation issued for the same, the
Comptroller may demand and receive the amount of such
depreciation in other United States bonds at cash value,
or in money, from the association, to be deposited with
the Treasurer as long as such depreciation continues.
And the Comptroller, upon the terms prescribed by the r e^hange or
Secretary of the "treasurer, may permit an exchange to13011*38be made of any of the bonds deposited with the Treasurer
by any association, for other bonds of the United States
authorized to be received as security for circulating notes,
if he is of opinion that such an exchange can be made
without prejudice to the United States; and he may
direct the return of any bonds to the association which
transferred the same, in sums of not less than one thousand dollars, upon the surrender to him and the cancellation of a proportionate amount of such circulating notes:
Provided, That the remaining bonds which shall have w J^Jwaf of
been transferred by the association offering to surrender b0 |^- act of
circulating notes are equal to the amount required for the^fle420» 1874'

392

NATIONAL MONETARY COMMISSION.

circulating notes not surrendered by such association, and
that the amount of bonds in the hands of the Treasurer is
not diminished below the amount required to be kept on
deposit with him, and that there has been no failure by
the association to redeem its circulating notes, nor any
other violation by it of the provisions of this Title, and
that the market or cash value of the remaining bonds is
not below the amount required for the circulation issued
for the same,
c o mptroiier SEC. 5168. Whenever a certificate is transmitted to the
to determine if

r ¥ ,.. 1

associations Comptroller oi the Currency, as provided m this JLitle,
can commence

business.

. .

and the association transmitting the same notifies the
Comptroller that at least fifty per centum of its capital
stock has been duly paid in, and that such association
has complied with all the provisions of this Title required
to be complied with before an association shall be authorized to commence the business of banking, the Comptroller shall examine into the condition of such association, ascertain especially the amount of money paid in
on account of its capital, the name and place of residence
of each of its directors, and the amount of the capital
stock of which each is the owner in good faith, and generally whether such association has complied with all the
provisions of this Title required to entitle it to engage
in the business of banking; and shall cause to be made
and attested by the oaths of a majority of the directors,
and by the president or cashier of the association, a statement of all the facts necessary to enable the Comptroller
to determine whether the association is lawfully entitled
to commence the business of banking.
au^oHty 6 to ^EC. 5169. ^> upon a careful examination of the facts
bank?n? eto b e s o reported, and of any other facts which may come to
issued.
^he knowledge of the Comptroller, whether by means of
a special commission appointed by him for the purpose
c Jiuo6e 8ss18il' °^ inquiring into the condition of such association, or
iofc viol.3, pp* otherwise, it appears that such association is lawfully entitled to commence the business of banking, the Comptroller shall give to such association a certificate, under
his hand and official seal, that such association has complied with all the provisions required to be complied with
before commencing the business of banking, and that
such association is authorized to commence such business.
But the Comptroller may withhold from an association
his certificate authorizing the commencement of business,

LAWS CONCERNING MONEY, BANKING, AND LOANS.

393

whenever he has reason to suppose that the shareholders
have formed the same for any other than the legitimate
objects contemplated by this Title.
SEC. 5170. The association shall cause the certificate of^rtm^Vte!n
issued under the preceding section to be published in some June 3,1864,
newspaper printed in the city or county where the asso-13, p.'164. 'v*
ciation is located, for at least sixty days next after the
issuing thereof; or, if no newspaper is published in such
city or county, then in the newspaper published nearest
thereto.
SEC. 5171. Upon a deposit of bonds as prescribed by cir?uiVaetyin°g
sections fifty-one hundred and fifty-nine and fifty-one ?25§ons? ass °
hundred and sixty, the association making the same shall Mar.el, i865.°r
be entitled to receive from the Comptroller of the Currency circulating notes of different denominations, in
blank, registered and countersigned as hereinafter provided, equal in amount to ninety per centum of the current market-value of the United States bonds so transferred and delivered, but not exceeding ninety per centum
of the amount of the bonds at the par value thereof, if
bearing interest at a rate not less than five per centum
per annum: Provided, That the amount of circulatingtafofi0circuiatnotes to be furnished to each association shall be in pro- gufdnotes i s '
portion to its paid-up capital, as follows, and no more:
First. To each association whose capital does not exceed
five hundred thousand dollars, ninety per centum of such
capital.
Second. To each association whose capital exceeds five
hundred thousand dollars, but does not exceed one million
of dollars, eighty per centum of such capital.
Third. To each association whose capital exceeds one
million of dollars, but does not exceed three million [s]
of dollars, seventy-five per centum of such capital.
Fourth. To each association whose capital exceeds three
millions of dollars, sixty per centum of such capital.
SEC. 5172. In order to furnish suitable notes for circu- nominations*
lation, the Comptroller of the Currency shall, under the circPui a*!1}^
direction of the Secretary of the Treasury, cause plates noj^e 3> 1864>
and dies to be engraved, in the best manner to guard sec - 22against counterfeiting and fraudulent alterations, and
shall have printed therefrom, and numbered, such quantity of circulating notes, in blank, of the denominations
of one dollar, two dollars, three dollars, five dollars, ten
dollars, twenty dollars, fifty dollars, one hundred dollars,
15712c—10

394

NATIONAL MONETARY COMMISSION.

five hundred dollars, and one thousand dollars, as may
be required to supply the associations entitled to receive
the same. Such notes shall express upon their face that
they are secured by United States bonds, deposited with
the Treasurer of the United States, by the written or
engraved signatures of the Treasurer and Kegister, and
by the imprint of the seal of the Treasury; and shall also
express upon their face the promise of the association
receiving the same to pay on demand, attested by the
signatures of the president or vice-president and cashier;
and shall bear such devices and such other statements,
and shall be in such form, as the Secretary of the Treasury shall, by regulation, direct. (See sees. 5415, 5434.)
piatesnand dies ^EC. 5173. The plates and special dies to be procured
Bu1-eeau.eilsesofby t h e Comptroller of the Currency for the printing of
such circulating notes shall remain under his control and
direction, and the expenses necessarily incurred in executing the laws respecting the procuring of such notes,
and all other expenses of the Bureau of the Currency,
shall be paid out of the proceeds of the taxes or duties
assessed and collected on the circulation of national banking associations under this Title.
Annual ex- SEC. 5174. The Comptroller of the Currency shall cause
amination of

- , . / - »

p l a t e s , dies,to be examined, each year, the plates, dies, (out pieces)
Mar. 3,1873, (bed pieces), and other material from which the national
rrTp.'f$\'' bank circulation is printed, in whole or in part, and file
c 69,' v. '19, p! in his Office annually a correct list of the same. Such
material as shall have been used in the printing of the
notes of associations which are in liquidation, or have
closed business, shall be destroyed under such regulations as shall be prescribed by the Comptroller of the
Currency and approved by the Secretary of the Treasury.
The expenses of any such examination or destruction
shall be paid out of any appropriation made by Congress for the special examination of national banks and
bank-note plates.
(The act of February 27,1877, inserts " bed pieces " for
" but pieces/')
issue of notes SEC. 5175. Not more than one-sixth part of the notes
under $5, lim-

ited.

furnished to any association shall be of a less denomination than five dollars. After specie payments are resumed no association shall be furnished with notes of a
less denomination than five dollars.

LAWS CONCERNING MONEY, BANKING, AND LOANS.

395

SEC. 5176. No banking association organized s^bse-ce^rcuiation of
quent to the twelfth day of July, eighteen hundred and Jsoo.oood t °
seventy, shall have a circulation in excess of five hundred
thousand dollars.
Sec. 5177. (The aggregate amount of circulating notes am^nf^/ci?
issued under the act of February twenty-five, eighteen cuj*nSg3 ° sal'
hundred and sixty-three, and under the act of June three, i31p6,1s6522, v*
eighteen hundred and sixty-four, and under section one p ™fe> s. 6 2,
of the act of July twelve, eighteen hundred and seventy, CJ^212^1^7^
and under this Title, shall not exceed three hundred and 16> P- '251- '
fifty-four millions of dollars.)
The limitation upon the circulation of national bank
notes was removed by the statute of January 14, 1875,
c. 15, s. 3, v. 18, p. 296.
June 20, 1874, c. 343, v. 18, p. 123. Repealed by Jan.
14,1875, c. 15, s. 3, v. 18, p. 296.
SEC. 5178. One hundred and fifty millions of dollars Apportionof the entire amount of circulating notes authorized to Jating notes.
be issued shall be apportioned to associations in the 3 Mar., 1865.
States, in the Territories, and in the District of Columbia, 12 July, mo.
according to representative population. One hundred i4Jan., w s .
and fifty millions shall be apportioned by the Secretary
of the Treasury among associations formed in the several
States, in the Territories, and in the District of Columbia, having due regard to the existing banking capital,
resources, and business of such States, Territories, and
District. The remaining fifty-four millions shall be
apportioned among associations in States and Territories
having, under the apportionments above prescribed, less
than their full proportion of the aggregate amount of
notes authorized, which made due application for circulating notes prior to the twelfth day of July, eighteen
hundred and seventy-one. Any remainder of such fiftyfour millions shall be issued to banking associations
applying for circulating notes in other States or Territories having less than their proportion.
SEC. 5179. In order to secure a more equitable distri-. .EQu£.li.z}£s
bution of the national banking currency, there may be*1?.? of c i r c u ,

y7 ,

latmg notes.

issued circulating notes to banking associations organized
in States and Territories having less than their propor- Janee14aci875f
tion, and the amount of circulation herein authorized
shall, under the direction of the Secretary of the Treasury, as it may be required for this purpose, be withdrawn,
as herein provided, from banking associations organized .
in States having more than their proportion, but the

396

NATIONAL, MONETARY COMMISSION.

amount so withdrawn shall not exceed twenty-five million
junee2oaci874! dollars : Provided, That no circulation shall be withdrawn under the provisions of this section until after
the fifty-four millions granted in the first section of the
act of J u l y twelfth, eighteen hundred and seventy, shall
have been taken up.
Method p f SEC. 5180. The Comptroller of the Currency shall, under
procedure

withdrawing the direction of the Secretary of the Treasury, make a
excess

cir-

<» •

-i

•

cuiation.
statement showing the amount of circulation in each State
Jan. 14,1875. and Territory, and the amount necessary to be withdrawn
from each association, and shall forthwith make a requisition for such amount upon such associations, commencing
with those having a circulation exceeding one million of
dollars, in States having an excess of circulation, and withdrawing their circulation in excess of one million of dollars, and then proceeding proportionately with other associations having a circulation exceeding three hundred
thousand dollars, in States having the largest excess of
circulation, and reducing the circulation of such associations in States having the greatest proportion in excess,
leaving undisturbed the associations in States having a
smaller proportion, until those in greater excess have been
reduced to the same grade, and continuing thus to make
such reductions until the full amount of twenty-five
millions has been withdrawn; and the circulation so
withdrawn shall be distributed among the States and Territories having less than their proportion, so as to equalize
sale of bonds the same. Upon failure of anv association to return the
upon failure of

*•

•

-i

•

-i

• i •

association t o amount of circulating notes so required, within one year,
the Comptroller shall sell at public auction, having given
twenty days' notice thereof in one daily newspaper
printed in Washington and one in New York City, an
amount of the bonds deposited by that association as security for its circulation, equal to the circulation required
to be withdrawn from the association and not returned in
compliance with such requisition; and he shall, with the
proceeds, redeem so many of the notes of such association,
as they come into the Treasury, as will equal the amount
required and not returned; and shall pay the balance, if
any, to the association.
Removal o f SEC. 5181. Any association located in any State having
associations

•«

i•

j» •

i x*

i J.

from s t a t e more than its proportion ox circulation may be removed to
cess of circu- a n y State having less than its proportion of circulation,
having a d e - under such rules and regulations as the Comptroller of
Aciency.
^ Currency, with the approval of the Secretary of the

LAWS CONCEKNING MONEY, BANKING, ANT) LOANS.

397

Treasury, shall prescribe: Provided, That the amount of
the issue of said banks shall not be deducted from the
issue of fifty-four millions mentioned in section five thousand one hundred and seventy-eight.
SEC. 5182. After any association receiving circulating circulating
notes under this title has caused its promise to pay such may be issued
notes on demand to be signed by the president or vice- 3 June, 1864^
president and cashier thereof, in such manner as to makeRec* 23*
them obligatory promissory notes, payable on demand, at
its place of business, such association may issue and circulate the same as money. And the same shall be received m ^ g ^haii d £
at par in all parts of the United States in payment ofreceivedtaxes, excises, public lands, and all other dues to the
United States, except duties on imports; and also for all
salaries and other debts and demands owing by the United
States to individuals, corporations, and associations within
the United States, except interest on the public debt, and
in redemption of the national currency.
SEC. 5183. No national banking association shall issue n oStees°prohi^
post-notes or any other notes to circulate as money than ited *
such as are authorized by the provisions of this Title.
SEC. 5184. It shall be the duty of the Comptroller of a n D d e 8 ^5^S|
the Currency to receive worn-out or mutilated circulat-mTViTatet
ing notes issued by any banking association, and also, on notes*
due proof of the destruction of any such circulating notes,
to deliver in place thereof to the association other blank
circulating notes to an equal amount. Such worn-out or
mutilated notes, after a memorandum has been entered in
the proper books, in accordance with such regulations as
may be established by the Comptroller, as well as all circulating notes which shall have been paid or surrendered
to be canceled, shall be burned to ashes in presence of
four persons, one to be appointed by the Secretary of the Junl23ai874°f
Treasury, one by the Comptroller of the Currency, one
by the Treasurer of the United States, and one by the
association, under such regulations as the Secretary of the
Treasury may prescribe. A certificate of such burning,
signed by the parties so appointed, shall be made in the
books of the Comptroller, and a duplicate thereof forwarded to the association whose notes are thus canceled.
SEC. 5185. Associations may be organized in the man- of °ar|Sociltions
ner prescribed by this Title for the purpose of issuing*^ 1 ^*^ 111 *
notes payable in gold; and upon the deposit of any
United States bonds bearing interest payable in gold with

398

NATIONAL MONETARY COMMISSION.

the Treasurer of the United States, in the manner prescribed for other associations, it shall be lawful for the
tion^o^circV Comptroller of the Currency to issue to the association
andi?al;iolofetoma^nS the deposit circulating notes of different denomibonds deposit- nations, but none of them of less than five dollars, and not
exceeding in amount eighty per centum of the par value
of the bonds deposited, which shall express the promise
of the association to pay them, upon presentation at the
office at which they are issued, in gold coin of the United
ci^at1onUm cir" States, and shall be so redeemable. But no such associajan eei9aci875f ^ o n s hall have a circulation of more than one million
of dollars.
Reserve re- SEC. 5186. Every association organized under the p e culation of gold ceding section 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
Gold-notes to at par in the payment of debts the gold-notes of every
par rbyeali gold-other such association which at the time of such payment
is redeeming its circulating notes in gold coin of the
United States, and shall be subject to all the provisions of
this Title: Provided, That, in applying the same to associations organized for issuing gold-notes, the terms " law"Lawfui mon- f u l money " and " lawful money of the United States "
ey,

how con-

strued.

shall be construed to mean gold or silver coin of the
United States; and the circulation of such associations
shall not be within the limitation of circulation mentioned in this Title.
Penalty for SEC. 5187. No officer acting under the provisions of this

unlawfully

t3.

countersigning Title shall countersign or deliver to any association, or to
or delivering

7
J

circuiatmgany other company or person, any circulating notes contemplated by this Title, except in accordance with the true
intent and meaning of its provisions. Every officer who
June 3,1864, violates this, section shall be deemed guilty of a high misdemeanor, and shall be fined not more than double the
amount so countersigned and delivered, and imprisoned
not less than one year and not more than fifteen years,
imitating na- Section 5188, as codified in section 175 of the Penal
not^with^Code of the United States, March 4, 1909 (35 Stat. L.,
vertisem e n t s . . ^
thereon.
1122) :

It shall not be lawful to design, engrave, print, or in
any manner make or execute, or to utter, issue, distribute,
circulate, or use any business or professional card, notice,
placard, circular, handbill, or advertisement in the likeness
or similitude of any circulating note or other obligation
or security of any banking association organized or acting

LAWS COKCEBNIKG MONEY, BANKING, AND LOANS.

399

under the laws of the United States which has been or
may be issued under any Act of Congress, or to write,
print, or otherwise impress upon any such note, obligation, or security, any business or professional card, notice
or advertisement, or any notice or advertisement of any
matter or thing whatever. Whoever shall violate any
provision of this section shall be fined not more than one Punishment
hundred dollars, or imprisoned not more than six months,
or both.
Section 5189, as codified in section 176 of the Penal Mutilating,
Code of the United States, March 4, 1909 (35 Stat. L.,banVn?teS10na
1122) :
Whoever shall mutilate, cut, deface, disfigure, or perforate with holes, or unite or cement together, or do any
other thing to any bank bill, draft, note, or other evidence
of debt, issued by any national banking association, or
shall cause or procure the same to be done, with intent to
render such bank bill, draft, note, or other evidence of
debt unfit to be reissued by said association, shall be fined Punishme n t
not more than one hundred dollars, or imprisoned not
more than six months, or both.
SEC. 5190. The usual business of each national banking Place of busiassociation shall be transacted at an office or banking- June 3,1864,
sec. 8.

house located in the place specified in its organization
certificate.
SEC. 5191. Every national banking association in either Requirements
of the following cities: Albany, Baltimore, Boston, Cin- money reserve,
cinnati, Chicago, Cleveland, Detroit, Louisville, Milwaukee, New Orleans, New York, Philadelphia, Pittsburgh,
Saint Louis, San Francisco, and Washington, 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 lawful money of the United States, an
amount equal to at least fifteen per centum of the aggregate amount of its notes in circulation, and of its deposits.
Whenever the lawful money of any association in any of No loans or
C^

.,.

1 i

n i

T i

a«

TC%

I fl TIT i l l I

dividends to be

the cities named snail be below the amount or twenty-five made wMie reper centum of its circulation and deposits, and whenever limit.
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

400

NATIONAL MONETARY COMMISSION.

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, has been restored. And the Comptroller
of the Currency may notify any association, whose lawful-money reserve shall be below the amount above required to be kept on hand, to make good such reserve;
and if such association shall fail for thirty days thereafter so to make good its reserve of lawful money, the
Receiver may Comptroller may, with the concurrence of the Secretary
be a p p o i n t e d

«7'

•

for failure to oi the Treasury, appoint a receiver to wind up the busireserve.
ness of the association, as provided in section fifty-two
hundred and thirty-four.
Redemption SEC. 5192. Three-fifths of the reserve of fifteen per
portion of re- centum required by the preceding section to be kept, may
may be kept consist of balances due to an association, available for the
see act of June redemption of its circulating notes, from associations approved by the Comptroller of the Currency, organized
June 3, 1864% under the act of June three, eighteen hundred and sixtyfour, or under this Title, and doing business in the cities
Feb. 19,1875. of Albany, Baltimore, Boston, Charleston, Chicago, Cincinnati, Cleveland, Detroit, Louisville, Milwaukee, New
Orleans, New York, Philadelphia, Pittsburgh, Eichmond,
clearing Saint Louis, San Francisco, and Washington. Clearingto
to
h o u s e certifi'
'.
cates
deemed house certificates, representing
specie or lawtul money
J
lawful money.
°
specially deposited for the purpose, of any clearing-house
association, shall also be deemed to be lawful money in
the possession of any association belonging to such clearing-house, holding and owning such certificate within
the preceding section,
united states s E C 5193. The Secretary of the Treasury may receive
certificates of
_ J . . .
•
*
deposit may be United States notes on deposit, without interest, from any
issued,andmay
.
, ,
, .
. ,r
.
/.
, i
,-,
.
count as re- national banking associations, m sums ox not less than ten
serve.

see actof June thousand dollars, and issue certificates therefor in such
form as he may prescribe, in denominations of not less
than five thousand dollars, and payable on demand in
United States notes at the place where the deposits were
made. The notes so deposited shall not be counted as
part of the lawful-money reserve of the association; but
the certificates issued therefor may be counted as part of

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

401

its lawful-money reserve, and may be accepted in the o^Se^ssue^of
settlement of clearing-house balances at the places where J^p"^*1*8 of
the deposits therefor were made.
SEC. 5194. The power conferred on the Secretary of
the Treasury, by the preceding section, shall not be exercised so as to create any expansion or contraction of the
currency. And United States notes for which certificates
are issued under that section, or other United States
notes of like amount, shall be held as special deposits in
the Treasury, and used only for the redemption of such
certificates.
SEC. 5195. Each association organized in any of the ^ents^for^recities named in section fifty-one hundred and ninety-one J ° l a t ^ ^jj?
shall select, subject to the approval of the Comptroller of na|eeae act 0 f
the Currency, an association in the city of New York, at ^cne320' 1874»
which it will redeem its circulating notes at par; and may se ^"§| 3» 1864»
keep one-half of its lawful-money reserve in cash deposits in the city of New York. But the forgoing provision shall not apply to associations organized and located in the city of San Francisco for the purpose of issuing notes payable in gold. Each association not organized within the cities named shall select, subject to the
approval of the Comptroller, an association in either of
the cities named, at which it will redeem its circulating
notes at par. The Comptroller shall give public notice
of the names of the associations 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. When- Receiver may
J

t> a

appointed

ever any association fails either to make the selection or foi failure to
,

• T - I ^ X

redeem notes.

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 section fifty-two hundred and thirty-four, to wind up
its affairs. But this section shall not relieve any association from its liability to redeem its circulating notes at
its own counter, at par, in lawful money on demand.
SEC. 5196. Every national banking association formed b J ^ V t0n ™or existing under this title, shall take and receive at par, JjJl^fge?8 nafor any debt or liability to it, any and all notes or bills tional banksissued by any lawfully organized national banking association. But this provision shall not apply to any association organized for the purpose of issuing notes payable
in gold.

402

NATIONAL MONETARY COMMISSION.

ppo^rate*1?? ^EC. 5197. Any association may take, receive, reserve,
ma^bftakenf11 a n ( ^ c ^arge on any loan or discount made, or upon any
3
ioi s' soH' no ^ e ? bill of exchange, or other evidences of debt, interest
*%&anjn? Na- at ^ e r a t e a U ° w e ( l by the laws of the State, Territory,
M°inssourink(iior district where the bank is located, and no more, except
w a n . , 409);that where by the laws of any State a different rate is
In

Alfred

S l !? oi>} hmited for banks of issue organized under State laws,
Blatch., 243).

the rate so limited shall be allowed tor associations organized or existing in any such State under this Title.
When no rate is fixed by the laws of the State, or Territory, or district, the bank may take, receive, reserve, or
charge a rate not exceeding seven per centum, and such
interest may be taken in advance, reckoning the days for
which the note, bill, or other evidence of debt has to run.
And the purchase, discount, or sale of a bona-fide bill of
exchange, payable at another place than the place of
euch purchase, discount, or sale, at not more than the
current rate of exchange for sight-drafts in addition to
the interest, shall not be considered as taking or receiving
a greater rate of interest.
of°takfngeusu- ^EC. 5198. The taking, receiving, reserving, or chargri
junen3eri864 * n £ a r a * e °^ Merest greater than is allowed by the prei3106i<&30, v* c e c ^ n g section, when knowingly done, shall be deemed a
Feb. is, 1875, forfeiture of the entire interest which the note, bill, or
C. 80, V. l o , p.

320.

other evidence of debt carries with it, or which has been

TTapmers etc.*

Bank: v. bear- agreed to be paid thereon. I n case the greater rate of
29).
' "interest has been paid, the person by whom it has been
paid, or his legal representatives, may recover back, in an
action in the nature of an action of debt, twice the amount
of the interest thus paid from the association taking or
receiving the same; provided such action is commenced
within two years from the time the usurious transaction
occurred. [That suits, actions, and proceedings against
any association under this Title may be had in any circuit, district, or territorial court of the United States
held within the district in which such association may be
established, or in any State, county, or municipal court
in the county or city in which said association is located
having jurisdiction in similar cases.]
(The words in brackets were added by the act of February 18, 1875.)
Dividends.
S E C 5199. The directors of any association may, semie. iee, s.' 33, v! annually, declare a dividend of so much of the net profits
13

109

•

of the association as they shall judge expedient; but
each association shall, before the declaration of a divi-

LAWS CONCEBNING MONEY, BANKING, AND LOANS.

403

dend, 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.
SEC. 5200. The total liabilities to any association, of b i ^ t *£,£*
any person, or of any company, corporation, or firm f o r ^ e d ^ y ^
money borrowed, including, in the liabilities of a com-05^Per|0^9et^
pany or firm, the liabilities of the several members108thereof, shall at no time exceed one-tenth part of the
amount of the capital stock of such association actually
paid in. But the discount of bills of exchange drawn in
good faith against actually existing values, and the discount of commercial or business paper actually owned by
the person negotiating the same, shall not be considered
as money borrowed.
SEC. 5201. No association shall make any loan or dis- Associations
count on the security or the shares of its own capital purchase their
own stock.

stock, nor be the purchaser or holder of any such shares, ™a->s- 35, Punless such security or purchase shall be necessary to .Bank v. Laprevent loss upon a debt previously contracted in good 369); Baiiard
v. B a n k

(18

faith; and stock so purchased or acquired shall, within six wall., 589).
months from the time of its purchase, be sold or disposed
of at public or private sale; or, in default thereof, a
receiver may be appointed to close up the business of
the association, according to section fifty-two hundred
and thirty-four.
SEC. 5202. No association shall at any time be indebted, Limit upon inT. , ,

T . i

. debtedness

or in any way liable, to an amount exceeding the amount be incurred.
of its capital stock at such time actually paid in and re- c' ioe, s' 36, V.
maining undiminished by losses or otherwise, except on
account of demands of the nature following:
First. Notes of circulation.
Second. Moneys deposited with or collected by the
association.
Third. Bills of exchange or drafts drawn against
money actually on deposit to the credit of the association,
or due thereto.
Fourth. Liabilties to the stockholders of the association
for dividends and reserved profits.
SEC. 5203. No association shall, either directly or indi- ma., sec. 37.
rectly, pledge or hypothecate any of its notes of circula- notes not to bf
tion, for the purpose of procuring money to be paid in on norPusedeto !nits capital stock, or to be used in its banking operations, or crease cap
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.

404

NATIONAL MONETARY COMMISSION.

up^nwithdra0^ ^EC. 5204r - ^ ° association, or any member thereof, shall,
a
/$k e y88?' during the time it shall continue its banking operations,
withdraw, or permit to be withdrawn, either in the form
of dividends or otherwise, any portion of its capital. If
losses have at any time been sustained by any such association, equal to or exceeding its undivided profits then
on hand, no dividend shall be made; and no dividend
shall ever be made by any association, while it continues
its banking operations, to an amount greater than its net
profits then on hand, deducting therefrom its losses and
bad debts. All debts due to any associations, on which
interest is past due and unpaid for a period of six months,
unless the same are well secured, and in process of collection, shall be considered bad debts within the meaning of
this section. But nothing in this section shall prevent
the reduction of the capital stock of the association under
section fifty-one hundred and forty-three.
Enforcing pay- SEC. 5205. Every association which shall have failed
ment of den- «

ciency in capi-to pay up its capital stock, as required by law, and every
Mar. 3,' 1873, association whose capital stock shall have become imc. 269 s. 1 v.
17, p/603.' * paired by losses or otherwise, shall, within three months
J
June 30,1876, *\
. .
_
\ _ ' .
_.
__
,
J
c. 156, s. 4, v. after receiving notice thereof from the Comptroller of
the Currency, pay the deficiency in the capital stock, by
assessment upon the shareholders pro rata for the amount
of capital stock held by each; and the Treasurer of the
United States shall withhold the interest upon all bonds
held by him in trust for any such association, upon notification from the Comptroller of the Currency, until otherwise notified by him. If any such association shall fail
to pay up its capital stock, and shall refuse to go into
liquidation, as provided by law, for three months after
receiving notice from the Comptroller, a receiver may be
appointed to close up the business of the association, according to the provisions of section fifty-two hundred and
thirty-four. [And provided, T h a t if any shareholder or
shareholders of such bank shall neglect or refuse, after
three mpnths' notice, to pay the assessment, as provided
in this section, it shall be the duty of the board of directors to cause a sufficient amount of the capital stock of
such shareholder or shareholders to be sold at public auction (after thirty days' notice shall be given by posting
such notice of sale in the office of the bank, and by publishing such notice in a newspaper of the city or town in
which the bank is located, or in a newspaper published
nearest thereto,) to make good the deficiency, and the

LAWS CONCEKNING MONEY, BANKING, AND LOANS.

405

balance, if any, shall be returned to such delinquent shareholder or shareholders.]
[The words in brackets were added by the act of June
30,1876, see p. 427.]
SEC. 5206. No association shall at any time pay out on Associatio n s
loans or discounts, or in purchasing drafts or bills of ex- uncurrent
change, or in payment of deposits, or in any other mode iwd.t sec. 39.
pay or put in circulation, the notes of any bank or banking association which are not, at any such time, receivable,
at par, on deposit, and in payment of debts by the association so paying out or circulating such notes; nor shall
any association knowingly pay out or put in circulation
any notes issued by any bank or banking association
which at the time of such paying out or putting in circulation is not redeeming its circulating notes in lawful
money of the United States.
SEC. 5207. No association shall hereafter offer or re- J e ? alt y f °r
.
offering or receive United States notes or national-bank notes as se- ceiving united
.

/»

States or na-

curity or as collateral security for any loan or money, or tionai-bank
_

.,,-.

„

notes as secur-

for a consideration agree to withhold the same from use, ity for loans,
or offer or receive the custody or; promise of custody of see act of Feb.
such notes as security, or as collateral security, or consideration for any loan of money. Any association
offending against the provisions of this section shall be
deemed guilty of a misdemeanor, and shall be fined not
more than one thousand dollars and a further sum equal
to one-third of the money so loaned. The officer or officers of any association who shall make any such loan
shall be liable for a further sum equal to one quarter of
the money loaned; and any fine or penalty incurred by
a violation of this section shall be recoverable for the
benefit of the party bringing such suit.
SEC. 5208. I t shall be unlawful for any officer, clerk,
or agent of any national banking association to certify
any check drawn upon the association unless the person
or company drawing the check has on deposit with the
association, at the time such check is certified, an amount
of money equal to the amount specified in such check.
Any check so certified by duly authorized officers shall
be a good and valid obligation against the association;
but the act of any officer, clerk, or agent of any association, in violation of this section, shall subject such bank Penalty for
falselv certify**

to the liabilities and proceedings on the part of the ing checks.
Comptroller as provided for in section fifty-two hundred c. 135, V. 15;
and thirty-four.

406

NATIONAL, MONETARY COMMISSION.

ment? penalty! ^EC. 5209. Every president, director, cashier, teller,
c Jic?!3 s18ii' c^er^5 o r a g^nt of any association, who embezzles, abV
Aprii6i869's^rac^s' o r wiU^lty misapplies any of the moneys, funds,
c,
juiv'86i8*7o'or c r e ( ^ s °^ the association; or who, without authority
i*9526, v ' 1 6 , p* $rom ^ e directors, issues or puts in circulation any of
the notes of the association; or who, without such authorTa^ntcfr (H ity, issues or puts forth any certificate of deposit, draws
Biatcn., 374). a n y o r ( j e r o r ^JJJ 0 f exchange, makes any acceptance,
assigns any note, bond, draft, bill of exchange, mortgage,
judgment, or decree; or who makes any false entry in
any book, report, or statement of the association, with
intent, in either case, to injure or defraud the association
or any other company, body politic or corporate, or any
individual person, or to deceive any officer of the association, or any agent appointed to examine the affairs of
any such association; and every person who with like
intent aids or abets any officer, clerk, or agent in any
violation of this section, shall be deemed guilty of a misdemeanor, and shall be imprisoned not less than five years
nor more than ten.
L i s t of SEC. 5210. The president and cashier of everv national
etc., to be kept! banking association shall cause to be kept at all times
c. iol, s. 40,' a full and correct list of the names and residences of all
' p* ' the shareholders in the association, and the number of
shares held by each, in the office where its business is
transacted. Such list shall be subject to the inspection
of all the shareholders and creditors of the association,
and the officers authorized to assess taxes under State
authority, during business-hours of each day in which
business may be legally transacted. A copy of such list,
on the first Monday of July of each year, verified by the
oath of such president or cashier, shall be transmitted
to the Comptroller of the Currency.
Reports to SEC. 5211. Every association shall make to the Compthe currency? troller of the Currency not less than five reports during
109.* "s* 'p* each year, according to the form which may be prescribed
c. lio, B. i, v! by him, verified bv the oath or affirmation of the presiJune 30,1876, dent or cashier of such association, and attested by the
19, p. '64*. ' v* signature of at least three of the directors. Each such
c. 69,' v!'i9,V report shall exhibit, in detail and under appropriate
heads, the resources and liabilities of the (associations)
(association) at the close of business on any past day by
him specified; and shall be transmitted to the Comptroller within five days after the receipt of a request or
requisition therefor from him, and in the same form in

LAWS CONCEBNING MONEY, BANKING, AND LOANS.

407

which it is made to the Comptroller shall be published
in a newspaper published in the place where such association is established, or if there is no newspaper in the
place, then in the one published nearest thereto in the
same county, at the expense of the association; and such
proof of publication shall be furnished as may be required by the Comptroller. The Comptroller shall also
have power to call for special reports from any particular association whenever in his judgment the same are
necessary in order to a full and complete knowledge of
its condition.
(The act of February 27, 1877, substitutes " association " for " associations.")
SEC. 5212. In addition to the reports required by the d i ^ 2 d s a s to
preceding section, each association shall report to the c Mar. 3, i|69,
Comptroller of the Currency, within ten days after de- 15ju^§o*i87(?
daring any dividend, the amount of such dividend, andc. im^ 3> vthe amount of net earnings in excess of such dividend.
Such reports shall be attested by the oath of the president or cashier of the association.
SEC. 5213. Every association which fails to make and M Penalty for
f a i l u i * © EO HIftKG

transmit any report required under either of the two reports.
,.

ii ,

, •

^ x

Mar. 3,1869,

preceding sections shall be subject to a penalty of onec. 130, ss. i,
hundred dollars for each day after the periods, respec- 'June 30,1876*,
tively, therein mentioned, that it delays to make and 19, p. '63'.
transmit its report. Whenever any association delays
or refuses to pay the penalty herein imposed, after it has
been assessed by the Comptroller of the Currency, the
amount thereof may be retained by the Treasurer of the
United States, upon the order of the Comptroller of the
Currency, out of the interest, as it may become due to
the association, on the bonds deposited with him to
secure circulation. All sums of money collected for
penalties under this section shall be paid into the Treasury of the United States.
(Section 6, act of June 30, 1876 (ch. 156, v. 19, p. 64),
extends the provisions of the three sections of the Eevised
Statutes above, to all savings banks or savings and trust
companies organized under any act of Congress.)
SEC. 5214. In lieu of all existing taxes, every associa-cuStiton°ndCier"
tion shall pay to the Treasurer of the United States,
^^f^^J^
the months of January and July, a duty of one-half of *™p 3,1864,
i»

one per centum each half-year upon the average amount
of its notes in circulation, and a duty of one-quarter of
one per centum each half-year upon the average amount

see. 4 1 .

408

NATIONAL MONETARY COMMISSION.

of its deposits, and a duty of one-quarter of one per
centum each half-year on the average amount of its capital stock, beyond the amount invested in United States
bonds,
refurn^of^ir- ^EC# 5215. In order to enable the Treasurer to assess
posfts?and cap" ^ e duties imposed by the preceding section, each assoitai stock.
ciation shall, within ten days from the first days of
January and July of each year, make a return, under the
oath of its president or cashier, to the Treasurer of the
United States, in such form as the Treasurer may prescribe, of the average amount of its notes in circulation,
and of the average amount of its deposits, and of the
average amount of its capital stock, beyond the amount
invested in United States bonds, for the six months next
preceding the most recent first day of January or July.
Penalty for Every association which fails so to make such return shall
.J

failure to make

return.

be liable to a penalty of two hundred dollars, to be collected either out of the interest as it may become due such
association on the bonds deposited with the Treasurer, or,
at his option, in the manner in 7hich penalties are to be
collected of other corporations under the laws of the
United States.
segment
if ?e" ^EC. 5216. Whenever any association fails to make the
turn
made.
is not half-yearly return required by the preceding section, the
duties to be paid by such association shall be assessed
upon the amount of notes delivered to such association by
the Comptroller of the Currency, and upon the highest
amount of its deposits and capital stock, to be ascertained
in such manner as the Treasurer may deem best.
How tax may jgEC# 5217. Whenever an association fails to pay the
be collected if

fa!is°toiaaion duties imposed by the three preceding sections, the sums
due may be collected in the manner provided for the collection of United States taxes from other corporations;
or the Treasurer may reserve the amount out of the interest, as it may become due, on the bonds deposited with
him by such defaulting association.
Refunding gEC# 5218. In all cases where an association has paid
r

excess of du-

ties paid.

or may

p a y i n excess of what may be or has been found
due from it, on account of the duty required to be paid to
the Treasurer of the United States, the association may
state an account therefor, which, on being certified by
the Treasurer of the United States, and found correct by
the First Comptroller of the Treasury, shall be refunded
in the ordinary manner by warrant on the Treasury,

LAWS CONCERNING MONEY, BANKING, AND LOANS.

409

SEC. 5219. Nothing herein shall prevent all the shares state taxain any association from being included in the valuation tiojine 3,1864,
of the personal property of the owner or holder of such i*3,1(J>6, fn. 1, v '
shares, in assessing taxes imposed by authority of thec.F?fv.0,i5?6p:
State within which the association is located; but the34Bankofcomlegislature of each State may determine and direct the moJ*e cityNe(2
manner and place of taxing all the shares of national Shin20*.; The
banking associations located within the State, subject waSiis,S0573)(1
only to the two restrictions, that the taxation shall not commission's
be at a greater rate than is assessed upon other moneyed B4radfey fv?rLi
capital in the hands of individual citizens of such State, wan?,*459)1
and that the shares of any national banking association JJ^TJJJ 1 com*
owned by non-residents of any State shall be taxed in the ^ a n ^ s t a } *
city or town where the bank is located, and not elsewhere. RouseT^aif!;
Nothing herein shall be construed to exempt the real ^ T ^ S M S
property of associations from either State, county, or wa*cl?,rS48on
municipal taxes, to the same extent, according to its value, mtssioners00^
as other real property is taxed.
va™i\ f^'is?4;
Bank of Omaha v. Douglas Co. (3 Dill., 299) ; First National' Bank v.
Douglas Co. (3 Dill., 330).

SEC. 5220. Any association may go into liquidation and 1 I q ^ t u i 0 ^ a r y
be closed by the vote of its shareholders owning two-thirds QJn^ 3>1864>
of its stock.
SEC. 5221. Whenever a vote is taken to go into liqui- A Notice of in_ .
.
, ,, ,
.,
, .
p.,
,
T A T
t e n t to disdation it shall be the duty or the board or directors to solve. n
* *i • » j * i
,.,*i
T ,,
, „
J« e 3,1864,
cause notice of this fact to be certified, under the seal of c. 106, s. 42, •.
13 D 112
the association, by its president or cashier, to the Comptroller of the Currency, and publication thereof to be
made for a period of two months in a newspaper published in the city of New York, and also in a newspaper
published in the city or town in which the association is
located, or if no newspaper is there published, then in
the newspaper published nearest thereto, that the association is closing up its affairs, and notifying the holders of
its notes and other creditors to present the notes and other
claims against the association for payment.
SEC. 5222. Within six months from the date of the vote Deposit 0 f
to go into liquidation, the association shall deposit with to redeem cirthe Treasurer of th

Full text of Laws of the United States Concerning Money, Banking, and Loans, 1778-1909 : Laws of the United States Concerning Money, Banking, and Loans, 1778-1909, 61st Congress, 2d Session, Senate Document No. 580

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