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In order to furnish suitable notes for circulation, the Plates and dies,

printing, &c. Comptroller of the Currency is hereby authorized and required, under the direction of the Secretary of the Treasury, to cause plates and dies to be engraved, in the best manner to guard against counterfeiting and fraudulent alterations, and to have printed therefrom and numbered such quantity of circulating notes, in blank, of the denominations of Denomination of one dollar, two dollars, three dollars, five dollars, ten dol- notes. lars, twenty dollars, fifty dollars, one hundred dollars, five hundred dollars, and one thousand dollars, as may be required to supply, under this act, the associations entitled to receive the same;

Which notes shall express upon their face that they are Notes, what to es. secured by United States bonds, deposited with the Treasu- press. rer of the United States by the written or engraved signatures of the Treasurer and Register, and by the imprint of the seal of the Treasury; and shall also express upon their face the promise of the association receiving the same to pay on demand, attested by the signatures of the president or vice president and cashier. And the said notes shall bear such devices and such other statements, and shall be in such form, as the Secretary of the Treasury shall by regulation direct:

Provided, That not more than one-sixth part of the notes Limit to number furnished to an association shall be of a less denomination of notes under $5. 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 When banks may association shall have caused its promise to pay such notes issue the notes. on demand to be signed by the president or vice president and cashier thereof, in such manner as to make them obligatory promissory notes, payable on demand, at its place of business, such association is hereby authorized to issue and circulate the same as money; provided; and no banking association organized after that date can have a circulation of currency notes in excess of $500,000.

A national gold bank may have a circulation of gold notes to an amount not exceeding $1,000,000, and there is no limit to the aggregate amount which may be issued. (See Act of July 12, 1870, chapter 252, sec. 3.)

For what the

able.

Banks to issue no other notes.

ted, or lost notes.

And the same shall be received at par in all parts of the notes are receit. United States in payment of taxes, excises, public lands, and

all other dues to the United States, except for duties on imports; and also for all salaries and other debts and demands owing by the United States to individuals, corporations, and associations within the United States, except interest on the public debt, and in redemption of the national currency.

And no such association shall issue post notes or any other notes to circulate as money than such as are authorized by

the foregoing provisions of this act. Replacing of Sec. 24. And be it further enacted, That it shall be the worn-out, mutila: duty of the Comptroller of the Currency to receive worn-out

or mutilated circulating notes issued by any such banking association, and also, on due proof of the destruction 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 memoran&c., to bo burned. dum shall have been entered in the proper books, in accord

ance 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 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 the Comptroller, and a duplicate thereof forwarded to the association whose notes are thus canceled.

Mutilated notes,

PROVISION CONCERNING BONDS HELD BY TREASURER.

Bonds to be ex

banks.

SEC. 25. And be it further enacted, That it shall be the amined annually duty of every banking association having bonds deposited by agents of

in the office of the Treasurer of the United States, once or oftener in each fiscal year, and at such time or times during the ordinary business hours as said officer or officers may select, to examine and compare the bonds so pledged with the books of the Comptroller and the accounts of the asso

banks.

ciation, 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.

Sec. 26. And be it further enacted, That the bonds trans- Bonds to be held ferred to and deposited with the Treasurer of the United exclusively for

redemption of States, as herein before provided, by any banking associa- notes. tion for the security of its circulating notes, shall be held exclusively for that purpose, until such notes shall be redeemed, except as provided in this act;

But the Comptroller of the Currency shall give to any –interest on, such banking association powers of attorney to receive and payable to the appropriate to its own use the interest on the bonds which it shall have so transferred to the Treasurer; but such powers shall become inoperative whenever such banking association shall fail to redeem its circulating notes as aforesaid.

Whenever the market or cash value of any bonds de- -when market posited with the Treasurer of the United States, as afore- value falls below said, shall be reduced below the amount of the circulation lation, additional issued for the same, the Comptroller of the Currency is bonds to be dohereby 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.

And said Comptroller, upon the terms prescribed by the –may be exSecretary of the Treasury, may permit an exchange to be changed for 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 circulating notes, if he shall be of opinion that such an exchange can be made without prejudice to the United States, and he may

posited.

other bonds.

direct the return of any of said bonds to the banking 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 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 circu

lation issued for the same. Unlawful issue Sec. 27. And be it further enacted, That it shall be un

lawful for any officer acting under the provisions of this act penalty incurred. to countersign or deliver to any association, or to any other

company or person, any circulating notes contemplated by this act, except as herein before provided, and 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.

of notes to associations

BANKS MAY HOLD REAL ESTATE.

estate.

to what extent.

Banks may hold SEC. 28. And be it further enacted, That it shall be lawful and convey real for any such association to purchase, hold, and 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.

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.

And such association shall not purchase or hold real es- General limite tate in any other case or for any other purpose cified 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.

than as spe

tion.

LOANS AND DISCOUNTS.

and discounta.

Sec. 29. And be it further enacted, That the total liabili- Loans limited, ties to any association, of any person, or of any company, corporation, or firm for money borrowed, including in the liabilities of a company or firm the liabilities of the several members thereof, shall at no time exceed one-tenth part of the amount of the capital stock of such association actually paid in: Provided, That the discount of 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.

Sec. 30. And be it further enacted, That every association Interest on.lcans 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 rates 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 the note, bill, or other evidence nf debt has to run.

And the knowingly taking, receiving, reserving, or charge rates

Excessivo

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