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Sec. 4. (Authorizes the Secretary to call in for payment the five-twenty bonds.] See Chapter V.

Sec. 5. [Provides for the issue of coin certificates for gold
deposits. Expired by limitation.]
Sec. 6. [Relates to the sinking fund.] See Chapter VI.
Approved July 14, 1870.

Five hundred

millions 5 per

rent.

The amount of bonds which may be issued of the five per cent. loan is increased to five hundred millions dollars, and the interest of any portion of the bonds of the funded loans may be paid quarter-annually, by the following act :

AN ACT TO AMEND AN ACT ENTITLED "AN ACT TO AUTHORIZE THE REFUNDING

OF THE NATIONAL DEBT.

quarterly.

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

That the amount of bonds authorized by the act approved July fourteen, eighteen hundred and seventy, entitled "An act to authorize the refunding of the national debt," to be issued, bearing five per centum interest per annum, be, and

the same is, increased to five hundred millions of dollars, Interest payable 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 quarter-yearly: Provided, however, That this act shall not be construed to authorize any increase of the total amount of bonds provided for by the act to which this act is an amendment.

Approved January 20, 1871.

Under these acts there are three loans called “ FUNDED LOANS," from the object of the law, to refund the national debt at a lower rate of interest, differing from each other only in the rates of interest and in the times after which they may be redeemed, which latter difference gives to each its distinctive title.

The “FUNDED LOAN OF 1881” is redeemable at the pleasure of the United States after the first day of May, A. D. 1881, and bears interest at the rate of five per cent. per annum, payable quarterly.

The "FUNDED LOAN OF 1886,' provided for by law but not yet issued, is redeemable at the pleasure of the United States after the first day of May, A. D. 1886, and bears interest at the rate of four and a half per cent. per annum, payable quarterly.

Funded, of 1851, 5 per cent.

of 1886, 412 per cent.

taxation.

The “FUNDED LOAN OF 1901,” provided for by law but not -of 1901, 4 per yet issued, is redeemable at the pleasure of the United States cent. after the first day of May, 1901, and bears interest at the rate of four per cent. per annum, payable quarterly.

The bonds of each of these issues, unlike those of any Payable in coin. other loan ever issued by the Government, express upon their face, in accordance with the requirements of the law, applicable to these bonds alone, that the principal and interest are “payable in coin of the standard value of the United States, July 14, 1870,” the date of the passage of the act, and that both are “exempt from payment of all Exempt from taxes or duties of the United States, as well as from taxation in any form by or under State, municipal, or local authority.”

The interest is payable quarterly, on the first days of Interest. February, May, August, and November, in each year; and that upon registered bonds is sent by checks directly to the holders of the bonds at any post-office address designated by them, in this country or in Europe. Coupon bonds all bear date May 1, 1871, and both the coupon and registered bonds are designated on their face "FUNDED LOAN OF 1881," or "OF 1886," or "OF 1901," with the rate of interest.

Two hundred millions dollars of the five per cents. have already been negotiated; but as yet none of the four per cents. and four and a half per cents. have been issued.

These are the only loans now offered for sale by the Gov- Only loan now of'ernment. All others, having long since been closed, are being reduced as rapidly as the surplus revenues, the money obtained from the sale of the new bonds, and the coin in the Treasury, will permit.

The reduction of the public debt for three years last past has been at the rate of about a hundred millions dollars a year; and the proceeds of the sale of the Funded Loan, which can be used only to redeem the five-twenty bonds and not to increase the public debt, has still further reduced the amount of bonds bearing six per cent. interest.

The bonds are all printed on the distinctive paper adopted Bonds are printby the Secretary of the Treasury, and manufactured under the supervision of the Department, as described in Chapter III.

fered by Govern. ment,

ed on distinctive paper.

The denominations are $50, $100, $500, $1,000, $5,000, and $10,000 coupon and registered bonds, and $20,000 and $50,000 also of the registered bonds.

2, 3, 4.

ConsoLS OF 1865, OF 1867, AND OF 1868;

or

FIVE-TWENTIES OF 1865, OF 1867, AND OF 1868.

Consols.

tion.

The act of Congress of March 3, 1865, (chapter 77,) auActa of authoriza- thorized the Secretary of the Treasury to borrow on the

credit of the United States any sums not exceeding in the aggregate six hundred millions of dollars, and to issue therefor bonds or treasury notes, the bonds to be in denomination not less than fifty dollars, and made payable at any period not more than forty years from date, or made redeemable and payable, as aforesaid, as might be expressed upon their face, with interest payable semi-annually. The act provided that the principal or interest, or both, of the bonds and treasury notes might be made payable in coin, or in lawful money; that the rate of interest, when payable in coin, should not exceed six per cent., and that the rates and character of interest should be expressed on all such

bonds or treasury notes. Origin of the ap- The act still further provided, that the treasury notes

should be made convertible into any bonds authorized by
the act; that any treasury notes or other obligations bear-
ing interest, issued under any act of Congress, might, at the
discretion of the Secretary of the Treasury, and with the
consent of the holder, be converted into any description of
said bonds; and that the bonds so authorized should not
be considered a part of said six hundred millions. This
provision for conversion was extended by act of April 12,
1866, (chapter 39,) so that the Secretary was authorized to
receive any treasury notes or other obligations issued under
any act of Congress, whether bearing interest or not,
change for any description of said bonds. The conversion

plication of the name of CoxsoLS, to.

in ex

twenties.

or consolidation of other outstanding obligations into these ioans gave to them the titles of Consols, as they are called in the Treasury Department; but being redeemable at the Also called five pleasure of the Government after five years, and payable in twenty years from the date of issue, they are better known in the market as FIVE-TWENTIES of the different years of issue-1865, 1867, and 1868.

Under the provisions of the two acts above mentioned, for the conversion of treasury notes and other obligations, these issues of bonds were made and designated

CONSOLS OF 1865, OR FIVE-TWENTIES OF 1865, which bear Consols of 1865. date July 1, 1865, became redeemable at the pleasure of the Government after July 1, 1870, and will be payable July 1, 1885. The amount issued was $332,998,950.

CONSOLS OF 1867, OR FIVE-TWENTIES OF 1867, which bear -of 1807.
date July 1, 1867, became redeemable at the pleasure of the
Government after July 1, 1872, and will be payable July
1, 1887. The amount issued was $379,602,350.

CONSOLS OF 1868, OR FIVE-TWENTIES OF 1868, which bear -of 1868.
date July 1, 1868, became redeemable at the pleasure of the
Government July 1, 1873, and will be payable July 1, 1888.
The amount issued was $42,539,350.

The bonds of these loans are all designated on their face Bonds, how deswith the words: “ CONSOLIDATED DEBT, ISSUED UNDER ACT OF CONGRESS APPROVED MARCH 3D, 1865;" "REDEEMABLE AFTER FIVE AND PAYABLE TWENTY YEARS FROM DATE;" and “IN GOD IS OUR TRUST."

The interest is at the rate of six per cent. per annum, Interest, when payable semi-annually, January 1 and July 1, in each year.

Denominations: $50, $100, $500, and $1,000 coupon and Denomination. registered bonds, and also $5,000 and $10,000 registered.

ignated.

payable.

5.

FIVE-TWENTIES OF 1865.

1865.

Of the six hundred millions of bonds authorized by the Five-twenties of act of March 3, 1865, chapter 77, and the act of April 12, 1866, chapter 39, (under which the consols were issued by conversion of other obligations, there were sold for money

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Title of loan.

Interest.

When redeem

and issued, $203,327,250, entitled, from the time after which they might be redeemed-five years and the time of becoming payable-twenty years—and the date of their issue, “FIVE-TWENTIES OF 1865." Like the consols they bear interest at the rate of six per cent. per annum, and are redeem

able at the pleasure of the Government after five years and able and payable. payable in twenty years from date, but unlike them, bear

date November 1, 1865, and have the interest payable May 1 and November 1, in each year. They are designated on their face by the words“REDEEMABLE AFTER FIVE, AND PAYABLE TWENTY YEARS FROM DATE, and “ACT OF MARCH 3D, 1865." Denominations: $50, $100, $500, and $1,000 coupon and registered bonds, and also $5,000 and $10,000 registered.

For more full explanations of the provisions of the acts under which this loan was negotiated, see Consols,"

Designaied.

page 12.

6.

FIVE-TWENTIES OF JUNE, 1864.

Five-twenties of
June, 1864.

Bonds issued.

The act of June 30, 1864, chapter 172, authorized the Secretary of the Treasury to borrow, from time to time, on the credit of the United States, four hundred millions of dollars, and to issue therefor coupon or registered bonds, redeemable at the pleasure of the Government after any period not less than five nor more than thirty years, or, if deemed expedient, made payable at any period not more than forty years from date, and bearing interest, in coin, at the rate of six per cent. per annum, payable semi-annually.

The amount issued was $125,561,300, in coupon and registered bonds, of $50, $100, $500, and $1,000, and also in registered bonds of $5,000 and $10,000, bearing date November 1, 1864, redeemable at the pleasure of the United States after the 31st day of October, 1869, and payable on the 1st day of November, 1884, with interest from the 1st day of November, 1864, inclusive, payable on the 1st day of May and November in each year.

These bonds are designated on their face, “SIX PER CENT. LOAN, UNDER ACT OF JUNE 30, 1864,” and “REDEEMABLE AFTEK

Redeemable

Interest.

Designation of bonds.

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