Sec. 2. And be it further enacted, That the Secretary of the Treasury be, and he is hereby, authorized to issue, on the credit of the United States, coupon or registered bonds to the amount of $500,000,000, of such denominations not less than fifty dollars as he may think proper, redeemable in coin, at the pleasure of the Government, at any time after fifteen years, and payable in coin at fifty years from date, and bearing interest not exceeding four and one half per cent. per annum, payable semiannually in coin; and the bonds authorized by this section may be disposed of under such regulations as the Secretary shall prescribe, in the United States or elsewhere, at not less than par, for coin; or they may be exchanged at par for any of the outstanding obligations of the Government bearing a higher rate of interest; and the proceeds of such bonds as may be sold for coin shall be deposited in the Treasury, to be used for the redemption of such obligations as by the terms of issue may be or may become redeemable or payable, or to replace such coin as may have been used for that purpose.
Sec. 3. And be it further enacted, That the Secretary of the Treasury be, and he is hereby, authorized to issue, on the credit of the United States, from time to time, coupon or registered bonds, of such denominations not less than fifty dollars as he may think proper, to the amount of $500,000,000, redeemable in coin, at the pleasure of the Government, at any time after twenty years, and payable in coin at sixty years from date, and bearing interest at the rate of four per cent. per annum, payable semiannually in coin; and such bonds may be disposed of at the discretion of the Secretary, either in the United States or elsewhere, at not less than their par value, for coin, or for United States notes, national-bank notes, or fractional currency; or may be exchanged for any of the obligations of the United States, of whatever character, that may be outstanding at the date of the issue of such bonds. And if in the opinion of the Secretary of the Treasury it is thought advisable to issue a larger amount of four per cent. bonds for any of the purposes herein or hereinafter recited than would be otherwise authorized by this section of this Act, such further issues are hereby authorized: Provided, That there shall be no increase in the aggregate debt of the United States in consequence of any issues authorized by this Act.
Sec. 4. And be it further enacted, That the bonds authorized by this Act shall be exempt from all taxation by or under national, State, or municipal authority. Nor shall there be any tax upon, or abatement from, the interest or income thereof.
Sec. 5. And be it further enacted, That the present limit of $300,000,000 as the aggregate amount of issues of circulating notes by national banks be, and the same is hereby, extended, so that the aggregate amount issued and to be issued may amount to, but shall not exceed, $500,000,000; and the additional issue hereby authorized shall be so distributed, if demanded, as to give to each State and Territory its just proportion of the whole amount of circulating notes according to population, subject to all the provisions of law authorizing national banks, in so far as such provisions are not modified by this Act: Provided, That for each dollar of additional currency issued under the provisions of this Act there shall be withdrawn and cancelled one dollar of legal-tender issues.
Sec. 6. And be it further enacted, That the Secretary of the Treasury shall require the national banks, to whom may be awarded any part or portion of the additional circulating notes authorized by the fifth section of this Act, to deposit, before the delivery thereto of any such notes, with the Treasurer of the United States, as security for such circulation, registered bonds of the description authorized by the third section of this Act, in the proportion of not less than one hundred dollars of bonds for each and every eighty dollars of notes to be delivered; and the Secretary of the Treasury shall require from existing national banks, in substitution of the bonds already deposited with the Treasurer of the United States as security for their circulating notes, a deposit of registered bonds authorized by the third section of this Act to an amount not less than one hundred dollars of bonds for every eighty dollars of notes that have been or may hereafter be delivered to such banks, exclusive of such amounts as have been cancelled. And if any national bank shall not furnish to the Treasurer of the United States the new bonds, as required by this Act, within three months after having been notified by the Secretary of the Treasury of his readiness to deliver such bonds, it shall be the duty of the Treasurer, so long as such delinquency exists, to retain from the interest, as it may become due and payable, on the bonds belonging to such delinquent banks on deposit with him as security for circulating notes, so much of such interest as shall be in excess of four per cent. per annum on the amount of such bonds, which excess shall be placed to the credit of the sinking fund of the United States; and all claims thereto on the part of such delinquent banks shall cease and determine from that date; and the percentage of currency delivered or to be delivered to any bank shall in no case exceed eighty per cent. of the face value of the bonds deposited with the Treasurer as security therefor.
Sec. 7. And be it further enacted, That, whenever the premium on gold shall fall to or within five per cent., it shall be the duty of the Secretary of the Treasury to give public notice that the outstanding United States notes, or other legal-tender issues of the Government, will thereafter be received at par for customs duties; and the interest on the issues known as three per cent. legal-tender certificates shall cease from and after the date of such notice; and all such legal-tender obligations, when so received, shall not again be uttered, but shall forthwith be cancelled and destroyed. And so much of the Act of February 25, 1862, and of all subsequent Acts, as creates or declares any of the issues of the United States, other than coin, a legal tender, be, and the same is hereby, repealed; such repeal to take effect on and after the first day of January, 1871.
Sec. 8. And be it further enacted, That all the provisions of existing laws in relation to forms, inscriptions, devices, dies, and paper, and the printing, attestation, sealing, signing, and counterfeiting, as may be applicable, shall apply to the bonds issued under this Act; and a sum not exceeding one per cent. of the amount of bonds issued under this Act is hereby appropriated to pay the expense of preparing and issuing the same and disposing thereof.
Sec. 9. And be it further enacted, That all Acts or parts of Acts inconsistent with this Act be, and the same are hereby, repealed.
Mr. Sumner said:—