unimpaired capital and surplus of the banks of the United States.

(5) The tax on circulating notes secured by United States bonds bearing

two per cent or less shall be one-half of one per cent; if secured by

United States bonds bearing more than two per cent, the tax shall be one

per cent. If the securities are other than United States bonds, the tax

shall be at a rate of five per cent per annum for the first month and

afterward an additional tax of one per cent per annum for each month

until a tax of ten per cent per annum is reached.

(6) The redemption of the notes may take place by the banks depositing

with the Treasurer of the United States lawful money to replace the