Democratic Sentinel, Volume 4, Number 51, Rensselaer, Jasper County, 28 January 1881 — THE FUNDING BILL. [ARTICLE]

THE FUNDING BILL.

Fall Text of the Funding Bill as It Passed the Bouse of Representatives. A. BILL to facilitate the refunding of the national debt: / Section 1. Be it enacted, by the Senate and House of Representatives of the United States of America in Congress assembled, That all existing provisions of the law authorizing the refunding of the national debt shall apply to any bonds of the United States bearing a higher rate of interest than per cent, per annum which may hereafter become redeemable : provided that, in lieu of the bonds authorized to be issued by the act of July 14, 1870, entitled “An act to authorize the refunding of the national debt,” and acts amendatory thereto, and the certificates authorized by the act of Feb. 26, 1879, entitled *• An act to authorize the issue of certificates of deposit in aid of the refunding of the public debt,” the Secretary of the Treasury is hereby authorized to issue bonds in an amount not exceeding $400,000,000 which shall bear interest at the rate of 3 per cent, per annum, redeemable at the pleasure of the United States after five years, and payable ten years from date of issue, and also certificates to the amount of $300,000,000, in denominations of $lO, S2O, or SSO, either registered or coupon, bearing interest at the rate of 3 per cent per annum, redeemable at the pleasure of the United States after one year, and payable in ten years from date. ’ The bonds and certificates shall be in all other respects of like character, and subject to the same provisions as the bonds authorized to be issued by the act of July 14, 1870, entitled “An act to authorize the refunding of the national debt,” and acts amendatory thereto; provided, that nothing in this act shall be so construed as to authorize an increase of the public debt; and provided, further, tliat interest upon the 6-per-cent. bonds hereby authorized to be refunded shall cease at the expiration of thirty days after notice that the same have been designated by the Secretary of the Treasury for redemption. Sec. 2. The Secretary of the Treasury is hereby authorized, in process of refunding the national debt, to exchange, at not less than par, any bonds or certificates herein authorized for any of the bonds of the United States outstanding and uncalled beaming a higher rate of interest than 4J£ P er cout. per annum, and on bonds so redeemed the Secretary of the Treasury may allow to holders the difference between the interest on such bends from the date of exchange to the time of maturity and the interest for a like period on the bonds or certificates issued, but none of the provisions of tnis act shall apply to the redemption or exchange of any of the bonds issued to the Pacific Railway Companies, and the bonds so received and exchanged in pursuance of the provisions of this act shall be canceled and destroyed. Seo. 3. Authority to raise bonds and certificates to the amount necessary to cany out the provisions of the act is hereby granted, and the Secretary of the Treasury is hereby authoiized aud directed to make suitable rules and regulations to carry this act into effect; provided, that the expenses of preparing, issuing, advertising and disposing of the bonds and certificates authorized to be issued shall not exceed one-fourth of 1 per cent Seo. 4. That the Secretary of the Treasury is hereby authorized, if in his opinion it shall become necessary, to use $50,000,000 of the standard gold and silver in the treasury in the redemption of the 5 and 6-per-cent. bonds of the United States authorized to be refunded by the provisions of this act, and he may, at any time, apply the surplus money in the treasury, not otherwise appropriated, or so much t hereof as he may consider proper, to the purchase or redemption of United States bonds or certificates ; provided that the bonds and certificates so purchased or redeemed shall constitute no part of the sinking fund, but shall be canceled. Sec. 5. From and after the Ist day of May, 1881, the 3-per-cent. bonds authorized by the first section of this act shall be the only bond receivable as security for national-bank circulation, or as security for the safe-keeping and prompt payment of public money deposited with such banks ; but when any such bonds deposited for the purpose aforesaid shall be designated for purchase or redemption by the Secretary of the Treasury, the banking association depositing the same shall have the right to substitute other issues of bonds of the United States in lieu thereof ; provided, that no bond upon which interest has ceased shall be accepted or shall be continued on deposit as security for the circulation or for the safe-keeping of the public monev, and in case the bonds so deposited shall not be withdrawn, as provided by law, within thirty days after interest has ceased thereon, the banking association depositing the same shall be subject to the liabilities and proceedings on the part of the Comptroller provided for in section 5,244 of the Revised Statutes of the United States ; and provided, further, that section 4 of the act of June 20, 1874, entited “An act fixing the amount of United States notes,providing for a redistribution of the national-bank currency, and for other purposes,” be, and the same is hereby, repealed, and sections 5,159 and 5,160 of the Revised Statutes of the United States be, and the same is hereby, re-enacted. Sec. 6. That this act shall be known as “ The Funding Act of 1881,” and all acts and parts of acts inconsistent with this act are hereby repealed.