Chapter CCCXLVI. for the better Security of Bank Reserves, and to facilitate Bank Clearing-house Exchanges
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CHAP. CCCXLVI.— An Act for the better Security of Bank Reserves, and to facilitate Bank Clearing-house Exchanges.June 8, 1872. *Be it enacted by the Senate and House of Representatives of the UnitedThe Secretary of the Treasury may receive United States notes on deposit, without interest, from whom, and in what sums.Certificates therefor, and how payable. States of America in Congress assembled,* That the Secretary of the Treasury is hereby authorized to receive United States notes on deposit, without interest, from national banking associations, in sums not less than ten thousand dollars, and to issue certificates therefor in such form as the secretary may prescribe, in denominations of not less than five thousand dollars; which certificate shall be payable on demand in United States notes, at the place where the deposits were made.
Sec. 2. That the United States notes so deposited in the treasury ofNotes deposited not to be part of legal reserve;Certificates to be part thereof, &c. the United States shall not be counted as part of the legal reserve; but the certificates issued therefor may be held and counted by national banks as part of their legal reserve, and may be accepted in the settlement of clearing-house balances at the places where the deposits therefor were made. Sec. 3. That nothing contained in this act shall be construed to authorizeCurrency not to be expanded or contracted hereby.Notes to be special deposits, and how applied. any expansion or contraction of the currency; and the United States notes for which such certificates are issued, or other United States notes of like amount, shall be held as special deposits in the treasury, and used only for the redemption of such certificates.
Approved, June 8, 1872.