Chapter 708. directing the purchase of diver bullion and the issue of Treasury notes thereon, and for other purposes
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CHAP. 708.— An Act directing the purchase of diver bullion and the issue of Treasury notes thereon, and for other purposes.July 14, 1890. *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*,Silver bullion to be purchased.Monthly aggregate. That the Secretary of the Treasury is hereby directed to purchase, from time to time, silver bullion to the aggregate amount of four million live hundred thousand ounces, or so much thereof as may be offered in each month, at the market price thereof, not exceeding one dollar forLimit of price, etc. three hundred and seventy-one and twenty-five hundredths grains of pure silver, and to issue in payment for such purchases of silverTreasury notes to issue in payment of purchases.Denominations, etc., of notes. bullion Treasury notes of the United States to be prepared by the Secretary of the” Treasury, in such form and of such denominations, not less than one dollar nor more than one thousand dollars, as he may prescribe, and a sum sufficient to carry into effect the provisions of this act is hereby appropriated out of any money in the TreasuryAppropriation. not otherwise appropriated.
Sec. 2. That the Treasury notes issued in accordance with theRedemption of notes, in coin. Provisions of this act shall be redeemable on demand, in coin, at the treasury of the United States, or at the office of any assistant treasurer of the United States, and when so redeemed may be reissued; but no greater or less amount of such notes shall be outstanding at anyReissue after redemption.Volume of outstanding notes, limited. time than the cost of the silver bullion and the standard silver dollars coined therefrom, then held in the Treasury purchased by such notes; and such Treasury notes shall be a legal tender in paymentLegal tender, except, etc. of all debts, public and private, except where otherwise expressly stipulated in the contract, and shall be receivable for customs,Receivable for customs etc.Reissue after receipt. taxes, and all public dues, and when so received may be reissued; and such notes, when held by any national banking association, may be counted as a part of its lawful reserve.
That upon demandPart of national bank reserve.Redemption in gold or silver coin, at discretion of Secretary of the Treasury. of the holder of any of the Treasury notes herein provided for the Secretary of the Treasury shall, under such regulations as he may prescribe, redeem such notes in gold or silver coin, at his discretion, it being the established policy of the United States to maintain the two metals on a parity with each other upon the present legal ratio,Parity and ratio of gold and silver. or such ratio as may be provided by law.
Sec. 3. That the Secretary of the Treasury shall each month coinMonthly coinage of silver dollars from purehasud bullion.Before and after, July 1, 1891. two million ounces of the silver bullion purchased under the provisions of this act into standard silver dollars until the first day of July eighteen hundred and ninety-one, and after that time he shall coin of the silver bullion purchased under the provisions of this act as much as may be necessary to provide for the redemption of the Treasury notes herein provided for, and any gain or seigniorageSeigniorage.Vol. 20, p. 25. arising from, such coinage shall be accounted for and paid into the Treasury.
Sec. 4. That the silver bullion purchased under the provisions ofPurchases, subject to existing law, etc.Vol. 20, p. 25. this act shall be subject to the requirements of existing law and the regulations of the mint service governing the methods of determining the amount of pure silver contained, and the amount of chargesAscertainment of value. or deductions, if any, to be made. Sec. 5. That so much of the act of February twenty-eighth, eighteenVol. 20, sec. 1, p. 25, modified. hundred and seventy-eight, entitled “An act to authorize the coinage of theMonthly purchase and coinage clause repealed. standard silver dollar and to re tore its legal-tender character,” as requires the monthly purchase and coinage of the same into silver dollars of not less than two million dollars, nor more than four million dollars’ worth of silver bullion, is hereby repealed.
Sec. 6. That upon the passage of this act the balances standingBalances of National bank deposits for the redemption of circulation to be covered into Treasury. with the Treasurer of the United States to the respective credits of national banks for deposits made to redeem the circulating notes of such banks, and all deposits thereafter received for like purpose, shall be covered into the Treasury as a miscellaneous receipt, and the 290FIFTY-FIRST CONGRESS. Sess. I. Chs. 708, 714. 1890.
Treasurer to redeem certain notes from general cash.Treasury of the United States shall redeem from the general cash in the Treasury the circulating notes of said banks which may come into his possession subject to redemption: and upon the cert locate of the Comptroller of the Currency that such notes have been received by him and that they have been destroyed and that no new Reimbursement to the Treasurer from “National bank notes: Redemption account.”notes will be issued in their place, reimbursement of their amount shall be made to the Treasurer, under such regulations as the Secretary of the Treasury may prescribe, from an appropriation hereby, created, to be known as ‘National bank notes:
Redemption account, Not to apply to five per cent, deposit for redemption of circulation.Vol. 18, p. 123.but the provisions of this act shall not apply to the deposits received under section three of the act of June twentieth, eighteen hundred and seventy-four, requiring every National bank to keep in lawful money with the Treasurer of the United States a sum equal to five percentum of its circulation, to be held and used for the redemption of its circulating notes: and the balance remaining of the deposits Monthly report of remaining balance of deposits.so covered shall, at the close of each month, be reported on the monthly public debt statement as debt of the United States bearing no interest.
“Sec. 7. Operation. That this act shall take effect thirty days from and after its passage.” Approved, July 14, 1890.