SPEECHES IN THE SENATE, JANUARY 12, 26, FEBRUARY 1, MARCH 2, 10, 11,
1870.
January 12, 1870, Mr. Sumner, in accordance with previous
notice, asked and obtained leave to introduce the following
bill:--
A Bill to authorize the refunding and consolidation of
the national debt, to extend banking facilities, and to
establish specie payments.
SECTION 1. _Be it enacted by the Senate and House of
Representatives in Congress assembled_, That, for the
purpose of refunding the debt of the United States and
reducing the interest thereon, the Secretary of the
Treasury be, and he is hereby, authorized to issue, on the
credit of the United States, coupon or registered bonds,
of such denominations not less than fifty dollars as he
may think proper, to an amount not exceeding $500,000,000,
redeemable in coin, at the pleasure of the Government, at
any time after ten years, and payable in coin at forty
years from date, and bearing interest at the rate of five
per cent. per annum, payable semiannually in coin; and the
bonds thus authorized may be disposed of at the discretion
of the Secretary, under such regulations as he shall
prescribe, either in the United States or elsewhere, at
not less than their par value, for coin; or they may be
exchanged for any of the outstanding bonds, of an equal
aggregate par value, heretofore issued under the Act of
February 25, 1862, and known as the Five-Twenty bonds of
1862, and for no other purpose; and the proceeds of so much
thereof as may be disposed of for coin shall be placed in
the Treasury, to be used for the redemption of such six per
cent. bonds at par as may not be offered in exchange, or to
replace such amount of coin as may have been used for that
purpose.
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.