ment of the United States, or any of its representatives, beyond the amount available from time to time out of said "United States National-bank Note Redemption Fund."

SECT. 15. First-That any bank organized under this Act may at any time after nineteen hundred and five, with the consent of the ministers of finance, insure its depositors against loss by paying into the United States Treasury 1 per centum upon the average balance of deposits of the preceding fiscal year, and one-half of 1 per centum upon the average annual balances thereafter until the amount so paid into the United States Treasury by said bank shall amount to 5 per centum of the average balance of said bank for the last preceding year, and that said ministers of finance may then suspend said tax for the time being. If the deposits of said bank shall increase, or for any reason the amount of the insurance fund to the credit of said bank shall be less than 5 per centum of the deposits, said ministers may reimpose said tax of one-half of I per centum upon the deposits of said bank; and if said bank shall fail to pay such tax at any time after the payment of said I per centum the amount already paid by said bank shall be forfeited to the United States Government and the insurance of said depositors shall thereupon cease.

Second That the amounts of money so received shall constitute and be known as the "Depositors' Insurance Fund."

SECT. 21. That it shall be unlawful for any national bank to engage in the promotion of any enterprise, or to loan the funds of the bank upon the bonds or securities of incomplete and partially developed projects of any kind, such as partially constructed railroads, street-car lines, electric-light, gas, water, mining, manufacturing, or irrigation plants.

INDIANAPOLIS MONETARY COMMISSION BILL

Be it enacted, etc.:

JANUARY 6, 1898

SECT. 4. That there is hereby created a division in the Treasury Department, to be known as the Division of Issue and Redemption, under the charge of an Assistant Treasurer of the United States, who shall be appointed by the President, by and with the advice and consent of the Senate.

SECT. 5. That to the Division of Issue and Redemption shall be committed all functions of the Treasury Department pertaining to the issue and redemption of notes and certificates, and to the exchange of coins, and the said Division of Issue and Redemption shall have the custody of the Bank Note Guaranty Fund and of the Redemption Funds of the national banking associations, and shall conduct the operations of redeeming the circulating notes of national banking associations, as prescribed by law. .

SECT. 6. That a reserve shall be established in the Division of Issue and Redemption aforesaid, by the transfer to it by the Treasurer of the United States from the general funds of the Treasury of an amount of gold, in coin and bullion, equal to 25 per centum of the amount of both United States notes and Treasury notes issued under the Act of July 14, 1890, outstanding, and a further sum in gold equal to 5 per centum of the aggregate amount of the coinage of silver dollars. . . .

SECT. 7. That it shall be the duty of the Secretary of the Treasury to maintain the gold reserve in the Division of Issue and Redemption aforesaid at such sum as shall secure the certain and immediate redemption of all notes and exchange of all silver dollars presented, as hereinafter provided for, and the preservation of public confidence; and for this purpose he shall from time to time transfer to the Division of Issue and Redemption any funds in the Treasury not otherwise appropriated, and in addition thereto he is hereby authorized to issue and sell, whenever it is in his judgment necessary to the ends aforesaid, bonds of the United States, bearing interest at

a rate not exceeding 3 per centum per annum payable in gold coin at the end of twenty years, but redeemable in gold coin at the option of the United States after one year; and the proceeds of all such sales shall be paid into the Division of Issue and Redemption for the purposes aforesaid.

SECT. 16. That, to provide for any temporary deficiency which may at any time exist in the Treasury of the United States, the Secretary of the Treasury be and he is hereby authorized, at his discretion, to issue certificates of indebtedness of the United States.

SECT. 18. That any national banking association organized under the laws of the United States shall, if its capital be wholly paid up and unimpaired, be entitled to receive from the Comptroller of the Currency circulating notes of denominations hereinafter provided, in blank, registered and countersigned as provided by law, to an amount not exceeding the amount of such paid-up and unimpaired capital, after deducting therefrom its investment in real estate: Provided, That during the five years first succeeding the passage of this Act, any national banking association receiving from the Comptroller of the Currency circulating notes in blank under the provisions of this Act, shall maintain on deposit with the Treasurer of the United States, bonds of the United States to an amount, at a valuation computed as hereinafter prescribed, equal to that of the circulating notes so received, whenever such notes shall not exceed 25 per centum of the capital stock. And for each succeeding year after the expiration of five years from the passage of this Act, the amount of bonds required to be deposited before issuing notes in excess of such deposit shall be decreased by 20 per centum of the original 25 per centum of capital stock hereinbefore specified, and from and after the expiration of ten years from the passage of this Act no such bond deposit shall be required. And no further deposit of bonds shall be required than is herein prescribed; and any national banking association having at any time bonds of the United States deposited with the Treasurer in excess of the amount required by law to be at such time

deposited, may withdraw the whole or any part of such excess. But nothing herein contained shall be construed to authorize or permit the withdrawal of bonds required to be deposited under the provision of Section 5153 of the Revised Statutes of the United States, as security for the safe keeping and prompt payment of public moneys deposited with any national banking association.

SECT. 20. That every national banking association shall at all times keep and have on deposit with the Division of Issue and Redemption for the purpose hereinafter specified a sum in gold coin equal to 5 per centum of its outstanding circulation. The amounts so kept on deposit shall constitute a fund to be known as "The Bank Note Guaranty Fund," which fund shall be held for the following purpose, and for no other, namely:

Whenever the Comptroller of the Currency shall have become satisfied. . . . that any association has refused to pay its circulating notes on demand in lawful money, he shall direct the redemption of such notes from the Bank Note Guaranty Fund aforesaid, and such notes shall thereupon be so redeemed. After the failure of any national banking association to redeem its notes shall have been thus ascertained, the bonds deposited with the Treasurer of the United States shall be sold, as provided by law, and the proceeds of such sale shall be paid into the Bank Note Guaranty Fund. The Comptroller of the Currency shall forthwith collect, for the benefit of said fund from the assets of the bank and from the stockholders thereof, according to their liability, as declared by this Act, such sum as, with the bank's balance in the Bank Note Guranty Fund, shall equal the amount of its circulating notes outstanding. And for this purpose the United States shall, on behalf of the Bank Note Guaranty Fund, have a paramount lien upon all the assets of the association; and such fund shall be made good out of such assets in preference to any and all other claims whatsoever, except the necessary costs and expenses of administering the same.

SECT. 21. That whenever the Comptroller of the Currency

shall ascertain what deficiency, if any, exists between the aggregate collections for the benefit of the Bank Note Guaranty Fund in the case of any failed bank and the amount of its outstanding notes redeemed and to be redeemed from the said fund, he shall assess such deficiency upon all the national banks in proportion to their notes outstanding at the time of the failure of such bank.

SECT. 25. That every national banking association shall pay, on or before the last day of every month, to the Division of Issue and Redemption, a duty imposed at the rate of 2 per centum per annum upon the average daily amount of its circulating notes outstanding in excess of 60 per centum of its capital stock, and not in excess of 80 per centum of such capital stock, and a duty imposed at the rate of 6 per centum per annum upon the average daily amount of such notes outstanding in excess of 80 per centum of its capital stock.

SECT. 30. That no national banking association shall count or report any of its own notes as a part of its cash or cash

That there is hereby created a division in the Treasury Department to be known as the Division of Issue and Redemption.

There is hereby created a board consisting of three members, to be known as the Comptrollers of the Currency. The said board shall have the management of the Division of Issue and Redemption, and shall take the place of the Comptroller of the Currency.

...

SECT. 2. That to the Division of Issue and Redemption shall be committed all functions of the Treasury Department pertaining to the issue and redemption of notes and certificates, and to the exchange of coins; and in the said Division of Issue and Redemption shall be held the guaranty fund and