ownership of the said company, may be taken possession of by the Secretary of the Treasury for the use and benefit of the United States: Provided, This section shall not. act of 1864. apply to that part of any road now constructed.

Modified.

See section 5,

Bonds, when

and how paid.

SEC. 6. And be it further enacted, That the grants aforesaid are made upon condition that said company shall pay said bonds at maturity, and shall keep said railroad and telegraph line in repair and use, and shall at all times transmit dispatches over said telegraph line, and transport mails, troops, and munitions of war, supplies, and public stores upon said railroad for the Government whenever required to do so by any Department thereof, and that the Government shall at all times have the preference in the use of the same for all the purposes aforesaid, (at fair and reasonable rates of compensation, not to exceed the amounts paid by private parties for the same kind of service); and all compensation for services rendered for the Government shall be applied to the payment of said bonds and interest until the whole amount Government is fully paid. Said company may also pay the United half to be paid States, wholly or in part, in the same or other bonds, Treasury notes, or other evidences of debt against the United States, to be allowed at par; and after said road is completed, until said bonds and interest are paid, at least five per centum of the net earnings of said road shall also be annually applied to the payment thereof.

transportation,

in cash.

Subsidy bonds

treble over the

Sierra Nevada

Mountains.

SEC. 11. And be it further enacted, That for three Rocky and the hundred miles of said road, most mountainous and difficult of construction, to wit, one hundred and fifty miles westwardly from the eastern base of the Rocky Mountains, and one hundred and fifty miles eastwardly from the western base of the Sierra Nevada Mountains, said points to be fixed by the President of the United States, the bonds to be issued to aid in the construction thereof shall be treble the number per mile hereinbefore provided, and the same shall be issued, and the lands herein granted be set apart, upon the construction of every twenty miles thereof, upon the certificate of the commissioners as aforesaid that twenty consecutive miles of the same Subsidy bonds are completed; and between the sections last named of the mountains. One hundred and fifty miles each, the bonds to be issued to aid in the construction thereof shall be double the number per mile first mentioned, and the same shall be

double between

issued, and the lands herein granted be set apart, upon the construction of every twenty miles thereof, upon the certificate of the commissioners as aforesaid that twenty consecutive miles of the same are completed: Provided, That no more than fifty thousand of said bonds shall be issued under this act to aid in constructing the main line of said railroad and telegraph.

compel speedy

road.

Main line to be finished in

See secs. 5

SEC. 17. And be it further enacted, That in case said Congress may company or companies shall fail to comply with the terms completion of and conditions of this act, by not completing said road and telegraph and branches within a reasonable time, or by not keeping the same in repair and use, but shall permit the same for an unreasonable time to remain unfinished or out of repair and unfit for use, Congress may pass any act to insure the speedy completion of said road and branches, or to put the same in repair and use, and may direct the income of said railroad and telegraph line to be thereafter devoted to the use of the United States to repay all such expenditures caused by the default or neglect of such company or companies: Provided, That if said roads are not completed, so as to form a continuous line of railroad, ready for use, from the Missouri River 1876. to the navigable waters of the Sacramento River in Cali- and 7, act of fornia, by the first day of July, eighteen hundred and 1864. seventy-six, the whole of all of said railroads before mentioned, and to be constructed under the provisions of this act, together with all their furniture, fixtures, rollingstock, machine shops, lands, tenements, hereditaments, and property of every kind and character, shall be forfeited to and taken possession of by the United States: Provided, That of the bonds of the United States in this act provided to be delivered for any and all parts of the roads to be constructed east of the one-hundredth meridian of west longitude from Greenwich, and for any part of the road west of the west foot of the Sierra Nevada Mountains, there shall be reserved of each part and installment twenty-five per centum, to be and remain in Repealed. the United States Treasury, undelivered, until said road act of 1864. and all parts thereof provided for in this act are entirely completed; and of all the bonds provided to be delivered for the said road, between the two points aforesaid, there shall be reserved out of each installment fifteen per centum, to be and remain in the Treasury until the whole of the road provided for in this act is fully completed;

See sec.

7,

and if the said road or any part thereof shall fail of completion at the time limited there for in this act, then and in that case the said part of said bonds so reserved shall be forfeited to the United States.

NOTE. By joint resolution, No. 19, of April 10, 1869, an amount of the subsidy bonds provided for are to be withheld sufficient to secure the full completion, as a first-class road, of all sections of such road, etc.

ACT OF JULY 11, 1862.

12 Stat. L., CHAP. CXLII.-An act to authorize an additional issue of United States notes, and for other purposes.

532.

posits of notes

$50,000,000 to

Limit to de- SEC. 3. And be it further enacted, That the limitation extended from upon temporary deposits of United States notes with any $100,000,000. assistant treasurer, or designated depositary authorized by the Secretary of the Treasury to receive such deposits, to fifty millions of dollars be, and is hereby repealed; and the Secretary of the Treasury is authorized to receive such deposits, under such regulations as he inay prescribe, to such amount as he may deem expedient, not exceeding one hundred millions of dollars, for not less than thirty days, in sums not less than one hundred dollars, at a rate of interest not exceeding five per centum per annum; and any amount so deposited may be withdrawn from deposit, at any time after ten days' notice on Fifty million the return of the certificate of deposit. And of the reserved to pay amount of United States notes authorized by this act, not less than fifty millions of dollars shall be reserved for the purpose of securing prompt payment of such deposits when demanded, and shall be issued and used only when, in the judgment of the Secretary of the Treasury, the same or any part thereof may be needed for that purpose. All certia And certificates of deposit and of indebtedness issued posit and of in- under this or former acts may be received on the same vertible into terms as United States notes in payment for bonds redeemable after five and payable in twenty years.

dollars of notes

deposits.

cates of de

debtedness con

bonds.

Time of obtaining loan

act of July 17,

SEC. 4. And be it further enacted, That the Secretary authorized by of the Treasury may, at any time until otherwise ordered 1861, extended. by Congress, and under the restrictions imposed by the "act to authorize a national loan, and for other purposes," borrow, on the credit of the United States, such part of

the sum of two hundred and fifty millions mentioned in said act as may not have been borrowed, under the provisions of the same, within twelve months from the passage thereof.

CHAP. LXXIII.—An act to provide ways and means for the support of the Government.

12 Stat. L., 709.

the Treasury

borrow

not over $300,

for

this year and for the next.

Denomina

tions.

on,

Interest rate of, payable

Be it enacted by the Senate and House of Representatires of the United States of America in Congress assembled, That the Secretary of the Treasury be, and Secretary of he is hereby, authorized to borrow, from time to time, on may the credit of the United States, a sum not exceeding three 000,000 hundred millions of dollars for the current fiscal year, and $600,000,000 six hundred millions for the next fiscal year, and to issue there for coupon or registered bonds, payable at the pleas- Bonds. ure of the Government after such periods as may be fixed by the Secretary, not less than ten nor more than forty years from date, in coin, and of such denominations not less than fifty dollars as he may deem expedient, bearing interest at a rate not exceeding six per centum per annum, payable on bonds not exceeding one hundred dollars, in coin. annually, and on all other bonds semi-annually, in coin; and he may, in his discretion, dispose of such bonds at any time, upon such terms as he may deem most advisable, for lawful money of the United States, or for any of the certificates of indebtedness or deposit that may at any time be unpaid, or for any of the Treasury notes heretofore issued or which may be issued under the provisions of this act. And all the bonds and Treasury notes or United States notes issued under the provisions of this Revised Statact shall be exempt from taxation by or under State or municipal authority: Provided, That there shall be out-standing not standing of bonds, Treasury notes, and United States to notes, at any time, issued under the provisions of this act, no greater amount altogether than the sum of nine hundred millions of dollars.

Bonds may be disposed of.

To be exempt from taxation.

utes, 3701.

out

exceed

$900,000,000.

may issue in Treasury

SEC. 2. And be it further enacted, That the Secretary Secretary of the Treasury be, and he is hereby, authorized to issue, $400,000,000 on the credit of the United States, four hundred millions notes. of dollars in Treasury notes, payable at the pleasure of When paythe United States, or at such time or times not exceeding of interest.

able and rate

Interest pay

money.

tions and how

three years from date as may be found most beneficial to the public interests, and bearing interest at a rate not exceeding six per centum per annum, payable at periods able in lawful expressed on the face of said Treasury notes; and the interest on the said Treasury notes and on certificates of indebtedness and deposit hereafter issued, shall be paid Denomina in lawful money. The Treasury notes thus issued shall disposed of. be of such denomination as the Secretary may direct, not Revised Stat- less than ten dollars, and may be disposed of on the best terms that can be obtained, or may be paid to any creditor of the United States willing to receive the same at par. How a legal And said Treasury notes may be made a legal tender to Revised Stat- the same extent as United States notes, for their face For what ex- value, excluding interest; or they may be made exchange

utes, 3476.

tender, etc.

utes, 3590.

changeable.

able under regulations prescribed by the Secretary of the Treasury, by the holder thereof, at the Treasury in the city of Washington, or at the office of any assistant treasurer or depositary designated for that purpose, for United States notes equal in amount to the Treasury notes offered for exchange, together with the interest accrued and due thereon at the date of interest payment next preOther notes ceding such exchange. And in lieu of any amount of ex said Treasury notes thus exchanged, or redeemed or paid

may be issued for those changed.

and fifty mil

notes may be

changes.

at maturity, the Secretary may issue an equal amount of other Treasury notes; and the Treasury notes so exchanged, redeemed, or paid, shall be cancelled and deOne hundred stroyed as the Secretary may direct. In order to secure lion dollars of certain and prompt exchanges of United States notes for issued for ex- Treasury notes, when required as above provided, the Secretary shall have power to issue United States notes to the amount of one hundred and fifty millions of dollars, which may be used if necessary for such exchanges; but no part of the United States notes authorized by this section shall be issued for or applied to any other purWhen issued poses than said exchanges; and whenever any amount. how replaced. shall have been so issued and applied, the same shall be replaced as soon as practicable from the sales of Treasury notes for United States notes.

and applied,

The Secretary

if necessary to

etc., may issue

notes without

SEC. 3. And be it further enacted, That the Secretary pay the army of the Treasury be, and he is hereby, authorized, if re$150,000,000 in quired by the exigencies of the public service, for the payinterest. ment of the Army and Navy, and other creditors of the Government, to issue on the credit of the United States the sum of one hundred and fifty millions of dollars of United States notes, including the amount of such notes

Revised Stat

utes, 3571.