-interest.

45.

2 Supp. R. S., 1119.

dollars. So long, however, as the existing Government and the present commercial relations of the Hawaiian Islands are continued as hereinbefore provided said Government shall continue to pay the interest on said debt.

31 Stat. L., CHAP. 41.-An act to define and fix the standard of value, to maintain the parity of all forms of money issued or coined by the United States, to refund the public debt, and for other purposes.

Standard of

value fixed.

R. S., $3511.

26, ch. 945 (1

807).

value to be

Be it enacted by the Senate and House of Representagold dollar, tives of the United States of America in Congress assem1890, Sept. bled, That the dollar consisting of twenty-five and eightSupp. R. S., tenths grains of gold nine-tenths fine, as established by parity of section thirty-five hundred and eleven of the Revised maintained. Statutes of the United States, shall be the standard unit of value, and all forms of money issued or coined by the United States shall be maintained at a parity of value with this standard, and it shall be the duty of the Secretary of the Treasury to maintain such parity.

Treasury

notes, 1890,

R. S., 774).

-redeemable

SEC. 2. That United States notes, and Treasury notes July 14, ch. issued under the Act of July fourteenth, eighteen hundred 708 Supp and ninety, when presented to the Treasury for redempin gold. tion, shall be redeemed in gold coin of the standard fixed in the first section of this act, and in order to secure the prompt and certain redemption of such notes as herein provided it shall be the duty of the Secretary of the Treas Maintenance ury to set apart in the Treasury a reserve fund of one of reserve fund. hundred and fifty million dollars in gold coin and bullion, which fund shall be used for such redemption purposes only, and whenever and as often as any of said notes shall be redeemed from said fund it shall be the duty of the Secretary of the Treasury to use said notes so redeemed to restore and maintain such reserve fund in the manner --by exchange following, to wit: First, by exchanging the notes so reof notes. deemed for any gold coin in the general fund of the Treasdeposits of ury; second, by accepting deposits of gold coin at the Treasury or at any subtreasury in exchange for the R. S.. $ 3700. United States notes so redeemed; third, by procuring gold by bond is- coin by the use of said notes, in accordance with the provisions of section thirty-seven hundred of the Revised Statutes of the United States. If the Secretary of the

-by accepting

gold.
-by procuring

gold.

sue.

terest.

Treasury is unable to restore and maintain the gold coin in the reserve fund by the foregoing methods, and the amount of such gold coin and bullion in said fund shall at any time fall below one hundred million dollars, then it shall be his duty to restore the same to the maximum sum of one hundred and fifty million dollars by borrowing money on the credit of the United States, and for the debt thus incurred to issue and sell coupon or registered bonds of the United States, in such form as he may prescribe, in denominations of fifty dollars or any multiple thereof, bearing interest at the rate of not exceeding three per-rate of incentum per annum, payable quarterly, such bonds to be payable at the pleasure of the United States after one year from the date of their issue, and to be payable, principal and interest, in gold coin of the present standard value, and to be exempt from the payment of all taxes or duties of the United States, as well as from taxation in any form by or under State, municipal, or local authority; and the gold coin received from the sale of said bonds Disposition of shall first be covered into the general fund of the Treasury of bonds. and then exchanged, in the manner hereinbefore provided, for an equal amount of the notes redeemed and held for exchange, and the Secretary of the Treasury may, in his discretion, use said notes in exchange for gold, or to purchase or redeem any bonds of the United States, or for-redemption any other lawful purpose the public interests may require, except that they shall not be used to meet deficiencies in the current revenues. That United States notes when redeemed in accordance with the provisions of this section shall be reissued, but shall be held in the reserve fund until exchanged for gold, as herein provided; and the gold coin and bullion in the reserve fund, together with the Limit to reredeemed notes held for use as provided in this section, shall at no time exceed the maximum sum of one hundred and fifty million dollars.

funds from sale

of bonds, etc.

-notes to be reissued.

serve fund.

Quality of silver dollar,

SEC. 3. That nothing contained in this act shall be construed to affect the legal-tender quality as now provided etc., unaffected. by law of the silver dollar, or of any other money coined or issued by the United States.

issue and

tablished.

re

SEC. 4. That there be established in the Treasury De- Divisions of partment, as a part of the office of the Treasurer of the demption esUnited States, divisions to be designated and known as the division of issue and the division of redemption, to which shall be assigned, respectively, under such regulations as the Secretary of the Treasury may approve,

-duties.

Cancellation of Treasury

ver dollars

coined, etc.

all records and accounts relating to the issue and redemption of United States notes, gold certificates, silver certificates, and currency certificates. There shall be transferred from the accounts of the general fund of the Treasury of the United States, and taken up on the books of said divisions, respectively, accounts relating to the reserve fund for the redemption of United States notes and Treasury notes, the gold coin held against outstanding gold certificates, the United States notes held against outstanding currency certificates, and the silver dollars held against outstanding silver certificates, and each of the funds represented by these accounts shall be used for the redemption of the notes and certificates for which they are respectively pledged, and shall be used for no other purpose, the same being held as trust funds.

SEC. 5. That it shall be the duty of the Secretary of notes for sil the Treasury, as fast as standard silver dollars are coined under the provisions of the acts of July fourteenth, eighteen hundred and ninety, and June thirteenth, eighteen hundred and ninety-eight, from bullion purchased under the act of July fourteenth, eighteen hundred and ninety, to retire and cancel an equal amount of Treasury notes whenever received into the Treasury, either by exchange in accordance with the provisions of this act or in the ordinary course of business, and upon the cancellation Issue of all of Treasury notes silver certificates shall be issued against the silver dollars so coined.

ver certificates.

Gold certificates to be is

posits of gold.

SEC. 6. That the Secretary of the Treasury is hereby sued on de- authorized and directed to receive deposits of gold coin with the Treasurer or any assistant treasurer of the United States in sums of not less than twenty dollars, and to issue gold certificates therefor in denominations of not less than twenty dollars, and the coin so deposited shall be retained in the Treasury and held for the payment of such certificates on demand, and used for no other to be count purpose. Such certificates shall be receivable for customs, taxes, and all public dues, and when so received may be reissued, and when held by any national banking association may be counted as a part of its lawful reserve: Provided, That whenever and so long as the gold coin held in the reserve fund in the Treasury for the redemption of United States notes and Treasury notes shall fall and remain below one hundred million dollars the authority to issue certificates as herein provided shall be

ed as bank reserve, etc.

authority to is

suspended: And provided further, That whenever and Suspension of so long as the aggregate amount of United States notes sue certificates. and silver certificates in the general fund of the Treasury shall exceed sixty million dollars the Secretary of the Treasury may, in his discretion, suspend the issue of the certificates herein provided for: And provided further, That of the amount of such outstanding certificates one- Denomination fourth at least shall be in denominations of fifty dollars or less: And provided further, That the Secretary of the Treasury may, in his discretion, issue such certificates in denominations of ten thousand dollars, payable to order. And section fifty-one hundred and ninety-three Repeal of of the Revised Statutes of the United States is hereby repealed.

of certificates.

R. S., sec. 5193.

of silver certifi

SEC. 7. That hereafter silver certificates shall be issued Denomination only of denominations of ten dollars and under, except cates. that not exceeding in the aggregate ten per centum of the total volume of said certificates, in the discretion of the Secretary of the Treasury, may be issued in denominations of twenty dollars, fifty dollars, and one hundred dollars; and silver certificates of higher denomination than ten dollars, except as herein provided, shall, whenever received at the Treasury or redeemed, be retired and canceled, and certificates of denominations of ten dollars. or less shall be substituted therefor, and after such sub-o stitution, in whole or in part, a like volume of United States notes of less denomination than ten dollars shall from time to time be retired and canceled, and notes of denominations of ten dollars and upward shall be reissued in substitution therefor, with like qualities and restrictions as those retired and canceled.

-on reissue.

lion may be

sidiary coinage

ch. 708 (1

774).

SEC. 8. That the Secretary of the Treasury is hereby, Silver bulauthorized to use, at his discretion, any silver bullion in used for subthe Treasury of the United States purchased under the 1890, July 14, Act of July fourteenth, eighteen hundred and ninety, for Supp. R. S., coinage into such denominations of subsidiary silver coin as may be necessary to meet the public requirements for such coin: Provided, That the amount of subsidiary silver —limit. coin outstanding shall not at any time exceed in the aggregate one hundred millions of dollars. Whenever any silver bullion purchased under the act of July fourteenth, eighteen hundred and ninety, shall be used in the coinage of subsidiary silver coin, an amount of Treasury notes issued under said act equal to the cost of the bullion contained in such coin shall be canceled and not reissued.

-cancellation of notes.

Recoinage of uncurrent silver coins.

SEC. 9. That the Secretary of the Treasury is hereby authorized and directed to cause all worn and uncurrent subsidiary silver coin of the United States now in the Treasury, and hereafter received, to be recoined, and to -reimburse reimburse the Treasurer of the United States for the difface ference between the nominal or face value of such coin and the amount the same will produce in new coin from any moneys in the Treasury not otherwise appropriated.

ment of loss

from value.

Redemption

of bonds.

2 per cent bonds.

*

SEC. 11. That the Secretary of the Treasury is hereby authorized to receive at the Treasury any of the outstanding bonds of the United States bearing interest at five per centum per annum, payable February first, nineteen hundred and four, and any bonds of the United States bearing interest at four per centum per annum, payable July first, nineteen hundred and seven, and any bonds of the -reissue of United States bearing interest at three per centum per annum, payable August first, nineteen hundred and eight, and to issue in exchange therefor an equal amount of coupon or registered bonds of the United States in such form as he may prescribe, in denominations of fifty dollars or any multiple thereof, bearing interest at the rate of two per centum per annum, payable quarterly, such bonds to be payable at the pleasure of the United States after thirty years from the date of their issue, and said bonds to be payable, principal and interest, in gold coin of the present standard value, and to be exempt from the payment of all taxes or duties of the United States, as well as from taxation in any form by or under State, municipal, or local authority: Provided, That such out-valuation. standing bonds may be received in exchange at a valuation not greater than their present worth to yield an income of two and one-quarter per centum per annum; and in consideration of the reduction of interest effected, the Secretary of the Treasury is authorized to pay to the holders of the outstanding bonds surrendered for exchange, out of any money in the Treasury not otherwise appropriated, a sum not greater than the difference be tween their present worth, computed as aforesaid, and their par value, and the payments to be made hereunder shall be held to be payments on account of the sinking R. S., 3694. fund created by section thirty-six hundred and ninetyfour of the Revised Statutes: