deem best. Every such national banking association shall conduct the accounts of each foreign branch independently of the accounts of other foreign branches established by it and of its home office, and shall at the end of each fiscal period transfer to its general ledger the profit or loss accruing at each branch as a separate item.
REPEAL OF FORMER INCONSISTENT PROVISIONS OF LAW
SEC. 26. All provisions of law inconsistent with or superseded by any of the provisions of this Act are to that extent and to that extent only hereby repealed: Provided, Nothing in this Act contained shall be construed to repeal the parity provision or provisions contained in an Act approved March fourteenth, nineteen hundred entitled "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," and the Secretary of the Treasury may for the purpose of maintaining such parity and to strengthen the gold reserve, borrow gold on the security of United States bonds authorized by section two of the Act last referred to or for one-year gold notes bearing interest at a rate of not to exceed three per centum per annum, or sell the same if necessary to obtain gold. When the funds of the Treasury on hand justify, he may purchase and retire such outstanding bonds and notes.
EXTENSION OF CERTAIN PROVISIONS OF ACT OF MAY 30, 1908, AND RE
ENACTMENT OF CERTAIN SECTIONS OF REVISED STATUTES AS AMENDED
BY SAME ACT
SEC. 27. The provisions of the Act of May thirtieth, nineteen hundred and eight, authorizing national currency associations, the issue of additional national-bank circulation, and creating a National Monetary Commission, which expires by limitation under the terms of such Act on the thirtieth day of June, nineteen hundred and fourteen, are hereby extended to June thirtieth, nineteen hundred and fifteen, and sections fifty-one hundred and fifty-three, fifty-one hundred and seventy-two, fifty-one hundred and ninetyone, and fifty-two hundred and fourteen of the Revised Statutes of the United States, which were amended by the Act of May thirtieth, nineteen hundred and eight, are hereby reënacted to read as such sections read prior to May thirtieth, nineteen hundred and eight, subject to such amendments or modifications as are prescribed in this Act: Provided, however, That section nine of the Act first referred to in this section is hereby amended
so as to change the tax rates fixed in said Act by making the portion applicable thereto read as follows:
National banking associations having circulating notes secured otherwise than by bonds of the United States, shall pay for the first three months a tax at the rate of three per centum per annum upon the average amount of such of their notes in circulation as are based upon the deposit of such securities, and afterwards an additional tax rate of one-half of one per centum per annum for each month until a tax of six per centum per annum is reached, and thereafter such tax of six per centum per annum upon the average amount of such notes.
AMENDMENT AND REENACTMENT OF SECTION FIFTY-ONE HUNDRED AND FORTY-THREE OF REVISED STATUTES
SEC. 28. Section fifty-one hundred and forty-three of the Revised Statutes is hereby amended and reënacted to read as follows: Any association formed under this title may, by the vote of shareholders owning two-thirds of its capital stock, reduce its capital to any sum not below the amount required by this title to authorize the formation of associations; but no such reduction shall be allowable which will reduce the capital of the association below the amount required for its outstanding circulation, nor shall any reduction be made until the amount of the proposed reduction has been reported to the Comptroller of the Currency and such reduction has been approved by the said Comptroller of the Currency and by the Federal Reserve Board, or by the organization committee pending the organization of the Federal Reserve Board.
SEC. 29. If any clause, sentence, paragraph, or part of this Act shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this Act, but shall be confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in the controversy in which such judgment shall have been rendered.
RIGHT TO AMEND, ALTER OR REPEAL
SEC. 30. The right to amend, alter, or repeal this Act is hereby expressly reserved.
Adams, John Quincy, report on par of exchange,
48; on the gold standard, 59; on Bank
of U. S., 110, III.
Aldrich, Nelson W., chairman National Mone-
tary Commission, 395, 396.
Aldrich-Vreeland law, 440.
American Bankers' Association, amendment of
National Bank Act by, 395; answers pre-
pared by, to questions of Senate Com-
mittee on Banking and Currency, 397-410.
Argentina, currency system of, 472.
Articles of Confederation, adoption, and provi-
sions as to bills of credit, 19; on coinage,
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Banking power by sections, 158, 173, 174, 329,
340, 435.
Banking system, criticism of, by Currency Com-
mission of American Bankers' Association,
397-400.
Bank-notes, see National bank-notes, State bank-
noles.
Bank of England, saves firm of Baring Brothers,
343; notes of, the paper currency of Eng-
land and Wales, 450.
Bank of France, 458; money loaned Bank of
England by, 343; statement for 1914, 459.
Bank of Italy, 460.
Bank of Japan, 470.
Bank of New York, 73, 254.
Bank of North America, chartered, 20, 73; un-
suited for federal purposes, 77.
Bank of the U. S., Hamilton's plan for, 75.
First, constitutionality of, 77, 91, 109; charter
of, 80; influence on currency, 84; opera-
tion of, 84; renewal of charter defeated,
85.
Second, plan for, 91-92; Supreme Court on,
78-82; Madison on, 92; charter, 94; early
mismanagement, 95-96; operations of,
95-100; Cheves's reformation, 96, 100;
states oppose, 100; Biddle's administra-
tion, 105-107; "bank war," 108-119;
Jackson's attacks, 108, 110, 112, 113, 117,
118; Congressional investigations, 110-
III, 115, 117-118; Kendall and Kitchen
Cabinet, 110, 111, 115, 116; defeat of re-
charter, 112; removal of public deposits,
114-118; branch drafts, 98, 111; great
utility of, 106, 114, 119-121; regulation of
currency by, 104, 108, 109, 120, 175, 427–
428; government's shares in, 94, 107, 114,
118, 125; statements of condition, 125,
128; accepts Pennsylvania charter, 118,
131, see U. S. Bank of Pennsylvania.
Third, plans for, 151-154; defeat of, 152;
Tyler on, 152, 153.
Banks, statistics of, 87, 127, 128, 159, 320, 330,
331, 340, 341, 369, 370, 386, 432, 433, 435,
436.
Banks owned by states, 86, 103, 104, 145, 146,
149; Indiana, 146; Ohio, 150; Supreme
Baring, Alexander, on single gold standard, 55.
Baring Brothers, assisted by Bank of England,
Belgium, currency system of, 459–460.
Benton, Thomas H., on change of ratio, 57-59;
opposes Bank of U. S., 110; favors sub-
treasury bill, 134.
Bibliography, 479-495.
Bimetallism, Hamilton's plan, 42, 44, 45, 420;
failure of, 45, 68, 420; international, 278,
285, 293, 295, 297, 361, 364, 371; impos-
sibility of, 45, 54, 56, 64, 295, 297, 420;
Silver Commission of 1876, 275-278; in-
ternational conferences on, 283-285, 290-
291, 346, 372; British Commission on,
297-300; in Latin Union, 457; in Europe
and Asia, 457, 459, 460, 461, 469, 470, 471.
Bland-Allison silver law, 279–282; dissatisfaction
of silver men, 287.
Board of Treasury, report to Continental Con-
gress, 38.
Bolivia, currency system of, 474.
Bond-deposit system, 143-144, 145, 161; defects
of, 176, 315; abrogation advocated, 429.
Bonds, United States, Chase's sales of, 182, 194;
payments of, in notes proposed, 210;
scaling down, proposed, 211-212; pay-
ment in silver discussed, 278-279, 280, 281,
282, 289; purchase of, with surplus, 166,
170, 243, 337; authorized to provide gold
for reserve, 223, 376, 497, 498; refunding
of, 217, 239, 327, 377, 378; sales of, to
obtain gold, 234, 355, 357, 358, 359;
legality of, 356; syndicate of 1895, 358,
359; held by national banks, 331, 341;
prices of, 331, 341, 367, 411; provisions of
Federal Reserve Act concerning, 415-417,
535-537.
Boutwell, George S., Secretary of Treasury, 213-
219; issues "greenback reserve," 216, 219;
opposes contraction, 218; opportunist
policy of, 218-219; on silver, 278; against
certifying checks, 314.
Branch banking, 100, 101, 146, 150.
Brazil, currency system of, 472-473.
Bristow, Benjamin H., Secretary of Treasury,
222, 228.
British coins in use, 33, 450; value, 35, 450.
British colonies, currency systems in, 456-457.
British Gold and Silver Commission, report, 297-
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Canada, banking system, 431, 455-456; currency
system, 454-455.
Carlisle, John G., Secretary of Treasury, 349-366;
policy on silver, 349; on deficits, 354;
sells bonds to obtain gold, 354-355, 357,
358, 359; urges retirement of greenbacks,
357, 360, 365; plan for bank currency, 357.
Chase, Salmon P., Secretary of Treasury, 180-
197; reports, 180, 181, 183, 192, 195;
policy as to banks, 183-184, 199, 201;
urges national banking system, 182, 192,
306; on legal tenders, 29, 187; review of
administration of, 199–201.
As Chief Justice, on legal tenders, 29, 256, 261.
Checks, certification of, 314, 327; use of, in lieu
of currency, 326, 351; effect of Federal
Reserve system, 417-418, 528.
Chili, currency system of, 473-
China, currency system of, 471.
Circulation of the country, 87, 129, 159, 177, 204,
226, 251-252, 367, 384, 433.
Civil War period, 179-203; influence of, on cur-
rency, 26, 27, 176, 202, 267, 422, 423.
Clay, Henry, on Bank of U. S., 85, 93, 110, 134,
151, 152; conflict with Jackson, 109-110,
113, 117, 119; opposes subtreasury act,
134; conflict with Tyler, 151-154.
Clearing-house, system established, 162, 163;
operation described, 162-163; salutary in-
fluence of, 162; exchanges, volume of, 177,
320, 331, 341, 370, 386; loan certificates,
240, 316, 332, 333, 337, 351–352, 390, 392,
table of, at New York, 353, issued during
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European war crisis, 439, 440; operation of
system during European war crisis, 438-440.
New York, and silver, 327.
Cleveland, Grover, President, on silver, 243. 293,
295, 297; on surplus in treasury, 246; on
redemption of notes in gold, 349, 358, 447;
bond-syndicate contract, 358; on legal
tenders, 358, 360, 365.
Coin, purchase law of 1862, 190-191; revived in
1895, 358.
Payment of bonds and notes in, 213, 278-279-
Coinage, conditions in colonial period, 1-12.
Coinage charge, 38-39, 42, 44, 46, 273, 274-
Ordinance of 1786, 38; laws, 1792, 43; 1834,
59-60; 1837, 60; 1853, 63; 1873, 271-273-
Plans, Morris, 35-36; Jefferson, 36-37; Board
of Treasury, 38; Hamilton, 41.
Statistics, 52, 68, 69, 70, 270, 286, 304, 305, 434-
Coins, nomenclature, 32; weight and fineness of,
42, 61, 63, 273, 274; see also Gold, Silver,
Subsidiary, Minor, and Coinage laws.
Colombia, currency system of, 475.
Colonial currency, 1-11, 71; depreciation of, 8,
II, 12; volume of, 12.
Compound interest notes, 197, 198.
Constitution, narrow construction of, 26, 152, 177;
provisions as to coins, 39; paper, 73-74;
legal tender, 74; bank charter under, 77-
82, 91, 109, 112, 179; state bank-notes
under, 138, 167; on currency in legal-
tender cases, 254-267; broader construc-
tion favorable to sound money, 267, 422.
Continental currency, 13-21, 71-73; legal tender
of, 13, 14, 72; depreciation, 15, 16, 19, 72;
volume of, 16, 72; old and new tenor, 16-
17; redemption, 17, 18, 72.
Costa Rica, currency system of, 475.
Cotton Loan Fund, creation of, in 1914, 443–445.
Counterfeit detectors, 165.
State bank-notes, 101, 165, 180.
Counterfeiting, of colonial currency, 7-8, 10, 11;
penalties, 8; of Continental currency, 15.
Crawford, William H., Senator, favors Bank of
U. S., 85.
Secretary of Treasury, special report of 1820,
49; recommends change of ratio, so; esti-
mates of bank currency, 89; efforts to
reform currency, 96, 102-103; opposes
government notes, 97.
"Crime of 1873," 271-282.
Crisis, of 1890, 336-337, 343; of 1893, 350, 354;
of 1907, 388-394; upon opening of Euro-
pean war in 1914, 437-445-
Cuba, lack of national currency, 476–477.
Currency, definition of, 1-2; primitive forms of,
2-5; see under State bank-notes, National
bank-notes, United States notes, Treasury
notes.
Currency Banking vs. Deposit Banking, 148, 161.
Currency certificates, authorized, 218, 315-316;
abolished, 376.
Currency systems of foreign countries, 450-478.
Debt of the United States, see also Bonds, U. S.;
statistics of, 180, 203, 205, 225, 251, 367,
383; validity of, 207, 212; refunding acts,
210, 217, 235, 239.
"Debtor class," 215, 262, 295, 363.
Decimal system of money, Jefferson on, 36-37;
Congress on, 37; Hamilton on, 42.
Deficits, see Treasury, condition of.
Demand notes, 181, 185, 191.
Democrats (Jeffersonian), oppose Bank of U. S.,
77; favor it, 83, 85, 91-93; (Jacksonian)
oppose Bank of U. S., 108-119, 134, 151-
152, 411; favor subtreasury system, 133-
137, 154.
Weak policy on state bank-notes, 166, 176;
oppose greenbacks, 186; favor greenbacks,
210, 324; on public debt, 211, 214; against
national banks, 214-215, 308, 324, 413, 414;
oppose resumption act, 223, 228, 231; on
surplus, 243; on silver, 275, 278, 288, 293,
300, 303, 350; for free coinage, 362, 378;
favor state bank-notes, 345; on legal
tender, 255, 258, 264-265; coalesce with
Populists, 362, 377; important legislation
under Woodrow Wilson, 396–397.
Denominations of notes, 89, 94, 185, 191, 296, 376;
see also Small notes.
Deposit act, of 1836, 122, repealed, 151, of 1861,
Depository banks, 90, 122, 132; condition of, in
1836, 124, 133; Van Buren on, 133, 135-
136; national, 198, 310, 426; deposits in,
245, 336, 383.
Deposits, government, interest on, 318.
Depreciation, of currency, 8, 11, 12, 15, 16, 19, 71,
89, 90, 98, 102, 139, 191, 204, 227, 253.
Distribution of surplus, 123, 131, 132, 134.
Dollar, derivation of name, 32; adopted as unit,
33, 37; silver, demonetized, 271, remone-
tized, 282; gold as unit, confirmed, 376,
379, 498.
Double standard, see Bimetallism.
Ecuador, currency system of, 474.
Elasticity of currency, 316, 334, 348, 379.
Emergency currency law, 440.
England, currency system of, 450-453.
European war, see War of 1914.
Examination of banks, 142, 148, 322-323, 539-
Exchange, domestic, 98; Bank of U. S. and, 107,
120, 121, 175; cost of, 121, 139, 321;
volume of, 338; effect of Federal Reserve
system, 417-418.
Foreign, 130; par of sterling, 48, 61-62, 274;
during European war crisis of 1914, 437-
Exports and imports, merchandise, 130, 204, 226,
252, 368, 384; specie, 47, 53, 130, 204, 226,
252, 286; gold, 69, 70, 286, 305, 368, 384,
434; silver, 69, 70, 286, 305, 368, 384,
434.
Failures, 132, 157, 331, 341, 352, 370, 386, 436;
of national banks, 319, 328, 433.
Fairchild, Charles S., Secretary of Treasury, 245-
247; deposits in banks, 245; increases gold
reserve, 245, 300; on silver, 300.
Federal Advisory Council, creation and powers,
527.
Federal Reserve Act, passage of, 396-397, 437;
success of system established by, predicted,
447; needed amendments to be obtained
from Congress, 447; discussion of, 447-
449; text of, 511–544.
Federal Reserve Bank, 411-418, 511-544; put in
operation, 445.
Federal Reserve Banks, resources and liabilities
of, 446; powers of, 528-529.
Federal Reserve Board, provisions of Federal Re-
serve Act concerning, 523–529.
Fiat money, 17, 28, 30, 72, 73.
Fineness of coins, 36-37, 42, 44, 60; see also
Coinage laws.
Foreign coins, in use, 33; attempts to demonetize,
38, 42, 46; valuation and legal tender of,
46, 49, 60, 67; use of, abrogated, 66-67.
Foreign holdings of debt, estimates of, 140, 169,
208, 211, 448.
Fractional currency, 191, 194; retirement of, 222-
France, early obligations of United States to, 20-
21; on silver, 271, 277, 284, 290, 346-347;
currency system of, 457-458; financial
measures during war of 1914, 458-459.
Free banking, before Civil War, 143, 145, 157,
161; after the war, 219, 222, 317, 319, 321.
Free coinage of silver, propositions, 230, 235, 275,
279, 288, 302, 342, 344, 362, 378.
Funding of greenbacks into bonds, authorized,
185-186; abrogated, 195; of debt, see
Debt, Bonds.
Gage, Lyman J., Secretary of Treasury, 372-381;
advocates gold standard, 372; plan for
elastic currency, 379.
Gallatin, Albert, Secretary of Treasury, on change
of ratio, 55, 57; on Bank of U. S., 83, 84-
85, 107; state bank statistics, 103, 126;
appeals for sound money, 132.
Germany, on silver, 271, 285, 291; elastic bank-
note system of, 430; opposition in, to
making paper currency a government obli-
gation, 448; currency system of, 461-463;
currency measures in European war of
1914, 463–468.
Gold, valuation of, 35, 38, 61; production, 40, 52,
68, 69, 70, 286, 304, 368, 385, 434; scarcity
of, 47, 49, 191; proposition to prohibit
exports of, 51; coinage, 52, 69, 70, 286;
exports and imports, 53, 69, 70, 286, 305,
368, 384, 434; discoveries, 58, 59, 62;
premium on, 191, 197, 204, 208, 215, 227,
231, 253; speculation in, 197, attempt to
check, 197, "Black Friday," 216-217;
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