Circulating Notes. Section 20
Title
Circulating Notes. Section 20
Creator
Strong, Benjamin, 1872-1928
Identifier
WWP18411
Date
No date
Description
A first revision on the use of circulating notes issued by the Bank which can be used for payment of taxes and debt.
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
FIRST REVISE.
CIRCULATING NOTES.
Sec. 20.
The Bank may issue its circulating notes, which shall be receivable at par in all parts of the United States in payment of all taxes and excises and all other dues to the United States and also for all salaries and other debts and demands owing by the United States to indviduals, corporations and associations within the United States and its possessions except interest on the public debt. Such notes shall be a first lien on all of the assets of the Bank and payable in full from such assets before any other oblligations of the Bank and shall be redeemable on demand at any office of the Bank in lawful money of the United States and when so redeemed may be reissued. and when so redeemed may be reissued. As long as any such notes are outstanding the Bank shall segregate in its own vaults and carry in a special reserve account on its books Gold Coin, Gold Bullion on U.S. Gold Certificates lawful money of the United States to the extent amount of the par face value of the notes from time to time so outstanding or, at its option, shall so segregate such lawful money to the extent amount of 50% of such par face value. and collaterals, consisting of promissory notes and bills accepted for rediscount under the provisions of Sec. of this Act, or one year exchequer notes of the United States, hereinafter provided for, or both such collaterals and one year exchequer notes, equal at par their face to 100% of such par the face value of the notes from time to time so outstanding. Such reserve shall be used for the redemption of such notes as and when presented for payment and collateral may be exchanged from time to time for other lawful money or collaterals or one year exchequer notes within the limitations aforesaid and of equal par value.
CIRCULATING NOTES.
Sec. 20.
The Bank may issue its circulating notes, which shall be receivable at par in all parts of the United States in payment of all taxes and excises and all other dues to the United States and also for all salaries and other debts and demands owing by the United States to indviduals, corporations and associations within the United States and its possessions except interest on the public debt. Such notes shall be a first lien on all of the assets of the Bank and payable in full from such assets before any other oblligations of the Bank and shall be redeemable on demand at any office of the Bank in lawful money of the United States and when so redeemed may be reissued. and when so redeemed may be reissued. As long as any such notes are outstanding the Bank shall segregate in its own vaults and carry in a special reserve account on its books Gold Coin, Gold Bullion on U.S. Gold Certificates lawful money of the United States to the extent amount of the par face value of the notes from time to time so outstanding or, at its option, shall so segregate such lawful money to the extent amount of 50% of such par face value. and collaterals, consisting of promissory notes and bills accepted for rediscount under the provisions of Sec. of this Act, or one year exchequer notes of the United States, hereinafter provided for, or both such collaterals and one year exchequer notes, equal at par their face to 100% of such par the face value of the notes from time to time so outstanding. Such reserve shall be used for the redemption of such notes as and when presented for payment and collateral may be exchanged from time to time for other lawful money or collaterals or one year exchequer notes within the limitations aforesaid and of equal par value.
Original Format
Miscellaneous
Files
Collection
Citation
Strong, Benjamin, 1872-1928, “Circulating Notes. Section 20,” No date, WWP18411, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.