United States Statutes at Large/Volume 4/18th Congress/2nd Session/Chapter 100

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March 3, 1825.
[Obsolete.]
Chap. C.—An Act authorizing the Secretary of the Treasury to borrow a sum not exceeding twelve millions of dollars, or to exchange a stock of four and one half per cent. for a certain stock bearing an interest of six per cent.

The president authorized to borrow a sum not exceeding twelve millions of dollars.Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the President of the United States be, and he is hereby, authorized to borrow, on or before the first day of January next, on the credit of the United States, a sum not exceeding twelve millions of dollars, at a rate of interest payable quarterly, not exceeding four and one half per centum per annum, six millions whereof reimbursable at the pleasure of the government, at any time after the thirty-first day of December, in the year on thousand eight hundred and twenty-eight; and six millions at any time after the thirty-first day of December, in the year eighteen hundred and twenty-nine, to be applied, in addition to the moneys which may be in the treasury at the time of borrowing the same, to pay off and discharge such part of the six per cent. stock of the United States, of the year one thousand eight hundred and thirteen, as may be redeemable after the first day of January next.

The Bank of the United States to lend said sum or any part thereof.Sec. 2. And be it further enacted, That it shall be lawful for the Bank of the United States to lend the said sum, or any part thereof; and it is hereby further declared, that it shall be deemed a good execution of the said power to borrow, for the Secretary of the Treasury, with the approbation of the President of the United States, to cause to be constituted certificates of stock, signed by the register of the treasury, or by a commissioner of loans, for the whole or any part thereof, bearing an interest not exceeding four and one half per centum per annum, transferable and reimbursable as aforesaid, and to cause the said certificates to be sold: Provided, That no stock be sold under par.

A subscription to the amount of twelve millions of dollars of the six per cent. stock of 1813, proposed.Sec. 3. And be it further enacted, That a subscription to the amount of twelve millions of dollars, of the six per cent. stock of the year eighteen hundred and thirteen, be, and the same is hereby, proposed; for which purpose books shall be opened at the treasury of the United States, and at the several loan offices, on the first day of April next, to continue open until the first day of October thereafter, for such parts of the above mentioned description of stock as shall, on the day of subscription, stand on the books of the treasury, and on those of the several loan offices, respectively; which subscription shall be effected by a transfer to the United States, in the manner provided by law for such transfers, of the credit or credits standing on the said books, and by a surrender of the certificates of the stock so subscribed:Proviso. Provided, That all subscription by such transfer of stock shall be considered as part of the said twelve millions of dollars authorized to be borrowed by the first section of this act.

Credits to be entered to the respective subscribers.Sec. 4. And be it further enacted, That, for the whole or any part of any sum which shall be thus subscribed, credits shall be entered to the respective subscribers, who shall be entitled to a certificate or certificates purporting that the United States owe to the holder or holders thereof, his, her, or their assigns, a sum to be expressed therein, equal to the amount of the principal stock thus subscribed, bearing an interest not exceeding four and one half per centum per annum, payable quarterly, from the thirty-first day of December, one thousand eight hundred and twenty-five; transferable in the same manner as is provided by law for the transfer of the stock subscribed, and subject to redemption at the pleasure of the United States, as follows: one half at any time after the thirty-first day of December, one thousand eight hundred and twenty-eight; and the remainder at any time after the thirty-first day of December, one thousand eight hundred and twenty-nine:Proviso. Provided, That no reimbursement shall be made except for the whole amount of such new certificate; nor until after at least six months’ public notice of such intended reimbursement. And it shall be the duty of the Secretary of the Treasury to cause to be re-transferred to the respective subscribers the several sums by them subscribed beyond the amount of the certificates of four and one half per cent. stock issued to them respectively.

Funds heretofore pledged by law for the payment of the interest, &c. still remain pledged.Sec. 5. And be it further enacted, That the same funds which have heretofore been, and now are, pledged by law for the payment of the interest, and for the redemption and reimbursement of the stock which may be redeemed or reimbursed by virtue of the provisions of this act, shall remain pledged in like manner for the payment of the interest accruing on the stock created by reason of such subscription, and for the redemption or reimbursement of the principal of the same. And it shall be the duty of the commissioners of the sinking fund to cause to be applied and paid, out of the said fund, yearly and every year, such sum and sums as may be annually required to discharge the interest accruing on the stock which may be created by virtue of this act. The said commissioners are, also, hereby authorized to apply, from time to time, such sum and sums out of the said fund, as they may think proper, towards redeeming, by purchase, or by reimbursement, in conformity with the provisions of this act, the principal of the said stock; and such part of the annual sum of ten millions of dollars, vested by law in the said commissioners, as may be necessary and required for the above purposes, shall be and continue appropriated to the payment of interest and redemption of the public debt, until the whole of the stock which may be created under the provisions of this act, shall have been redeemed or reimbursed.

Nothing in this act to impair the right of certain creditors of the United States.Sec. 6. And be it further enacted, That nothing in this act shall be construed in any wise to alter, abridge, or impair the right of those creditors of the United States, who shall not subscribe to the loan to be opened by virtue of this act.

Approved, March 3, 1825.