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[Senate, No. 21.]

SENATE, May 13, 1864. — Read first and second times, and ordered to be placed upon the calendar and printed.

May 16, 1864 — Considered, amended and ordered to be printed.

[Mr. Barnwell, from the Committee on Finance.]

A^ BILL

To amend an Act entitled "an Act to reduce the Currency, and to- authorize a new issue of notes and bonds ;" approved 17th Feb. 1864.

1 The Congress of the Confederate States of Jimerica do

2 enact, That the amount of Treasury notes which shall be is-

3 sued under the provisions of the act of which this is an

4 amendment, shall not exceed one dollar of new issue for three

5 dollars of the old, which may have been paid into the Treas-

6 ury under the provisions of the said act: Provided, That,

7 this limitation shall not be construed to restrict the authority

8 of the Secretary to issue new notes in exchange for old notes

9 held by individuals, at the rate of two dollars of the new

10 issue for three dollars of the old issue, as provided in the said

11 act. Provided further, That the Secretary of the Treasury

12 is hereby directed, on the first day of January, 1865, or as.

13 soon thereafter as practicable, to reduce the amount of Treas-

14 ury notes in circulation to two hundred million dollars ; and

15 when the circulation of said notes shall be thus reduced, the

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16 faith of the Governmeut is hereby pledged that the same

17 shall not be increased.

1 Sec. 2. Instead of the six per cent, bonds, authorized to be

2 issued to the States, under the 12th section of the said act. the

3 Secretary of the Treasury is authorized to issue to any State

4 which n;ay desire the same, one-half of sucli amount as the

5 said State is entitled to claim iu Treasury notes of the new

6 issue, and the other half in said' six per cent, lionds; or. at the

7 option of the State, in coupon bonds, payable iu t^vetlty years,

8 with interest at the rate of four per cent, per annum, payable

9 half yearly ; the said four per cent, bonds not to be taxable

10 either upon principal or interest ; and this provision shall ex-

11 tend to any portion of the amount which such State may be

12 entitled to claim.

1 Sec. 3. The Secretary of the Treasury is, also, authorized

2 to issue to any person holding old issues of Treasury notes

3 entitled to be exchanged for new issues, untaxable four per

4 cent, bonds of the same character described in the section

5 next preceding ; and the exchange shall be made at the same

6 rate at which the old notes may be exchanged for those of

7 the new issue — that is to "say : the holder of Treasury notes

8 of the old issue shall be entitled to a four per cent, bond

9 exempt from taxation, at the rate of two dollars of bonds for

10 three dollars of notes: Provided, That on and after the first

11 day of January, 1865, the authority to make the exchanges

12 mentioned in this section shall cease and determine.

1 Sec. 4. Any holder of four per cent, bonds or certificates,

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2 issued under the first section of the Act of which this is an

t.

3 amendment, may exchange his bond or certificate for a four

4 per cent, untaxable bond, such as is described in the section

5 next preceding, at the same rate provided therein as to old

6 issues— that is to say : at the rate of two dollars of untaxable

7 bonds for three dollars of bonds or certificates issued under

8 said first section.

1 Sec. 5. The bonds and certificates, mentioned in the second

2 section of the Act to which this is an amendment, shall be

3 receivable in payment of all Government dues which shall 4- have accrued prior to the first day of January, 1865, except

5 export and import duties; and for purposes of payment

6 herein authorized, shall be transferable by delivery.

1 Sec. 6. The bonds authorized by this Act, shall be in sugh

2 form, and shall have such authentication as may be directed

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3 by regulations of the Secretary of the Treasury.

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