ng measure. It is as follows:

SEC. 5. From and after the 1st day of July, 1881, the 3 per
cent bonds authorized by the first section of this act shall
be the only bonds receivable as security for national-bank
circulation or as security for the safe-keeping and prompt
payment of the public money deposited with such banks; but
when any such bonds deposited for the purposes aforesaid shall
be designated for purchase or redemption by the Secretary
of the Treasury, the banking association depositing the same
shall have the right to substitute other issues of the bonds
of the United States in lieu thereof: _Provided_, That no bond
upon which interest has ceased shall be accepted or shall be
continued on deposit as security for circulation or for
the safe-keeping of the public money; and in case bonds so
deposited shall not be withdrawn, as provided by law, within
thirty days after the interest has ceased thereon, the banking
association depositing the same shall be subject to the
liabilities and proceedings on the part of the Comptroller
provided for in section 5234 of the Revised Statutes of the
United States: _And provided further_, That section 4 of the
act of June 20, 1874, entitled "An act fixing the amount of
United States notes, providing for a redistribution of the
national-bank currency, and for other purposes," be, and the
same is hereby, repealed, and sections 5159 and 5160 of the
Revised Statutes of the United States be, and the same are
hereby, reenacted.

Under this section it is obvious that no additional banks will
hereafter be organized, except possibly in a few cities or localities
where the prevailing rates of interest in ordinary business are
extremely low. No new banks can be organized and no increase of the
capital of existing banks can be obtained except by the purchase and
deposit of 3 per cent bonds. No other bonds of the United States can
be used for the purpose. The one thousand millions of other bonds
recently issued by the United States, and bearing a higher rate of
interest than 3 per cent, and therefore a better security for the bill
holder, can not after the 1st of July next be received as security
for bank circulation. This is a radical change in the banking law. It
takes from the banks the right they have heretofore had under the law
to purchase and deposit as security for their circulation any of the
bonds issued by the United States,