War of the Rebellion: Serial 127 Page 0328 CORRESPONDENCE, etc.

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AN ACT to authorize a loan and the issue of Treasury notes, and to prescribe the punishment for forging the same, and for forging certificates of stock and bonds.

The Congress of the Confederate States of America do enact, That the Secretary of the Treasury may, with the assent of the President of the Confederate States, issue $50,000,000 in bonds, payable at the expiration of twenty years from their date, and bearing a rate of interest not exceeding 8 per cent. per annum until they become payable, the said interest to be paid semi-annually. The said bonds, after public advertisement in three newspapers within the Confederate States for six weeks, to be sold for specie, military stores, or for the proceeds of sales of raw produce or manufactured articles, to be paid in the form of specie or with foreign bills of exchange, in such manner and under such regulations as may be prescribed by the Secretary of the Treasury, with the assent of the President. But it shall be the duty of the Secretary of the Treasury to report, at its next ensuing session, to the Congress of the Confederate States, a precise statement of this transformations under this law. Nor shall the said bonds be issued in fractional parts of the hundred, or be exchanged by the said Secretary for Treasury notes, or the notes of any bank, corporation, or individual, but only in the manner herein prescribed: Provided, That nothing herein contained shall be so construed as to prevent the Secretary of the Treasury from receiving foreign bills of exchange in payment of these bonds.

SEC. 2. And the it further enacted, That in lieu of bonds, to an amount not exceeding $20,000,000, the Secretary of the Treasury, with the assent of the President, may issue Treasury notes to the same amount, without interest, and in denominations of not less than $5; the said notes to be receivable in payment of all debts or taxes due to the Confederate States except the export duty on cotton, or in exchange for the bonds herein authorized to be issued. The said notes shall be payable at the end of two years from the date of their issue in specie. The holders of the said notes may at any time demand in exchange for them bonds of the Confederate States, payable at the end of ten years, and bearing an interest of 8 per centum per annum, to be paid semi-annually. The Secretary of the Treasury is hereby authorized to issue the said bonds, but not in fractional parts of a hundred. But if, after the expiration of two years, when the Treasury notes shall be due, the Secretary of the Treasury shall advertise that he will pay the same, then the privilege of funding shall cease after six months from the date of the advertisement, unless there shall be a failure to pay the same on their presentation.

SEC. 3. And be it further enacted, That in lieu of the notes authorized by this act, which may be redeemed, other notes may be issued within the period of ten years as aforesaid: Provided, however, That the amount of such notes outstanding, together with the stock in which the said Treasury notes may have been funded under the provisions of this act, shall not exceed the sum of $20,000,000. But the Secretary of the Treasury may, upon application of the holder of a bond thus funded, redeem it by giving in exchange Treasury notes issued under the provisions of this act to such extent as that the entire amount of notes then issued, together with the amount of the bonds in which they may have been funded, shall not exceed $20,000,000.

SEC. 4. And be it further enacted, That the faith of the Confederate States is hereby pledged to provide and establish sufficient revenues for the regular payment of the interest and for the redemption of the said stock and Treasury notes. And the principal sum