THE SUB-TREASURY PLAN. 337 



" SEC. 3. That the Secretary of the Treasury shall cause to be prepared treasury 

 notes, in such amounts as may be required for the purpose of the above section, and 

 in such form and denominations as he may prescribe, provided that no note shall be 

 of a denomination of less than $1, or more than $1000. 



" SEC. 4. That the treasury notes issued under this act shall be receivable for 

 customs, and shall be a full legal tender for all debts, both public and private, and 

 such notes when held by any national banking association shall be counted as part 

 of its lawful reserve. 



"SEC. 5. It shall be the duty of the manager of a sub-treasury when cotton, 

 grain, or tobacco is received by him on deposit, as above provided, to give a ware- 

 house receipt, showing the amount and grade or quality of such cotton, tobacco, or 

 grain, and its value at date of deposit; the amount of treasury notes the sub-treasury 

 has advanced on the product; that the interest on the money so advanced is at the 

 rate of one per centum per annum; expressly stating the amount of insurance, weigh- 

 ing, classing, warehousing, and other charges that will run against such deposit of 

 cotton, grain, or tobacco. All such warehouse receipts shall be negotiable by 

 indorsement. 



" SEC. 6. That the cotton, grain, or tobacco deposited in the sub-treasury under 

 the provisions of this act may be redeemed by the holder of the warehouse receipt 

 herein provided for, either at the sub-treasury in which the product is deposited, or 

 at any other sub-treasury, by the surrender of such warehouse receipt and the pay- 

 ment in lawful money of the United States of the same amount originally advanced 

 by the sub-treasury against the product, and such further amount as may be neces- 

 sary to discharge all interest that may have accrued against the advance of money 

 made on the deposit of produce, and all insurance, warehouse, and other charges 

 that attach to the product for warehousing and handling. All lawful money received 

 at the sub-treasury as a return of the actual amount of money advanced by the gov- 

 ernment against farm products as above specified shall be returned, with a full report 

 of the transaction, to the Secretary of the Treasury, who shall make record of the 

 transaction and cancel and destroy the money so returned. A sub-treasury that 

 receives a warehouse receipt as above provided, together with the return of the 

 proper amount of lawful money and all charges as herein provided, when the product 

 for which it is given is stored in some other sub-treasury, shall give an order on such 

 other sub-treasury for the delivery of the cotton, grain, or tobacco, as the case may 

 be, and the Secretary of the Treasury shall provide for the adjustment between sub- 

 treasuries of all charges. 



" SEC. 7. The Secretary of the Treasury shall prescribe such rules and regulations 

 as are necessary for governing the details of the management of the sub-treasuries, 

 fixing the salary, bond, and responsibility of each of the managers of sub-treasuries 

 (provided that the salary of any manager of a sub-treasury shall not exceed the sum 

 of $1500 per annum), holding the managers of sub-treasuries personally responsible 

 on their bonds for weights and classifications of all produce, providing for the rejec- 

 tion of unmerchantable grades of cotton, grain, or tobacco, or for such as may be in 

 bad condition; and shall provide rules for the sale at public auction of all cotton, 

 corn, oats, wheat, or tobacco that has been placed on deposit for a longer period 

 than twelve months, after due notice published. The proceeds of the sale of such 

 product shall be applied, first, to the reimbursement to the sub-treasury of the 

 amount originally advanced, together with all charges; and, second, the balance shall 

 be held on deposit for the benefit of the holder of the warehouse receipt, who shall 



