New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-04-25
TREASURY DEPARTMENT, OFFICE or
CONTROLLER OF THE CURRENCY,


Numerous inquiries having been received at this office
as TO what may constitute the lawful money reserve re
qured by sections 81 and 80 OF the National Currency act
and 1t appearing that there is misunderstanding on
the subject the following circular Is published Tor the In
formation and guidance OF the National banks:
l. Reserve Of Banks LOcded IN The cities Named in The
AcNaonal banks located In the cities named In sec
ton 81 OF the National Currency Act approved June 3.
1864 required by law 10 keep reserve rs per cent
OF the aggregate amount Of their deposits and oustnnd
ing circulation, National and State, twOffths OF which
25 per cent must consist OF Lawful money OF the United
States That is twofths OF rs per cent OF the out
notes or specie and twonhs OF per OF the ag
gregate amount OF deposits may consist OF Compound
as the banks NAV prefer The whole Of this two OF
per cent must be kept on hand In the vaults OF the
banks The remaining three tfths OF % per cent may
be constituted as follows: one nan the reserve OF 70
per cent may be In actual cash balances due from any
National Banking Association IN NewYork CITY, selected
with the approval OF the Controller Of the Currency and
the difference between this one-ha and the tw0-hs IN
the vaults Of the bank that Is Onetenh OF the whole 70
serve may consist Of three per certificates the
whole OF the hreefths Of % per cent may consist OF
or OF Clearing House Certificates payable In lawful
money OF any combination Of these or II the bank has
sufficient OF any all 0f the above items 20 make the
required for ITS outstanding crcuaon all or any
part OF the threehs OF Is per cent required for us de-
posts may consist OF compound interest notes which, ny
the terms Of the law authorizing their issue Act APP
proved June 80 1891 are not legal tender In redemp
ton OF any issued by banking association cal
culaed or intended TO circulate money But no part OF
the twOhs Of 25 per cent required TO be Kept on hand
certificates because the law authorizing their issue
and reserve hct approved March ls6O express
lawful money that is OF United States legal tender notes
or Bpece The banks Of the City OF New York must Keep
on hand the whole OF the rs per cent OF the aggregate
amount OF their circulation and deposits required for
serve twofths OF which Is cent must consist OF law
iul money us above The remaining treefths may con-
sst for deposits OF compound interest or egatender
notes and specie, OF per cent certificates, OF Clearing
House certificates payable In legalteuders or OF any
combination OF these that may be preferred and Tor cir
culation. OF any all Of the above items except com
pound interest notes which, ms heretofore stated are not
legal fender for the redemption OF circulating notes
H. Resere Of Banks located outside Of The cities 1ed IN
The AcNationa banks located In places other than the
cities named section 81 OF the National Currency act
approved June 1861 required 10 keep reserve or
Is per cent Of the aggregate amount Of their deposits ana
outstanding circulation, National aud state TwoIts
OF this per cent must consist Of lawful money OF the
United States and be kept hand In the vaults OF
the bank that Is twofths Of Is per cent OF the ont
standing circulation must consist Of plain legatender
notes and specie on hand compound interest notes by
the terms OF the law under which they issued TACT
approved June 80 1864, not being legal tender Tor The
payment or redemption OF any notes issued by any Dank'
ing ASSOCIATION intended calculated To circulate as
money. The reminder OF the required 10 De
kept hand twots OF IS per cent OF the aggregate
amount OF depOssl may consist OF compound interest
notes, or plain egaltenders and specie. or both,
as the banks may prefer; but no part OF the
reserve required to be kept OH hand can consist OF
three per cent certificates, because the law authorizing
their Issue and use as reserve act approved Mareh q