The evening times., 1900-03-08

NEW YORK March S.-If the Currency
bill becomes a law, it will require only
s., 600 actual cash TO start national
bank That country banks in the South
and West are preparing to change from
State TO national banks, when the Cur
rency bill becomes a law, is clear from
advices that have reached local bankers
in the past few days. Such banks would
not have so much difficulty in keeping
their circulation out as the large national
banks here might have. There are also
indications that the provision for allowing
the organization OF small national banks,
| with s25 600 capital will be taken advant-
age of by many persons.
1t was said by one local bank officer
yesterday that he thought there might be
as many as 1000 national bank charters
applied for under the new law. He point
ed out that a very small amount OF actual
capital might be made sufficient to start
a bank. to live or die as might happen.
With only So 600, he said, three men could
start a bank II they could arrange to bor-
row $25. 600, the money 10 be paid back in
the form of circulation that the bank
would issue.
Loaning money in this way would re-
quire no risk All one would have 10 do
would be to secure So 0G0 OF the new
per cent refunding bonds which could be
obtained at prevailing quotations for about
s26750. He would send these bonds. rep
resenting the capital OF the bank 10
Washington circulation for the fun amount
being Immediately taken out by them. The
amount which would have 10 be left with
the Treasury as a redemption fund would
be per cent or 81 $50 making the total
actual amount of cash supplied by the
banks organizer. tied up in the enterprise
but s2,750.
There has been talk that the larger To-
cal State banks were likely TO take out
national charters but the provision in the
State law that allows banks 10 establish
branches, is likely to act as a check upon
such change certainly in the case of
some OF the banks. The associated ma
tional banks Of this city have a combined
circulation OF SIS 574 300 while their total
capital is $57, ,O00. geo. II was the opinion
of several bank officers yesterday that
under the Currency law one-hal of the
local banks would ultimately increase their
circulation TO the full amount of their
capital.
How much the general expansion will be
has been the subject of much argument.
One of the best known bankers in the city
expressed the opinion that the increase
In the amount of circulation in the near
future would not amount to 100000, 900.
The process he thought. would be gradu-
ated. occupying all the spring and much of
the summer. and by that time, with the
demands of business and the needs Of the
interior for money to move the crops, all
the notes issued would find ready employ
ment
The money market has been sitter In
the past two days rejecting continued
drains upon local resources as the -esult
OF heavy payments Of customs and inter
nal revenue receipts into the Treasury and
the enlargement of the banks loans TO
country banks. Call money was quoted
on the New York Stock Exchange yester-
day at 10 IL per cent with z per cent
as the ruling rate Suggestions by bank
ing interests are understood to have been
made TO the Treasury Department lhat II
would be well for the Government to allow
internal revenue money 10 remain with
the banks designated as special deposito-
ries when the new law goes into effect