The Plymouth tribune. (Plymouth, Ind.) 1901-1911, 1908-06-18
NEW RULES
FOR BANKS
TREASURY DEPARTMENT
TELLS HOW EMERGEN-
CY LAW WILL BE PUT
INTO EFFECT-FOR-
NATION OF ASSO-
CATIONS.

Secretary Cortelyou has made
public a Treasury Department
circular, carrying INTO effect the
new currency act approved May
80 last.
After quoting the act the Secre-
tary calls attention to the tact
that there are two methods of APP
plying for additional national
bank currency under its provi-
sions. Banks occupying contigu-
Gus territory may organize cur
rency associations, provided there
are DIT least ten banks in each as
sociation with minimum aggre-
gate capital and surplus of at
least $4,000, 900, while the lndivid-
ual banks must havesan unim,
paired capital and surplus of not
less than 20 per cent. Any mem-
ber OF such an association with
outstanding circulating notes of
not less than 40 per cent. of its
capital may obtain additional cir
culating notes under Secuon l OF
the act.
National banks of the same
standing as to capital and surplus,
but not members of an associa-
ton, may obtain additional circu-.
lation under Section g of the act.
In order that all national banks
entitled to take out additional cir
culation may join currency associ-
ations, the Secretary of the Treas
ury reserves the right to add to
and include in the territory of an
association any contiguous terri
tory containing national banks
which would otherwise be exclud-
ed from or, is inconveniently To-
catsl as to national currency as
sociation. The names OF the as
sociation must be indicative of
the locality and an association
may not style itself first national
currency association"
The Treasury Department will
furnish blanks to bank officers,
on which they may file apphca-
tion for joining an association and
otherwise take the necessary
steps to comply with the law, and
prompt approval or disapproval
is promised by the Treasury De-
partment.
A table is included in the cir
cular showing by States the
amount of capital and surplus of
national banks entitled to men,
bership in the currency associa-
ton arranged by States and sec
tions. Secretary Cortelyou says
it will be seen from this table
that the national banks within
some of the States are not eligible
to form by themselves currency
associations for lack of aggregate
capital and surplus, SO they must
be affiliated with banks in con-
tiguous States for that purpose.
The Secretary will not at this
time allot any territory for the
formation of associations other
than as indicated in his circular.
1t is thought that the banks may
prefer to come together of their
own violition and it is preferable
that State lines be observed as far
as practicable and that banks
should not apply for admission to
associations not occupying con-
tiguous territory. The Secretary
may assign to an association any
qualified national bank which did
not take part in its formation.
A subsequent circular will de-
fire the method to be followed in
obtaining circulation through the
national bank currency assotia-
ton.
The individual banks of The as
sociation, however, desiring to
obtain additional circulation must
submit their applications to the
officers of the association and not
to the Secretary of the Treasury
and those officers will apply to
the department.
Applications for additional cir
culation under Section 3 by indi-
vidual banks not members of as
sociations, may be addressed to
the Controller of the Currency,
who will advise them as to the
procedure.
One per cent. per annum on the
average monthly amount of pub
lie deposits held will be paid by
depository banks, to be computed
from June Is, 1908, and to be pay
able July l the same year. and
thereafter on January / and July
| annually. Interest will be paid
on the entire amount held by tenn
porary or special repositories, and
on the amount held by regular de-
positories in excess of the amount
needed for the transaction of pub
lie business. Each bank will be
advised by letter of the amount
of its exemption. Finally, the
Secretary reserves the rate of in
terest to be paid by repositories
Notre Dame Students to Gather