The Montgomery advertiser., 1908-06-13
CorteIyou Issues Statement.

Washington, June 12.--Secretary Cor. telyou today made public a Treasury Department circular. carrying into ef- feet the new currency act approved May 80, last.
 After quoting the act. the Secretary calls attention to the fact that there are two meth ods of applying for addi- tional national bank currency under It's provisions. Banks occupying contigu- ous territory may organize currency associations providing there are at least ten banks in each association with minimum aggregate capital and sur plus of 1at least e5 ,000,0O while the individual banks must have an unim- paired capital and surplus of not less than 20 per cent. Any member of such an association with outstanding circu- lating notes of not less than 90 per cent of it's capital may obtain addi- tional circulating notes under Section 1 of that act.
 National banks of the same standing as to capital and surplus, but not members of an association, may obtain additional circulation under Section 3 of the act. The names of the associa . tions must be indicative of the locality and an association may not style itself First National Currency Association .' A table is included in the circular showing by States the amount of capi. tai and surplus of national banks en- titled to membership in the currency association, arranged by States and sections.
 Secretary corteiyou says 1t will be seen from this table that the national banks within some States are not eligi- ble to form by themselves currency as- sociations for lack of aggregate capi- tai and surplus. 50 they must be affilt- ated with banks in contiguous 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. It is thought that the banks may prefer to come together of their own voiition, 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 contiguous territory.
 The Secretary may assign to an as- sociation any qualified national bank which did not take part in its forma- tion. A subsequent circular will de- fine the meth ods to be followed in ob- taining circulation through the national bank currency association as individual banks of the association, however. de- string to ob tain additional circulation must submit their applications to the officers of the association and not to the Secretary of the Treasury.
 Applications for additional circula- tion under Section by individual banks, not members Of associations. may be adressed to the Comptroller of the Currency. who will advise them as to the procedure.
 One per cent per annum upon the average monthly amount of public de- posits held will be paid by depository banks to be computed from June IS. 1908, and to be payable July l. the same year. and thereafter on Jan. II and July Il. annually. Interest will be paid on the entire amount held by temporary or special Repositories and on the amount held by regular deposi- tories in excess of the amount needed for the transaction of public business. Each bank will be advised by letter of the amount of it's exemption.
 Finally. the Secretary reserves the right upon notice. to increase the rate of interest to be paid by Repositories.