New-York tribune., 1908-06-13
nv CURRENCY RULES
,.,,lgou Explains Provisions Of
4ct IN Circular.

,o 1r-Secretary Corteiyou to-day
Nsshia.s'.- treasury Department circular carry
rsde p"'. g.. the new currency act approved May
s in'" .f,er quoting the act the Secretary calls
81 ISL - che fact that there are two methods OF
,eniion sor additional national bank currency un-
fpsns s,-orssions Banks occupying contiguous ter-
N rs anize currency associations. providing
<c-y T'As = 1eest ten banks in each association
ere s1e ., aggregate capital and surplus of at
ST rinlD'n onn while the individual banks must
sss sV,-aired capital and surplus OF not less
We >" = csrt Any member OF such an associa-
ssn ~ outstanding circulating notes OF not less
90 VIII VIZ cent Of its capital may obtain addi-
ssn y -l-,e,ins notes under Section OF the act.
snsi :, ,,o,ts Of the same standing as 10 capltal
NuoD,-s hut not members OF an association,
81 sur sur additional circulation under Section
= the act -..+;o,,.1 hanks entitled 70 take
70 olaI ol1e circulation may join currency asso-
g sau'.s a. secretary Of the Treasury reserves the
eshu9 "a m and include in the territory OF an
rE11 " a.,v contiguous territory containing ma
Es'osl, ,l,irh would otherwise he excluded
snA ,rh;ch are inconveniently located as TO
g" ..,--encv association. The names OF the
5ia'na -,ust be indicative Of the locality, and
may not style Itself First National
N----cy Assoclauoh' - -, .,,
Ihe - mon which they may file application.
s1S on ., association and otherwise take the
81 O-. s,ens 10 comply with the law. and prompt
ros'se- ~ dsapproval is promised by the Treas
= department -...,.- .,.,,,-.-,,- ,,-
p .tls Is included in the circular showing oE
re amount Of capital and surplus OF ma
81 ,-t,s entitled 10 membership in the currency
- l.,,,,on arranged by states and secuons- sec
's'Y r,o--e,vou says Il will he seen from this
ssD 49, ,be national banks within some Of the
<o--- f,x-- hen Sc
sA'ss s.soc;ations for lack Of aggregate capital
-n@ - 81 4be.l must he affiliated with banks
- ..,o,,s states for that purpose The Secre-
sr mi st this time allot any territory for the
~ - If associations other than as Indicated
~ ,-,-,Isr II is thought that the banks may
;, cor,e together OF their own volition ana
F..-xisers6 preferable that state lines he oh
= <s- as practicable, and that banks shonld
80 Cor admission to associations not oocu-
'.,r+ieuous territory The Secretary may as
Fns association any qualified national bank
-. s,s not take part in its formation.
.s,s,,,en1 circular will define the method TO
sm.rs5 IN obtaining additional circulation
- she national bank currency associations
- c--y1lar relating entirely TO their organiza-
- The individual banks Of the association. how
= 5ss,-ing 10 obtain additional circulation must
-, .hsi- applications 10 the officers Of the
.s.-o, and not 70 the Secretary OF the Treas
: go tbose of7oers will apply 70 the department
.-Hcsticns for additional circulation under Sec
=. br individual hanks. not members Of associa-
-, -,sv BE- addressed 10 the Controller of the
c--.,rv who VIII advise them as 10 the pro-
..5,-. One per cent per annum upon the average
--.hv amount ~ public deposits held VIII he
-ss nv depositary banks, 10 be computed from
lrs Il 1sN and 10 be payable July l the same
,.- sud thereafter on January and July an
,,E7 Interest will he paid on the entire amount
s.s M temporary OF special depositaries. and on
* snount held h. regular depositaries N excess
sH. amount needed for The transaction OF pubhc
A-r-sss Each bank will he advised by letter OF
a. ,nnur- ~ its exemption. Finally. the Secre-
,--ss-vss the right. upon notice, 10 increase the
stutsrest TO Re paid by depositaries.