Waterbury evening Democrat., 1908-06-12
THE CURRENCY LAW
Secretary C0rteIy0u Issues a Circular Calling Attention
 to the Measure.

Washington, June 12.-Secretary Corteiyou to-day made public a
 treasury department circular carry
 ing into effect the new currency act
 approved May 30 last. The secre-
 tary points out that there are two
 methods of applying for additional national bank currency under the act. Banks in contiguous territory may organize currency associations providing there are at least ID
 banks in each association Wflh
 minimum aggregate capital and sur plus of at least $5,000,000 while the individual banks must have an un- impaired capital and surplus Of not less than 20 per cent. Any mem- Der of such an association without outstanding circulating notes of not less than 40 per cent of its capital may obtain additional circulating notes under section one of the act. National banks of the same standing as to capital and surplus but not members of an association may ob- tain additional circulation under section three of the act. The secre- tary of the treasury reserves the right to add to and include in the territory of a currency association any contiguous territory containing national banks which would Other- wise be excluded from or inconven- iently located as to a national cur rency association. The treasury de- partment will furnish application blanks for joining an association and the prompt approval or disap- proval is promised by, the treasury department.
 A table shows by states the amount of capital and surplus of national banks entitled to member ship in the Currency association ar ranged by states and sections.
 Secretary Cortelyou says 1t will be seen from this table that the na- tional banks within some of the S ates are not eligible to form by themselves currency associations for lack of aggregate capital and sur plus so they must be affiliated 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. The secretary may assign to an associa- tion any qualified national bank which did not take part in its form ation. A subsequent circular will define the method to be followed in obtaining additional circulation through the national bank currency associations. to-day's circular relat- ing entirely to their organization. The individual banks of the associa- tion, however, must submit their applications for additional circula- tion to the officers of the association and not to the secretary of the treasury, and those officers will ap- ply to the department.
 The applications for additional circulation under section by indi- vidual banks not members of asso- citations may be addressed to the comptroller of the currency who will advise them as to the proceed ure. One per cent per annum upon the average monthly amount of public deposits held will he paid by depositary banks. to be com puted from June IS. 1908. and to be payable July l the same year and thereafter on January 1, and July 1 annually. Interest will he paid on the entire amount held by temporary or special depositaries, and on the amount held by regular in excess of the amount needed for the transaction of pub lie business. Each bank will be ad- vised by letter of the amount of its Finally the secretary reserves the right upon notice to in- crease the rates of interest to be paid by depositaries.