The Washington times., 1908-06-12
Manner in Which Currency
Associations Shall Be
Formed Described.
STATE BOUNDARIES
TO BE FOLLOWED
Circular to Come Later Will Garry
Out Other Provisions of
AldTiCh-Vreeland Law.

The Secretary Of the Treasury today
Issued a circular TO national banks COW
ering regulations for obtaining add
tOnal circulation and the formation of
national currency associations.
After quoting the emergency currency
Law in full the circular says.
There are two methods or applying
for additional national bank currency
under the provisions OF the above act:
National banks occupying contigu-
Gus territory may organize "a national
currency association. There must be at
, least ten national banks IN each ma
! ttonal currency association, and the ag-
gregate capital and surplus of such ma
tlonal banks must he at least 5000, COO
No national bank may join a national
currency association unless Il has an
unimpaired capital and q surplus of not
less than 20 per cent. After the forma-
ton Of an association any national bank
belonging thereto, whose outstanding
circulating notes actually issued amount
e not less than 20 per cent OF its CAPT
tai may obtain additional circulating
Noes IN the manner provided IN Section
l OF the above act.
Notes Issued Against Securities.
''2-NationaI banks possessing the
same qualifications as TO unimpaired
capital and surplus required OF banks
joining a national currency association,
and whose circulating notes outstanding
ard actually issued are equal 10 40 per
cent of its capital stock. may obtain
additional circulating notes based upon
the securities prescribed In said Sec
ton s, and in the manner indicated
therein.
IN pursuance Of the requirements OF
the above act the following regula-
tons are hereby established.
1.-THE national banks located in any
city in the United States containing ten
or more such banks, having an aggTe-
gate unimpaired capital and surplus OF
not less than $1,000, 900. may form a ma
tiOnal currency association. Ten or more
national banks possessing an aggregate
Unimpatred capital and surplus of not
less than 5000 600 may form a national
currency association of the banks lOcat-
60 within any contiguous territory out
s. 1e of cities
VIII Care for Isolated Banks.
But, in order that all national banks
IN the United States possessing the quail
ifications Of unimpaired capital and 20
Ter cent surplus prescribed in the act
may. If they desire. be included within
the membership Of some national cur
rency association. the Secretary hereby
expressly reserves the right to add 10,
and include in. the terrOtory Of any ma
tional currency association. formed in
accordance with the provisiCas OF the
act, any contiguous territory contain
ing national banks. which, but for such
inclusion would be excluded from, or
inconveniently located as 70, a national
currency association.
National banks within some of the
states are not eligible 10 form by them
selves national currency associations,
the aggregate capital and surplus being
insufficient for the formation Of such
association. The national banks in these
States must affiliate with national banks
in contiguous States in order to effect
the formation Of an association.
State Lines Preferable.
''The Secretary will not at this time
aIlot any territory for the formation
Of national currency associations other
than as Is herein indicated. II IS pre-
ferable that State lines be observed as
far as practicable, each national bank
desiring to become a member of a
national currency association should be
affiliated with national banks in its
neighborhood-
National banks not taking part in
the formation Of a national currency
association, but possessing the qualih-
cations OF membership, may apply 10
the f9ScL vleIE o- the treasury Tor au-
mission TO some association, and upon
his approval they may be admitted TO
membership in a national currency as
ISOLATION for their city or territory
THE foregoing relates only 10 the
formation of national currency asso-
Citations. The method to be followed
IN obtaining additional circulation
through the national currency associa-
tiOns will be made the subject of a
separate circular to be issued later.
''The rate Of interest TO be paid bv
depository banks is hereby fixed at /
per cent per annum upon the average
monthly amount of public deposits held.
to be computed from June 10, 1908. and
to be payable July /. 1905. and there
after on January and July !, Of each
year"