Reporter and farmer. [volume] (Webster, Day County, Dakota [S.D.]) 188?-1946, 1910-08-18
$5OO,OOO,OOO For an Emergency

passed on May 30tb, 1908. 1t provided
that the comptroller of the currency
who has government supervision of all
the national banks-should cause to be
printed and kept on hand, at all times.
so per cent of the combined capital
stock of all the national banks in exist
ence. There were at that time 1000
national banks in the United States,
including the territories of Alaska,
Hawaii, Porto Rico, and, of course,
Arizona and New Mexico. These banks
had combined capital stock of more
than $3.50, 900, 900, which made it neces-
sary to increase the amount of national
bank notes kept by the comptroller of
the currency by about $500, 900, COG over
and above the $500, OO0,0 900, which had
to be kept prior to the enactment of
this bill for the current use of the
national banks.
The preparation and storing of this
vast amount of money meant tremen-
dous undertaking. The bill became
effective Immediately upon its passage.
1t provided that in case of emergency
other securities than United States
bonds may be accepted by the govern
ment to secure additional circulation.
This necessitated changing the legend
on about 1900 plates (many banks
having two and three plates each). 1t
was made to read as follows: 'This
note is secured by United States gov
eminent bonds or other securities, +"
instead of, "This note is secured by
United States government bonds depos-
tied with the treasurer of the United
States. " Immediately after the pas
sage of the bill, the director of the
bureau of engraving and printing put
his force of engravers to work chang
ing these plates, and at the same time
the chief of the issue division of the
office of the comptroller of the currency
began ordering currency of the new
design to the amount of so per cent of
the capital stock of the banks as fast
as their plates were changed. This pro-
cedure was kept up until all the plates
had been changed and the proper
amount of new currency ordered for all
the banks. Prior to this act. currency
to the amount of only about 20 per cent
of the combined capital stock of all the
national banks had been kept on hand.
This amount is still kept, in addition to
the so per cent reserve, and is desig-
mated as current, or working stock, 1t
is used to replace the national bank
notes as they become old and unfit for
use; also to supply the demand for addi-
tional United States bond secured cir
culation.
With one exception, national bank
currency is printed in sheets containing
four bills to the sheet. That exception
is sheet of two notes lone 500 and
one 500 making $3.50 to the sheet. The
other three plates printing four notes
each, are one of four SIS notes, making
500 to the sheet; one of four $40 notes,
making $40 to the sheet, and one of
three $40 and one 500 notes, making $50
to the sheet. This money is sent to the
banks in the original sheets and the
bills are cut apart by them. The bank
must pay for the plates from which
its money is printed. The two-note
plates cost $50 and the four-note ones
cost SIS each. The maximum size pack
age put up by the bureau of engraving
and printing is one thousand sheets.
The general average value per thousand
sheets is $37, 500. This would necessi-
tate vault space to store away over
thirteen thousand sheets weighing
eleven pounds to the thousand-so that
any package that might be wanted
could be easily gotten. At this time
almost every available inch of vault
space in the comptroller's office was
already taken up with the 5000, 900, 900
current stock. Now congress had
authorized the printing of the money
and it had begun to come in and there
was no room for it. So the secretary
of the the treasury at about a block
away rented the basement of a bank
building-the walls and floor of which
were built of brick and concrete, and
had number of wooden cupboards
made and set in it, and began filling
them with money, 1t was protected by
iron gates leading to the room and by
two armed watchmen in daytime and
four at night. In the meantime large
force of men were working day and
night on a new vault in the treasury
building. Although this edifice is almost
two blocks long, one wide and six
stories high, it is entirely inadequate to
furnish office room for the treasury
department, and much room in various
buildings in different parts of the city
has to be rented. 1t was decided to
build the new vault in the sub-basement
of the treasury building and make it
two stories high.
Only two bids for the construction of
this vault were received, and these were
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