NATIONAL BANKING UNDER THE FEDERAL RESERVE SYSTEM 
AL NaC DANKING UND ub TEL PRDERAL DISTRVY OYSTEM = 
Where a national bank is organized in a suburban district included 
within the political boundaries of a city with a population of 50,000 or 
less, the bank must have a capitalization equivalent to the amount of 
capital required of a bank located in the city in question. (See 
footnote on preceding page). 
2. Organization Application—Preliminary to the formal application 
to organize a national bank it is customary for those interested in 
the prospective financial institution to write the Comptroller of the 
Currency at Washington, requesting reservation of the title under 
which the bank is to be known, and stating the location and proposed 
capital. The title asked for will be reserved for fifteen days, before 
the expiration of which time it is expected that formal application 
to organize will be filed with the Comptroller. 
Forms for the application to organize a national bank are fur- 
nished by the Comptroller of the Currency—and minute care should 
be exercised in filling out these papers. All of the information re- 
quested should be given, the instructions contained in the forms 
should be carefully followed and the application signed by at least 
five prospective shareholders of the association. 
Exclusion of any professional promoters from the organization will 
be required. No commissions paid for the sale of stock or promotion 
fees should be included in the bank’s organization expenses, but 
only such legitimate other expenses as are incident to the actual 
organization of the bank. If any agreement exists to use subsequently 
any part of the capital stock, surplus or undivided profits, to pay 
promoters’ expenses, favorable consideration will not be given to the 
application. 
Letterheads bearing the bank’s name which are in use before the 
bank is given permission to begin business should indicate that the 
bank is organizing, or bear the heading “Organization Committee.” 
When application is made to organize a national bank, a bank ex- 
aminer will be sent to the town in which the bank is to be located, 
and he will give consideration to the general character and experience 
of those who are to conduct the bank’s affairs; to the question of 
whether there is need for additional banking facilities in the commun- 
ity; to the community’s prospect for future development; to the meth- 
ods and banking practices of existing banks; to prospects of success for 
the proposed banks under efficient management. After his examination 
[ 
Rd fe 
241