CIRCULATION 
dealers in securities, such as The National City Company and others. 
Where a bank determines to issue currency, it purchases in the 
open market bonds having a par value equivalent to the amount of 
circulation to be issued, and sends these to the Comptroller of the 
Currency for deposit with the Treasurer of the United States. Only 
registered bonds are eligible as security for circulation, but where 
coupon bonds of either of the eligible issues are presented, they will 
be exchanged by the Comptroller for the registered bonds. The 
Comptroller authorizes payment of interest on the bonds of the bank 
depositing them, and the Treasurer of the United States will pay the 
interest, by check, to the order of the depositing bank. 
All details in connection with the issuance of bank circulation are 
cared for by the Comptroller’s office. This includes the engraving 
of plates, printing, ete. Ordinarily a period of about 30 days is 
required to engrave the plates and print bank notes, but at present 
(1927) about two months is required. No order for circulation is 
acted upon until bonds have been deposited to secure the proposed 
circulation and advanced payment of the cost of engraving ($130 per 
plate) has been made. 
The issue of national bank notes is authorized in denominations of 
$1, 82, $5, $10, $20, $50, $100, $500 and $1,000. Up until late in 1917 
banks were prohibited from circulating notes of less denomination 
than $5, but, as the law now stands, the only limitation upon such 
denominations is that no bank may have in circulation at any one 
time more than $25,000 in $1 and $2 notes. However, up to the 
present time, no plate designs for notes of $1 and $2 denominations 
have been approved, consequently no national bank notes of these 
denominations have thus far been printed. 
The Comptroller of the Currency will supply detailed information 
as to forms that should be observed in ordering circulation and as to 
the mechanical details of which it is necessary to take cognizance in 
this connection. 
The profit which a bank makes upon its circulation is determined 
chiefly by two factors: the average rate of interest in the money 
market, and the price at which bonds to secure the circulation are 
purchased. 
Circulation secured by the 29, bonds is subject to a semi-annual 
tax of }4 of 19; circulation secured by bonds bearing a rate of 
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