An Act To amend the national banking laws（Aldrich–Vreeland Act）, May 30, 1908, 35 Stat. 546

Claims Supported by This Source

1. Approved May 30, 1908. Section 1: Ten or more national banks may form a "National Currency Association." Banks with a surplus of at least 20% and having circulating notes secured by U.S. bonds to at least 40% of their capital may apply for additional circulating notes by depositing securities, including commercial paper, with the association. When the Secretary of the Treasury determines that "business conditions in the locality require additional circulation," he may direct issuance up to 75% of the cash value of the securities (90% for state, city, etc., bonds). Issuance based on commercial paper is limited to 30% of capital plus surplus. The association's banks are jointly and severally liable for redemption.
2. Article 3: May issue up to 90% by depositing with the Treasurer bonds of states, cities, etc., that have existed for 10 years or more, have had no defaults for 10 years, and whose debt is 10% or less of the assessed valuation. Article 5: The total amount of issuance shall not exceed capital plus surplus, and the outstanding balance of issuance under this Act shall not exceed $500,000,000. Article 6: 5% of additional issuance shall be added to a redemption fund.
3. Section 9: The tax on notes secured by securities other than government bonds is 5% per annum for the first month, increasing by 1% each subsequent month up to 10%. Section 14: Deposits of public money are exempt from the reserve requirement (R.S. 5191). Section 15: Deposits of public money must bear interest of at least 1%.
4. Sections 17 & 18: Establish a "National Monetary Commission," composed of 9 members from the Senate and 9 from the House, to investigate and report to Congress on "what changes are necessary or desirable in the monetary system of the United States or in the laws relating to banking and currency." Section 20: This act shall expire on June 30, 1914.

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