As has been stated, a National Bank _can_ take out an amount of circulating notes, or National Bank currency, equal to the amount of its capital. But the profit on the operation is so small (leaving out the chances of actual loss) that many banks do not issue notes to the full amount allowed. The following figures relative to the total capital of all the National Banks, and the total circulation of these banks on the dates stated, conclusively prove this fact. (These figures are taken from the annual report of 1907 of the Comptroller of the Currency.) November 12, January 26, March 22, 1906. 1907. 1907. Capital Stock $847,514,653.00 $860,930,624.00 $873,669,666.00 Circulating Notes 536,109,931.00 545,481,870.50 543,320,375.00 May 20, August 22, 1907. 1907. Capital Stock $883,690,917.00 $896,451,314.00 Circulating Notes 547,918,696.00 551,949,461.50 It can be seen from these figures that the National Banks _could_ have taken out _over three hundred millions_ more of circulating notes than they _actually_ issued during the time stated. And these figures are not exceptional. Banks, other than National, "shall pay a tax of ten per centum on the amount of their own notes used for circulation and paid out by them." This tax is prohibitive and no State Banks issue circulating notes for this reason. XV THE SO-CALLED "SPECIAL PRIVILEGES" OF BANKS In every political campaign, especially the National ones, the orators talk a great deal about the "special privileges" of banks. But they are never defined exactly. According to them, one privilege (?) the bank enjoys is the power to lend a certain per cent. of its depositors' money. But if it could not do this, what reason would the bank have for existing? That is its principal real source of profit. Practically the only other privilege the National banks have, is the right to take out National Bank Notes, or currency. As has been shown in the remarks on "The Method of Issuing National Bank Notes," this privilege allows so little profit that the banks do not use it to the full extent of the law.