In banks having over $5,000,000 capital a surplus of 20 per cent may take the place of this individual responsibility. Not less than one-fourth of the capital stock, usually one-third, is deposited in the United States Treasury in the form of registered bonds of the United States, to be held exclusively for security of circulating notes. These notes are issued to the bank by the comptroller to the amount of not more than 90 per cent of the market value of the bonds deposited. These notes, printed by the government, signed, registered and sealed in the United States Treasury, in denominations from five dollars to one thousand dollars, become money when signed by the officers of the bank whose name they bear. The cost of these notes, together with the cost of restoring when worn out, as well as the expenses of the comptroller’s office, are met by a tax of 1 per cent per annum, paid semi-annually, upon the average amount of notes in circulation during the previous six months. Such notes are not a legal tender, but are received at par for all dues to the United States except duties on imports, and for all demands against the United States except interest on the public debt and in redemption of currency. Any other issue of notes is prohibited, and worn out notes are cancelled and burned in the Treasury of the United States, being replaced by new. The banks in sixteen principal cities are required to hold a reserve equal to 25 per cent of their circulating notes in lawful money of the United States, namely coin or treasury notes, and all other banks must have a reserve equal to 15 per cent of their circulating notes in the same form. This reserve is held for the redemption of the notes, provision being made for such redemption at the Sub-treasury of the United States in New York city, bank balances and clearing house certificates in the larger cities being counted as part of the reserve. The object of this is to secure ready redemption of any note in all parts of the nation. The comptroller’s office includes expert examiners, and to it each bank must report at least five times a year, with other special reports as called for. Each bank is subject to examination at the pleasure of the comptroller, and in case of failure to redeem bills or comply with the law, the comptroller has power to take possession of the bank and close its business. The usual banking business of any national bank proceeds according to the laws of the state in which it exists, the legal rate of interest of the state being compulsory.