Under the provisions of existing law (1910) a national bank is required to deposit interest-bearing bonds of the United States with the United States Treasurer as security for its circulating notes in the following minimum amounts:

1. Banks with a capital not exceeding $150,000 must deposit bonds, par value, to an amount not less than one-fourth of their capital stock.

2. Banks with a capital exceeding $150,000 must deposit bonds to the amount of at least $50,000, par value.

Circulating notes are issued against United States bonds deposited as security therefor to the par value of the bonds or of the market value, if the bonds are below par, the maximum amount issuable on bonds being measured by the paid-in-capital stock.