The Aldrich-Vreeland Act also provided that national banks having bank notes outstanding secured by the deposit of United States bonds to an amount less than 40 per cent of its capital, and having a surplus of not less than 20 per cent, might make application to the Comptroller of the Currency for authority to issue additional notes to be secured by the deposit of bonds other than those of the United States. The Comptroller was to transmit this application, with his recommendation, to the Secretary of the Treasury, who, if he judged that business conditions in the locality demanded additional circulation, would approve the application, determine the time of issue, and fix the amount of the additional circulation within the limits imposed by law.

After the Secretary of the Treasury had approved the character and amount of the deposited bonds, the applying bank was entitled to receive from the Comptroller notes in blank, not exceeding 90 per cent of the market value and not in excess of the par value of any bonds so deposited. The Treasurer of the United States, with the approval of the Secretary of the Treasury, was to accept, as security for the additional circulating notes, bonds or other interest-bearing obligations of any state of the United States, or any legally authorized bonds issued by any city, town, county, or other legally constituted municipality or district in the United States conforming to certain prescribed conditions as to age, financial record, and condition; the Treasurer was to determine the relative proportions of these securities which were accepted by him, and he was empowered to require additional securities and substitute securities.