The National Bank Act of February 25, 1863 (amended many times), controlled our National banking system until November 16, 1914, when the Federal Reserve banks were opened. This Act of 1863 provided that any National bank depositing Government bonds with the Treasurer of the United States should be entitled to receive circulating notes to an amount not exceeding 90% of the market value of the bonds. That is, if X bank deposited bonds with the United States Treasurer worth $100,000 on the market, the bank would be allowed to issue bank notes not to exceed $90,000. The National banks were prohibited from issuing any other form of notes to circulate as money. An Act of March 3, 1865, provided that notes issued by State banks should be taxed 10%. This tax was so heavy that State banks found it unprofitable to issue their notes. The original Act of 1863 had provided for the incorporation of National banks and a method by which State banks could become National banks. An Act of March 14, 1900, permitted the issuance of bank notes by National banks up to 100% of the market value of the bonds not to exceed par, instead of 90% as previously, and the formation of banks with capital as low as $25,000 was authorized.