A bank note is a non-interest bearing obligation of a bank. It is payable on demand to the bearer in lawful money. Only Federal Reserve and National banks now issue them. The Federal Reserve Act of 1913 did not abolish the right to issue National bank notes. Notes may be issued up to the par value of the bonds deposited, provided that the issue does not exceed the market value of the bonds nor the capital of the issuing bank. The Secretary of the Treasury has ruled in recent years that bonds valued at 95 will be satisfactory for $100 of notes. If the bank has a capital of $100,000 it will not be allowed to issue notes for over that amount. One National bank may not have in circulation at any one time more than $25,000 in notes of $1 and $2 denominations. Bank notes must be signed by the president and cashier of the issuing bank. National banks are compelled to redeem (pay in cash) their own notes at their own counter. All National banks are required by law to receive the notes of other National banks at par. Any National bank which issues notes may retire (cancel the obligation of the bank) its notes in sums of not less than $9,000 at one time by depositing lawful money with the Treasurer of the United States for their redemption. An equal amount of bonds will then be returned to the bank. But not over $9,000,000 of notes can be retired in any one month.