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MN ALDRICH BANK 0 .NG L AND 4 (1) - hen *us the 3ank of Thclana foundedf. (2) -hen does your present c7lorter ex-ice`. ( ) ':1-lat is to par value and present selling rrice of e (,nr shares': (4) ho. ma. y stockholders have you? (5) Is the stock fully paiC (6) 'aye your shareholders DY-T liabilities in adlition to the ownership of shareo (7) Is there c_ny limit to the nutber of shares which may be held by any one person, and. is z7oar arTruval required before a transfer of your stook can be made': (8) To\, orten do your shareholaers met (9) Does every shvre have a vote at shareholders meetin (10) C. lent and conhat control have Vie shvreholr'sers over tl.e r':tmare, allot of tile bus moss (11)as the (•overnment any voice in the mana-oent of the brink or any interest in it tlaiouft the ownership of shares (12) Toscribe t e or anization and mv.na:-ement of the hank, statini the number of officers and directors wit their espective functions, and for what periods and by whom are V'ey 01ected (1L) Is ;t cuotomary to ro-elect directors at the e:::riration of their terms% (14) Is there any custom restrictinc tors :.ay be selected (15) .0 class from .111:!1-, the direc- -:. freouently do the directors meet' 2 (16) :ow many branlhes have (17) -ow are yLur branches managed.? names the manacers of bran&les% (18) 70 Thcs ffl. control or t, business ! (19) Ilave the mnntL-ers of t'!- e bran, in grtintin: 11counts, et; if not, what discreton is usur- ay given tilem l (20) Have you any 'ystem of distribution o4* rroritp anonp the manr_rers of branches (21) Are all your branches of the svme cir, or hrve you main and subsidiary branches': (22) Is the bucine7s conducted at your branches of the same class as at your main o file in London th Trprol)5nts far(23) Do your brImches have businoss relations mers, and all clusres of reorle in their -k-ecrective (24) Flow frequently are you reired by law to publish statments of nonljtion (2.F.) How freciuently is it your cuctom to publish Arartirent et any time (26) Is either your issue or your e. .inefl by the ovornment, or in any way under its surervisAon (27) That loctal or conerl taxes ere paid by the ]ank? (28) rc. I ank of Frgland a member of the T.onion ousei - n the sixitement of your Towle Department 7:ou show iabilities _etnr.; if.sued Aspots ,ts Government aol nther securities coin bullion 5:3,64,621-T 11,015,100 7,4: -4,900 .4 91A 6/15 (29 hat is the law overninc your note iS2UOS, issues liffitea and hov: secured% ani how are no ill you explain t'e items "::overnment qebts" and "CAher securities" in the statoert, and give the reasons for the chances in amount since 1844? (Z1) (2) That extent are your notes lei.7a1 tener in Great Britain hat other banks have the right of issue in E. land ("3) Arc the notes of other issuing banks secured, and if so, how? That is the total amount of their outstandin' iorues (35) Are the notes of other bnnks tendrr% (36) Is there any discrimination betlen the noted of other banks and. your notes in thc puhlic estirrdation, or do all cir, culate freely tIlroaout the conntr' (77) Do yo:1 rfl,17 the ovornnent in the form of txes or otherrise, either directly or inirct1:1!, for :1!our privIlcre of note issue? (7n) Do other issuing banks ray for tr. privilee of note , % ;(1 iz1, you acciaired the ri,ht of issue from any other banks, and upon v:hat terms% (40) To viat do you attribute the veekly f:nd seasonal fluctuations in the amount of outstanding notes, and are these fluetuntions constant from year to year% (41) Are you to inform ur as to the exrenses of note issue and the profits doliivea therefrom% (42) Under v.hat conditions or terms has your capital been Increased from tine to time (43) Have the obligation:- of tau to the nullic or to the 'overnent boon cl-anged from time to time' •••1. 4 (44) A. e . req- 1iroti by te invest your capitaT,Qr any part ef it, in any partilulr se, If so, in wIlat 3uritics class tInJ to 171at mount (45) Dees the 11/ rer!uire that lefore 7N11 distribution of profits , you shall a:!lumulEte and maintain a cort!In amount of rest (Surplus), and / you required to invest this in any . .c) parti culr.r 17:ay? 7eferring to the weekly statement of your "''ariking Department, dated Aug. 12, 1908, you. S1107 1:‘111)11C Deposits, ;5,145,638. (4(;) A.11 you exriain the character of these lerosits, stating in general from what ')ervrtments they tire received? (47) Does the government hbve ac,!ountc with othor hanks" (48) Do you atl.ow interest uron those erosits" (49) Are you required to rarnish E;ecurity for (50) Aprro.7:1!qately to vTh.at extent do the public acnosits finctizato groin tirre to tie during the year, and omi the e:c.tent of these fluctuations be predicted? (51) You show "Other de-osits, 445,546,992". Till .:ou tell us in a gener!,1 way from whom these deposits tire received. Do they include deposits received from hsnks, merchants and indivicirivis (52) Do you el , . interest upon tny of these derosits C- 7) 0 '40 Are they suject to consifieraLle fluctuntionr, aml s re these fluetuatlonr, recularl recurrent': (54) Are all of these aar osits rvable on Jemand , (55) pc you rt any time allow interest on m-eclni depositn (56) -111 2fou deroribe the item '-ev(-1 doy an other hills": (57) In the statenent of assets, That contitutes the ito ment securities 415,f- 2,29: k . Jr "overn- 5 2 (58) T$ it your custom to carry in y .ur 7 ark1ll:7 riernrtment ti c amount rin fovornrient (59) Mat rroportion or the iter, "thc.r cocurities, ;27,T-- 7,982", represets bills licoantel, :7,n4 -Arorortion rer .esents lono on collteral at, if any, other;ecut_iitie:, -the iteei (60) , 1.:;ept these are inclulod in (612 Can ziou state arrro.ylmately th avere lc,nn-th or tie tn(71. average size of bills dicounted by you (62) Is the chc,rtictcr of your dIscounts or lotms re;711.1ated or restri ,lted by li?v, or fixed by -f,*(E) statutes of the Eank ill you ct&tc the class of biL_r usually dicounted by you, givinfj the num1A-r of names roquifd, the miniun size, and the maximum lene;th of: time t( (6.L.; (64 \ - hat claso,es or collaterta nre aco,ertod by you for ill .ou sttite unrroyit(ly the average lergth or time , and the avcrr-e size of 1o9ne on oollatera]* (65' (66) 7"rvt IP the stinction betv!con what arc known RS and other (67) no (68) • diL.count emy but :ri;lc - Is the usuvl differonoo in the rate charced by you It-non a prime bill ard for clatls loan secured by collateral havin the27-1c neriod to run (69) 'That IL the difference botv.oen a trrde bill and a fdmnce bill To tho rte sam(, or: each c. (70) Do you (11socul,t to :fl: consdlcraLlr, acont eirectl,y for individuolo and merchants It your custom employ yv surplus funds in the -lurcharlo of bills from dicount you rediscount hills for t' e joint otc13: or other banks? If 6 (n) , hat changes have taken 'lace from tiirto to tie. in ,Lc chracyou &ccopt for diLcount from discount , ter of the billf; houser, end what was tho purpose and effect of the chtinc:ts (74) Is thL rtc :Cor dicount nt your branches for cur:toners' raper same ns ct the central office': rLnd •1. or rie '.1 i1 s governing the purc; , .ase by you of foreign (76) : ill you ex1ain the distInotion ,iet- cen a foreign and a domiciled bill'i (77) Is it your eu.tc countries to diccount any bilis payable in fofel)-m (70) Do you sometimes . 11rchase prime bills in the mtirket at a lever rate thtn the bank rate (79) -eu1t1 you clarce a merchnt hpvi.cli a ccod account with you the : bank rate or trc market r:.te for rrime (80) ic w':Et e7tent (loec te transpctiont rate covorn your discount pril (01) Ir thc amount of nclommo:7Wton extentted by yoiz to discont houses or othro upon 1.1.e amount and charLotr of balances carrio, with you, or governed by the necossl1 tics of the concral cituvtion'i (82) Do you at timeo discount hi lic for Irties hr.vin:- no rlount wit"1]. yeu% (K) Are n convidera'ae mentor of your loans on call (fl4) Do you allow overdrafts, or do you make any advances or te kind made by the :.-cotch b(4.11:s called "cash crelits'? yoa receive account: flrot. corTorn(85) in vi. cv. of the fact tionc, merchants on InlividutUr, and di count for' then, rtro you not in n measure p oorrotiter for business v:ith joint ctock banks , . (86) Is the ),E,tbrouCh its branchenomrloyel by other b[A Cks tc rny concidorable extent for the transfer of funds from one city to another? (87) t pecif1c cervien itre rerdered by the to t'.-11 . -overn' -,)cn In connotlon l th t-he mannerent of 4 .e ru1ic del;t, , and as a aerositary of publio funs? (3o) Loe an1 er_leive any correncntion for mulh servIles You show in :our ra tz14 oLont, " otes, 423,8Z8,85.5, CoLl ' 6 snvor ccin, fr your derrit 5°1 bilities. (89) Is there ary grieral rule of the 7ank vith referenle o Vle .norcertne: of cash rezIcrve held in the -7 .nkin Dorti.rtcnt aErzinrt k (9() Do tk banks of 7.11,f710, :cotland. ana Ireland have briones with you, ana re thor'o Twlances r;r.ardea as a very im7ortant pf7.rt of toir oas,- renomet? (91) Can you ectirTte thc 1.)erconttze of cash (coin and notes), to aerorit liabilites in all tl e bv.n1 , of 1:nglnn(1, inliAain thc 3arkin 'Ocrartment of ho 7ark of Enjandi (2 iOW ana by 1::k-,on is the bun, .1.!:t (9Z) -hen an unler what o-n(lltions is tl'e hank rate &i.ane;ed (94) Ts any notco gtven in mivance of on intoroled o'nunr:e'i (95) Do you rccard rrorrt nnl adeoute in3rens in tic bank tent° a2 the no:A offect:ivo measlIrn to protc:flt the Tar'e reser7er (96) Does thr ralciTv; of the Lank rate ever pcur-r r)(' -1.1 to tAt- orct gold and : (97) How r.lo you po3ount for the fact tHt at i;ir;es 6 hi:Thor bank rate in l:nrjand fnJls to nttrct goll from the Thntinent lovmr rte rrevli there (98) r; of t' c' hank rt.tr' rore er-feetivo In nontrcll'nc ; -01 7 moverentc no tnr. ct tl'_P tine the lrst vusPonsion o' the Tani: Lot in 18C6 (99) To what do :.-eu attribute this rlcre!,pecl. 8 at eA:ect dia radsin 1907, to Jannry, (1C0) . the rate In the period free: H3tober, have upon the &.n.'S c;o111. supply ; (101) Yrom ho; many- countries dia the .fink receive gold as a rei.lt of th inoreuvc at that tireci (102) if the maximum .rte of floient to zIttr.ot increuseari rixeJ by the Park had not been sfoil, ou1 the rate liv,ve been further (10 ) be you t; e other stops in sdilition to raisine: the bank rate to rroteot cola in times of a cri2is? . (104) is it cu:: tomary at such times to -dv—le money without interest to importers of col(1 to cover ti'. e time required trarsrortation n (10f)) Ts It the Pra:A)ce of the 741.nk in times of stres to disc(-,unt bills of fi satisfactory chnracter for its customers frcly it (106) t.hc 'fink to dic(7,rir%inr.tc v.Lainst finance policy billy in times of fintincifil crises': (17) Does the unAerstood policy of the rink of iv-1::nd to tiavanco bank rtes rarialy !Ina at the salo time to extend liberal credit in times of r,erioar financil trouble, neot gonertll w-v.roval in busiref: and br.1111.7111 (1:13 clonetict:1 borfow money in the open mrket for 'Jle purpose of rasing t.e murl:et rate Does theank (1C9) Do ziou cometHies sell ,;onsols for the sem° purvcwe (110) 'That are t c Provisions or , of t*:oll by the ''ankr: ctt iE the usued (111) th rel'erone ti the rurchnse paid by the Tank for [-ell purc'zisea unaer come con:Iltons aalince (11) ioos the purchtses (12. l'or UnThr Crivt nircumstnces an to wl ,at extent does 1.1(1 P,ank • ierriipp; for 2()11 bullion or eorein ooin charge -old C) (114) T . thc c;o11 purchased by the 7ank vent to the A.nt, or :lcrofAtea in the 3.uo Derartent and notec issqea against it? (11) Ts '.onon the only free market for F7olci in (116 iirope% Do the joint stook ana other banks rely upon tho rescrves of the 7ankini7. Derartnent of the Bank of ;r1-inA ultirte reseurce in °use of trouLle% (117) Do you ravc.t ftivor n inorense in the fiquciary note circilltion% i2pue of on (119) If not, What i. the reason (120) Does the prolicEltion for twproval% pou or notes our oNection% cecomiary gola reserve meet - lth c (121) Is iteti.esirFble that bank re' rvri Lonerf,111y shoula be ctrencthene(i 1122) 1T1f3 te eyr.erience of the Jnite6 vith refere—::c to no -tx ivsues unler the legiviation of .W/:4 ana 104f. been stitisfactor (12,7) 71th recrect to the fonoroly of note iPsue, rro arcy modificationr, or amenamentc to the bank acts ouggestea, ana if so, wbet iv 1. le mture of the proposals ; (1:A) .c there any substantini demtnd for vthrt we in AmericPcli "treater c1a3ticit.7" in. volumn of c)irreno:: (notes and ) coin; to ansv;cr burAne -, aonandsti (125) there tin jnclinatdon to adopt the ermrnysyPtem of ted. issuer; for ocrrenies or some molificvtion of it (126) •A there any tenlencz to r.rtilrn tn the sz-sten of note issue , in oistionao prior to 1044% (127) Is there any contention in bnnhir2 or cconomio circlec trt it is noces2ar to restore or e7tend the right of im:Aze to bt:nks othi:r than the ,E121k or liglbna, to en e thom to Inorot)Bu tl:ejr own rfoflts or to cffora elec.lulte facilities to bormvers or to Etet legitimto business derlanas'i • ...•• 10 (128) :-.as the ranidly inreasing .tze of chocks, billo of e:zcbrInp.e, and other intruments of credit mid cicarinc houce facilities, rendereJ the enlflred employ ent or hank note unneceary (129) That, if any, artificial moans are taken by you to secure chan(ros in the volume of currency (notes an6. coin) to make it respon2iv to businosE deln1E7 (10) effect has mar' rl increase in tile commercial and inftw7trirl activities of -r.ot hAitain on the volume of note isF:kes -.• ••• t• • It ekt, you give ,abrief history of ii4or 14w$414-tnti-on , stating whether it originated in London, or in the coun try, whether its business to-day is confined to London or is also conducted through branches in provinciai citi es and In snail towns? How many branches have you? In the main have they been created by you or have they been formed from the absorption of independent bank s. That is the par value of your shares? What dividends do you pay? :That is the present market price of your shar es? How many stockholders have ou? Is the stock fully paid? If not, what additional payments can be called for the develorment of business , and what in case of liquidation? Does the law require that before full dist ribution of profits you shall accumulate and maintain a certain amount of surplus (reserve fund), and are you required to invest this in any particulnr way? Is there any limit to the number of shares whic h may be held by any one person, and is your approval requ ired before a transfer of your stock can be made? How often do yvilr shareholders meet? Does every share have a vote at shareholders' meetings? Describe te organization and mana, : -ement of the Bank, stating the number of orficers and directors with thei r respective functions, and for what periods and by whom are they elected? Is it customary to re-elect directors at the expiration (f their terms? How frequently do the directors meet? How are ;our branches managed? Who appoints the managers of branches? have the managers of the branches fu:L1 cont rol of the business in granting discounts, etc.; if not, what discretion is usually given ,hem? • 2 Have you any system of distribution of profits among the managers of branches? Are all your branches of the same claas, or have ycqi main and subsidiary branches? Is th,: business conducted at your brLnches of '' 6 r as at your main office in f.ondon? sate clss Do your branches have business relations with merchants, farmers, and all classes of people in their respective localities? rlow frequently are you required by lat, to publish statements of condition? frequently is it your custom to publish them? What local or general taxes are paid by the bank? State the distinct:on between current accounts and deposit accounts? Do you pay interest upon either or both? If so, does the rate vary uron different classes of accounts? Does the rate vary tis betceen London anl the country? so, what is the usual difference in percentage? If What governs the fluctuationsin the rates raid? That percentage of your deposits are payable on demand? Explain in general the arrangement made by you with your customers for the acce-ptance of drafts drawn by them, stating the usual length of time, whether they are secured, and the custonry charge for sch service' Describe the characr of your assets constitutinc the item "oney at call and shoiA notice"? Is it customary to confine your investments in securities to Awernment and public securities, or do you purchase stocks and bonds of railways an] othcr inaepenlent corporations'i Are you rec aired by law to invest your cw,ital or aily nart of . : it in any parUcul9r securities? If so, in what class, and to v:hat amount? Is it your practice to invest an amount equal to your capital in securities, and if co, in what general class of secnrities? Describe the general character of your bills discounted, including their average size, their averag e length of time arA the number of names required' .hat is the Hinimum size and what is the maximum length of time to run for bills discounted by you. That classes f collateral are accepted by you for loans? Will you state approximately t",.]e averag e length of time and the averal7e size of loans on collat eral? What is the distinction betwGen what if-e known c,,; "prime bills" and other bails': Vat is the usual difference in the rate cha a prime bill and for a high clasH lcm rL ed by you upon n secured by collateral havinp: th€ sare period to run ? What is the difference betTeen a trae bill and a finance bill? Is the rate the s!':e on each': Do you discount to any considerable amount directly for individuals and merchapts?j i Is it your custom to 'y your surplus finds 144r-turt purchase of bills f)444A-44,ee.iiii4—platallayes 'i A ::ould you charge a merchant having a good account wit bank rate or the market nite for prime billo? c you the To what extent does the Bank rate gov ern your dicoant and loan transactions? - ,/ 7 -- the amount of acommodation extended by you to iittelmotrt hotaetioeP—t4491tT'siidiot'e4q the amo , unt and character of balances carried with you, t4retsedgw. Do you at tiLer, discount bills for par ties having no alcrint with you% Are a considerable number of your loa ns on call? Do you allow ovcrdrafts, or do you mak e any advnnces of the kind made by the Scotch bunks called "cash cre.lits"? Is there any general rule in your bark with reC(!renee to the percentage of cash and balances in the Bank to the deposit liabilities Can you estimate the percenta e of cas h, (Coin and notes) to deosit liabilities in all the banks of England, ineludir,c the :ankinc i)epartment of the yank of England Do you regard prompll and adequa t increase of the'.:ank rate as the most efflective measur to prot et the At-r!iT's re, LA4 I Af_eee / 1 1.1.• APP. "1-;;) serves? Does the raising of the Bank rate ever fail to attract eold and change the course of exchanges? How do you account for the fact that at times a higher Bank rate in England fails to attract gold from the Continent/when lower rates prevail there? Is the raisinL. of the Bank rate more effective in cont olling gold movements now than at the time of the last spension of the Bank Act in 1866? To what do you attribute this iLcreased efficiency? What effect did raising the ate in the period from October, 190,toJannary,1908have upon the Bank's 11 supply? What other steps are taken/in addition to raising to protect the outfl* of gold in times of a he ?ank rate, risis? Is it customary at sch times to advance money wi hout interest to importers of gold to cover the tim required in transportation Is it the policy of tl,ie Bank of England to discrinate aainst finance bills ii timesof financial crises?' Does the understood policy of the Tank of England to dxance bank rates rapidly and at the same tie to extend liberal credit in times of serious financial trouble, meet with general approval in business and banking circles? Is London the only free market for gold in Europe? Do the joint stock and other banl:s rely upon the reserves of the Banking Departent of the Bank of England as their ultimate resourse in case of trouble? Do you favor an increase in the fiduciary note circulation? Do you favor the issue of one pound notcs? If not, what is the reason for your objection Does the propos,ilion fo tec9ndarys,glold Trerye me .e.4 („tA ,, 4* i----try, approval? eK , ..ND a/— ith -V Has the experience of the United Kingdom with 17::::e to note issues under the legislation of 1844 and 1845 been satisfactory? respect to the monopoly of note is:Ate, are any modifications or amandments to the bank acts suggested, and if so, what is the nature of the proposals? 4:4 " Is there any substantial demand for 1,7at we in America call "greater elasticity" in volume of curcency (notes and (Join) to answer business demands? Is there any inclination to adopt the Thrman system ef taxed issues for emergencies or sore modification of it? Is there any tendency to return to the system of note isue in existence prior to 1844? Is there any ontention in banking or econ omic circles that it is ncces..;ary to restore or extend the rig t of issue to banks other than the sank of ngland, to enble them to increase their own profit or to affo rd adequate facilities to borrowers or to meet legitimate business demands? atIS the rapidly increasing uze of checks, bill s of exchange, anl other inctruments of credit and clea ring house fcilities, rendered the enlarL:ed employme nt of bank notes unnecessary? effect has a marked incr(.ase In the comm ercial and industriF1 activities of Trreat riritain on the 'volume of note issues? 1 REPORT of the condition of "The \'t A....... ,in the State of... 1 ,1.3iness on the • • • • • •. • 6 •• VT ,at the clot.° of day of 1. RESOUIC r-oans and Discounts (see schoehae) 2. C,verd.rafts, secared,, 4. ecrities, etc., including premium on sr.ne (cee schedule) '',ankin:. • ''arnit71re and -ixtures 5. Otk r real Tetr.te oned 6. Dne fron 7. Due from State ard ..rivate ?}Folks and T)-ankors, Conrnnies, ana ivings7amks 8. 7 hocks and otr Cask Ttem8 9. ; unsec Exchanges for Clearlv House Cakth on hand (Gola Coin (Gold Certificates (ilver :ollars (Silver Certificates (Subsidiary and minor coins (77,eal-Tendor :otos (National 741n7-7. - otes TOTAL 1- 7!TYT 171 Trq takJ 1. Calf,ital Stock paia in 2,urrlus fund individe:1 refits (including arounto, if fl:T, Bet aside for s: cil purpo:2es, except Ttem 17. ens Current T:acrenses, interest, and Ya:zes paid 4. Due to 3tationa1 5. Duo to State and rivate 7anks and rianIzers, Trust ompanies an Savings :41nks C. ::)iviCiends un-raid 7. Tndly'dual Deronits sub:ect to 'heck 8. Savin2 T)e.osits and Derosits in interest dopartert 9. .erind :ortificr,tos of 7 enosit 10. Tie Dee27Its including Time ..7ertificates of De7ocit Payable after tTlirty drys 11. Truct Deposits 12. Cort1fiod. Cii001:2 •7:reasurer's and 14. 15. 16. asier's (Mocks outstandng on,is - orrowed iotes an ills rediscounted ills payable, including 1ertificrted 07 Doro:At rerresenting monc:Y borrowed 17. Teserved For Taxes 19. f.ccrue 19. A.:. bilities other than those above states Interest TCTAL eJ CLASTFIC'TION OF LOA1TS AND DISOUNTS. ••••••••••••••••..."....1111,111111 A. On demanl, paper with one or more indivi:lual or firn names B. On qemand, soc;Ired by stoc77c, bonds, and other personal secilrities 0. On time, paper with tv:.c or more individual or firm names •, On time, single naPe rc- er (ore person or fir,.:) w7It'out , other cocurity time, secured by ctockc, borii, an other Y'orsccilal secilr itlec Secured by real estate mort aes or othe, r lioni nn realty TOTAL • NNW •••• OM IOW (Tten 1, .7esourser) ON um ow 4. ow ••• Gap OLASFIFTCATTOr OF' '..ECtirTTTES . 1 As. an• mot mom nor ••••• •••••• - • 4 DoLnE-;t1(_; Securities: United States ;'onds State, County, nna un1ciral Bonls Eailroad Bonds 7 ,onds of other rublic servi.ie cnrrorctions (includin street ana intmtrbn (e) Other bonds (f) Stooks (a) (b) (0) (d) 2.:orcin (a) (b) (e) (d) (c) (f) ecuritics: (;ov -rnment - onds StLte, County, and 'uniciral LonIs Railroad 3onda Bol-Ce of other public service corporations Other :::onds toks bonTh Rxqmin;Ltion of 1.1, Getorgem CynopzIr. of' ai tam, ';overnor of the Bank of ',t- pcnes, BY c:.ation=1.1 'onotary 0.o)1 : ioX, of ConoietAn7 of York,Vice-'!hairD2an, • • Vr. ::1311:! • • Crytrritr-et, of Imti:,n;41 ct;o7)anii1, of Vi" inia, , amorundum mad,- by Mr. Ovorstret, 1 r,Yruncv, A::ust 24th, 190 -1. 12,000,0007, divided ireliank of Franco Thy napit;41 t r%rfq of 1,000 1? cadho hel'' by rl- al. rbolOert5 rombering betweeX wwl rcYluwed in 1897 an• d expires T)'_11 60,000. r‘OP :xotion In ILAcr t0 rrovicion Vic ParIlr in • 1r:11, Lac.; A Golr!rnor flc chArt-r out.' lotwo indotry u. • , ;t.1 two Viess.Ocvernws 0.re propcmed by t) . , inirt , I.ovorncr one of t',zt Vicv rirerstorn In t'oc ab:vnex rvp Qcnt hUn. rtho ar throc nem-lore, , of Xklf,XX ro -entu two hunelrol Iar7,!.mt f'r,AruholAcr:„ of ./ 0 , (Moron ar:.,A':.1.1 4 Thc qoyernt mvi•t 3i7tnk. (J(irt of rol.Patt and censors meets y,onts t;Arty :thio.cr, each. of v. ry1:1- duties. , It it. (Iivided into cr - Itto oaoh i:roT,pFor1 by t'.0. •1vorno. hrri c;;Allk r. •r idithow VNY: ri•'!!VriHy !ofi from a now 7n.0- ID;c: maxilan flotb -vvornor. 1nith.thoriy.od 1 outrtnndIng trrhl crop rnovinr: roriod. reflod. liar:k of Prance. n :94de h, Lyonsis, , Ti e freque'itly, 111, IL alwvr grA7atemt at the no ww- un/o.ble T! ere arr no 1!..,n1' .any year 1-we paroled roy K eltr-0 The 1FtOO,OOO,000 7. actuK1 note it..e on Au!!:-umt 2itth wa- 4,e60,000,000 1 ti'ut zweepted . onurt(o.: boarci of Dirvetorn), e*!Jnge by ur1:11 ellancer t116 Vice-Goycr'corn fifty Kharas,wft: file re- hunrirofi own on Bank c3!:17,s ri!ounr;e1 court or :•4.- T in t';e method of itime. ilifforoi:oe in the than the any ruivcEtion has -uption Tr lmrt atu -, faLhar-in-law of the prunelit manarer or the CrOit ho p opoue in Parlimtint a law orgninm note irwue to 0004ft ,/f It met with liLle ravoc thot. petition. No payment 19 made to the Govcrnmeat for note imeu- or any Thu taxes, howevor, arc conFiderablo o IdAvilege. .1* oxim •:1y 1 0 on cirfv,ilio L 1(: - sent of the profits of thr Bank, inclitdinr inter- pe ca:11 Yeserve, camputin7 it at t:rlt est on H 1,000 it). When (,)1(nter. Bank, they arc not eanelled, bt ar are in proper condition. Thv tax cafil in notek; are concidered in cireulation wh,'n paid o-- TT4 The 13ank radeova it Bank rate. 1,000 F. and the tax on 20 C. Bart i,f:lountinr, to eceived at the lont7 kt'e. they a -in paid out Thc life of a note i tLI- 0;? notes under tno law in specie(eitIe: 7old or Bilver), but since 1880 rodamption has loe(!n prasticajly in rold. The f;Ei...,e rule is followed at the The BalA,howevei, determines this. Sometimes the Bank offers rold ror silver at several branches. a pemium, wri an alternativo. Independent banks fiametimes kcep on depordt with t7le :Rank of 21ranee thui n:plus finds, but 07old will not bc r:!ceived for special defoflit upon agrevit to pay in kind, but must bc tread 11.•- all othrw cloomits, by taking credit on books for th dcpolit-all depositors thereby being on an equality. Anyone can open an act-ow.t th:; minimum being 500 F. r der,ovit who ir known to the Afte an acc:ount if; olce opened d7ofiitor way oiscouitt paper as lo4. as all othe. requite. No promisso'.y notes ar - used, but . the debt iP evidenced by bills and loLLorm on billr cannf)t exeeud three months. refluircd. the sinuturu of neyer. pay 5 Po p provided it meets Of exehanre. Three nic.cs The time endorsers About eir,ht! percent of the pal er now held bears ii:!c. bank as ow: of the three endorsers. The Bank interest on diaosits. The use :if chocks iv the country is not rencral, a/A there in no tandeney to incrcase such use. does ri,s;t retard their coin, and there i The revenue t,tamp on cheeks materially. no fientil.tunt f,) The lowest d(womination i. 50 F• Notes are used mon' than a lower note than now in use. Hoarding of money is ll'aeticcd les!: than fo.merly, but is still ccnsideruble, especially -old. The total rold of xxn Muck= lilranee is eLitimated at 6,000,000,W)0,17. The Bank of vrance holds 3,225,000,000 F. ani the reminder is in tl-A 4 poet office rt,;(1 1);:.anehes is 1,278,000,000 F. been fin oteration ,ct 1882,- the private L;avin!.: 2[1,s inc;. 1815. The growth of the portal bank greatly injures th(1 vowt h cr private savinrj; banks. There iF limited liability of sllarcholders in join, . tock nks, thr limit bein. Van amount of the shar e. art, not limitmd in liability. Private bankri Noticem for withdrawal are controlled by a variety of c,ler,l-nts, ineludin funds Int, ani rencral charast r o: 1,,,t; account. ir no examination by the Goveramert ol joint lYti.ok tynkes cxecipt to ascert_in t T' L. if. QC poper the stall') duties. Tcneral ixmin. tion by t; , Government of the iank of France, but the Ministry of FinExce is privileed to a:k riation from tine to time. or infor Apnu31 statc!ments of both the indepemd ,!nt hunks and the Bunk of Frames arc made, but the Bank of Franse ifuer, a bulietin of balances each TITIr mdEV. Neither the loverno nor Vice-Governor- iv rermitied to be a mber oi eit i.ei body of Parliment. tH.e claim that politics enters in iJay degree into Lhe manarip- mont 0: Cie 3ank. no 1cTiEi1at1on Excetin th th 'rtcwal of Tiv.nk has lpon had no so,.tiw:!nt for any cH.,n charter in 1897, ince 1857. in bank nothoth lef!;.:61ation. r 'tcle aidinr or favoring c!ither po1itic .1 party. Tere is Revel* any Theru t No chi-Axg. ha r - -er h ..e .UNN (al ENACTITNTr. Srctiol Y1, of Bank Act (Vict. ANA Cp. 29) F IiO2. nacted that the total amoun. of notes in circulation sl.o1d not excecd the amount of unirwaired paid- ip cilaita l. This Sectinn was rt,pealed by Section 61, of sank Act (7-8 Ed. Chap. 7), 20th July, 1908 and banks are now per- mitted, during the season of moving crops (say, from 1st October to 31st January) to issue notes to an amount not exceeding _15', on combin_ed_kaid7 up_ capita 1 and . . . .. reserve. Interest on . mount in excess of pi-id -up capital is charged by the Minister of Finance at a rate not circulation from di-y day. reatr than 5'1., calculated on actual excess of The rut() of interest until further notice was determined by the government, November lbth, '06, at The only banks to avail themselves of the excess circulation to 31st October last were the followinr: Paid-up Capital Home Bank of Canada Banque Nationale Banque Provinci-le Tletropolitan Bank Union Bunk of Canada Ciro ulut,).on t 913,662. 1,800,000 1,000,000 1,000,000 3,200,220 968,340. 2,1o, 1127 1030,743 1,124,115 3,263,293 $ NOS OF THE CHARTERED _B/1g7 p_r CANADA CIRCUT A;T.011 i . ON _LAST DAY OF :-:Apri /.10;..rfH FROM to OpTOBER 1_908. 1907 January February :arch April May June July August September October November Decorto r 1908 t68,219,71p 70,547,759 76,346 1013 72,840 1909 70,741,113i 75,,- to 4o2 72,9421 781 76)562,811. . 79,455 loop 84,289 1983 84,452,899 77,q)4,398., 6,871,376 68,548 1075 69,o47,892 66,712,899 67,77o,o1P 681 153,994 66,697,255 70,389,897 76,246,232 83,056,762 41.1D ,m0 wi0 7o DOMINION GOVEMITNT NOTES IN CIRCULATION 1. On. .304LJune end of fiscd ;rears: 1901 2 3 4 5 *27,671,452 321 780,387 39,006,199 41,574,7b3 471 334,222 49,941,427 On . ._.s1.. ITurr-}i, end of fisctil year: 37 1907 2. .1.5541794,597 On lust day of _ 190y . January 1906 :56,476,282,60il:5::,,:, t i 7 Februar:.' 56,O34,884 59,537,564 March April May June July Aurust September October November a comber 56,121,104 59,114,447 60,4551 991. 61,767,448 62,664,837 63,058,125 66 1606,953 721 714,683 76,378,442 57,020,249 56,086,331 581 316,531 58,316,531 60,518 1531 61,917,157 63,491,544 63,784,400 • Ok)'4 /7 ( 'UNITED STATES SENATE PUBLIC DOCUMENT ., FREI A Af. 1. Will you give a brief history of your institution, stating whether it originated in London, or in the country; whether its business to-dtv is confined to London or is also conducted through branches in provincial citie2 and in small towns` 2. .hat is the par value of your shares? That dividends do you That is the present market price of your shares? pay? V • How many stockholders have you` 4. Is the stock fully paid? If not, what additional payments be called for the development of business, and what can in case of liquidation? 5. Does the law require that before full distribution of profits you shall accumulate and maintain a certain amount of surplus (reserve fund), and a;e you required to invest this in any particular way 6. Is there any limit to the number of shnres which may be held by any one person, and is your arproval required before a transfer of your stock can be made 7. How often do your shareholders meet? 8. Does every share have a vote at shareholders' meetings 9. Describe the organization and mtinagemnt of the '3ank, stating the number of officers and directors with their resrec-_, tive functions, and for what periods and by whom are they elected` 10. Is it customary to re-elect directors at the expiration of their terms? 11. How frequently do the directors meet` 12. How many branches have you` U. In the main have they becn created by you or have tiiej b(en formed from the absorption of independent banks` 14. how are your branches managed? 15. ,ho appoints the managers of branches, and are they usually selected from among subordinate officers in the same branch? 16. Have the managers of the branches full conlrol of the business In granting discounts, etc.; if not, what discretion is usually given them? 2 17. have you any system of distribution of prof its arJong the managers of branches? 16. Are all your branches of the same class, or have you main and subsidiary brenches 19. Is the business conducted at your brv,nahcs of the sme class as at your main office in London? 20. Do your branches have busines relation s with merchants, farmers, and all classes of people in their resr ective 21. How frequently are you required by lnw to publ ish stateents Of condition 22. how frequently is it your custom to publish them? 23. Should more frequent and fuller bank returns be rublished V;Ilat local or general taxes are paid by the bank? 24. 25. State the distinction betwven current accounts and deposit accounts? 26. Do you pay interest upon either or both ? If so, does the rate vary upon different classes of accounts 27. Does the rate vary as between London and the country so, what is the usual difference in percentage? 26. .11Ett governs the fluct-eation If in the rates pa -A.? Vi'clat percentage of your deposits are payable on lemand 30. Explain in general the arranc-er ,ent made by you with your customers for the acceptance ot: drafts drLwn by them, stating the usual length of time, whether they cre secured, and the customary charge for such service? 31. That is included under the item "Cash on hand " in your statement 2. IP._•C• • ,I• Describe the character of your assets constitu ting the item "::oney at call and short notice"? Ts Are it customary to confine your investments in securities to 'overnment and public securities, or do you purchase stocks nnd bonds of rnilv..as and other inde pendent corporations c)11 recluired by law te invest your carital or any part of it in any particular securitie If so, in what class, and to what amount - Is it your rractice to invest an amount ecual to your capital in securities, and if so, in what General class of securities? 36. Describe the general character of your bills discounted, including their average size, their avert-;:e length of tire, and the number of names required? 37. _hat is the minimum size and what is the maximum length of time to run for bills discounted by you. 38. "“hat classes of collateral are accepted by you for loans? '::ill you state approximately tile average length of time and the average size of loans on collateral? 40. -That is the distinction between what are known ns "prime bills" and other bills? 41. What is the usual difference in the rate charged by you upon a prime bill and for a high class loan secured by collriteral having the same period to run? 42 That is the difference between a traae bill and a finance bill? Is the rate the sane on each 4'Z. D' you discount *0 any,, ,eonsiderable amounI- ai'Ve2ta,z,lor—inf .AiviluaIs and m.etchants? Is it your custom to employ your surplus funds in the purchase of bills from discount houses? Do you frequently employ surplus funds in loans on call to decilers in securities ould you charge a merchant having a good account with you the bank rate or the market rate for prime bills? To what extent does the Bank rate govern your discc,unt and loan transactions? 48-1t Is the amount of accommodation extended by you to discount homes or others predicateC1 upon the amount and character of blances carried with you, or governed by the necessities of the general situation? ,.;ou at times discount bills for parties having no account with you? rfitt-Sc fase a considerable number of your loans on call? 5() Do you allow overdrafts, or do yo, make any advances of the kind male by the Scotch banks called "cash credits"? Is there any general rule in your bank with reference to the percentage of cash and balances in the Bank to the derosit liabilities? 4 5a.0' Can you estimate the persentage of cash, (Coin and notes) to denosit liabilities in all the banks of England, including the Banking Department of the Bank of England? 543 5it 56 Do you regara prompt and adequate increase of the Bank rfite as the most effective measure to protect te Bank's reserves? Does the raising of the Bank rate ever fail to attract gold and chan:e the course of exchanges? how do you account for the fact that at times a higher Bank rate in England fails to attract gold from the Continent wen lower rates prevail there' Is the raising of the Bank rate more effective in controlling gold movements now than at the time of the last suspension of the Bank Act in 1666? I To what do you attribute this increased efficiency? ..f.-. .. .. . , effect d raisine tile' t A t110 perio from I lanu.se.y, 1908 S C -urOi,the. R 907,. c1 , PO f.11 , l / dt'he ells:/ are taken in;adcti 11, on to raising the BanO-Kiie i to p o ipt ithe outflow of gold, in times of a crisis?[-l , ,,, >.... y /Ps' itcusiptgatAiA, supla --4 igires to , , Vance oney.withOut . . ) b _ s tereSt.i, r....,of'‘,,g441.d. 4P0 tlge,..eime, * liatedAin trapuhrtetion? .,i hat \ - 4*.Is Is it the policy of the Bank of Encland to discriminate against finance bills in times of financial crises? 444-.1 Does the understood policy of the Bank of England to advance bank rates rapidly and at the same tin,e to extend liberal credit in times of serious financial trouble, meet with general approval in business and banking circles? 'ft.' Is London the only free market for gold in Europe? rer6-1- 6/ Do the joint stock and other banks rely upon the reserves of the Bankin Department of the Bank of England as their ultimate resource in case of trouble? %o you favor an increase in the fiduciary note circulation? '614°Do you favof the issue of one pound notes? (44,If not, what is the reason for your objection? , ic , --'Does the proposttion for a secondary gold reserve meet with C79, your approval? 5 Has the experience of the United Kingdom with reference to note issues under the legislation of 1844 and 1845 been satisfactory? 56r:ti f17;ith respect to the monopoly of note issue, are any modifications or amendments to the bank acts su Tested., and if so, what is the ntture of the proposals? 4Is there any substantial demand for what we in America call " greater elasticity" in volume of currency (notes and coin) to answer business derands? s there any inclination to adopt the qerman system of taxed Issues for emergencies or some modification of it? there any tendency to return to the system of note issue in existence prior to 1844? -4 4), T its there any contention in banking or economic circles that it is necessary to restore or extend the rif-ht of issue to banks other than the Bank of England, to enable them to increase their own profit, or to afford adequate facilities to borrowers or to meet legitimate business demands? ' 7.4r:Thflas the rapidly incret:sing use of checks, bills of exchange, and other instruments of credit and clearing h use facilities, rendered the enlarged employment of bnnk notes unnecessary? AVhat effect has a marked increase in the commercial and industrial activities of flreat Britain on the volume of note issues? 4: o \ 446That, in your (Opinion, is the effect of branch banking and the amalgamation of banks: (a) Upon the amount of cash held by the banks? (b) Upon local bank rates? (0) Upon the prosperity and development of communities? (v) The later History of the Riksbank As already stated, the Riksbank was put on a new footing in 1830, when the circulation of the bank's notes at 37i per cent of the silver represented by their face—value was author— ised. Its capital was fixed at 4,400,000 bank dalers, 6,600,000 dalers currency, the balance of an advance to State for war purposes in 1608. On the resumption of or the specie payments in 1834, it was found possible to provide a capital — fund of 7,500,000 dalers currency, which was increased to 15,000,000 from 1st January 1645 by a transfer from the reser ve fund whicA had been accumulated in the meantime. In 1864 the capital reached 25 millions, 30 millions in 1679, 35 milli ons in 1882, in 1885 40 millionL, in 1890, 45 millions, and it was fixed at 50 millionf,,which it had reached in 1893,by the law of 1897. The fixed reserve fund remained at 5 millions from 1873, when it was first reached, till 1900. At the end of 1902 a special fund of 14 millions was constituted out of reserved earnings for a special class of loans and p by the end of 1908,in addition to a reserve fund of 10,419,000 kronor, an almost equal sum in surplus-- not definite12 assigndd to the reser % vc fund—was able to be shown in the balance sheet. Thus a sum of 83,323,708 kronor (say P2,220,000) represents wAat in priva te1y- ' 0 owned banks, would be proprietors' funds eTployea in the ausi— neSS. This has been accumulated entirtay out of profits, and that in .spite of the constant payment of a large share of those profits to the public funds. Thus ,ofthe net profits of the years 1065-39 the National Debt Office received 70 per cent, though of those of the following years it received none. For 1844-47,and again tor idol-- 6,and for 1660-65 2it received very large part of the profits, while for 1867 it received the whole oi While the t)o.flii ,7radua1ly struggled to accumulate thecapi— tal of 25 millions oriO.nally contemplob,tea in 1050, and on1 at— taining it in 1864, the reserve—fund originally intended not be— ("4 Pea at 1,4L e:3 • ing attained for ,,nother decade, the National Debt Offiue was assi6Aaa 24 millions of profits to the 14 millions reserved for adding to the pankis capital. 74, 11 oL,, o 1 In the next 10 'cars 3.(55.- millions of net profits were assi,'ned to the National Debt Office; in thc 10 ytars,1,-,1.—o4, the Bank retain— ed 16 millions 14 millions; 1ion i:ational Debt Office was assigned over nd in the 10 years 1..:J5—cJ4, of nearly ..44 mu- of net profits th brf lloed to retain only about The Laost recent years show zimilar figures. For ti o;i.::ars during which the note monopolo has been enjoyed by ' the RiksbJ..nk, *;4hilt just over 6 million have 1)ri Added to tie rebourc-Js of the Bank, the National Debt Office has, in those year,;, receivd 24 million kronor of bank—pro , Cits. Now that an 3 adequate capital and reserve has been accumulated, the payment of a large share of the ample profits to the State is not open to the criticism naturally directed againl-A that course when the bank was building up its resources out of the yearly gains. In 75 years, the Eational Debt Office has received, of the profits of the bank, a sum of over 30 million dollars (U.S. currency). Allowing for the value of the pretnises and bank furniture, not assigned any money representation in the bank's balance—sheet, it may be said that approximately 55 per cent of the net profits have been paid over to the State. Rules limitingtheproportion between cash holdings and cii culating notes were framed in 1830, requiring the provision of a cash fund not less than five—eighths of the circulating notes . In 1834 this was modified to a two—fifths proportion, but even this could not be maintained, and in 1643 the cash fell to only one—third. Under the influence of the English Bank Act of 1844, new regulations were substituted for the old in 1845. tion of holding at least 10 million On condi— dalerse, currency in cash, a fiduciary issue of 30 millions was permitted, a regulation much more easily observed. The regulations of 1830 had fixed the minimum cash holding at 8 million dalers currency (2 millions silver), so that the requirement of 10 millions was a raising of the limit. Moreover, in lowering the proportion of the cash at its minimum to the circulation, there were inclu ded in the latter, not merely notes, but also the amount due on depoLi :An 4 which no interest was at that time paid. The balance of credits granted, but not drawn out, being a demand obligation, was also included. Thus the change was not calculated to induce so weak a position as appears at first sight. Notes in excess of the fiduciary 30 millions, and the 10 millions against coin and bul— lion held in Sweden, might be covered by metal en route from abroad, by funds of the bank on deposit in Hamburg or Altona,and by bills on Hamburg or Altona at not exceeding 67 days currency. Later the currency of bills available as cover was extended to 90 days, and Berlin and London included as plac es at which they might be payable, vitailt.t in 1d66 foreign bills generally were admitted. This provision of bills of exchange as cover for cir— culation was used in 1857 as a means of evad ing the strict inten— tions of the law. Though there was no run on the bank, its cash decreased very rapidly between the and of 1855 and the middle of 1857, owing to remittances abroad. It had stood at about 19 millions in 1850-52 and from that had incr eased to 52 millions at the end of 1655. By the middle of 1857 it had fallen to 25 millions, and, though the rapidity of the fall was checked in 1856, fell further to lei millions at the end of 1859. The funds of the bank being, to a large extent, tied up in long period loans, the reserve could not be replenished, or the pro— portion of cash assets to obligations increased, by the process of callinz in these loans. Commercial ; loans had to be restricted if the limit of issue was not to be exceeded, and the strain of 5 the restriction was severely felt, An association was formed among certain members of the Exchange for mutual assistance, and they drew bills on a Swedish merchant residing in Hamburg and presented these bills for discount tQ the Riksbank. As the process oi advancing notes against these bills did not touch the fiduciary issue, the bills themselves being legal cover for the notes, funds were thus provided to meet the need, and a State loan of 12 million dalere being raised abroad at this time, the difficulties of the situation were met, bankruptcy averted, and the losses of the bank due to the crisis kept down to a modest amount. The difficulties arising out of the fact that the Bank was controlled by the legislative authority, without the right of supervision on the part oi the executive, had formed, naturally, the suoject of numerous discussions. The old plan lof bringing in the interest of private shareholders to exercise more effect— ive control, was discussed anew. The constitution imposed an obstacle in the way, which was ingeniously avoided in the pro— posal of an important Committee, whose report was made in 1860, to divide the bank into two parts, following the general lines of the division of the Bank of England in 1844. The Issue De— partmentl retaining the name of the Bank of the Estates of the Realm, would fulfil the terms of the constitution in remAning under the control and guardianship of the Parliament solely. The banking business proper was to be assigned to an institution II 6 in which it would be possible, if desired, to join private capital with that of the State. This proposal, however, was not accepted and realised, though the discussion of the situation had its influence on the legislation of 16(54 for Enskilda Banks. In 1872 the use of bills on foreign places as cover for demand obligations was discoa— tinued, and the balances of credits granted but not fully used were excluded from the sum.againstwhich cash cover was needed, though current account balances remained a part of that sum. The cover available from that time was, in addition to the ac— tual metal in hand, precious metals held abroad, or in transit, for account of the bank, ::4nd balances due from bankers and mer— cantile houses abroad. The value of silver coin, after 1873, was required to be taken only at 90 per cent of its face value, and of silver metal at rates to be determined by the managerl of the bank, and, naturally, related to the current market value of silver. The strict provisions of the law were overstepped, in regard to the minimum metal reserve, in 1869 and in 1870. In the former year it fell below the 10 millions in 26 weeks, and W&8 at one time just under 4 millions. In 1870 there were two weeks when the metal reserve was under the 10 million legal minimum. The note—issue exceeded the legal maximum on one oc— casion, namely On the weekly account of 30 September 1373, but was already 31i millions under the legal maximum in the followi ng 7 week. As means of defending the reserve, the bank's managers were instructed to undertLke the following lines of business:— dealing in gold and silver. nc in foreign bills of exchange, and the purchase and sale of Londs and the debt—obligations of Governments. The right of raising loans abroad was also an im— portant element in this connection, a right which had been in— cluded in the regulations of1845, to the amount of 12,000 1 daiers. 0 or such a lean, the guarantee of the State followed on the approval of the Executive Government, wit_lout further formal approval of th Parliament. In the preceding, the ef— fect of a loan in 1857L-8 has been noticed. From let January 1880 the minimum metallic cash holding was raised from lu to lu millions, and the maximum fidi,ciary issue to 35 millicns,whil the limit of the foreign credit just referred to was raised from 12 to 17 millions. The aboli— tion of tne o kronor note of the Enskilda _banks was closely con— nected with these measures for facilitating an enlarged circu— lation. It should also be stated here that the old notes of 1 krona had no longer been issued after the end of 1875, and the old iractional notes were gradually being withdrawn as they were presented for redemption. Till 1849 notes below the value of 1 kron, even as small as a quarter of a krona (6.7 cents) were issLed. In 16o7 a further mouification in the regulations was 8 made, in that the balances abroad available as cover for notes were now required to be current account balances, while inter— est—free deposits, and the bank post bills outstanding of which an account has been given above, were now excluded from the to— tal determining the legal amount of cover to be held. Thus the regulations were made somewhat more stringent. The fiduciary issue was also increased, subject to an in— crease of tho metallic reserve. This reserve, four—fifths of which was required to be gold, in coin or bers 3 was in no case to iall short of 13 mi1lion6, as before, out, should it exceed this amount, an increase of the fiduciary issue was perilitted, not exceeding in all 10 millions, making the maximum 45 mil— lions. The condition on which any part of this additional 10 millions of fiduciary issue might be allowed was ,that thc:: me— tallic reserve should exceed 15 millions by 30 per cent of the amount by which the fiduciary issue exceeded 35 millions. Thus, with a cash holding of 15 millions, consisting of at least 12 millions gold and the remainder of legal silver coin taken, so far as that struck after 1876 was concerned, at 90 per cent of its face value, the issue might amount to 50 millions plus the amount of the foreign current account balances: with a cash holding of 18 millions (not less than 14.4 millions gold) the total issue might amount to 63 millions plus the amount of the foreign credit balances. For greater issues, the usCess was 9 required to be completely covered by the metallic reserve in excess of 18 millions. means fully used. The actual rights of issue were by no In 1376 and 1879 the total outstanding notes fell even below the per-pitted fiduciary issue, partly owing to the withdrawal of the old small notes. With the cessation of tAe 5 kronor notes of the private banks from the beginning of 1880, the outstanding circulation of the Riksbank increased, but even in 1890 the lowest of the monthly figures (end of April and July) were a little less than 40 millions. From 1892 on— wards the circulation increased rapidly, and in 1399 the maxim um and minimum were 56.4 millions (February) and 75.2 millions (December) respectively. In these seven years the average cir— culation of the Riksbank increased by 50 per cent, and the to— tal note circulation of all the banks by 40 per cent. After various efforts to arrive at a satisfactory solut ion of the problem of centralising the business of note—issue las already related a law was passed in 1397 by which the matte r was arranged. The fact that the new constitution thus given to the Riksbank was effected, not by •the use of the royal preroga— tive but by an act oi the regular legislative authoritie s, the Parliament and the King in association with one another, is it— self a notable point. Previously the legislation had taken the form or royal decrees, which were not always in close agreement with the legislative proposals framed by the Parliament. The new constitution rests on an Act of Parli ament duly assented to 10 by the Crown, and thus, though the control of, and respon si— bility for, the Riksbank was still assigned to the Par liament, modifications of its constitution must be effected by combined action of King and Parliament, since they involv e changes of a law resting on their combined authority. The notes oi the Riksbank retain the character assured tJ them by the constitution, of leg al tender, and the Bank iz) re— quired to redeem them on demand in gold coi n at its Head Office. The capital of the Bank is fixed at 50 millio n kronor (13 1400,000 dothrs) exclusive, as had bee n the case previous— ly, of bank premises and furniture. The metallic reserve is defined as con sisting of all the domestic and foreign gold coin and gold bullion, the property of the Bank within the country. Silver coin is thus excluded. The metallic reserve is to be not les s than 25 million kronor at all times. The note—issue remains partly fid uciary, partly covered by cash. As cash may be reckoned the metallic reserve as above defined; gold coin or bullion dep osited abroad or in transit therefrom and covered by insurance ; and the current account credit balances of the bank with banks and mercantile houses abroad. The fiduciary issue must be covered by easily realis— able foreign Government bonds; bon ds of the Swedish Government, of the General Mortgage Bank o and of other Swedish enterprises 11 which are quoted on forein Stock Exchanges; and bills of ex— ch_Lnge, domestic or ioreian. The maximum of the fiduciary issue was fixed in 17 100 million kronor, cut any excess of the fiduciary issue over 60 millions was made conditional on a mdtallic reserve exceed inc, the minimwa of 45 tail1iori b. 30 per cent oi the amount by ) which the fiduciary issue oxceed4 50 millions. Thus the full 100 uillions of fiduciary issue cam only be reached when the netaiiic reservewis at least 6? nillion kronor. By moaification of the law, paused on 3rd May 1901 , these limitations 01 the note—issuing rights unde rwent import— ant moaifications and extensions. On the one hand, the cash coverin, so far as it consists of fore in credits, is now defined as the amou nt of such credits aftc:r deductioq of corresponuing debit a::lo unts, net instead L;ross credit balances. further, the words "mercanrile houses" are replaced by "punkin:- '1ouLes". , The minimuta metallic reserve is raised to 40 million kronor, and the fiduciary issue (which, unaer the 1697 law, this metallic reserve, would reach, but not exce.,:d 100 million kronor) ma. i . cxceed its assigned amount oi 100 million kronor by the a:nout i 11) .:hich the metal— lic reserve ,xcet:ds its minimulA of 40 millions. With ;1 -eater strinency in certain resp ects, the expansion oL the fiauciary issue to any requ ired extent is thus provided for. With these extensions 01 note—is:lues , the capital of the 12 bank was raised a year later by setting aside a sum of 1 1 500,000 kronor as a special fund for the class of loans repayable by instalments at fixed periods. The amount devoted to this pur— pose had pcevioudv formed part of the ordinary funds of the bank, from which it has now been separated. loans catIno The fact that these b called in to meet an emerency renders them un— c.4E suited as investments of the general funds of a noe—issuing bank, and this difficulty was avoided,in 167 by limitin their aggreate amount and from 1903 by separating the fund from which they were made from the general funds of the bank. It may be noted, before passin :7 to the provisions of the r law wruc:1 restrict the operations of the bank, that, at the close of 1908, the outstanding notes were, in round figures, 201,500,000 kronor (55,750,000 do114rs). The faetallic reserve was 78 millions, and the net foreign balances 30 millions. would appear, fro.i th It figure of the total rights of issue l t- at trie i'orein balances available as cover J for notes must have been 24 millions onl'. Thus the legal fidtwary issue was 136 minions, and the issue covered by cash and net foreign iRA-cr-+-1( sv credits on current account 104 millions,a total of 242,500,000, leaving a balance of rights of issue avail-1,1.:: b<cflid those actually used of 41 millions. The outstanding notes exceeded by one—third those of the Riksbank and the Enskilda Banks gether a decade previously. to— It might be supposed that this growth woula be accounted for 1);,' the fact that, now that the 13 rights ot note—issue are no longer enjoyed by private banks, these latter find it necessary to hold, as reserve, a large amount of the notes of the Central Institution. tne notes held by The amount of Lie sevral banks is not stated separately from the fractional currency and theircredit balances (on called "giro" accounts) at the iiiksbank. sa— The total of these at the end of 1908 for the 17 surviving Enskilda Banks was 19.2 million kronor, or little more L.:Ian 6 millions in excess of the corresponding total at the end of 1898. Thus but a small part of the increase of issues is capable of being accounted for by the substitution of notes for gold as reserves held by the Ene— kilaa Banks. On the other tne olu neld b he Enskilda Bur.icL, was steadily inorkeing durio_ the nineties. At tji, of lea6 it reached 9 millicr kronor, while at the tnd of 1906 it was less than the fiftieth part of that amount. The gold held by the Riksbank 111 1 meanwhile, increased by over 43 mil— lion kronor, or nearly five times the amount b by Enskilda Banks decreased. 1.:;nt of comethinb iik outstanding( which that held It tque appears. thatthe equiva- twa—thivds of the/increase of to 4 a1 noes . the ten years ending with 1906,yhas been,s a_ result of the centralisation of the note—issue in the middle of that period, added to the gold reserves of the country, while those reserves are now wholly centralised under the control of the Riksbank. From the point cl view cf those who believe that a stronger gold backing for the circbl,...ting medium was desiraide, regarded and indeed necessary for safety, the result must be as eminently satisfactory. It is impossible to believe that, lda Banks, had the note—issue remained in the hands of the Enski substan— the addition to the gold reserves would have been as As an example of the trend of events we may take the tial. figures for the end of 1892 and compare them with those already used for the end of 1898. In that interval the aggregate not issue increased from 101.9 million kronor to 150.1 millions. The total gold held increased from 24 millions to 40.2 millions. Thus but a trifle over one—third of the increased nota—issue is represented in the increase of gold holdings. The outstanding notes of the Riksbank amounted to 44 millions at the end of 1892, and to 70.8 millions at the end of 1698. Its gold re— serve at the same dates was 16.8 millions and 31.2 millions respectively. Thus somewhat over one—half of the increase in its notes outstanding was devoted to strengthening the reserve. The Enskilda Banks had increased their outstanding notes from 57.9 millions to 79.3 millions, and their gold reserves from 7.2 millions to 9 millions.1 Of the 21.4 millions increase in notes, only 1.8 millions were devoted to increasing the gold The highest figure ever reached for Enskilda Bank notes outstanding was 83.6 millions at the end of March 1901. Their gold holdings at that date amounted to 9.5 millions. 1 15 reserve, the proportion of which to the notes outstanding was, in fact, decreased in the interval considered. It appears, therefore, that both in the years more immed— iately preceding the final arrangement of the centralisation of the note—issues, and subsequently, the policy of the Riksbank has been directed towards the strengthening of the metallic re— serves on which the preservation of the soundness of the credit of the country rests in substantial degree. that the monopol It is also clear of note issue has conferred on the Central Institution greater power to attain this important end. Of the principal other features of the revision of the law under which the Riksbank operates, three claim notice: (a) more particular The safeguards provided against the decrease of banking facilities as a consequence of the cessation of note—issuing privileges of Enskilda Banks: (b) the The limitations imposed on the kinds of business which the Riksbank may under— take: (c) (a) laid down. Changes in the bank's constitution. In reference to the first, two lines of action were On the one hand, the number of branches of the Riks— bank was required to be so increased that there might be one in each of the 24 districts into which Sweden is divided for local government purposes, excepting that immediately adjacent to Stockholm, for which the Head Office in the Metropolis may suf— fice. 1903. The last of these was opened in the course of the year On the other hand, as a partial compensation for the loss as: note—issuing privileges, the Enskilda Banks were assured important financial support from the Riksbank on condition that they maintained all the offices which were in operation at the opening oi the year 1896. Those banks which abandoned their own issuing privileges Lathe five years' interval preceding their legal cessation on December 31st 1903 (as has been seen all of them actually did so), were entitled, subject to the condition mentioned, to the grant of an open credit, against approved se— curity, at 2 per cents under the current 3 months' discount rate, (provided that the charge should not fall below 2 per cent) and without the usual additional charge proportionate to the maximum limit of such credit. This limit in each case was to be one— half.the amount of the outstanding notes of the bank in question on 1st January 1396. to rediscount In addition, such banks were to be entitled pproved bills of exchange at the Riksbank at a rate not exceeding two—thirds of the rate charged for the same accommodation to others. The limit of these rediscounts was also to be one—half the outstanding notes on 1st January 1396. From 1st January 1904 till the end of 1908 these privi— leges were to be modified, and all the Enskilda Banks were to be entitled to rediscounting privileges on the above—named terms up to an amount equal to 40 per cent of their notes outstanding on 1st January 1696. This advantage was subject to the condi— tion that none of the offices, of any bank thus privileged, 17 which were open on let January 186, should be closed while the privilege continued. Should an: office he closed, however, the Crown was to detr-JincA in what de L;ret:, if dt all, the privi— lege in ,„:).estion should be continued, the importance of the office or offices thus closed forming the basis of such a deci— sion. The provik_ion made for the period of transition to the mono1. :oliLed note—issue was subsequently 'nodified by , law of 3rd May 1901, which substituted the folloainL for what has just been set forth. The time for ahandoning its note—issues having been settled by arrangement between an Enskilda Bank and the Riksbaak, and on condition that none of the offices open on January 1st 1896 should be closed during th.. trA-1 covered 1-, „ the arrangement,un— less with Lhe permission oi the Crown on the recommendation of the Mank;ers of the Rikelnk lte Ensk.ilda Bank ::it be granted, a'it ,i,i)roved collatral, loans not exceeding 65 per cent of its notes outstandinL71 on 1st January 1901, and not exceeding 10 per cent of the sawe dlount. cnare n open credit The interest on tnese loans and advances to be 2 per cent below the 3 months' disco-L.:nu rate of the Riksb,ink, tiou i,h not in case lower 4 aqy per cent, ana the usual extra car:t fDr open credit being retA.tted. he Further, rediscounts up to ;:,ti per cent of the notes outstanding on 1st January 1901 might be 13 granted at a ra1,,.. riot exceeding two—thirds of that otherwise oy the Hiksbank. At the end oi each year, beginning with 1903, the amount oi the maximum limit of each of these special privileges is de— creased ono—cihth of its oriLinal amount, so that they lapse efitir,--ad at the and of 1910. For batiks which had already given up their note-issues be— fore 1st January 1901 (there was one such bank) the outsta.nding circtaatiori of 1st January 1896 was taken as the measure of t}le advnces at special rates in place of the circulation of 1st J1J,,ry 1901. change effected by the law of 1901 was one distinctly advacus t() the Enskilda Banks. It gave them direct loans in place of open credits, thus making them more effective agents in putt in; notes of the Central Instit,ution into circulation under conditions under which the own. previously issued their It 1,A:t a sufficient open credit to serve as the basis of draits on the Riksbank in the form of bank post bills; and s'abL:tritial rediscounting privils at special rates, the latter, 1ik int() th te direct loans:, putting notes of the Riksbank hands of the Enskilda Banks. Further, the substitu— tion of the 1st Januai%, 1901 for the 1st January 1396 as the ) date, thL: outstanding circulation at which served as the measure of the advances at special rates, practically increased the maximum of the special advances, up t f 1903, by about 19 40 per cent. The st4WAitution of a period of seven years, baginninL with 1904, in 'wvich the special ildwinces gradually de— creased from beir about ai times as great as under the arrange— ment of 1697 to fin6.1 disappearance, for a five—year term dur— ing whic-A the rnaximuoi o): the special advances remained fixed, was also a great Icidition to the coreession made to the vate banks, nearly damblin pri— the value of the concession after Jarluary 1904. As ht been seen, the valu oi the concession by the Enskilda Banks adequate to justify ias deemed the resignation of their ri6hts earlier than the date fixed in the law fpc their defini , cessation. ve Banks which becarna entitled to the privi— le :es above—nail-led did not lose them if, in place of re,r:ain1n7 subject to the law of unlimited liability, they becalaw joint stock banks, or wer,:: nerd in , uch banks. s ordinary About 26 per cent of tne loans and advances under the arrangement were, at the end ol 1906, m....de to such joint stock banks, five of were benefitin t- by tlie special terms, as representatives of the ten Enskilda lanks, which bv (b) ceased to exist as Enskilda Banks. The 6rant of tile monopoly of note—issue to the l'Aks— bank was accompanied by a stricter reulation of the nature of the business conducted by the Central Institution. The purpose directly in view was, doubtless, the more effective pliarantee of the solidity and realisability of the assets of the note—is— suin autdo:I.j. Incidentally, however, it resigned to other institutions certain classes of business, and though the former note—issuing banks have necessarily to compete for this business with other Joint Stock Banks, the competition of the privileged central institution is removed. The business assigned to the Riksbank falls under the following heads: (1) Purchase and sale of gold and silver. (2) Purchase and sale of bills of exchange, drawn on foreign firms or persons, and with a currency of not exceeding six months, such bills being payable either abroad or in Sweden. Other foreign short term paper of not exceeding six months' currency, may also be acquired and afterwards disposed of. (3) (a) Purchase and sale of Swedish bonds, and of such obligations of foreign governments as are quoted on foreign Stock Exchanges and are readily realisable. (b) Taking over by arrangements other than those for purchase, or Swedish Government bonds and readily realisable obligations of foreign governments. (c) Acting as agents in effecting the purchase and sale of Swedish Government bonds and the bonds of the General 2lortgage Bank. If 21 (4) (a) Discounting accepted inland bills or ex— c'aanE,e payable within six Trionths. (b) ioans arainst stock Exchar.,7e collateral rapay_ble within six months (fixed terill) or on not exceedin three months' notice. 7n the case 4 colilmunal authorities and other corporations of similar status, the note of the borrowing cor— poration may be accepted as sufficient security without ()tiler collateral. (c) Loans a,,,inst T!1,::rchandise in a public wart -- house or deoLited in Criarge of an independent trustwcrthy person who ii bound himseli to hold them at tie diepositaon at the Riksbar.k, such loans to lor lixed teri.as not exce6dinr, six months. (d) urant or credit on current account for terms not excee.din t:.elve months, against col— lateral consisting of bonds, shares,or a lien on real estate l and also ar-ain:.;t personal c urantees. , . Ihe maximum —1,1ount ol thc: funds of the bank v,Ilich t any time be advanced in this way shall not exce(,d 15 rr.illion kronor (4,000,000 dollars, 30 per cent of the bank's cauital,) not including in this sum the credit to be op:::nbd for the 22 National Debt Office, the amount of whi ch is fixed not to exceed 1,500,000 kronor. (e) On similar security to that named in the preceding paragraph (d) there may be gra nted loans repayable by instalments at fix ed inter— vals. The aggregate amount of such loans was fixed VI the law of 1897 not to exceed one quar— ter of the bank's capital. Five years later, a law of 14th May 1902 set aside the sum of 12,500,000 kronor for such loans as already stated, the capital remaining unchan ged and the fund in question being provided fro m the accumu— lated surplus. (5 Deposits for fixed terms or repayable on demand to be received without charge and sub ject to no interest payment. Current accounts ("giro" accounts) to be kept free of in— terest or charge, and the bank to make the necessary arrange— ments in connection therewith fur eff ecting the bus4.ness of the clearing house. Firms, other than banking firms, whi ch have a discount ac— count at the Riksbank, may receive interest on current account balances. The bank is required to receive the Public Revenue and tu 23 make payments on account or the State without charge. The bank is required to accept at any of its offices de— posits of money and to issue sight drafts on the Head Office in Stockholm for the amount thus deposited without deduction or foe. Arrangements for the receipt of sealed deposits are also to be made at the Head Office, and at branches as may be determined in the regulations made from time to time. Foreign loans may be raised, and accounts opened with re— liable foreign banking and mercantile houses with or without interest. Beyond the business included under the above heads, and the manufacture of paper and conduct of the necessary printing, the Riksbank is prohibited from carrying on any other class of business whatever. It may not own real estate beyond that need— ed for its offices, paper manufactory and printing works. To protect the bank from loss, it may buy in real estate on which it has a lien when such property is sold by auction, but it must be sold again on the occurrenceofasuitable opportunity, and in any case when the sale can be made without loss. It will be observed that the Riksbank,in being excluded from paying interest on deposit accounts, leaves an important line of business to other banks. It is also not under the same pressure to find investments' for its funds when the attraction of interest is lacking to draw to it a large deposit fund. AS 24 a matter of fact, as already noted, this item has practically disappeared from the balance sheet since 1897 . Current accounts with interest on the balance to credit of the client, though allowed with certain reserves (see above) have , in fact, not been developed. At the end of 1908, the resources of the Rike — bank included capital and reserves and outstand ing notes amount— ing to three—fourths of the whole. Of the remainder, nearly one—thira was due to the business conducted by the bank for the National Debt Office and%the balance of prof its held for account of the State. The element corresponding to the deposit and current ac— counts of American banks amounted to some 14 million dollars out of a balance sheet total of 94 millions. This item is, doubtless, largely affected by the balances necessary for the conduct of the clearing. It represents, at any rate, actively operated accounts, as the average turn—over on these accounts per weeknearly amounted to the average bala nce to credit. The Riksbank has, to a very large extent, ceased to derive its re— sources from those relations with the public on which other banks are dependent. Its note issues are the over whelmingly most im— portant debt to the public. At the date named, the seventeen remaining Enskilda Banks had fixed deposits tota lling nearly 122 million dollars, and the 28 "limited" join t stock banks with a capital exceeding a million kronor (268,000 dollars) held fixed deposits to a total of 12 illion dollars. Besides the fixed deposits, the other accounts ordinarily included in America under the terms "deposits and current account balances" amounted to 34 million dollars for the Enskilda Banks and 70 alillions for the limited banks. In all,therefore, these other banks disposed of over 350 million dollars of funds placed in their hands by the public, their proprietors' funds amounting to about 142 million dollars, and the balance—sheet totals ag— o- ezating nearly 615 million dollars. There has thus developed a situation in which the Riksbank and the other banks operate in fields almost wholly distinct so as the sources or their available funds are concerned. In the matter of investments the dominant item in the accounts of the Riksbank iS inland bills of exchange, amounting to 44 mil— lion dollars at the end of 190b. The other banks to which re— ference has been made had, at that time, rediscounted bills to nearly 37 million dollars, of which a substantial part at least may be assumed to have been negociated with the Riksbank. or exchange formed over 46 per cent of the assets of the Bills Mks bank, and a little over 23 per cent of those of the other banks. Loans on securitj of various kind, on the other hand, form a relatively s;nall part of the investments of the central in— stitution, amountin. to little over 10 million dollars at the , 6 and 01 190t, or under 11 per cent of the assets, while such loans amounted to no lees than 362 million dollars in the accounts of the other banks, or not far short of 60 per cent If of their total assets. The proportion of loans on real estate to total loans on security was, at the date nalled, but little over one—sixth for the Riksbank and alTiost one—tMrd for the other banks. Stock Exchange securities do not figure heavily as collateral in either case. As already stated, the cash item for the Riksbank is large, gold coin and bullion nd other coin amountin6 to 23 per cent of the assets, while the other banks held only 13 million dolIrs, or a little over 2 per cent, al— most exclusively in notes of the RikEbank and in balances with taat institution. Other items should be included, such as checks and drafts payable at sight or within a short time, if the mea— sure of the readily available assets were required ) but what has been stated will suffice to show that the investments of the Riksbank differ from those of the other banks notably in those features which are related to the ability of the bank to meet demands promptly. In confining itself to such investments, the central institution goes far towards leaving the other banks in possession 01 the most profitable part of the field of opera— tions, thus removing what might otherwise have been a reason— able cause of objection to the grant to the Riksbank of the mono— poly of note—issues. (c) One of the features in the position of the Riksbadk which had been made the subject of repeated criticism and many proposals for alteration) was the fact that the control of the bank rested witd trie Parliament alone, and that niter in the %4 27 ecutive Government nor in any independent body was there any power to influence the discretionary authority of the Parlia— ment. In truth, the difficulty presented by this peculiar fea— ture of the constitution was perhaps rather apparent than real. Bevorthaless the proposals of the most recent Committee of In— quiry, that of 1890, included the Association of Appointees of the Crown witn those of the Parliament on the Managing Committee of the Bank, to the extent of one—third of the whole number. The actual change made fell con6idsrabl:i short of that proposed. The kanaging Committee which formerly consisted of seven Parlia— mentary representatives, has, by the Act of 1397, been made to consist of a Crown-appointed Chairman and six representatives of the Parliament. To the extent indicated by this change, the Executive Government has been admitted to a share in the control over the bank. Substitutes are appointed to act in case of the absence, or incapacity from sickness or other cause, of any of the naging Committee. The Committee of seven appoints three (from 1373 to 1698, two) of its number to act as Managing Directors of the bank, each having charge of certain departments of its operations. The jealousy of interference on the part of the Crown finds an expression in a Section of the 1897 Act re— lating to occasions when a representative of the Executive Government may be sent to confer with the Managing Committee of the bank. The Committee is forbidden to decide the question in hand 80 long as the Crown's Agent is present with them. 28 The, are thus reserved opportunity for private discussion, and independent action. The more detailed provisions of the regulations approved by the Parliament for the conduct of the affairs of the Bank need not be set forth here. They include,of course, the nu ber and status of the bank's officers at each office, and th scales of salaries for each grade. The law of 1.897 provided for the publication, in additi to the detailed annual statement of the bank's affairs, and a monthly summary of a weekly statement of the metallic reserve ) and of the gold held abroad or in transit and foreign credits, of the outstanding circulation of notes, and of the excess of legal rights of issue over the actual circulation. SUGGESTIONS FOR DIGEST OF STATE BANKING LATS. 1st. Terms of incorporation. (a) Minimum oapital. (b) Maximi_m capital. (0) Surplus. (d) Dividends. 2nd. Liability of. (a)Stockholders. Uuht names of stockholders be published? May other corporations hold the stock? Extent of rescrve liability. (b) 3rd. Directors. In case of impaired capital. In case of insolvency. Must directors own bhares, and how zian? lay officers engage in other businatis? , Must lik„bilitieL of directors to 1);.rik bc 3ublished? Supervisfton. Renorts. Ho'.r often required? , What items included? (b) 7xi_aa1ntltions. How often reql:ired? By whom made? 4th. Reserve requirements. 5th. Discount Etnd loan restrictions (to be stated separately where possible). (a) As to aggregate amount. (b) As to amount to individuals. (c) As to character. Can loans be made on real estate? Can loans be made to oil leers and directors of the bank? 6th. Investments. What restrictions as to investments in (a) Real estate? (b) Bonds? (o) Stocks? Can a bank hold stock in other banks or other corporations? Must such investments be published in detail? 2 . 7th. Branuhes. 8th. Anr provisiocis as to joint occupation or the same builaing by (Afferent l'nkinL, firms? 9th. Peutaties fcr Ho; far allowed? Ar.1:ci,mt1on oi Ls .bove stted. . . • These items should be E iv= : . for Sti_le eo far Trust CompLnies, tuld Si..vings Banks. as pobsinle, REPORT. SHARING OF PROFITS BY PUBLIC SERVICE COMPANIES IN EUROPE. GREAT BRITIAN. Gas companies, under the provilons of the so-called "sliding scale" divide with their consumers increases or decreases in profits. Under the sliding scale a standard price per thousand cubic feet is fixed, and also a standard rate of dividend. When the plan was first introduced the standard rate of dividend was usually fixed by Parliament at lel but more recently, when the 111e of new capital hl‘s been author.. ized, the rate has been fixed at 7%. The standard price has usually been established after taking into consideration local conditions, and at present it would probably be between three shillings ($0.75) and five shillings (;1.25) per thousand feet in different localities. The sliding scale clauses provide that for every decrease or increase of the standard price of gas by one penny per thousand feet the maximur rate of dividend allowed shall increase or decrease by one-quarter of one per cent. For example, if with a standard price of four shillings ($1.00) and a standard rate of dividend of lag the price falls to three shillings fourpence (0.83) the dividend may be le, or if the price rises to four shillings eightpence ($1.16) the dividend must not exceed e. It was found in practice that the sliding scale clauses were practically inoperative owing to the repeated issue of new capital at par to the shareholders, and Parliament then adopted the "auction clauses" which require the sale of new shares at auction, the premium received being carried to a premium capital account, on which no interest is to be paid. Since the adoption of this modification the slicing scale has worked satisfactorily. Many gas plants are owned and operated by municipal* -mot.of-Lities, and in England the profits,are applied to the reduction of general taxes, the gas consumer thus pay]ng a special tax for the benefit of the public at large. The statutes permitting Scotch municipalities to operate gas works provide that after allowance for interest and sinking fund requirements any further profit:, must be applied to the reduction of the price of gas, in this way relieving the consumer of any extra burden in the shape of proflts on gas for the reduction of general taxes. Tramway companies make no payments in money, but have the usual requirements as to paving and maintaining streets. A number of municipalities own but do not operate the tracks, and the rental of these are often placed at high figures. In London the County Council has bought certbin tracks, and leased them to the North Metropolitan Tramway Company at a fixed rental of £45,000 ($225,000) annually, 1/e on the cost of exten- sions made by the Council and four-fifths of the profits beyond W on the share capital. In Dublin the Tramway Company has recently (June, 18971) made a contract with the city, under which, in consideration of being al/owed to introduce electric power, and the OM • t ii• a, extension of the franchise for forty years, the company agrees to pay to the city £500 ($2,500) annually for every mite of street occupied, the mimicum payment to be £10,000 ($50,000) annually. FRANCE. Al]. agreerents as to payments are inserted in the contracts made between the ccmpanies and the municipalities, and maintenance of streets add charges for service are fixed by the contracts. PARIS: The gas company, under the terms of the contract of 1871, pays to the city a fixed sum of f.200,000 ($40,000) per year as rental for the ground occupied by the street main.. After the payment of all expenses, ordinary taxes, interest on loans and amounts necessary for the amortization of bonds and shares, the company takes of the net profits f.11,200,000 ($2,240,000), being 13 1/e, on the share capital. This capital is fixed by the contract at f.84,000,000 ($16,800,000), any new capital required being obtained by the issue of bonds. After deduction of the f.11,200,000 the bal- ance remaining is divided equally between the company and the municipality. In the year 1896 the share of the city was f.8,800,000 ($1,760,000). The price of gas is very high, 30 centimes per cubic meter ($1.68 per thousand feet), but reducttfts in price must be approved by the municipal council, and this, although desired by the company, has been repeatedly refused by the council. - .4-- The General Omnibus Company controls the omnibus traffic and most of the tramway lines in the city, and pays a license fee of f.2,000 ($400) on each omnibus, and 1.1,500 ($300) on each tram car annually. ProvIsion isaso made for an equal division of any profit in excess of e on the shares betweon the city and the company, but this amount has been very small, amounting in all since the signing of the contract in 1860 to only 1.380,000 ($76,000). The share capital is fixed by the contract at 1.29,750,000 ($5,995,000), but there is now a bonded debt of about f.100,000,000 ($20,000,000). The heavy charges /aid on the company for the maintanance of paving and amortization of shares and bonds, together with the requirement by the municipal council of the establishment and maintenance of many unprofitaboe lines, make the return to the shareholder about 6 %. WIRR: The tramway company has recently concluded a new contract allowing the introduction of electric power , under which it is obliged to pay to the city 2 1/2% of the gross income, with a minimum paymont of 1.18,000 ($3,600). But it is also provided that until the recoiprs of the road are in exCess of 1.60,000 per kilometer ($19,200) per mile) the minimum payment shall be f.10,000 ($2,000) until this latter rate of earnings is reached, when the minimum of 1.18,000 comes into force. ROUEN: he The tramway company is to pay On all lines after built, during the first five years of the contract, 1.250 per kilometer ($80 per mile) , for the next ten years 1.300 kilometer ($96 per mile, ) , for the next ten years 1.350 ...._..5 •." pdr kilometer ($112 per mile), for the next ten years f.400 per kilometer ($123 per mile), and for the last ten years of the concession f.500 per kilometer ($160 per mile). Provision is made that all lines existing at thetime of signing the con.. tract shall, as now, pay f.300 per kilometer ($96 per mile) for a period of twenty years, after which time these lines pay at the same rate as those built under the provisions of the contract. GERMANY. All contracts provide for maintenance of street, and in some also a fixed charge for rental of the street is in— cluded. Al). contracts, gas, electric and street railway, fix the charges to be made for service, and in the case of gas and electric light companies there is usually no requirement of a money payment. BERLIN._ The contracts between the city and the str-Jet railway companies have recently been revised, and the concessions extended, allowing the introduction of electric power. This new contract, which presupposes the consolidation of tne two largest street railway companies, requires the pay— ment of e on the gross earnings, and after allowing le on the capital now invested, and 6r, on the new capit-11 necessary for the electric installation, regnires the surplus to be divided equally between the city and the company. these two companies, Die Grosse Berliner The larger of Pferde Eisenbahn Action Gesellschaft, is now paying 15% dividends. The gas business is now divided between a municipal plant and the Imperial Continental Gas Association of London, which owns many works on the Continent. In Berlin this company pays a sum which is based on the payment of M.400,000 , ($100,000), with a sale of about 23,000,000 cubic meter: (805,000,000 cubic feet), and increases or decreases as the sales of gas to private consumers for light rise and fall from this figure. The price of gas sold to private consumers is 15.2 pfennig per cubic meter ($1.08 per thousand cubic feet) for light, and 10 pfennins per cubic meter ($0.71 per thousand cubic feet) for conking and heating, when soid by meter. separate On this gas no payment is made to the city. The electric light company pays under the terms of the concession a percentage of its gro.:,s income, and in any year when the profits exceed 6% on the capital stock a further pay* merit is made of 2.5% of the excess beyond . : Aix -T.A...qwEitqq... 6%. The gas company pays to the city 2 pfennig per cubic meter (14.2 cents per thousand cubic feet) on all gas sold to private consumers, but if gas is sold at a reduced price for heating and cooking, and measured by a separata meter, the amount paid is only one-half as much. BREMEN. The tramway company pays to the city ode'w quarter of the profits in OXCE183 of 5% on the capital. BRESLAU. The tramway company pays to the city one- third of the profits in excess of M.85,000 ($21,250). COLOGNE. The tramway company pays to the city from 1889 to 11393 M.5,C,00 ($1,400) annually, from 1894 to 1902 • 7,1+4 M.11,200 (32,800) annually, and from 1903 to 1816, besides this payment of M.111200 (32000), le, of the net profit so soon as these exceed 25% on the capital stock . DANIZIG. The traroway company pays during the first fifteen years of the concession e of the gross income, during the next ten years 2 1M, and during the last tan years 3%. wpARA Beginning tan years after the date of the contract the tramway company pays 2e) of the excess of profits over 6% to the city. Dresylpfl. This tramway is operated by gas. The tramway is operated by electricity, which, b y the terms of the concession, must be taken from the municipal electric station, and the company is obliged to pay lag depreciation on the electric machinert used to supply current, and must also pay 24 of the profits over and above a fixed percent to the city. DussELDoRxt . . The tra.mway company pays 3% of its gross income to the city, and also a charge per car, starting at M.500 (3125) and rising to M.2,000 (35OO) in the last years of the conce3sion. ELBERFELD. profits equal.V The tramway company divides its net withthe city. The Barmen-Elberfeld line pays e on the gross receipts. ERTUnt In addi:ion to tne payment of a gross sum of M.1,600 ($400), the company also pays during the first ten years 1 1/e, of the gross receipts, during the next ten years 3%, and during the last fifteen years 4 1/e. FRANKFORT AZNIT. The gas works of the Imperial Continental Gas Association of London makes a payment to the eft/ on the quantity of gas sold to private consumers, varying on a sliding scale. At the present time this payment amou nts to about 2 1/2 pfennig per cubic mete r (17.7) cents per thousand cubic f3et). The electric light works are owned by the city, but their operation is leased. This rental is, for the first year 5% on the cost to the city of the plant, for the second year 7%, for the third year 9%, and for the fourth and succeed1n6 years le. This rental must fir st be paid from the receipts, then the expenses of the less ee with 14 added to represent management charges are taken out, then e is carried to a reserve fund until this fund reaches le, and the balance Is divided equalLy between the city and the lessee. Ext.m*. ion are made by the city. The tramway company pays 61 on the gross inco me to the city, and also before the declaration of a divi dend the following amounts in cash:- For the first two years of the concession M. 30,000 ($7,500) annualLy, for the next three ;ears M.40,000 ($10,000), for the next five years M. 50,000 ($1 2,500), tria4-Hreift-tiv-e---y-e•ar-s--46-4.0 .00441-2--;SOO) 1 for the next five years M.60,000 ($15,000), for the next five year s M.70,000 ($17,500), and for the last five years M.80 ,000 ($20,000 annually. -9 After le is paid om the full shares and af, on the Genussactien (Actions de jouissance) the city takes one-half of the excess. full shares and As soon as the profit is equal to 16% on the le on the Genussactien, that is, when lag Is paid on the full shares and e, on the Genussactien, the City is to take two-thirds of the excess. The phrase Gennussactien, or Actions de jouissance, is untranslatable into English as the thing itself does not exist. Under the operation of the scheme of amortization the shares are drawn and paid off at par. In their place is is- sued a Genussactie, or Genussarhein, which represents the premium on the ordinary share; this form of certificate then continues to receive dividends so long as the company continues to pay in excess of 5:g on its regular shires, the amount paid being the excess of the actra dividend paid on the full shares over sg. Of course, when the concession has expired and all the shares have been amortized tic, remains no vale in these Genussaction, since the plant becomes the property of the city free of cost. HALLE. The tramway company pays e of the gross income to the city. tramway. Halle also has a municipally operated 10-Beginning five ycJar3 from the date of the contract the city gets 24 of the excess profits above .6;: on the shares until the company's profit amounts to 7%. When the dividends reach 7 1/4 to e the city gets 30% of the exce ss, from 8 1 4 / to W of the excess, from 9 1/0 to 10%, 401 of the I , excess, and from 10 1/4% upwixds, 50g of the 9%, excess. HANOVER. The gas company pays to the city 2 1/2 pfennig per cubic metir (17.7 cents per thousand cubi c feet) for all gas sold, excepting that to public lamp s. gas sold, omitting that When the used for street lighting, reaches 12,000,000 cubic meters (420,000,000 cubic feet ) annually, the payment becomes 3 pfennig per cubic meter (21.3 cents per thousand cubic feet). The tramway company pays 1 lie on its gross rece ipts up to M.1,000,000 (250,000), 2% to M.1,250,000 ($312,500), 2 1m, to M.11 1)00,000 ($375,000), 4 to M.21000,000 ($500,00 0), 3 1M to M.3,000,000 ($750,000), qnd 4% when the receipts excoed M. 3,000,000. ISAIRCIQUESIt The tramway company pays to the city one-gparter of the profits in excess of 6Y) on the stock. The electric light company pays to the city 40:7: of the net profit of the company above 6% on the shares. When the dividends reach 77: the city takes 5e, of the excess, 8%, 6e of the excess, gg, 66 2/e, of the excess. The tramway company pays to the city 2% of its gross receipts during the f.rst five years of the concession, and this rate increases by lg each five years during its life. MAGDENBURG. MO" The two tramway companies each pay 3 1/4 of their gross income to the city. MUNICE. The gas company paid during the first six years of the concession M.13,700 ((3,425) annually to the city, for the second six years M. 20,00 (o,150), for the third six M. 27,400 (t6,850), for the fourth M. 34,300 ($8,575), for the fifth M. 41,100 (t10,275), and for the sixth M.48,000 (tl2,000). This contract expires Oct. 31. 1899, and at that time the city will assume the operation of the works, having recently bought out the property of the company. The tramway company pays to the city gg of the gross receipts up to M.1,000,000 ((250,000), 2 1/2% on the next M. 500,000 ((;125,000), and e on all receipts in excest; of this. On excess earnings above 6% and up to 8% on the stock the city takes 25% of the excess. The tramway company pays to the city 2 ve of the gross receipts. In any event lf is to be paid, but if there is not sufficient profit to allow a dividend of e on the stock the payment of the other 1 ve remains in abeyance, but is to be made up later so soon as the stock rem ceives 4. After 1902 the city is to receive le of the • excess profit over on the stock. cg AUSTRIA HUNGARY. ••••1111M VIEtNA. The tramway company pays to the city f/.21220 per kilometer ($1,400 per mile of track), and when the gross earnings exceod f1.3,500,000 ($1,400,000) it is to pay 3 1/e, on the excess above this amount. The recent concession for an experimental electric line also contains a provision for the payment of 50 Kreutzers (20 cents) per year for each pole located in the streets. BUDAPEST. The surface streot railway in Budapest pays amounts to the city beginning in 1899 as follows:- If the gross income exceeds n.2,000,000 (t800,000) the company shall pay of the gross, and on each increase of f1.500,000 (200,000) the rate shall increase and shall be on the surplus over 1'1.2,000,000 as follows:-. On the first f1.500,000 the next, 41;",, the next, 5%, the next 7%, the next le, the next le, and on exces:- es above f1.51000,000 ($2,000,000) 16%. After 1907 the proceeding seven years are taken, and after throwing out the best and the worst year, if the average profit exceeds 10% on the capital stock the city and company share in the excess This is to be done each year there- after. The underground road pays for the first twenty years of the conces ion nothing, for the next ten years lg of the gross earnings, increasing 1% each ten years during the life of the contract, which is ninety years. mssibmi4 00.1.M . ITALY, MILAN. A new contract has recently been closed with the tramway company, which provides that the municipality shall lay and own the tracks and shall receive ohl the income. The city pays to the company 7 1/2 cents per car mile, and for all extra cars put on after 1901, 8 cent:; per car mile, for cars put on after 1906, 8 lA cents per car mile. city pays 2 cents per car mile. For trailers the The company makes a payment to the city for maintenance of track. Pt the end of the year the city deducts from the gross receipts the payments made to the company and the cost of maintenance, and divides the bal— ance. HOLLAND. AMSTEI:DAM. The tramway company pays to the city 5% of the gross receipts, and the company iv, allowdd a dividend of eg. For every increase of dividend above eg, 1/2% additional of the gross is to be added to the payment, of cor— responding fractions for fractional increa.;es. increase of dividend beyond 10', For each percent lAg more of gross receipts is to be paid to the city. The gas company is to pay as soon as two works are completed and in operation 4.03 cents (Dutch) per cubic meter (47 cents (American) per thousand cubic feet) on all gas sold in excess of 13,000,000 cubic meters (45h,000,000 cubic feet) annually. When a third works is built and put in operation the payment is to be made only on the excess above 21,000,000 cubic meters (375,000,000 cubic feet). ( 4' e•mr.•'31 711.07.1 0= ANALYSri Ov FOREIGN BANKING SYSTEM' OTTARAC= OF PRIVII-47GF: 07 CnR'ER: 7:hethor monopoly of issue or not. Duration of privilere and opportunitios for revi sion. Brief statement of changes in charters in recent year s. ORGANI:ATION AND GOVERTIMPT: Amount of capital. Character of ownership, whether public or private. ?riviloces of shareholders. l!ethod of vppoirtin i-overnor and Deputy Govornoro. Control of the (lovernment over managencnt. MRACTER 07 !TOTE ISSUES: Secuvity for :Jote ir:sues, 'llother rietallic money, seclrritios or commrc:Lal popar. Charactef and limitation of met:Illic reserves. T?rovisionn for omercency issues. 7acilitios and mothodn of redemption. Denominations of notes. Actual character of .11 circulation, 4 i.ether silver or noton. CFARAC7.T.OF 13trIn:SS Dom: Whether by discountin4- comercial paper, by loans on securiticc, or by c.ricultural loans. Lens th of maturity of commercial paper fixed by law, ilequiremntL3 in ro;ard to such paper. Actual maturities ollon by statistics (usually less than legal maturities because of re-dincounts). Tr3;11 .'21011 TO TIT 1..7.7.:7171"7I0ITAL TIOTTEY MAMET: Yow tho old movement is controlled, by changing: the discount rate or otherise. ethod of fixing discount rate. Number of chanes in flucl rate. Statistics of animal and averae rates. Other methos of influencinF tT_e mrket, as by "borrowing from the market" or sellinv securities. RELATIOM 70 OT= BAN7S: nethods of re-discount, Yith conCitions imposed. .?.elative bn.rainy strerv, th of roto-iscuinr in:Inla-3 and . stock banks. Accommodations extriMed to trade in emergencies. 7..-2.LATIors TO "Y7 OTTR.inr- Whother or not the bank per -orm trip ,overnment business Permanent or temporary credits to the Treasury. Manacemnt of the public TAX aobt. PAID: ecial taxes on circulvtion. Division of profit. Taxes on discounts above i fixed rate. Recent char -es in such laws. "COPE 07 =POST': Tho above facts f3. 1-.ou1d be ;, iven for the follerinc institutions: Bank of 17 .'1E:land. Scott 'ch of ; co. - .ran ormal.v. Austro-Hun:arian Ban!: o-( ' :Ls.tnk of Belk:,1-,:r.a. : Bank of the herlzoids. :;:r on. f3c71.3 ITat>trlif Ba9o d of l C ana .7 • ..c TiC 7?Kr, ' Mexican Banking :,yotern. It rn.y not be necessar:y- o lye allLne facts for all .1 " of ALheoe banks, but there is mach 1nt erclot14 e- erionce even rith .:T the soc11e.7 on and ineluiinc those of the Balkan flt ates and. other countries, to 7thich occasional refere nce niilt be made. such a statement as recommended v-ould be as brief and corTact a por.oiblo v:i4 1:out L3acrifi , cini- accuracy, perhaps -t.1- irty or forty printed parcE in -! public document form. 4 +AP. LIAT7RI S aex. jel liar t..ew York) P.A.IjCS AIM LAX 2AILUr-1,73 from the 17 th century to the present time;[:.:ivinr; dal,es I details,..11eged causes and reputed' losses. II.'L11"TJTURE OF GOLD. he r :sent and pr.bable future production offl Gold and the Prucesses and IT • ,/ ••• ea• -••• - • evices for winning it from the earth. , AD P. APE:a CI1t LA1'I01.: OF TH'21 201.7 .:ERCIAL WORLD from 1829 to 1908 sho . .rin:• the gradual improvement and substitution of the lato . or the for IT. 'iL.:CU,ATIOIr 02 .3 CO: at intervals from the 16th -entury to the present time. . 171C,001 011 ; 0.=,PA6'.2 21). 2T.2",j.a.E. .;omputations show1 ing the comparative velocity of noney,or the frecuency wit:: which -oney circulates in 'reut ritain,the jnited states of :JraJrica and some other countries; also a comparison of the past and pf(Jset and probble future velocity of money in those countries. VI. T:E YUTU.:iE OF IT7.152."he urrent _-bate of est 'or o', -arious countries and in the money markets of the - orimerial world,frola the earliest times to the present:the constituents of given rate of interest: reviww of its past cuv,'ent rate: its rec;3nt and present tendency: and its probable future course. VII. CL.J,CJLATIO.:.. 02 LO:.:7,Y in each of the followinr countries l at short int:31 7Lds from the 16th centlry to the pr-sent time t ?ompiled from the estima8 observat.1.,ns contamporanoo,,s torians and economizts, and An .cent periods from of°icial England lnd ra; 1ritain,Jni 4ed i.gdom, 'rance I one tarv tal y Jpain, , tr.lc;al, _ o thuT1 and.s, E73a, ndia and. he 4 ;iit • •1 ven - „ ,,ly nu from 1775 to the present :ear,and s4ow.Ln7 separately the coins,ro-ern: ont no tes,1 ,ank no tes 1 to tal noney,to tal pa pul a on ;and total money per capita year by ;ear. . • ssa- showing the sum a • of.atonal _ealth, to tal annual product,total 1)ou1at,Lun, and tot money of the United ,inr,dam,a the united shoL %. tats decennially n ervals since 16. and of la 7 JO • 0 e ,--f— 1^1 ' Lurt titative rolal,ions be twoen capital,incone ,noney,and nopul,..v_on. 7l aU.AASIL 02-.0 A GI 31. .1 :0.i o f who. ever materials it consisted) fron the earlio ,; times to the present. 2 7ATIO:AL 2=7= CO=ISSIO:1 110UOTIZAPHS=--"The Swiss Barl:ing Law." Washinoton, :larch •••• The folle:rinc matter furriOlea /.--Editors: by the liational Monetary Mommission must he held urtil released, which probably will be for Morring Papers of - Tarch Charles S. Daehl, AcsiFtvrt 7terteral Maragor, The Associated Press. FOR moRrirc PAPERS. rote by the ::onetau Commission:-The following story im is aistirct to be from that o4 the same gubject/released for afterroon papers of xxxkur goacizirimgm , March --LesterdaZ i ard Is furrished so al. not to duplicate the previous story. In the issue of thin7nuttermx the advance notices of these monographs, the effort is to alternate the precedence between the morning and nfterroon papers. ftirnedt Secretary. -:ed next time, so that first A. B, 2.!-This form would be chan: article would be released for nornirg Papers, and second for afternoon papers of the would then read: FOR AFTERNOON PAPERS. (and would read accordingly). we Clay. rotice Pertinent Extracts from the Letters from Officers of Banks ) , Accomp nying formal Answers to the Inquiries. 9 VI Memorandum In Re RAILROAD BON:DS AS . SEC3URITIES FOR Pp1-31,I_. DEPOSITS. . . . C • • The railroad bonds at present accepted by the Secretary of the Treasury in this connection are those which form lerral investments for Savings Banks in New York and Lassachusetts, the laws of these states governing the investment of Savings Bank funds being considered the most stringent. Under this rul- ing, two hundred and twenty-five bonds forming legal investments in the State of New York are available, a total amount of $1,257,848,000, and $809,269,000 2 the total amount outstanding of two hundred and eleven bonds in which the Savings Banks of Massachusetts may invest. In view of the fact that many National Banks are experiencing much difficulty in furnishing the required securities, it has been suggested that the situation would be somewhat reliev ed by including in the list of railroads accepted as securi ty for public deposits those whose bonds are eligible for Saving s Banks in Connecticut and New Jersey. At the present time the number of railroad bonds legal for New Jersey banks is four hundred and rortyeight, aggrerrating $1,800,734,000, while the bonds in which Connecticut Savings Institutions may invest total three hundred and eighty-four, an aggregate of 0.2654,334,000. -2• To recapitulate. The total amount of bonds which are legal investments in several states is as follows: rew York. OOOOOOOOOOOOOOOOO $1,257,648,000. 1assachusetts•••• OOOOO ••..••.• •.•.• 809,269,000. Connecticut OOOO OO .••••.• OOOO O • • • • • • 1,654,334,000. rew Jersey 1,800,734,000. Many of the bonds which form a legal investment for banks in New York and Massachusetts are eligible also in New Jersey and Connecticut. Eliminating those common to the four states, we find that should Connecticut and New Jersey securities be accepted, there will be a further contribution to the available supply of 089,26b,000. At first glance, the amount of over $2,000,000,000 at present acceptable, would seem to be ample to meet all requiremcnto, but it should be remembered that the savings banks alone absorb more than 4354,000,000 of these securities, while far larger amounts are taken up by National Banks, Insurance Companies, Trust Companies, and other fiduciary institutions, as well as by holders of trust funds and individual investors. With this tremendous draft upon the available bond market, it is not surprising that the floating supply is totally inadeq uate to meet the needs of the National Banks. Acceptance of the additional $589,000,000 rendered available by inclusion of Connecticut and Nev: Jersey securities, would minimize the difficult:, at present felt in providing suitable collateral, while still upholding sedulously most carefully the character of se- curities held for public deposits. Appended is a brief comparison of the legal requirements for Savings Banks in the States under discussion. Brief Co:Iumrison of the Leaal Requirements for Savin0-3 ranks Investments in :ew York, TAssachusetts 1 falit ...A • •I • Connecticut and Yew Jerse_y. • A short coparison of the requirements of the vari ous states may be of interest. Briefly, New York, Connecticut and ::ew Jersey insist that the "issuing corporation" shall have paid dividends of not less than four per cent. upon all outstandinr capital stock ror a period of five years. For Massachusetts the ten-year dividend record is in most case s of obligation. In nearly all instances the security must be a first mortgage bond or of an issue to retire the company's entire bonded debt. Connecticut, in coilnon with Massachusetts, limits investment to the bonds of railroads located in certain states, and also shares with that state and New York the provision that capital stock must be at least one-third of funded debt. New York and fassachusetts allow a certain amount of leniency towards corporations of the home state, but Connecti cut and New Jersey treat all companies alike. Confid;htial T. J. R- ssell. , ManaL,3r, London & Wastninbter Ban<. Thibe was ',he first purely London Joint StOCK first place for a lon and hild of a.mbagamation and time until the extansion to the provinces WU6 stz-,rtad by its com2aitore. The big London Joint Stock Banks ma::T3 divided into three classes, of which the following ar1 mu-, las:(1) London (')c Westminster Bank, with 36 3ranches, doing a purely London Business and having its branches within the London radius ,hose occ,Arr where the changes in trada conditic)ns are mainly , in the Metropolis. (2) London & County 3anKina Co.Ltd. with 263 . ...s of 5) mile. or within a radi, rancl-es in London Here th-3 tra(t:a conditions are influJcad by wider CUUB36 than in (abe af but the banking accoin b a:iart from those of London cAstuNers are, generally speaking, those of :,rivat: irdi7louals or retail (3) _r5anKi-12: Com:Jany, 169 Brancnas. London Cit:/ & Midland Bank, 336 Ilods Bang., 527 3ranc:es. conractions ir all part e of Eric:land and are therifor4 affectad more directly than those in (1) or (2) by C ir the man.)facturing, ariculural districts. mining and Con": dentiak . T. J. Russell. Manager, London & Westrinsta' Bank. This was the first purely London Joint Stock Bank and held first pl.'.ce for a long ti-1(2 until the policy of amalgamation and 2xt2nsion to the Provi3 3.t,rted by its competitors. The big London Joint Stock Banks may be divied into three classs, of which the followinc; are examples.() T.::1.J London & Westminster Bank with 36 Bra nches doing a purely London business, and having its 1)72 7itTlin the London radius where the changes in trade conditios ne ia1ly tho;le occurring in the Metropolis. London & County Banking Co. Ltd. 02 within a r -Idius of He 263 Branches in London t7-1 chane in trade conditions are influenced by wider ca us thin in case of TTol but the banking accounts apart from tho,! of London austollers are, generally speaking. those of privat e individuals or retail stores. (3) Parr's Banking Co:' any, 169 Branches. London City & Midland Bank, 336 Branches. Lloyds Bank, 527 Branches. These Banks have connections in all parts of Englan d and are therefore affected more directly than those in (1) or (2) by changes In the nanufActurin, s:A.)inc ), iining & agricultural distrits. Managel. London & West inster Bank This was the first purely London Joint Stock Ba.ik, and 11.1d first t ln-ce for a ionc, tine until the policy of alala auatio n and extension to the Provinces s started by its co_ Aitors. The big London Joint Stock Ranks may be divided into three classes, of which the following are exa:ples.(1) The London & Westninst r Bank with 36 Branches doing a purely London business, and having its branches within the London -0.,dius where the changes in tr.de conditions are 71:-tinly those occurri ng, in the Metropolis. (2) London & Couty Banking Co. Ltd. with 263 Branches in London or within a radius of 30 17.s. Here the change in trete conditions are influenced by wider caus,2s than in case of No.1, hut the banking accounts apart fron those of London customers are. generally speaking (3) thosu of private individuals or retaii stores. Parr's Banking Company, 169 Branches. London Citi & Midland Bank, 33; Branches. si Lloyds Bank, 527 Branches. These Banks hay,: connections in all parts of England ,;nd are therefore affected nore directly than thos in (1) or (2) by changes in the :laucturing, shipping, iining & districts. Confintial T. J. Russell. ManaL;cr. London & 17strAlnstr Bank. This was the first purely London Joint tock Bank, and held first place for a loiv, tine until the policy of a. algam atien and extension to the Provinces was started 1)y its competitors. The big London Joint classs, of 'ihich th •-tock Banks 7- ay be divided into three follJil-k; are examples.- (1) The London (c 7151st .ins 9 Bank with 36 13 London businss, and having its - tranches riches doinf a purly ithin the London radius where the changes in trade conditions are mainly those occurring in the Metropolis. (2) London & County Banking Co. Ltd, with 263 Branches in Londo n or within a radius of 50 miles. Here the changes in trade conditions are influenced by wider causes than in case of ro.1, but the banking, accounts apart from those of London customers are, gener . A.ly speakinc, those of private individual: or retail stores. (3) Parr's Banking Co- i . )any, 169 Branches. London City 1 Tad14nd Bank, 336 Branches. Lloyd Ban. .27 Branches. Thse Banks have connections in all parts of England and are therefore affected more directly than those in (1) or (2) by changs in the manuf7'cturin, shipping, mining and aL;ricultural districts.' T. J. Russell, London This vrar Manager, Testiinster Bank. first ijaroly London Joint Stock Bank, and first place for a long tille until the policy of amal gamation and exnsion to the Provinces was started by its coi)Jtitos. The big London Joint Stosk Banks may be divided into thr. class:is, of , 77lich the following are (I) The London & Westrinster Bank with 36 Branches doing a purely London business, and having 'its branches , .rithin the Lond(xl.radius the chang in trade conditions are mainly those occurrin g in the Iletro,)olis. London & County Banking Co. Lt'. with 263 Branches in London or within a radius of 50 riles. He7o tho changes in trade conditions influenc•,.1_ by wider causes than in case of No.1 , but the banking accounts Apart fro:1 those of I_Jodon custor s are, generally (3) Sp .1king, those df private individuals or retail stor;Js. Parris Bankin Co any 139 Branches. London City ,c;; Midlnd Bank. 336 Branches. Lloyds Bank, 527 Branches. These Banks have connections in all parts of England and are therefore affuct,)d more directly than thos:) in (1) or () by changes in the manufacturing, s'hip2ing, :lining and ,iv,ricultural districts. Confidential T. J. Russell. ManaL;sr, Loncion & Wastminster Banx. This Nas the first purely London Joint Stock Bank and held first place for a long time until the policy of amalGamation and extInsion to the Provinces was started by its competitors. The big London Joint Stock Banks may be divided inlo tare3 classes of which the following are examples:(1) The London & Westminster Bank with 36 Branches doing a purel y London business and having its branches within the London radiu s where the changes in trade conditions are mainly those occur ring in t'ne :Atropolis. (2) London k County Banking Co.Ltd. with 263 Branches in London or within a radius of 50 miles. Here the changes in trade conditions are influenced by wider causes than in case of No.1 1 but the banking accounts apart from those of London customers are,generally speaking, those of private inaividuals or retail stores. (3) Parrs Banking Company, 169 Branches. London City & Midland Bank,336 " Lloyds Bank, 527 Branches. These Banks have connections in all parts of England and are therefore affected 113re directly than those in (1) or (2) by changes in the manufacturing, shipping, mining and agricultural districts. 4e* Conl'idential T. J. Rissell. Kanager, London & West:-inbtar This was the first plArely Landon Joint S%ock Bank and held first place for a long time until :he policy of amal6amation and extension o the provinces is stztrted by its competitors. The big London Joint Stock. Banks may be divided into three classes, of which 1.7qe following are exam .1es:(1) London & Arstminster Lank, with 36 Brances, doing a purely London business and having its brancl,es within the London radius ahere the changes in trade conditions are mainly those occurring in the Metropolis. (2) London Ar Coun%y Banlcinc Co.Ltd. with 263 Brances in London , or githin a radius of 50 mills. Here tie changes in trade conditions are influenc3d by widar causes than incase of 1;0.1, but the bunking accounts apart from 1,hob .: of Lonuon customers are, gels rally s;)eaking, those of privat-: i! -Adividuals or retail stores. (3) Parr's Banking Comlany, 169 Eranches London City &Midland Bank, 336 Lloyds Bank, 52? Branches. Thes3 Banks have connections in all parts of England and are t'- erefore affected more dir,ctly than those in (1) or (2) by changes in the manufacturing, shipping, mining and agricultural districts. Confiamtial T. J. ,0n,lon 7 Manager, Vistminster Bunk. This was the first purely London Joint crock Bank and held fir :ce for z-t 1,3 • 3 tire until the i)olicy of amalgamation and :,rovincas was started by its comi)e%itors. , I 3 big Lordon JGint S*.ock i3:-tnke mk-ty b3 into three clabs3s, of w:iich the following ari 3xam:1es:(1) London & W3stminster Bank, with 36 Branches, doing a purely radius Lonaon bubineue and having its branches within the London where the changes in trade conditions are mainly t17.08., occurring in the Metropoli. (2) on London !), County Banking Co.Ltd. with 263 Branclles in Lond or within u of 50 miles. Her: the c%anges in ',rade , ,Lenced 'oL wider causes than in case of No.1, conditions are infl, rners , but t1-11 hanking accounts apart from thos 1 of London custo are, ge-era.1:: speaking, those of i,r1va3 , !ividuals or retail stores. (3) Parr's Banking Company, 169 Branelles. London City ?r. Midland Bank, 336 Lloyril:. Bank, 527 Bran&-les. M3.99 Banks lave connections in all parts of England and or (2) are therefore affectied more directly than those in (1) and by charges in t.'.3 7anItfacturing, shipping, mining agricultural districts. jf ,Ar:t eaa Cal --/Case 19. j7071 u4 A large proportion of the checks deposited by this firm are checks which they have cashed for customers. The proportion of checks in their deposits, therefore, is very IIE:14 The following extract from a letter received from the firm, , rhich is located In one of the cities of the first class, explains the conditions: Ke cash a greet many teachers' and other city employees' checks, a very small proportion of which anrlies to payments of accounts or for merchandise. cash e great many checks for our customers, convenient than going to a EIS 7e also it frequently is much more bank for their funds. Many lady customers who receive a monthly allowance for house expenses obtain their funds from us, applying whatever might be due ur on their account. great many employees of manufacturin same in our establishment. It is customary for a concerns, who are paid by check to cash Again many cash customers will make a :-nrchase of a few dollars and draw a check for a larger amount, when they desire some currency. As we have a great many cashiers all over the house, and each one receives checks, it is impossible when they come to the counting room for us to determine whether they have been applied in whole or part on purchases. I presume that the Opove conditions prevail to a very much larger extent in our retail establishment than in a majority of other concerne. V You will readily see from the points enumerated that the amount of This is undoubtedly the case. checks we receive and deposit bears no relation in any way to the volume of business done, as a very large amount of the checks would he considered as 'accommodation banking'. 4( The proportion of currency in our bank deposits is very small, as our heavy pay rolls are paid from currency receipts, also all other necessary currency disbursements.