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A3Surning i t to "b t ie intent o f the law creating your honorable
e
»ody# as w ell as your d esire, that you should take into consideration
and study t ie question of the reform o f our monetary system, not
only from tne standpoint o f ex-perience in our own country but also
by becoming w ell informed as to p revailin g methods in foreign lands,
and, beingmuoh imbued with the b o lie f that, whatever calue certain
features o f foreign note issues may rjcssess, it w ill s t i l l remain
that no system now employed abroad, including that of Canada, can
ever be adopted in this country, I make bold to present for your
throughtful consideration, a plan that I can but believe should
commend it s e l f , not only because i t would be most e ffe c t iv e , but
because of the ease and sim p licity with which i t could be put into
operation.

X w ill not undertake to prove to you the lack of adap-

t i b i l i t y o f foreign methods

to this country for the investigations

o f your committee abroad the past summer have doubtless served to
convince the gentlemen composing that committee that, excepting,
possiuly certain features or d e ta ils , methods acceptable and o f f l ­
oad ous there, whether or not they would be effica cio u s, would not
be acceptable here.
The tiling you are expected to p it into aiiape for th is country,
13 not tne creation of something now and novel, i t is that you shall

per oct a plan to bo embodied in a proposed law, whereby thore may
be made a vailable and u tiliz e d the already existin g resources and
wealth, or part of the, that the country possesses and which w ill
stand the tost of bankin ; economics.
In doing th is, you should eliminate from your minds any as­
sumed rights or perogatives, based upon proviloges heretofore en


joyed, of bciakb , nat onal or othorwi se, to i 3 r>io currency and a l®
tbe much urged idea, that the government should not be in the bank­
ing business.

You should consider t ie subject so le ly from the

standpoint of what method, or arrangement of th is natter, w ill best
accomplish t ie desired end of a currency that is

uniform, secure,

ample in vol'ime and e la s tic whether or not in so doing the note
issuing fin etion of the bard® is done away with or the government
is s t i l l farther put into the, so ca lled , banking business.
In January la st I prepared a 3hort a r t ic le on this subject
which may or may not liave como und< r your observation, but, le s t
it may not, I shall take the lib e r ty of herein settin g 'orth tiie
points therein urged in addition to such others as occur to no,
Boforo proceeding to set fo r ‘,h the method that I would re­
commend, we may with propriety consider some of the obj< ot-ons
tliat may be urged.
F ir s t ,

That is the objection to the government being in

the banking business, so called?
I t is that toe treasury of the Tnited States, in its opera­
tions incident to the handling of the people s money, is a great
absorber of the current funds of the country, in the sharie of taxes
that i t c o lle c ts , which at times accumulate very 'arge sms* and,
as the treasure is supposedly not a lender of the money that it
thus absorbs, -/hioh is the flo a tin g capital of 'he country, the
1* suit Is a contr: ction o* 'ca lla b le coney that shou d by right
0
og

at toe cemaild of business gonorally.

I f the situation, by

reason o f «his contraction, becomes st-rioud, the treasury, seek­
ing '.o re lieve tue stress that has been caused, naked deposits




(3)

o f til© fund3 i t has withdrawn f r r the channels of business, with
n
the "banks, talcing therefor socurity and thus to some extent the
situation i3 re lieved .
And this is called being in the banking business, because
the treasury, through the co llectio n of taxes absorbs money and
then through the stress o f circumstances that that has caused,
deposits in the banks, funds that i t has accumulated in the or­
dinary course of it a business.
As long as the treasure is the recipient of taxes and the
government lias financial business to transact, this condition is
bound to ex ist and continual harping on gettin g the government out
o f the bunking business is simply beside the question.

I t is not

a question of whether the gov' ramout is in the banking business or
not but how can u tters bo so arranged that trie business community
is independent o f and in d ifferen t to the operations of the treasury
W at these people that ta lk in this way, re a lly mean to say is
h
The treasury should not be the custodian of its own funds at a l l ,
but a l l its receipts should bo deposited in the banks the sane as
individuals and corporations deposit in banks and as these funds
are needed by the government, i t should check against it3 deposits.
This would unquestionably

do away with so-called "locking up"

of money by the treasury, but does anyone suppose Congress would
ever consent to any scheme aush as putting a l l the government money
into banks would involve?
liven i f this were done, it would not provide any additional re
source.

I t might delay for a l i t t l o the acute pressure of times

of money stringency, but in that event, the money would then bo in
use and there would be no r e l i e f in sight, not even a treasury to



(4)

appeal to .

Ko; the trouble with our money markets is that the barik3,

have, u n til the passage of the Aldrich Vreeland Act, been unable in
t i : « s o f stringency to u t iliz e th e ir resources.
should be no such p riods

From now on there

o f stringency a3 we have seen in the pant

and under the operation o f that law, the increase and decrease of
currency should

be automatic whether the treasury is absorbing funds

or not or whet lie r it makes deposits or not.

The great rrouble with

this law is that it provides fo r s t i l l another va riety of note issu- s
o f which there are already too many.
Second, — Some o f those who object to making la rger use
o f the tre sury as trie solu ti n o f our monetary muddle, conceive
that t l » true method is the estqblishment of a large central in s t i­
tution corresponding to the Bank of England, the 3ank of France and
the Imperial Bank o f ^errnany.

This would undoubtedly serve the pur­

pose were i t possible, but there are many objections to the estab­
lishment o f such an in stitu tion .

V e have made the attempt twice
/

with fa ilu re in each instance, not because the principle was not
sound enough, but because in it s nature the United States Bank was
a monopoly and was continually the subject o f attack by p o litic ia n s .
Then too, while the ca p ita l of $30,000,000 of the United States Bank
might have been quite s u ffic ie n t fo r its day, such a bank to day would
require a capital o f s on proportions that the cry of monopoly of
those days would bo as nothing compared with the cry that would go
up today.

Furthoniore, in th is day when enormous ca p ita liza tio n is

synonomous with crime and fraud, does anyone suppose that Oongress
would grant a charter to a bank with appropriate capital and accord
i t the sole author to issue bank notes?



(5)

There is only one group of m that can be permitted uncialen
longed to exorcise this groat p riv ile g e and that is the people, and the
only way the people can exercise it is through th eir ow treasury*
n.
Gall it monopoly i f you choose, but no one can complai n when he him­
s e lf i3 one o f the monopoly.

The objection to a monopoly is that

one m enjous a p r iv ile g e that another has not*
an

I f we a l l are a

part o f i t , the cry of monopoly cannot obtain.
In a book on banking Jo in Jay Knox, Comptroller of the
Currency under Grant , Hays, and Arthur administrations, in a chap­
te r dealing with the fa ilu re of the Bank o f the United '■'tatos to
secure a renewal of its charter and comparing the present National
Bank system with the Bank, said:"The old national Bank was a great and powerful p r i­
vate monopoly, useful no doubt, and safe except when i t mixed
with p o lit ic s .
I t was a foreign importation, and as a mono­
poly opposed to the genius of American in stitu tio n s."
"The Treasury i t s e l f lias taken its place to a very
great extent, in the province of receivin g, keeping and dis­
bursing the revenues.
I t is fa s t assuming the function of
a bank as an exclusive issuer of currency, and i f a law should
be passed authorizing loans on the predicts of the country,
the Treasury would be in i t s e l f an almost o .act copy of the old
Bank of the United States, managed by the p o lit ic a l party in
power instead o f by a private corporal, io n ."
Here then is a very good authority fo r the contention that
the United States Treasury might be u tiliz e d in the place o f a bank
and by extending its functions to the making of loans to bu ks, soOur© a ll the advantages that a Central Ba:ik would afford without
the controversy incident to the gr: tin g of a charter and defining
its p riv ile g e s .

in the plan that I shall la y out, this making of

loans is confined to the national Banks, the issues to then by the
terms being most e la s t ic , involving probably in ordinary times no
issues at a ll



16)
Again, Secretary Cortelyou, in

is la st report to Congress

makes use o f the fo llo w in g j"The increase in our population, the development of
industry, both national and international, present pro­
blems which cannot be solved by a blind adherence to a ll
the d eta ils of a system which, though in many ways well
adapted to our requirements and o f great service to our
people, as it has been, was yet prim arily the outgrowth
o f the exigencies of a time o f c i v i l s t r ife .
Tlie clianged conditions c a ll fo r modifications of the existin g
system or fo r the ultimate establishment, i f i t can be
safeguarded so a3 to keej> it out o f the domain of p o li­
t i c s ^ the one hand and the control of great monied in­
terests on the other, o f a central in stitu tion of issue
and reserve".
Here again is tine suggestion that tiie way cxir o f our d i f ­
fic u lt y is that the power of issue shall rest with some central au­
th ority and i f that be conceded what oth^-r authority can there bo so
w ell calculated to do i t w ell and without jealousy, as the people
themselves through the already established agency of the Treasuiy
of the United States?
The Treasury is an ex istin g fa c t, i t requires no law to
bring i t into being, i t requires no board o f d irecto rs, ho charter
is required and no controversy can arise as to where i t shall be
located.

I t already is exercising many of the functions that

would be necessary to a centr 1 in stitu tion , and to these need




only bo added a l i t t l e la rger scope of authority and a l l the ma-hinery Tor the proper handling of this monentous a ffa ir is at once
a v a ila b le.
Third:

Now le t us look at i t fran the standpoint o f the

banks, —prim arily i t is no proper fu otion of a bank to issue notes,
i t 3 functions are the receiving o f deposits and the lending of thooo
deposits; the issuance of notes is an aot so lely of sufferance, the

(7)
inherent right restin g with the sovereign power, the government, in
the same m er as does the coinage of gold and s ilv e r .
am
o f tho note issuing p riv ile g e by the banks is so le ly d

The exercise
to the abro­

gation by the government of its sole r i ght and granting that p r iv i­
lege to the banks.

This p riv ile g e having been granted, what is i t

that gives currency to the notes of the national banks?

The fa ct

that they 'nave behind them government bonds?
Possibly, to some extend, b ;t more than that i t is , be­
cause the government guarantees then and the woids "United States”
are printed on th eir face-

Diverted o f a ll tho mysteries that be­

cloud the ordinary mind on this supposedly most obstrase subject,
the national bank currency is nothing more or less than a loan on
the part

of the government of its cred it fo r which i t exacts from

the banks a deposit of c o .la te ra l to insure tho redemption of the
notes, which redemption the government makes.

These notes there­

fore are in r e a lit y , obligations of the government and might just
as w ell or better bear on th e ir face the premise to nay by the gov­
ernment en tirely elim inating any mention whatever of a bank, the bank
being looked to or thought o f by anyone nor lias it anything to do
wi th tiie i r redompt i on.
This being so there is no reason why i t should not, and
tie re is every reason that the government should prohibit any fur­
ther payment over their counters by the b:uiks of national bank notes,
but in

lie u thereof and by virtue of this in h ib it io n , compel the

retirement of a l l the national bank notes and substitute in place
thor< of notes of the government payable upon demand in gold.
This would eliminate one of the various forma o f currency
,ve now have in me.




( 3)

Having eliminated the national bank notes and having secu­
red in their pl:ice a government note, we / ill now take up, one by one
tiie government issues outstanding.
1.

Trie Sold Certific a te s .

These are unequivocal obliga­

tions on the part o f the government to ray on demand gold.

No m
an

can expect of another or his government to do more than f u l f i l his
promise or obligation and therefore as long a3 the necessary .gold
is forthcoming upon presentati n, there is no reason why a govern­
ment o b lig a ti n that roads "On demand the United States w ill ja y
one dolla r in gold"

should not be quite as good and acc&x>table

as one t ’nat reads, "This is to c e r t ify that trie re has been depo­
sited in the Treasury of the United States, one gold
w ill bo paid to

d o lla r which

the bearer on demand"*

Conceding thi3 there is no reason why a ll of the outstan­
ding gold c e r tific a te s should

ot be called in and govemmet notes

payable on demand in gold issued in lie u of thorn,

Thi3 would do

away with our second variety of currency and to that extent contri
bute to uniformity and equal in virtue to that done away with*
2*

live s ilv e r c e r tific a te s .

These as every one knows

were issued because the s ilv e r they represent would not circu late.
They are in tr in s ic a lly worth about 5C cents on the d o lla r but by
virtue of the Acts o f Congress which provide that every dolla r shall
bo of eqal value to every other d o lla r, they in fact become an ob­
lig a tio n on the part of the government to pay an equal amount of gold.
Thi3 being so, the government is putting i t s e l f in no worse
position tiian it now occupies, should i t f a l l in every outs anding
s ilv e r c e r tific a te and issuo in lie u thereof notes payable on demand



0)

in gold and thus do away with the third variety of currency and to
that extent contribute to uniformity.
5.

Treasury noteB of 1300 and Greenbacks.

The Treasury

Notes are the raanant o f the issue irn payment of s ilv e r purdiiases
while the Greenbacks are tho legacy o f the c i v i l war, both are re­
deemable in gold, the la t t e r , however, without tiny stated time or
place of payment.

Against these la t te r is a reserve fund o f *150,-

oee-ooo in Gold.
For both o f those issues there night w ell be substituted
a d istin ct obligation on the part of the government to pay on demand
in gold.
These things having been accomplished, we would have only
one currency s p - c ific a lly naming gold as tho metal of reuempti n and
with a fixed obligation to pay on demand.

nor would this be any

new or more burdensome obligation to be assumed by the government.
I t rests under the obligation to day to redeem on demand in gold,
every one of the fiv e v a rie tie s of currency enumerated.
’.That then is the sense of continut ing this absurd va­
riety?

V h not f.c e t’ne situat.on as it ex ists, say in plain terns
Ty

what tho govern’ lent obligates i t s e l f to do and have a currency that
is uniform?
Having done this where do we stand?
Taking a3 a basis the Treasury Department's c irc u l tion
statement o f December 1st, the government would ’nave outstanding de­
m
and notes payable in gold, those issued in lie u o f;
National bank not03
Gold c e r tific a te s
S ilver c e r tific a te s
Treasruy notes of 1390



-$367,178,177
803,202,8G
9
438,125,000
4 , 049,000

110)

United States Notes (Greenbacks)

£546.681.016
Total

$2, 309,896,002

Against this the government would hold as a reserve funds
Gold Coin and Bullion in Reserve Fund
Gold Coin held against Gold C e rtifica tes
S ilv e r dollars hold against S ilv e r C e rtific a te s ,

150,000,000
803,202,809

£438,125,000
S ilver dollars o f 1890

4.649.000
492,774,000

which at 50^ would he

2^-0,587.000
$1,259,649,809

a to ta l in gold or gold value o f
which i3 a roserve fund o f over 53 % or, owing to the fa ct that the
notes issued to re tir e the national bank notes w u ld have back

of

them as security the government bonds deposited by trie banks in ex­
a ctly the 3 ane manner as now obtains in reference to the national
bank

notes, in calculating tlie reoorve per contage the amount of

notee issued to banks against deposits
fa ir l y be eliminated.

of government bonds, might

In that event the outstanding obligations

o f the government against which reserves should be figured w uld be
reduced to

£l,7o2,717,835

the reserves remaining the san®
which m
akB the reserve fund more

1,259,649,869
than 73 ^ of the l i a b i l i t i e s .

Thus much as showing how easy i t w uild

bo to liave a

uniform currency a l l issued by t'ne government amply protected
by reserves e n tire ly Independent of that larger .'^o ir it y that

rests

upon the cred it o f a nation of 88,000,000 inhabitants.
This however adds nothing whatober to f l e x i b i l i t y over
what now oxists nor does i t at a ll provide fo r a la rg er currency
in cases of omergency.



Ill)

With that and in view, i f you w ill but concede that it
is the province of the government ho deal with this subject, instead
o f anu. to the exclusion of the banks, then i t is only necessary to
apply t ’ne rule o f vhat is a proper banking r- serve and you get the
follow in g result-.
As previously shown, the Reserve Fund in the treas>ry
-ould be

$1,259,649,869

which on a basis

of 4G p reserve would adr i t

of a note issue of

3,149,124,672

against which there would be outstanding government
notes, exclusive of those issued to banks

against

deposits of government bonds or i f these no' es are 1,7C2,717,885
not excluded

2,369,896,062

In the f i r s t instance there is l o f t a margin fo r loans
to banks on security other than government bo/ids
or in the second instance

l,446,4o6,787
779,228,610

eith er one of which would be lik e ly to be more than any emergency
would c a ll fo r , fo r a 1 ng time to come and a l l this otsido o f the
value o f tho security pledged by the b;uiks fo r tiao loand made

o

thorn on other than government bonds.
Then the question arisos how i3 this emergency issue to
be gotten out?
I t is by loand of government notes to the banks secured
by c o lla te ra l as

rovided

by the Aldrich Vreeland law, fo r in tho

fin a l analysis there can be but l i t t l e question t ’nat the use o f
credit which finds its expression in the resources of the brinks,
is the asset that should be a vailable for this purpose.



(12)

I f the Aldrich-Vreeland law w i l l have

rved no other

purpose, i t lias solved the question of the kind o f security the
hanks may employ in securing loans from the treasury and lias rocognized the propriety and virtu e of somethin; other tlian government
bonds•
Sum ar i z in-; there fo r e :
m
I would liave transferred to the
Reserve Fund o f the treasury a l l of tlie gold coin

*150,000,000
and bu llion now

held in the treasury against the gold c e r t ific a ts also a l l of the
s ilv e r dollars now held against the s ilv e r c e r tific a te s and Trea­
sury notes of 1300.
I would c a ll in, cancel and issue in lie u o f these cer­
t ific a t e s , and also in lie u of a l l the Treasury Rotes of 1890 and
the outstanding greenbacks, United States notes payable on demand
in gold.
-

I would prohibit a fte r a certain fix ed date the payment

over th e ir counters by national banks o f any national bank note and
by virtu e o f th is prohibition, compel the banks to accept in

lie u

o f their circu la tio n , United States gold notes fo r which the bonds
now on do-oslt to secure the circu la tio n , shall remain as security fo r t
the government notes issued to them and upon theaame terms o f taxa­
tion as now applies to national bank note circu lation .
I would permit the banks to 'nave furnished to them suoh
additional government notes as they m y desire in the ia nor p rovi­
ded by the Aldrich -Treeland law.
1 would permit trie banka to r e t i re their loans whether se­
cured by government bonds



or Aldrich-7reeland security whonever they

Proposed law to provide a -ound currency which w i l l expand nnd
contract with the requirements of trade.
— ^
ing

Be it enacted etc.

and after July 1st, 1906, State or Municipal Bonds, bear­
not less than 3-1/2$ Interest, issued by any State, City or

Borough, not debarred by the conditions of Sect. VI of this act, may
be deposited in multiples of Ten thousand dollars with the Treasury
Department at Washington, and that U. S. Treasury notes, in conven­
ient denominations to the amount of 90$ of the face value of such
securities, shall be issued therefore to the owner of said Bonds.
--c * 1 1 '

The borrower shall pay to the Treasury Department in advance

for the use of such currency, Three per cent interest annually.
Sec. ? I I . The amount received in interest, shall be held by the Treas­
ury Department as an insurance fund to guarantee the integrity of
the value of all the Bonds deposited.
Sec. I V .

Whenever such insurance funds shall reach in amount a sum

equal to 10$ of the face value of said Bonds, all excess above
this amount shall be covered into the Treasury and become available
for Government uses.
Sec. V.

Should any State, City or Borough default in payment of

interest, it shall be the duty of the U. S. Treasurer to sell the
Bonds at public sale to the highest bidder:

The sale to be adver­

tised for not less than one week prior to the sale, in each of the
following cities, New York, Philadelphia, Chicago, St. Louis, Boston
and place of issue.

The difference between the price realized at

the sale and the amount loaned on said Bonds, shall be paid to the
Treasury Department out of the insurance fund provided for in Sec.
Ill of this act; and currency equal in amount to the sum loaned on
said Bonds retired and the borrower released from any further
interest payments.
Sec. V I .

The U. S. Treasurer shall exclude the Bonds of any State,

City or Borough from the privileges of this act, for any of the
following causes.




l a ± -'-

For d e f a u l t in the payment o f i n t e r e s t on t h e i r Bond issues

p r o v i d e d that any S t a t e , C i t y o r Borough which has paid i n t e r e s t on
its

Bonds co nti nu ou sly f o r F iv e years f o l l o w i n g date o f such d e f a u l t

s h a l l be r e - i n s t a t e d to the p r i v i l e g e s o f t h i s a c t .
in d i

Any C i t y o r Borough whose t o t a l Bond iss ue exceeds in

amount 1% o f the a ss es se d v a l u a t i o n o f the P e a l Estate in s a id C i t y
o r Borough, at a f a i r v a l u a t i o n .
3rd^
interest
• VI1 •

Any C it y o r Borough which has not iss ued 3onds and paid
thereon c o n ti n u ou s ly f o r a p e r i o d o f F i v e y e a r s . •
^

borrower who has taken out currency under the p r o v i s ­

ions o f t h i s a c t , may redeem the Bonds d e p o s i t e d at any i n t e r e s t
p e r i o d by the payment to the Treasury Department o f the amount o f
the loa n, and currency thus r e c e i v e d s h a l l be r e t i r e d .
S e c ^ J Q I I . A l l currency is s u e d under t h i s act s h a l l be a f u l l l e g a l
te nd er f o r a l l debts p u b l i c or p r i v a t e .
S 2 E S o f ttjg. advantages o f the proposed l e g i s l a t i o n
1st..

The currency would be sound.

—

No i n f l a t i o n could f o l l o w upon the is s u e o f t h i s currency to
any amount as the s e c u r i t i e s are worth in excess o f the amount
loaned.

3rd

The currency would expand and c o n t r a c t with the demands o f
trade,

when c o n d i t i o n s were normal,

th ere would be no p r o f i t

in t ak in g out the c u r r e n c y ; but should an i n c i p i e n t panic o r
s t r i n g e n c y i n the money market d e v e l o p , currency would at
once be a v a i l a b l e to r e l i e v e
4th

the tendency.

The i n t e r e s t r a t e would not i n t e r f e r e with the Banks' discount
"

4 0 ib io ” ot cu st °mary r o r manufacturers or merchants
X

s e e k in g bank c r e d i t to o f f e r t h i s c l a s s o f c o l l a t e r a l .
5th

The proposed l e g i s l a t i o n would be o f g r e a t b e n e f i t

to e v e r y

t S ' G i t ‘y 01 3orougk and would d o u b tl e s s e x e r t a h e al th y
s to municipal improvements ex te nd in g to a l l parts o f
the United S t a t e s , but not ex cee din g the s a f e bo rrowing
c a p a ci t y o f s a id C i t i e s o r Boroughs.
PP




I t

It

ought t h e r e f b r e to

ev er y p a t r i o t i c congressman i r r e s p e c t i v e o f p a r t y .

Proposed law to provide a -ound currency which will expand and
contract with the requirements of trade.
*-»*• *•
ing

Be it enacted etc.

0 and after Juli 1st, 1906, State or Municipal Bonds, bear­
11
'
not less than 3-1/2# Interest, issued by any State, City or

Borough, not debarred by the conditions of Sect. VI of this act, may
be deposited in multiples of Ten thousand dollars with the Treasury
Department at Washington, and that U. S. Treasury notes, in conven­
ient denominations to the amount of 90# of the face value of such
t1. ,

*

securities, shall be issued therefore to the owner of said Bonds.
—

The G r o w e r shall pay to the Treasury Department in advance
for the use of such currency, Three per cent interest annually.

Seci_III. The amount received in interest, shall be held by the Treas­
ury Department as an Insurance fund to guarantee the integrity of
the value of all the Bonds deposited.
Sec.... I V .

VThenever such insurance funds shall reach in amount a sum

equal to 10^ of the face value of said Bonds, all excess above
this amount shall be covered into the Treasury and become available
for Government uses.
Should any State, City or Borough default in payment of
interest, it shall be the duty of the U. S. Treasurer to sell the
Bonds at public sale to the highest bidder:

The sale to be adver­

tised for not less than one week prior to the sale, in each of the
folio vring cities, New York, Philadelphia, Chicago, St. Louis, Boston
and place of issue.

The difference between the price realized at

the aale and the amount loaned on said Bonds, shall be paid to the
Treasury Department out of the insurance fund provided for in Sec.
Ill of this act; and currency equal in amount to the sum loaned on
said Bonds retired and the borrower released from any further
interest payments.
Sec.

V I.

The U. S. Treasurer shall exclude the Bonds of any State,

City or Borough from the privileges of this act, for any of the
following causes.




For d e f a u l t in the payment o f i n t e r e s t on t h e i r Bond issues
p r o v id e d that any S t a t e , C i t y o r Borough which has paid i n t e r e s t on
its

Bonds co nti nu ou sly f o r F iv e years f o l l o w i n g date o f such d e f a u l *

s h a l l be r e - i n s t a t e d to the p r i v i l e g e s
2nd,.

o f t h is

act.

Any C i t y o r Borough whose t o t a l Bond is s u e exceeds in

amount 7% 0f

the asse ssed v a l u a t i o n o f the Beal Es ta t e in s a id C i t y

o r Borough, at a f a i r v a l u a t i o n .
3rd,

Any C it y or Borough which has not issue d Bonds and paid

i n t e r e s t thereon co nt in uo u s ly f o r a p e r i o d o f F i v e y e a r s .
Any borrower who has taken out currency under the p r o v i s ­
ions o f t h i s a c t , may redeem the Bonds d e p o s i t e d at any i n t e r e s t
p e r i o d by the payment to the Treasury Department o f the amount o f
tne lo a n , and currency thus r e c e i v e d s h a l l be r e t i r e d .
• A l l currency is s u e d under t h i s act s h a l l be a f u l l l e g a l
ten de r f o r a l l debts p u b l i c or p r i v a t e .
§ 2 ffie o f thg. advantages o f .the proposed l e r i s i s t i n r .
ls_t.

The currency would be sound.

2nd.

No i n f l a t i o n could f o l l o w upon the is s u e o f t h i s currency to
any amount as the s e c u r i t i e s are worth in excess o f the amount
loaned.

3rd

-he currency would expand and c o n t r a c t with the demands o f
tradei
m

when c o n d i t i o n s were normal, th ere would be no p r o f i t

t a k in g out the c u r r e n c y ; but should an i n c i p i e n t panic o r

s t r i n g e n c y i n the money market
* market d e v e l o p , currency would at
once be a v a i l a b l e to r e l i e v e
4th

the tendency.

he i n t e r e s t r a t e would not i n t e r f e r e with the 3anks' discount
rate, „

lt

i s not customary f o r manufacturers or merchants

s e e k in g bank c r e d i t to o f f e r t h is c l a s s o f c o l l a t e r a l .

th

The proposed l e g i s l a t i o n would be o f g r e a t b e n e f i t

to e v er y

S t a t e , City or Borough and would do ub tle ss e x e r t a he a lt h y
stimulus to municipal improvements ex te nd in g to a l l parts o f
the United S t a t e s , but not exceeding the s a f e bo rro w ing
c a p a c it y o f s a i d C i t i e s o r Boroughs.

I t ought t h e r e f o r e to

appeal to e v e r y p a t r i o t i c congressman i r r e s p e c t i v e o f p a r t y .




r«£w<
Mr. V i c t o r Mofcawetz.

COPY

In a p r o g r e s s iv e c o u n try l i k e ours a v e r y c o n s id e r a b le
ex p a n sion o f bank c r e d it s
ments o f b u sin ess

is

n e c e s s a r y to meet th e r e q u i r e ­

and e n t e r p r i s e .

s ec u re th e la r g e s t

s a fe

The p rob lem i s how to

expan sion o f c r e d i t s

fo r

le g itim a t e

b u s in e s s p u rp o s e s , w h ile p r e v e n t in g any expansion th a t would
im p e r il th e s a f e t y o f th e banks and p o s s i b l y r e s u l t in pa n ic
and d i s a s t e r .
The p o in t to w hich bank c r e d it s may be

expanded w ith

s a f e t y depends upon many circu m sta n ces and v a r i e s
to t im e .

No r u le o f m ech a n ica l a p p l i c a t i o n

from tim e

can be l a i d

down, and no a u to m a tic system can be d e v is e d .

O b v io u s ly , no

p la n th a t p r o v id e s m e re ly f o r ex p a n sion can be sound.
must be p r o v id e d

o f c o n t r a c t in g c r e d i t s when n e c e s s a ry f o r

s a f e t y as w e l l as o f ex p a n d in g them when exp an sion i s
a b le .

A means

d e s ir ­

R ecen t e x p e r ie n c e has shown th a t w h ile th e minimum

reserves

r e q u ir e d under th e N a t io n a l ra n k in g Ac- a re s u f i x—

c ie n t in o rd in a r y tim es th e y a re n ot s u f f i c i e n t a t a l l t im e s .
C r e d it s may be expanded beyond th e l i m i t o f s a f e t y a lth o u g h
th e r e s e r v e s

o f th e banks be kept in ex cess o f th e minimum

now p r e s c r ib e d by la w .

On th e o th e r hand, an e x t r a o r d in a r y

ex p a n sion o f bank c r e d i t s

o r o f th e c u rre n c y may be n e c e s s a r y

as a tem porary measure o f r e l i e f
t io n s ,

to meet e x t r a o r d in a r y c o n d i­

as when an e x c e s s iv e s t r in g e n c y o f bank c r e d i t s ,

f i n a n c i a l p a n ic , i s

caused o r is

t h r e a te n e d ,

or a

on account o f

th e w ith d ra w a l o f unusual amounts o f cu rren cy t o b e hoarded
by d e p o s it o r s who have l o s t

c o n fid e n c e in th e ban ks.

not s u f f i c ie n t , to c o n s id e r m e re ly Va l l S t r e e t ,
»T
f i n a n c i a l c o n d itio n s and p r o s p e c ts
w h o le w o rld roust be c o n s id e r e d .




Bank c r e d it s

by them a l l ,

The

The f i n a n c i a l and com m ercial
o f th e w o rld a re so

c lo s e th a t any shock to f i n a n c i a l c o n d itio n s
s p e e d ily f e l t

is

o r even th e

o f th e U n ite d s t a t e s .

r e l a t i o n s betw een th e le a d in g c o u n tr ie s

is

It

in one co u n try

.

can be kept w it h in th e l i m i t o f s a f e t y

and

(2)

be a d ju s te d

to meet the n e c e s s i t i e s

o f e x c e p t io n a l c o n d it io n s ,

o n ly by v e s t i n g in some com petent a u t h o r it y ch a rged w it h the
s u p e r v is io n o f th e e n t i r e
a con traction o f c r e d i t s ,

c r e d it

s itu a tio n

o r t o a llo w

th e power t o f o r c e

an ex p a n sion when n e c e s ­

sa ry .
CENTRAL BANK PLAN.
In th e le a d in g c o u n t r ie s

o f Europe bank c r e d i t s

and

r e s e r v e s a r e r e g u la t e d and th e f i n a n c i a l s i t u a t i o n i s
sound and s a fe by means o f la r g e

c e n t r a l b a n k s , w hich a re

c o n s id e re d c?iarged w it h th e g e n e r a l s u p e r v is io n
c o n d it io n s ,
England t h i s

o f fin a n c ia l

s u b je c t , h ow ever, to Government c o n t r o l .

In

c o n t r o l in e x e r c is e d , by th e Bank o f E n glan d,

by in c r e a s in g o r lo w e r in g th e r a t e
on lo a n s and d is c o u n ts ,
serves

kept

o f in te r e s t

w hich i t

c>iarges

th e re b y in c r e a s in g o r re d u c in g th e r e ­

o f th e bank a g a in s t

its

d e p o s it

lia b ilitie s .

E xcept

about s e v e n te e n m i l l i o n pounds o f n o te s is s u e d a g a in s t G overn ­
ment s e c u r i t i e s ,

th e Bank o f England cannot is s u e n o tes e x c e p t

a g a in s t a l i k e amount o f g o ld ,

so th a t Bank o f England n otes

a re r e a l l y s i m i la r to our g o ld c e r t i f i c a t e s .
Germany, h ow ever,

In F ra n ce and

the c o n t r o l o f th e c r e d i t s i t u a t i o n

is

e x e r c is e d by la r g e c e n t r a l banks th rou gh th e is s u e o f bank
n o te s .

B oth in F ra n ce and in Germany, h o w ever,

o f th e is s u in g banks a re alw ays kept v e r y
o f France som etim es k e e p in g a r e s e r v e
th e Im p e r ia l Bank o f Germany a r e s e r v e
d e p o s it

lia b ilitie s

th e r e s e r v e s

l a r g e , th e Bank

o f 75 p e r c e n t ,

and

o f 50 p er c e n t , o f the

and o u ts ta n d in g n o t e s .

T h ere i s p ro b a b ly no co u n try in th e w o rld where the
volum e o f cu rren cy i n c i r c u l a t i o n and th e demand f o r bank
lo a n s and c r e d i t s

f l u c t u a t e more w id e ly than in the U n ite d

S ta te s .

due to th e g r e a t expense o f c o u n tr y ,

T h is

is

to th e

annual re q u irem en ts o f th e a g r i c u l t u r a l s e c t io n s a t h a r v e s t




(3 )
tim e ,

to th e p r e v a i l i n g b u s in e s s a c t i v i t y

to th e r a p id and u nequ al in c r e a s e
in d i f f e r e n t

s e c t io n s

and e n t e r p r i s e , and

o f p o p u la tio n and b u sin ess

o f the c o u n tr y .

Th ere is p r o b a b ly

no c o u n try in th e w o rld where i n t e l l i g e n t
c r e d it s
S ta t e s ,

and bank r e s e r v e s

i s more needed than in th e U n ite d

We have more than s i x thousand N a t io n a l banks

s c a t t e r e d th rou gh ou t th e c o u n tr y , b e s id e s
banks and t r u s t com p a n ies.
fo r

its

c o n t r o l o v e r bank

thousands o f S t a t e

‘ffach o f th e s e i n s t i t u t i o n s

i n d i v i d u a l i n t e r e s t a lo n e ,

in d e p e n d e n tly o f th e o t h e r s ,

and th e p r e v a i l i n g ten d en cy o f each i n s t i t u t i o n
its

a c ts

is

to expand

c r e d it s a t a l l tim es to th e l i m i t p e r m it t e d b y la w .

The

co u n try banks d e p o s it t h e i r su rp lu s w it h th e banks in th e
la r g e r c i t i e s ,

and the banks in th e p r i n c i p a l money c e n te r s

commonly len d out on c a l l such stuns as th e y cannot w ith s a f e t y
use in d is c o u n tin g com m ercial p a p er and in making tim e lo a n s ,
because any i n t e r e s t th e y can make on th e se c a l l loan s
much g a in to them.
bank c r e d i t s

As a m a tte r o f f a c t ,

d u rin g p e r io d s

appears t o be l i m i t e d
gra n t c r e d its

and th e h ig h r a t e

th e c o m p e titio n f o r c r e d i t s ,

so

th e demand f o r

o f b u s in e s s a c t i v i t y

o n ly by th e a b i l i t y

is

and s p e c u la t io n

o f banks to

o f in te r e s t

r e s u l t i n g from

so th a t any in c r e a s e

o f th e power

o f th e banks to g ra n t c r e d i t s would in f a c t p rodu ce an a c t u a l
ex p a n sion o f c r e d i t s

th rou gh ou t th e c o u n try .

I b e l i e v e th a t th e e s ta b lis h m e n t o f a la r g e c e n t r a l
bank, c lc t h e d w it h th e n e c e s s a r y d u tie s and powers to s u p e r­
v i s e and c o n t r o l th e c r e d i t s i t u a t i o n , would not be p r a c t i c a b l e
o r d e s i r a b l e in th e U n ite d S t a t e s .
bank s u c c e s s fu l,

In o rd e r to make such a

i t would be n e c e s s a ry th a t i t

sh ou ld be o f

immense m agn itu de, th a t i t

shou ld be th e d e p o s it a r y o f th e

p u b lic m on eys, and th a t

sh ou ld have the power o f

it

n otes t o be used as c u r r e n c y .

Past

is s u in g

e x p e r ie n c e shows th a t the

p e o p le o f th e U n ite d S ta t e s would not con sen t to th e e s ta b ­
lish m en t o f such a c e n t r a l bank.




You cou ld n e v e r c o n v in c e

(4)

the pe op le of the United S t a t e s that i t would he d e s i r a b l e or
s a f e to v e s t in any nan, or s e t of men, the va st power o f
d i r e c t i n g the op er at io ns o f such a hank and o f c o n t r o l l i n g
the fi n an c es o f the whole c o u n tr y .

Even i f

the c o n t r o l of

such a hank were p la ce d in the hands o f the w i s e s t and

most

honorable men o f the co untry, you could never s a t i s f y the
people that the va st powers o f the hank were e x e r c i s e d i n ­
p a r t i a l l y and f o r the heat i n t e r e s t

of a l l

the p e o p l e .

Such

a hank could not he e s t a b l i s h e d in the United S t a t e s because
i t would not he i n harmony w i t h our p o l i t i c a l nethods and our
business habits#

JOIN? ISSJjE ^

JAT M
)}j

.

Can the b e n e f i c i a l r e s u l t s o f a l a r g e c e n t r a l bank be
ob tained without i t s o b j e c t i o n a b l e f e a t u r e s 9

The f o l l o w i n g

plan i s su ggested:
Let the N a t i o n a l banks form an a s s o c i a t i o n ,

in the nature

o f a l a r g e Clearing-House A s s o c i a t i o n , f o r the purpose of
e n ab ling each member o f the A s s o c i a t i o n to i B s i e notes upon
the j o i n t

c r e d i t of the a s s o c i a t e d banks, upon d e p o s i t i n g

w i t h the A s s o c i a t i o n a proper r e s e r v e f o r the redemption o f
these notes ,

and s e c u r i t y i n the form o f a guaranty o f an

approved c le a r in g - h o u s e a s s o c i a t i o n ,

or bonds or or di n ar y

banking a s s e t s , but p r e f e r a b l e the l a t t e r ,

f o r th e d i f f e r e n c e

between the d e p o s i t e d r e s e r v e and the amount o f the n o t e s .
The A s s o c i a t i o n should be c o n t r o l l e d by a board o f managers
e l e c t e d by the a s s o c i a t e d banks, each bank v o t i n g in p r o p o r ­
t io n to i t s c a p i t a l s t o c k .
The r e s e r v e a g a in s t the notes should be e n t i r e l y d i s t i n c t
from the r e s e r v e of the banks agains t t h e i r de p o s it l i a b i l i t i e s ,
and i t should be d e p o s i t e d w ith the J o i n t Issue A s s o c i a t i o n and
be used by i t




f o r redeeming the n o t e s .

I should make the minimum r e s e r v e t o be kept up by each

(5)

bank a g a in s t

its

n otes 25 p er c e n t.., but

sh ou ld have pow er fro m time t o

tim e to

in c r e a s e th e p e r c e n ta g e ,

ea ch bank b e in g r e q u ir e d a t a l l tim es t o
at

th e p r e s c r ib e d p e r c e n ta g e

th e M anaging Board

keep up i t s

reserve

o u ts ta n d in g n o te s *

o f its

I sh ou ld

g iv e th e Government power to c o n t r o l the n o te is s u e s by a u th o r i z i n g th e S e c r e t a r y o f th e T r e a s u ry a t any tim e t o

to be kept by th e banks a g a in s t

th e p e r c e n ta g e o f th e r e s e r v e s
t h e i r n ote

is s u e s .

o f th e T r e a s u r y ,

E i t h e r th e Governm ent,

th rou gh th e S e c r e t a r y

or th e M anaging Board o f th e J o in t Is su e De­

partm ent (w h ic h would ex p re ss
th rou gh ou t th e c o u n t r y ),
t io n

in c r e a s e

th e judgm ent o f the bankers

c o u ld ,

a t any tim e ,

fo r c e a c o n tra c ­

o f th e o u ts ta n d in g n o tes and o f bank c r e d i t s g e n e r a l ly

by r e q u ir in g an in c r e a s e o f th e n ote red em p tio n fu nd*

The

Government would thus have th e power a t any tim e t o f o r c e
r e tir e m e n t

o f a l l o r any p a r t

The g r e a t fu n c t io n

03

the

th e n o t e s .

o f th e Board o f Managers o f th e

A s s o c ia t io n would be t o r e g u la t e fro m tim e t o tim e th e p e r ­
cen ta g e

o f th e r e s e r v e to be kept up by th e s e v e r a l

a g a in s t t h e i r o u ts ta n d in g n o t e s .
in g th e p e r c e n ta g e

o f th is

By in c r e a s in g or d im in is h ­

reserve,

the Board o f Managers

cou ld c o n t r o l the volume o f th e o u ts ta n d in g n o t e s ,
some e x te n t
v a ilin g
th is

ra te

oantfs

and to

the Board c o u ld r e g u la t e and e q u a liz e th e p r e ­
o f i n t e r e s t and h in d e r th e e x p o rt

o f g o ld ,

if

is t h r e a te n e d by a tem porary redundancy o f th e bank

reserves.
The A s s o c ia t io n w ould have no purpose or b u sin ess ex c e p t
to p r o v id e f o r and r e g u la t e
jo in t

c r e d it

o f th e banks.

c a p i t a l , would n ot r e c e i v e

th e

is s u e o f th e n otes on th e

The A s s o c ia t io n would have no
d e p o s its , and w ould not do a

ban kin g b u s in e s s .
Each bank sh ou ld be a llo w e d t o is s u e n o tes t o an amount
not e x c e e d in g i t s

c a p it a l s to c k ,

le s s any b on d -3 ecu red n o tes

o u ts ta n d in g , and a p r o g r e s s iv e ta x sh ou ld be im posed upon




c{6)
th e

a v e ra g e anount. o f the new n otes w h ich each hank has

o u ts ta n d in g .

* part, o f t h is

ta x ,

h ow ever, sh ou ld be s e t

a p a rt by th e Government as a s a f e t y

fund f o r th e red em p tion

o f notes o f any banks th a t make d e f a u lt in p r o v id in g f o r
t h e i r paym en t.
>iO r e a l l y

sound c u rre n c y p la n can e v e r be put in f o r c e

in th e U n ite d S ta t e s aa lo n g as the

is s u e o f th e p r e s e n t

b o n d -s e c u re d N a t io n a l bank n otes

c o n tin u e d .

is

Any good

p la n must t h e r e fo r e make p r o v is io n f o r s t o p p in g th e fu r t h e r
is s u e

o f th e b o n d -secu red n otes and f o r u l t i m a t e l y r e t i r i n g

th o s e w h ich a r e now o u ts ta n d in g .
tne banks wriicn nave in v e s t e d

It

is j u s t ,

th a t

in Government bonds, r e l y i n g

on th e p e r m is s io n o f th e Government t o
th ese

h o w eve r,

issu e n otes a g a in s t

bonds, sh ou ld be p r o t e c t e d from l o s s .

It

is

th e re ­

f o r e s u g g e s te d th a t each bank w hich lias a c q u ir e d Government
bonds, upon u sin g th e s e bonds as a b a s is f o r
J o in t

Is s u e A s s o c ia t io n n o te s ,

the is s u e o f

sh ou ld r e c e i v e an a llo w a n c e

in r e s p e c t o f ta x e s im posed on th e s e n o tes s u f f i c i e n t

to

m a in ta in a p p r o x im a te ly th e p r e s e n t v a lu e o f t h e i r bonds.
Under t h is p la n ,

in t e llig e n t

c o n t r o l o v e r the c r e d i t

s it u a t i o n w ould be v e s te d in a b oard o f le a d in g bankers
chosen from d i f f e r e n t

p a rts

o f th e c o u n try , w h ile th e Govern­

ment. a ls o w ould nave ample powers

o f s u p e r v is io n and c o n t r o l .

The p la n would p r o v id e f o r a r e a l l y e l a s t i c

is s u e o f

n o t e s , w it h a p r o p e r r e s e r v e f o r t h e i r payment when p r e s e n te d .
One o f th e most dangerous f a l l a c i e s

in ban king is th e id e a th a t

the d e p o s it o f ample s e c u r i t y in th e fo rm o f bonds
t h in g e l s e
and s a f e ,

is

s u ffic ie n t

and th a t i t

to make an is s u e

or any­

o f bank n o te s sound

is p o s s ib le t o have a r e a l l y

e la s tic

is s u e o f n otes w ith o u t p r o v id in g a c o n s id e r a b le cash r e s e r v e
f o r t h e i r payment when p r e s e n te d .
The p la n would a v o id th e p o l i t i c a l

dangers in h e r e n t in

any p la n under w h ich th e Government is t o le n d i t s




c r e d it

(7)

to the hanks.
p o litics

Having r e g a r d to the u n c e r t a i n t y o f our

and the f i n a n c i a l h e r e s i e s which have x>revailed

and s t i l l p r e v a i l in va r io u s s e c t i o n s of the country, any
ex te n s io n o f the pr es en t system o f i s s u i n g hank notes upon
the c r e d i t

o f the Government would s e t a v e r y dangerous

p r e c e d e n t and prohahly would r e s u l t i n many fu t u r e schemes f o r
the i n f l a t i o n o f the currency.




VICTOR MORAWETZ.

THE PEOPLE’S BANK
nASQfLGITY. ILLINOIS.

OTHO S. KINS

SUGGESTED PLAN FOR CENTRAL BANKS.
CORPORATION
To be N a t i o n a l ,

w it h l a r g e u n l i m i t e d c a p i t a l ,

which must be i n ­

v e s t e d i n such bonds or s e c u r i t i e s as the government would require
from the N a t i o n a l banks f o r c i r c u l a t i o n .

To be l o c a t e d in such cities

as the busin ess i n t e r e s t s o f the co unt ry may demand and justify.
STOCK
To be h e ld by banks and by the government,

(if

advisable)

bank to be l i m i t e d and r e q u i r e d to take o n e - t e n t h o f i t s
stock;
of

each

Capital

and the government l i m i t e d to o n e - f o u r t h o f the whole amount

stock.
CAPITAL
The c a p i t a l should not be l i m i t e d ,

as t h e r e i s a co ns tan t

f l u c t u a t i o n o f c a p i t a l i n the banks o f the c o un tr y ;
have the r i g h t to be s t o c k h o l d e r s , but a l l

and a l l

should

the in ve stm en ts i n bonds,

o f the c a p i t a l must be d e p o s i t e d w it h the Un ite d S t a t e s T r e a s u r e r ,
the same as a re the s e c u r i t i e s o f the n a t i o n a l banks.

To be h e ld f o r

such needs as may a r i s e from the c o n d i t i o n s o f busin ess and monetary
a ffa irs .
BUSINESS
To r e c e i v e

d e p o s it s from N a t io n a l banks and such o t h e r o r g a n i ­

z a t io n s as may be under c o n t r o l o f th e govern m en t and s t a t e
t h a t subm it t o th e e x a m in a tio n s o f th e s e o f f i c i a l s
in e r a p p o in te d by th e d i r e c t o r a t e

o r a s p e c i a l exam ­

o f th e a s s o c i a t i o n ;

and who come

under such law s as may be passed by c o n g re s s in g i v i n g
th e s e o r g a n iz a t io n s , and from th e go vern m en t,
o ffic ia ls .

c h a rte rs

to

and from s t a t e

What funds th e a s s o c i a t i o n may have to lo a n must f i r s t

su p p ly th e demands o f i t s d e p o s it o r s upon such s e c u r i t i e s
named in th e C h a rte r o r by i t s g o v e r n in g b o a rd ,
o r th e d is c o u n t b o a rd ,

as may be

e i t h e r th e d i r e c t o r s ,

and i f any funds accu m u late above th e s e n eeds

th en such funds may be in v e s t e d
governm ent would r e c e i v e

in such s e c u r i t i e s

as th e U. S.

fo r s e c u r ity fo r c ir c u la t io n

Banks, such fu n d s, when in v e s t e d ,




o ffic ia ls

t o be h e ld f o r n e e d s .

from N a t io n a l

<£ --£4 i_ / 3a *^ /< ^
s* s
' //
c / ^*f



r

THE PEOPLE’S

BANK

n^dON CITY, ILLINOIS

OTHO S. KINO

CIRCULATION
The C a p it a l S e c u r i t i e s h e ld for needs, together with
such s e c u r i t i e s as may be on hand a r e to be used for currency
is s u e in c a s e o f any e x t r a o r d i n a r y occurrence as may develope and
th e d i r e c t o r a t e a r e to be th e ju d g e s as to whether the then ex­
i s t i n g c r i s i s demands th a t th e c a p i t a l and other securities are to
be p le d g e d to th e U n ite d S t a t e s f o r a short term issue of cur­
r e n c y , same as th e N a t io n a l Banks now have but to be termed as
em ergency c u r r e n c y .
CONTROL
I f th e govern m en t becom es a s t o c k h o ld e r to

th e extent

o f o n e - fo u r t h o f th e c a p i t a l , th en th rou gh some one o f i t s
A NUMBER
o f f i c i a l s , s e l e c t e d as i t may seem b e s t , it should name...... of
th e d i r e c t o r s ; and th e sh a re h o ld e r s th e remaining number.
NET EARNINGS

be paid
s t o c k h o ld e r s as a d i v id e n d , and a l l e a r n in g s above th e dividend
Not t o e x c e e d a s t a t e d p e r c e n t ,

s h a ll f i r s t

s h a l l be in v e s t e d and d e p o s it e d as th e C a p it a l to p r o v id e
a fund f o r fu tu r e n e e d s . T h is fund i s to accu m u late f o r
a G u aran tee to d e p o s it o r s in banks th a t may f a i l , who a re s h a re ­
h o ld e r s o f th e a s s o c i a t i o n up to th e amount th en on hand,
and th e s to c k owned by th e f a i l e d bank s h a l l be h e ld by th e
a s s o c ia t io n as s e c u r i t y a g a in s t any paym ents t h i s a s s o c i a t i o n may
have to make from th e g u a ra n te e fu n d ; and i f t h i s g u a ra n te e fund
s h a l l rea ch th e sum o f
d o l l a r s , th en th e n et e a r n in g s s h a ll
be d is p o s e d o f by th e board o f d i r e c t o r s .
RECEIVERSHIP
T h is a s s o c i a t i o n must be a p p o in te d R e c e iv e r o f any
bank th a t f a i l s , th a t i s a s t o c k h o ld e r in t h i s a s s o c i a t i o n so th a t
i t co u ld p r o t e c t i t s g u a ra n te e fund and save a l l th e expen se i t
co u ld and wind up f a i l e d banks in as s h o rt tim e as p o s s i b l e under
th e s t a t e law s o f such s t a t e s w h e rein th e banks a re lo c a t e d .




/3frtts/dZ . f o < /i/ b _^
& U .s\ L ^ ? / y j




^

THE PEOPLE’S BANK
IIASON CITY. ILLINOIS.

'

OTHO S. KINS

SUGGESTED PLAN FOR CENTRAL BANKS

/

CORPORATION
To be N a t i o n a l , w i t h l a r g e u n l i m i t e d c a p i t a l ,

which must be i n ­

v e s t e d i n such bonds or s e c u r i t i e s as the government would r e q u i r e
from the N a t i o n a l banks f o r c i r c u l a t i o n .

To be l o c a t e d i n such c i t i e s

as the business i n t e r e s t s o f the co un tr y may demand and j u s t i f y .
STOCK
To be h e ld by banks and by the government,

(if

advisable)

bank t o be l i m i t e d and r e q u i r e d to take o n e - t e n t h o f i t s

each

Capital

s t o c k ; and the government l i m i t e d to o n e - f o u r t h o f the whole amount
of stock.
CAPITAL
The c a p i t a l should not be l i m i t e d ,

as t h e r e i s a co n st an t

f l u c t u a t i o n o f c a p i t a l i n the banks o f the c o u n t r y ;

and a l l

should

have the r i g h t t o be s t o c k h o l d e r s , but a l l the in v es t m en t s i n bonds,
o f the c a p i t a l must be d e p o s i t e d w it h the U n it e d S t a t e s T r e a s u r e r ,
the same as a re the s e c u r i t i e s o f the n a t i o n a l banks.

To be h e l d f o r

such needs as may a r i s e from the c o n d i t i o n s o f bu sin ess and monetary
a ffa irs .
BUSINESS
To r e c e i v e d e p o s i t s from N a t i o n a l banks and such o t h e r o r g a n i ­
z a t i o n s as may be under c o n t r o l o f the government and s t a t e o f f i c i a l s
* th a t submit to the exam ina tio ns o f th ese o f f i c i a l s

or a s p e c i a l exam­

i n e r appointed by the d i r e c t o r a t e o f the a s s o c i a t i o n ;

and who come

under such laws as may be passed by congress in g i v i n g c h a r t e r s to
these o r g a n i z a t i o n s , and from the government, and from s t a t e
officia ls.

What funds the a s s o c i a t i o n may have to loa n must f i r s t

.

supply the demands o f i t s d e p o s i t o r s upon such s e c u r i t i e s as may be
named in the Chart er or by i t s g o v e r n i n g board,

e i t h e r the d i r e c t o r s ,

or the discount board, and i f any funds accumulate above these needs
then such funds may be i n v e s t e d in such s e c u r i t i e s as the U. S .
government would r e c e i v e f o r s e c u r i t y f o r c i r c u l a t i o n from N a t i o n a l
Banks, such funds, when i n v e s t e d ,




to be he ld f o r needs.

f

the

PEOPLE’S

BANK

HASON CITY, ILLINOIS

%

OTHO S. KINq

*

CIRCULATION
The Capital Securities held for needs, together with
such securities as may be on hand are to be used for currency
issue in case of any extraordinary occurrence as may develope and
the directorate are to be the judges as to whether the then ex­
isting crisis demands that the capital and other securities are to
be pledged to the United States for a short term issue of cur­
rency, same as the National Banks now have but to be termed as
emergency currency.
CONTROL
If the government becomes a stockholder to the extent
ot one-fourth of the capital, then through some one of its
officials, selected as it may seem best, it should name ANlJM"BRof
ohe directors; and the share holders the remaining number.
NET EARNINGS
Not to e x c e e d a s t a t e d p e r c e n t , s h a l l f i r s t be p a id
s t o c k h o ld e r s as a d i v id e n d , and a l l e a r n in g s above th e d iv id e n d
s h a l l be in v e s t e d and d e p o s it e d as th e C a p it a l to p r o v id e
a fund f o r fu t u r e n e e d s . T h is fund i s to accu m u late f o r
a G u aran tee to d e p o s it o r s in banks th a t may f a i l , who a re s h a r e n o ld e r s o f . t h e a s s o c i a t i o n up to th e amount then on hand
and th e s to c k owned by th e f a i l e d bank s h a l l be h e ld by ’the
a s s o c ia t io n as s e c u r i t y a g a in s t any paym ents t h i s a s s o c i a t i o n may
nave to make from th e g u a ra n te e fu n d ; and i f t h i s g u a ra n te e fund
s h a l l re a c h th e sum o f
d o l l a r s , then th e n e t e a r n in g s s h a ll
be d is p o s e d o f by th e board o f d i r e c t o r s .
RECEIVERSHIP
T n is a s s o c i a t i o n must be a p p o in te d R e c e iv e r o f any
bank th a t f a i l s , th a t i s a s t o c k h o ld e r in t h i s a s s o c i a t i o n so th a t
i t c o u ld p r o t e c t i t s g u a ra n te e fund and sa ve a l l th e expen se i t
c o u ld and wind up f a i l e d banks in as s h o rt tim e as p o s s i b l e under
th e s t a t e law s o f such s t a t e s w h e rein th e banks a r e lo c a t e d .




n
I

COI73IDRPAT10!

Do .:
om

•T1

y

A ■ n y

Mf
.

rf . i y

T T V ^ V '

.
1I :’7:3 0:;
T"

iioithy m id

baitkiitg by ties hohrtary

corns 31 o:.
i
The number o f Congressional documents respecting money and banking is very great;
th e ir importance as a ffe c tin g any h is to ric a l view o f the development o f banking and cur­
rency le g is la tio n in the United Btatos is admitted. They are used, however, with d i f f i ­
culty, being scattered, as they are, through the document sets o f the various Congresses.
Many o f them are p ra c tic a lly lo s t in a sheep-bound obscurity* Certain o f this documentary
material re la tin g to money and banking has been reprinted. Among reprints to be noted
are the follow ing:
American State Papers. Finance. 5 vo ls. F o lio .

The documents embraced cover the period

A p ril 11, 1709-J.Iay 16, 1328.
Reports o f the Secretary o f the Treasury, 1301-1349. 7 vol3. Washington, 1327-1851. This
reprint containd Hamilton’ s reports on public cred it, a national bank, manufactures, and
tiie establishment o f a mint.
itl. St. C lair Clarke- and D. A. H a ll's "L e g is la tiv e ahd documentary h istory of the 3ank
o f the United S ta tes," Washington, 1332. The la test Congressional documents in this
compilation are House and donate reports made in 1820 on the Bank o f the United States
and the currency. The le g is la tiv e and documentary m aterial growing out o f the la te r aspect!
o f the bank war and the removal o f the deposits, consequently, is not includod.
Jonathan R l l i o t ’ s "Funding system o f the United Ctatos and Great B rita in ," Washington,
1045. This compilation includes extracts from various documents or documents printed
complete, some 15r in number, regarding the funding system o f the United States.
"Documentary h istory o f the coinage r.ct of Feb. 12, 1372,"

rintod in the Report o f the

Director o f the Hint, 1896, p. 461-572.
P o s s ib ilit ie s regarding reprints at the present time include the follow ing:
I. A selection o f documents, to include such paj>ers as Hamilton's reports; G a lla tin ’ s re-

^ •JU '
U- 4

i o r ts ; Crawford on the currency, 1020; Ingham's report, 1820; Taney, on the removal o f



z.
I the deposits, 1333; Taney on deposit Panics, 1334; 7/oodbury, on public money, 1334; Senate
and House reports respecting the Bank: o f the United states, the Independent Treasury,
the national Ban: Act, currency end the coinage.
^.i.e di._.f ic u lt./ in making < compilation of tnis and is , o f course, to he s u ffic ie n tly
•
.
comprehensive and yet noop within lim its . There is always the danger o f sins o f both
commission and omission.
i l . A series o f volumes, as comprehensive as possible, issued under such heads as the
follow in g:
Coinage.
Currency.
F irst and Second Banks o f the United States.
Independent Treasury,
national banking system.
State banking before the c i v i l war.
Ij
.1. A reprint o f Clar.cc and H a ll*3 "’L e g is la tiv e and documentary h istory o f the Bank o f the
United S ta tes," supplemented by the material which came into existence a fte r the publi­
cation o f the o rigin a l volume in 1332.
I* . A continuation o f the Finance volumes o f the American state papers. The c o m p i li n g and
publishing o f th is great work was a huge undertaking. The series as i t now stands em ­
prises 33 volumes, divided as follow s:
Foreign relation s, 6 vols.
Indian a ffa ir s , 2 vols.
Finance, 5 vols.
Commerce and navigation, 2 vols.
M ilita ry a ffa ir s , 7 vols.
Naval a ffa ir s , 4 vols.
Post O ffice department, 1 vo l.
Public lands, 3 vols.
Claims, 1 vol.
Miscellaneous, 2 vols.
Twenty-one volumes were prepared under act o f March 2, 1831, and jo in t resolution o f March
“V d8u3; 1; volumes under act of June 12, 1653. The last named act provided ^340,000 fo r
'■iC centinuat on o f the work to March 4, 1359. The sum, apparently, was not s u ffic ie n t,
•
fo r the volumes in the various c e s s e s under which the papers were printed conclude
with documents much e a r lie r than th is date, those in the Finance volume"! coming down
only to 1323.




3

I

There are #aid to he 2,404 documents in the en tire co llectio n . Of these, 924 are in
the fiv e volumes on Finance, each volume comprising about 1000 fo lio pages, ilany o f the
fin a n cia l documents, o f course, have to do with revenues, taxation, e tc ., but they are
l i rewise inclusive of those on banking and currency from 1739 to 1323. Documents are
reprinted in extenso. A single document o f 1324, givin g correspondence rela tin g to
public deposits, occupies nearly G O pages, or over n a if o f one
O

those bulxy fo lio

volumes.
There are errors in th is compilation, probably not many o f a sor’ ous nature. There
are also omissions, more esp ecia lly as to the early Congresses, i t nignt oe t guesul ui
whether, in bringing together documents on money and banking, those papers on these
subjects should be extracted from the present compilation and placed in the new one, or
whether the new undertalcing should commence at the date at which the old one l e l t o ff.
The committee o f h id to rica l experts which reported in 1909 on the documentary h is to ric a l
publications o f the United States Government esp ecially recommended the continuation o f
the American State Papers, and advised the inclusion o f departmental correspondence, s t i l l
remaining in manuscript, with special re fe r nee to the le tte r s exchanged v/ith tne xresid
dent, the heads o f Departments, and the chairmen o f the ch ief committees o f Congress.
Pamers by Jackson, VanBuren, Polk, Corwin, Chase, and others, are in the Library o f Cong­
ress , while.the papers in the Treasury Department include a f i l e o f le tte rs from the Jessretary o f the Treasury to the President.
These facts are set forth in the report o f the committee on documentary h is to r ic a l
publications which has been referred to. A copy o f th is report, with passages marked, is
annexed to th is memorandum.
Xr. one place in the report(p. 11) the cost is Given o f certain o f the Oovernraent’ a
h is to r ic a l publications, among them the followings
O ffic ia l Records o f the .,’ar o f the r.ebelxion
O ffic ia l Records o f the war, Naval,
Lies sage 3 and papers o f the Presidents, 10 vols.
Lloore* s Digest o f International Law, 3 yo;s.




>^1, 931, 321
205, 314
2.57, 399
lw l

An estimate

o f the oost o f printin g and binding a volume o f 1000 pages o f quarto

size (the result would be a volume o f about the size o f a Commerce and Navigation Re­
port) is furnished by the Public P rin ter*as follow s:
For 1000 copies
2000 "
3000 "

£9,868.58
10,751.72
11,704.27

- h t . ...iguies, oi course, do noo include the cost o f compiling. How many volumes would
bo necessary, I can not say.
Of the various suggestions in th is memorandum, the one respecting a new edition
o f the "L e g is la tiv e and documentary h istory o f the Bank o f the United S tates," inclu­
ding the m aterial necessarily omitted in the o rigin a l issue, appears to be quite fea sib le,
fhe continuation, or revision and continuation o f the American State Papers, so fa r as
the subjects o f money and banking are concerned, would be at a very great cost. It
would likew ise be a notable undertaking, and o f very great service to students o f those
subjects with which the volumes would deal.




Respectfully submitted,

At

t




'

’S? V ?
CONTENTS.

0

Savings departments of national\banks and re a l

estate loans

Form o f circu lar le t t e r $Ant to the banks Oct*9,1911, ~
Abstract o f rep lies received

^

-

—

Summary of re p lies arrange^ by geographical sections, —
Pertinent extracts from/letters of o ffic e rs o f banks
accompanying formjrl answers to th 6 in qu iries, _

,

X

,

„

va

2

16717
D c '- l ’ ■

A

3

Savings Departments of National Banks and Real Estate Loans.

In view of the questionable accuracy of available s ta t is tic s
in relation to the volume of savings deposits in national banks, ^the
operation of savings departments by the&es w s i a t t gn^and

the purpose

of obtaining more accurate data in the future, together with the views of
bankers generally with respect to the d e s ira b ility of amendments to the
,
National iank Act authorizing the establishment in national bank£a*
assrrria'iiiia of savings departments and^nvestment of a d efin ite portion
of th eir funds in loans secured by mortgages or other liens on realty,
a circu lar le t t e r was sent to every national bank under date of October
9, in which the desired information was requested.




T R E A S U RY .DEPARTM E NT
;

! tC E OF

"

WASHINGTON­

------------- *

CO M PTR O LLER bp^TH E C U R R E N C Y
ADDRESS R E P tV TO
C o m p t r o l l e r o f t h e C^s q r e n c y ."

16717

October 9.1911.

f
\

T o the C a s h ie r :

,\

Foi the infprmation/of this Department and of the Commission having under consideration amendments toDie^National Banking ^aw s, the data hereafte'r indicated, as shown by the books of your bank
as of October Ilf, 1911, are desired.
questions should be answered fully.

Please answer all direct questions either “ Y e s ” or “ N o.”

A ll other

You are respec tfully requested to send in your report to the Comp­

troller promptly after the date indicated, and on the accompanying form, under cover of the inclosed
postage-free envelope.
Yours, very respectfully,

LAWRENCE o. MURRAY,
—

\ (T
'^r

Com rol f er o f the Currency.
yt

Charter No.

(L o c a tio n ) ___ ___

^ .

_______ __

17

(S ta te )
To the C o m pt r o ller of th e C u r r e n c y ,

( -—
—

W ashington, D. C.

7r
u

Reply to your inquiry of October 9:

/

1
Yes” or “ No.’

!• Does your bank receive savings deposits?
U3If SO, is your savings department operated as a separate division, with sepa­
rate books,
°
Is your savings department operated in the same room with the commercial
department? . .
Are your savings deposits subject to withdrawal by check?
Or only upon presentation of pass books ?
Or only upon surrender of certificates of deposit ? ...............
Do your regulations provide for notice of withdrawals?

_.

If so, do you enforce such regulatiotas ? ...............................
2. ^Yould you favor an amendment to the law allowing national banks to invest
a certain percentage of their deposits in real estate mortgages ? ....................
so, what per cent ? Please answer fully.

CA
U.

3. W ould you favor an amendment to/the law specifically authorizing the estab­
lishment of savings departments/in national b a n k s ? ....................................
4. ^Would you favor restricting real estate loans to a certain percentage of the

f

deposits in such savings departm ent?........................................................... .
^ ' I f so, to what percentage ?
I A ...................... ...........

■

6. Would you favor the segregation of savings deposits and the restriction of
then investment as provided by the mutual savings bank laws of certain
States?..............

-V
rr
.National Bank

ir(

.........

v,
, Cashier.

presentation of the pass l>ook, or other similar
or (/>) which at the option of the liank mav
interest is allowed'until tii» «.,n i. i / a
.
not,c® ' « »ntenti<m to withdraw has been given; or (c ) upon which no
interest is allowed until the funds hale remained on deposit for at least th re ^ T ^ th s .
s-atsz




■ 671 7

r

u

Abstract o f Replies received.

The replies received were accompanied in a number o f instances
with a le t t e r entering fu lly into the subject, and while m
any national
banks are so situated as to confine th eir business to s t r ic t ly local
lin e s, they recognize the fact that banks otherwise situated are surrounded
by a class of customers requiring accommodations on c o lla te ra l other than
that o rdinarily handled by commercial banks, that is , mortgages or other
liens on realty.
An abstract of the replies has been made, a summary of which is
as follows:




.

t -

16 7 1 7

'f t ' /

C
1‘

^

/ JfflSULT OP JtfQUIRIES OTK^TTHD TC TH MATIOHU. 3&IIKS C O BER 9, 1911.
E
IT CTO
***** * * * * * * * * * * * * * * ** ** *** *** ** *** * <*******

Tfnnbnr rtf banks to which questions wefce sent...................................... 7 ,301

t

Ihortwr-of banks replying to questions.. .\............................................ 6 .815
486

Kumber-of banks not replying..................... .............................. .
f

r r*^

I

I

\

j

3E^!SS2 —^

\

a-H s

C- Question 1

—

—

; 1)oes your bank receive sa vin g deposits0 ,

number receiving savings deposits is approximately 51^ of
a ll the national banks, or ........................................ ..................3 ,502

,

/. f

f

/

/

Of the 3,502 receiving savings deposits, the number that oper-

/

)

/

ate this department as a separate d ivision is ..................*'»...2 ,289

() The number o f national banks operating Xhe savings department

/

,
in the same room with the commercial department is ..................‘ ,416
i l

.

/

< XJeposits in savings departments are subject to withdrawal by

"

/

810

check from bank i n ......... i ............................................................

The presentation of pass books'Ts"s
*^quired in ................................. •* ,329
-

t\
'

'

‘

v 7 \

, ,959

Surrendered c e r t i f icates o f deposit is\required i n ............ .............Of the 3,502 banks receiving deposits t *

regulations provide

fo r notice of withdrawal i n ...........»j............................................ ,062
.
The regulations are enforced however in ojtily • • • • .............................. 462
(m [
Y\\
1

/£
'

,

Question 2. H

)

1Would you favor an amendment to the law allowing
national banks to invest a certain per cant age o f
l
th a ir deposits in real estate?
*

! . »\
\\

/

The number o f national banks favorin# an amendment to the law
allowing banks to invest a certain percentage of th eir
deposits in real eatate is 8^0} o r ............................ . . . . • • ........ £ ,543
Of th is number, an average o f 2S^^of a ll deposits was favored by **4 ,926
The number o f banks not favoring such a « anendment is




........... i ,186

•6717
d

-Question 3 . ^

^ould you favor an cnsndment to the law s p e c ific a lly
’ ...
| authorizing the establishment o f savings departments /
f in national banks?
\
/

/

The number o f national bento favoring an amendment to the law
specifically authorizing the establishment ^ f savings de­
partments in national banks, i j 68$ or . . . . j

.

.

.................... 4 #Ge2

/ The number o f banks not favoring suph an amendmeny^s 29^/or........... 1 , 9 7 9

U.

^

d

Question; 4 *
_. *

A-PP-- ' ' i '7o" ld 5'ou f s v o r r e s t r ic t in/- real estate loans to a I
i 03rtaln Percentage of /the deposits in such savings
I aepartment?
/

( M

I

/

f X

^ iQ nur‘te r o f national banka fa v o r in g r e s t ric tin g re al estate

J

loans to a certain percentage of th e ir savings denosits

1 8 5*

.................... ( • .......................................... .............................. 4,034

Of th is number,

an average ^

40.1 is favored by 54 ' o r ..................3,692

The number o f banks not favo rin g th is re s tric tio n is 3 (y1 o r............. 2,044
Question'5. —»
....
- ___ -—U

'

< V/O
al
/ ,<4?ould you favor the segregation o f savings denosits
! } )
i and the re s t ric tio n o f th e ir investment as provided /' ' '
;
liutual Savings Bajal; laws of certain states? '

The number o f national banks favoring the segregation o f sav­

''

ings deposits and re s tric tio n o f th e ir investment is 3 3 '- o r . . .2,241

f

The number o f banks not fa v o r in g th is re stric tio n is 541$, o r ........... 3,495
ft

/

V

^ .T h e following table shows the re su lt o f the questions, in geographies

divisions.

C

i ,

f




y

t
1".'
Oc^

V*

,
M

y^^-i-Ap. t & J

Ho* Jjariks reporting..... ........................ ••••• : 431
Ho. banks receiving savings deposits.............. ..... I 127
No. panics operating Saving* Department separately...... . ,i 86
I
Ho. tanks operating Saving* Department in same room with
, 125
s
commercial department
\No. tanks whose savings deposits are subject to withdrawal :
by check. •..••••••••••••••••••••••••••••.... •••••••••* 23
Ho.
Whose savings deposits are subjeot to withdrawal s
only on presentation of pass book................... * 105
No. tanks Whose savings deposits are subject to withdrawal t
'on surrender of certificate of deposit.•......•••••••••* 47
No. Jpanks Whose regulations provide for notice of withdrawals 81
No. tank® that enforce such regulations...................
5
No. tart*8 favoring amendment allowing investment in real
s
estate mortgages.......... ........ ...... ........ 5 ^
No. banks favoring such investments....... •••••••••••••••* 204
Average percentage favored by above......•••••• •••••••* 25
No. bank® that do not favor sudh investment............
199
Ho. banks favoring amendment authorizing establishment of
*
pavings Department ...... .......................... * 211
No. banks who < o not f*vor amendment authorizing establish- *
^
ment of Savings Departments.••••••........ •••••••••••* 209
No* ^banks favoring restriction of real estate loans to a cer­
tain per cent, of Savings deposits................ .
280
No. banks favoring investment of certain percentage of such :
'loans to deposits........... .............. ..... •••* 2®J
Average percentage favored by the above.•••••........ * 41
No. banks not favoring restriction of real estate loans to :
^certain percentage of savings deposits...... ••••.»..«> 112
No. banks favoring segregation of savings deposits and re- *
1 striction of investment..••••••••••••••••••••••••••••••* 203
*(above as provided by^jftitua^ Savings^Banking Laws)
t




%x

/

X (Vi-A hJ

Jr

~

.w

Sastv t Southv: kiddiet West?. : Pac*x Is:
•
1,138 • 411
1,561 : 1,318 : 1,952
408 233
1,100 : 581 x 1,051
140
•
808 : 369 : 688 • 198
•
e
•
t
234
388
1,073 x 569 : 1,025
•
:
16
74
303 : 211 x 183
•
182
224
767 : 287 s 762
•
•
%
:
147
251
576 : 320 x 616
•
172 • 183
684 : 327 x 613
21
31
90
63 x
252 :
•
e
342
968
1,136 : 1,061 x 1,810
301
857
941 x 1,604
1,021 :
29
22
27
26 x
25 s
67
149
389 * 251 x 131
•
•
•
t
314
776
1,014 : 897 x 1,468
i
82
e
523 : 402 x 439 • 324
:
252
628
980 i 748 x 1,144
:
229
529
910 : 682 x 1,090
51
42
43
38 x
32 :
:
114
336
414 x 412 x 656
_ X
170
410
434 x 431 x 593
X
167
442
1,008 x 595 x 1,080
//
/
/
i
^ /-v
//
\/
/
.| V

0 .2 ,

2 x 6,813
2 x 3,502
0 x 2,289
2 x 3,416
810

0 x

2 x 2,329
2 ; 1,959
2 x 2,062
0 x 462
2
0

x 5,543
X 4,928
25
X
x 1,186

2 x 4,682
0 x 1,979
2 x 4,034
2 x 3,692
40
85:
0 x 2,044
0 x 2,241
2 x 3,495

-

i i

n \
/

(Copy)

A n a t io n a l bank i n v e s t i n g A p r i l 1,1890 $ 1 2 ,5 0 0 .,par v a l u e , in
U. s.Government 4 p e r cent bonds,redeemable Ju ly 1 ,1 9 0 7 ,at a p r ic e
o f 122,under the f o l l o w i n g ccwidit io n s , r e a l i z e s the accompanying
r a t e s o f i n t e r e s t on the investment?
The i n t e r e s t at 4 per cent on th e par value o f th e bonds t o be
r e in v e s te d q u a r t e r ly at the market r a t e .
The i n t e r e s t , a t the market r a t e , o n th e c i r c u l a t i o n , 100 per
cent o f the par v a l u e , l e s s 5 p e r cent o f t h i s f o r the redemption
f u n d ,t o be r e in v e s te d q u a r t e r l y at the market r a t e .
The o n e -fo u rth per cent tax to be payable and r e in v e s te d semi­
annu ally.
The cost o f re d em p tio n ,a v era g in g $1.4549 per thousand, payable
and r e in v e s te d a n nu ally.
P r o f i t on C i r c u la t i o n .
Market ra te o f money.




Rate r e a l i z e d on investm ent.

5#
6/
7%

Gain.

6.296#
7.093#
7.974#
8.741#

6. 383#
7.317#
8.187#
8.946#

8%

1.296
1.093
.974
.741

1 . 383
1.317
1.187
.946

No Tax.
5#
6#
1%
8%

(S ig n e d ) Jos.S.McCoy,
Government A ctuary.

*

'

TABLE I .

STATISTICS OF A^BASK BASED O ASSETS and LIABILITIES AS FOLLOW
N
S.




Assets.

Cash
1100
Bonds
700
Discounts 125
Gold
—

L ia b ilit ie s .
Capital
12 5
Treasury
ioo
Deposits 1000
Circula­
tion
700
Cold C tfs. - - $ 1^25

TABLE I

ITS and LIABILITIES AS FOLLOW
S.
L ia b ilit ie s .
Capital
12 5
Treasury
10 0
Deposits 1000
Circula­
tion
700
Cold C tfs. —
Iffii

I.
1-.
L ia b ilitie s to Cash.
deposits of Gold ^without incr Bote C ir­ Dis■
Depo 8* ^without
Percentages with De
_
_
+ 500
G.Ctfs.
culation 1 count!3 it s J__ In crflC tfe -KSO
O
133
700
157
125
10 0 0
6 1.10
69.57
7 2.55 75
123
800
225
13 7 V 2
1100
58
69.81 7 2 .4 1
662/3

114

12 2 .2 2

106
100.

----i

.

77.05

78.80

74.60

76.47

900

325

12 0 0

55

64

67.27

70

7 2 .3 1

74.29

110

1000

425

1300

52.38

6 1.54

64.91

67.74

70 .15

72.22

100.

1100

525

1400

50

59.26

6 2.71

65.63

68.12

70.27

94

91.67

12 0 0

625

1500

47.83

5 7 .15

60.66

63.64

66.20

68.42

88.89

84.62

1300

725

1600

45*83

5 5 .17

58.73

6 1.76

64.38

66.67

84.21

78.57

1400

825

1700

44

53V 3

56.92

60

62.67

65

80.

73X
/3

1500

925

1800

4 2 .31

5 1.6 1

55.22

58.33

61.04

6 3.41

76.19

68.75

1600

1025

1900

40.74

50

53.62

56.76

59.49

61.90

72.73

64.71

1700

112 5

2000

39.29

48.48

5 2 .1 1

55.26

58.02

60.47

69.67

6 1 .1 1

1800

1225

2 10 0

37.97

47.06

50.68

53.8 5

56.63

59.09

6 6 /3

57.89

1900

1325

2200

362/3

4 5 .7 1

49.33

52V 2

55.29

57.78

64

55

2000

1425

2300

36.48

44.44

48

5 1.2 2

54.02

56.52

61.64

62.38

2100

1525

2400

34.38

43.24

46.84

50

52 .8 1

5 5 .3 2

59.26

50

2200

1625

2600

33V 3

4 2 .1 1

45.68

48.84

51.6 5

54 .17

43.24

34.37

3200

2625

3500

25.58

33V 3

36.63

39.62

42.34

44.83

3300

2725

3600

25

32.65

35.92

38.89

41.59

44.07

2

3

4

5

4 2 .1 1
11



" .
1

33V 3
10

9

1

1

6

7

8

STATISTICS




or A BASK WITH ASSETS and LIABILITIES AS FOLLOWS
Assets.
Cash
1100
Bonds
700
Discounts 125

L ia b ilit ie s .
Capital
125
Deposits
1000
Treasury
100
Circulation 700
Gold C tfs. ----

TABLE I I (a)
3_____________ 4
without incr.Gold
+ 500
c ir c .
6 1 .1 1

69*56

58*82

68. IS

56*25

662/fc

53V 3

65

50

63.16

46*15

62*22

4 12/ 3

58*82

36*36

56*25

30

53*33

6 1* 11

69*56

55*56

65*22

50

60*87

44*44

*

56*62

38*89

5 2 .17

33*33

4 7 .8 3

3

4

LIABILITIES AS FOLLOWS.

L ia b ilit ie s .
Capital
125
Deposits
1000
Treasury
100
Circulation 700
Gold C tfs. —
—
f l 9S5

9
Notes

1
Discounts

Repo s­
its .

3
without incr.Gold
c lrc .

2

4
+ 500

~

5
+755 "

6

7
+1256

8
+1566

700

125

1000

6 1 .1 1

69.56

7 2 .5 5

75

77.05

78.79

600

125

900

58*82

68.18

7 1.4 3

74.07

76.27

7 8 .13

500

125

800

56.25

662/^

70 .2 1

73.07

75.44

77.42

400

125

700

65

68.89

72

74.65

76 /3

300

125

600

50

6 3.16

67.44

70.83

73.58

75.86

200

125

500

4 6 .15

62.22

65.85

69.56

7 2.55

75

100

125

400

4 12/3

58.82

64.10

68.18

7 1.4 3

74.07

125

300

36.36

56.25

62.16

66.67

70 .21

73.08

125

200

30

5 3.33

60

65

68.89

72

125

1000

6 1 .1 1

69.56

72.55

75

77.05

78.79

225

55.56

65.22

68.63

7 1.4 3

73.77

75.76

325

50

60.87

64.71

67.86

70.49

7 2 .7 3

425

44.44

56.62

60.78

64.29

6 7 .2 1

525

36.89

5 2 .17

56.86

60.71

63.93

69.70
2,
66 / 3

625

3 3 .3 3

4

52.94

5 7 .14

60.66

63.64

5

6

700

1




2

3

.

4

T

A

B

U

L

A

R

S

U

M

M

A

R

Y

B a n k o f E n g la n d (1694).

B a n k o f F ra n c e

(£«$4.8<*>5.)

1. C A P I T A L A N D S T O C K H O L D E R S .
Amount of capital, reserve liability, and surplus.......................................

(1 franc=*.193

Mahout $ 7 (K )3(S2? E ’f ’! 76!'
L 4’ K
reserv, lability. Surplus, called “ rest,”
e
tK'vcr
^
lv
'eek to week; by umvritteu custom is
be,ow ^3,000,000 ($14^5^9,500)?
of bauk^uiWin<'3 Ceriums
♦ - 0,000,000, not carried in account.)
° ’1
1

I

Legal provisions as to surplus.

Tau
vfe

CaPital> 1^2,500,000 francs ($35,222,500).

None.

Number of stockholders.

Over 10,000.

O F

Norei

Various requirements, including profits from di
the value of central bank building, etc.
Number of shares, 145,530 of £100 ($486.65) each, par value.

32,442 (Dec. 24, 1910).

Character of stockholders.
11,312 have not more than 1 share each, and 1,4
Restrictions upon ownership and transfer of stocks.

None.

None, except that 6,028 shares belonging to :
marked “ not transferable.”

Restrictions upon voting power.

Stockholder to vote must have 5 shares (par $486.65 each), but can have only 1 vote,
no matter how many additional shares he may own.

Only 200 largest shareholders vote.
to vote.

Powers of stockholders.

Elect governor, deputy governor, and directors, and vote by-laws.

Restrictions upon profits of stockholders.

Meet once a year, elect regents and censors, who
None, except that the Government receives three
count rate above 5 per cent, also certain taxes
tioned later.

None (except such as are due to taxes mentioned later).

Average annual dividends, 1901-1910........................................................

9 3 per cent.
13.9 per cent.

2. O R G A N I Z A T I O N A N D M A N A G E M E N T .
C h ie f o ffic ia ls :

G°directorsa
)nd depUty « overnor> elected by stockholders (practically selected by

By whom appointed..................................................................
For what time.

1 year, customarily reelected a second year.

From what classes or occupations, qualifications, etc.
Functions.

Deputy succeeds governor.

Governor and 2 deputy governors, appointed by

No fixed period; removable at will of chief of sta

business of head office.

Deputy

Number......................

24.

By whom selected.

By stockholders holding 5 or more shares (but candidates practically nominated'bv
board of directors).
J

For what time.

In 1908, 16 per cent; in 1910, 14

^ s s s i t s s t s s # Q t *,ut•
o — ns
Governor
governor supervi

B o a r d o f d ire c to rs:

Foreigners

r b r -~o «8

Governor directs general policy of bank.
management.

Depn

General council consists of governor, deputy go
(auditors).

1 year, but customarily reelected; 8 of the directors retire every year.

Elected by 200 largest shareholders.

Regents for 5 years; censors for 3 years.

From what classes or occupations, qualifications, etc..........................

U W^disco^ntere^ mbrokers' finauciers’ but can not be Sectors of other banks,

5 regents and the 3 censors must come from com:
regents must come from general paying treasure

Functions.

Meet weekly, serve on various committees (decide with governors upon changes in
bank rate).
0

,
3
Meet once per week.

O th e r c o m m itte e s

I lie general council (governor, deputy governors
into 5 committees. The discount committee of
holders who are merchants or manufacturers, as

3. B R A N C H E S .

None.

Number of branches in central city......................
Number of branches in other cities.

Number of head branches..........................................................................

Vote upon changes in the ra’

9.

200 branches and auxiliary bureaus.

AH of same class.

128 succursales (branches).

Number of subbranches............................................................................. i No 8Ubbrauches.
72 bureaux auxiliaires.
Number of agencies....................................................................................; No agenciefli
312 villes rattachees (agencies).
Functions of head branches........................................................................I Same a9 of head o(lice
Same as of central institution.
functions of subbranches...........................................................................
Functions of agencies............................................................................
Managers of branches, how appointed,

None

Same as of central institution except that all disco
branch.

None.

Only collect bills.

Selected by governor and directors.
By chief of otato from 3 candidates proposed by go

easure of discretion allowed............

4. R E L A T I O N S T O G O V E R N M E N T .
government ownership of stock.................................................

Discretion subject to supervision from head office.
graphed each morning to branches.

Current London rates tele
naon rales le,e

None held by Government.
None held by Government.

election of officials.................................................................................... Government has no choice.
| -------------------------------------------------------------------------— ---------------------.— L y — — _ _
—

Chief of state appoints governor and deputy governo

'requency and character of reports required..............................................;
loans^ d t - S s " and " m trit
___________________________________________________________________________an(1 0,ht‘r d ix w fo . No annual reports published.
Methods and mechanism for government inspection..................................

-articipation in profits...............................................................................

In 1910, £186,731 ($908,726) for net profits

hankers balances

No Government inspection.




Subject to parent institution as regards rate of dii
managers are assisted by local board.

on note issue in excess of £14,000 000.

reports ,vquire<l; weeklvslate.no
atements volu
l)U( .. , ,M ,ep«£tion -------------- balanc from
l) . . .
bank®*’ oalances
. u
published with statistics
No regular examination, but minister of finance ci
desires, and no resolution of the general council
the hand of the governor, representing the State.
General and special taxation totals about two-third
h o ld e r s .

S

U

M

M

A

R

Y

O F

T

H

E

L A W S ,

P R A C T I C E S ,

A

N

D

S T A T I S T I C ;
P r ep ar ed for th e N ational

B a n k o f F ra n c e (1800).

R e ic lis b a n k (1876).

(1 franc=$.1 3
9 .)
rest,”
;tom is
!eXap»

Cllpi,a1' 1«8.500,000 franc ($35,222,500).

No reserve liability.

di8C“UUt rat0 “ “ “ “ ° f 5 Per C“ 1
’
32,442 (Dec. 24, 1910).

IOrE

“ “‘

Capital, 50,000,000 kroner ($13,4
1910), $3,350,000.

P' 0fil a0''9' “ dividend oi SJ per cent ase^ned to increasing

So long as surplus is under 25 per
be assigned to surplus.

Only 200 largest shareholders vote.
to vote.

There are no stockholders.
(16,628

No stockholders.
liament.

None, except that officials of the Reichsbank are prohibited from possessing shares.

No stockholders.

E united in Ime h a n d ^ ^ giVeS 1 V° te’ provided that no more thau 300 votes be

Ban!

Administratioi

No stockholders.

are

Foreigners may own stock, but are not allowed

Meet once a year, elect regents and censors, who meet usually once a week.
montn.
None, except that the Government receives three-fourths of all profit from raising dis­
count rate above 5 per cent, also certain taxes and royalties on circulation men­
tioned later.
‘

e l by
<

Surplus, $16,610,000.

A native*^ 1 foreign1 8 especially banks> bankers, and merchants.
%
)0*1 ’

None, except that 0,028 shares belonging to married women, minors, etc
marked not transferable.”

13.9 per cent.

No reserve liability.

18,748 (December 31, 1910).

11,312 have not more than 1 share each, and 1,408 over 20 shares each.

vote.

Bank

($1«»4.20 marks.)

Surplus, $8,206,234. Capital, 180,000,000marfcs($,2,857,000).

Moj
[I)H

In 1908, 16 per cent; in 1910, 14 per cent.

j A . ,, .,
T

meetmg elect Central-Ausschuss, an advisory body, which meets once a
No stockholders

ah(-ent'of^excess ■ r o fit ^
p

C
<’nt dividends and ( from January 1, 1911) only 20 per

No stockholders.

6.93 per cent.

Governor and 2 deputy governors, appointed by chief of state.

Average annual assignments to pul
Administration managed by 7 direc
Crown. From the board itself
several departments. Chairma

The Direktorium consisting of president, vice-president, and 8 managing di
directors
appointed by Emperor on recommendation of Bundesrat.

No fixed period; removable at will of chief of state.

For life.

Nominally for parliamentary term

must | Can not bo members of Chamber or Senate.
governors 50 shares each.

Governor must own 100 shares- denutv

iputy

Deputy governors look after details of
I he Direktorium manages the bank and fixes the discount rate.

Governor directs general policy of bank.
management.

No legal provisions.

General council consists of governor, deputy governors, 15 regents, and 3 censors
(auditors).
d'by

Conduct business of bank.

Central-Ausschuss, 15 members and 15 alternates, all stockholders.

Elected by 200 largest shareholders.

Elected by stockholders.

Regents for 5 years; censors for 3 years.
nks,

Chairman of board may not be one

A special committee of 24 members
names chairman.

Annually, but customarily reelected.

For the duration of each Parliament

5 regents and the 3 censors must come from commercial and industrial classes' 3
regents must come from general paying treasurers. Must own 30 shares.
’

v •
•
Ao “ “ tractions.

Meet once per week.

A consultative body; meets once a month.
chased and of loans to Government.

Vote upon changes in the rate of discount.

lhe general council (governor, deputy governors, regents, and censors) is divided
into 5 committees. 1 tie discount committee of 12 members includes other shareholders who an; merchants or manufacturers, as well as members of the council.

In practice, bankers, merchants, landlords, and manufacturers.
May limit amount of securities

During tenure of office may not be di
Can not be members of council ofl

n r- I
n
^

,,
------ — —
l ™
um, 5 members, including imperial chancellor, Prussian minister of finance
aud 3 numbers of Bundesrat selected by that body. Final seat of authority
’

None.

26.

20 Hauptstellen head offices (1911).

72 bureaux auxiliaires.

. , ,

None.

488 (October, 1911).

128 Buccursales (branches).

,

Audit committee appointed by Pari

1 central bank in Berlin.

200 branches and auxiliary bureaus.

i

Meet weekly to supervise bank ope
to transact lending business.

26.

76 Baukstellen offices (1911).

None.

312 villes rattachees (agencies).

39n1 G c tellY agencie9 and auxiliary branches (1908) (including 5 warehouses for
i f
mercnanaise).
None.

Same as of central institution.

Same as of central institution.
Same as head office.

Sabmnclnf

institulion eX(ept lhat a11 f o u n t s are referred to nearest head ,

All business done '(d is c o u n te d loans) referred
None.

Only collect bills.

(See above).

I»y chiei of jfate from 3 candidates proposed by governor of bank.

Hoad muagen (director!) oi BauptetaUm (hood otlioos) by the imperial (han. ellor I
---------------

None.

"e‘

ra,edi8"olm " 4
l

; s

......

None held by Government.

of

Quarterly reports requfiwF Weekly statem
ent* voluntarily published in some detail
.U0
of hunkers’ balances from other deposits. Annual reports
published with statistics.
1
1 1 *
No regular examination, but. minister of tin inen r-in ,...n
v
.
d;
:,nd no resolution of the general T O U n c il^ n b e S ^ t e d u n l e s s "under
tl.e hand of the governor, representing the State.
ted unless under
( j ho?,l',Lan<l Special taxatlon

d* ' -

P™ d™" —

» ' »>' ourer

b ^ T y t

Vof - S respective c f t branches.
<
the f i s e head sup:;rvi"ion« * 5 5 ^
None held by Government.
______ ________________

Chief of state appoints governor and deputy governors of bank.

.

r

about two-thirds profits distributed to share-

.......................................



By cental „oarf.

Subject to general and special instil
~
| No stock issued; belongs to legislatu

Emperor appoints president and members of Direktorium, also 2 members of cura-

tv

7

A A

v

.

tonum, of which Bundesrat selects other 3.
OI CUra 1 Directors appointed by a special jo
,,
directors. King names chairman
W f ekly statements required in some detail, but no separation of bankers’ balances
n
. . , .
from other deposits. Annual reports published with statistics
balances Weekly principal items belonging
on
. .
. .
- _______________
_
*
detailed statement.
v ii^ n d u c T o ?
0
meet* every 3 months to super^ ^ n d u c t of the bank. (Accounts audited by Board of Accounts of German Inspected by a select committee hj
committee appointed by Barliamc
Ab()” t two-thirds total profits go to Government. Government receives 70 per cent

ce,,t divide,,d- In 19 8 ,his
0

All

profits not necessary for assignm<

r A T I S T I C S
ttDroK

the

O F

N at, n a l M onetaw
o

T f |

c o m m . 8 o n bv
8.

y
r
Tp D l V r i i
a . P u i t A n o he w

[DC ME , 191 i]
B E BR

^

B

A

N

K

S

O F

T

H

E

L E

A

D

E

*

B a n k o f Sw eden (le e s ,

Capital, 50,000.000 kroner ($13,400,000)
1910), $3,350,000.
*'

No
iNo r08erve liability.

Bank of

”
Surplus (Dec. 31,

(if

December 31, 1908: Paid capital, 25,C
Cnpaid capital, $4,825,000.

So long as surplus is under 25 per cent of canitA m
------------------------------------be assigned to surplus.
P
’ 10 Per cent of yearly profits must
Must equal one-fifth capital.
There are no stockholders.

10 per cent of net profits, not exceedin>
tund, until the surplus amounts to 3

Bank belongs to P a r lia m e n t ^
9,927, o( which 9,703 in Italy and 224 abroad.

No stockholders.
liament.

10 004 shareholders (1910). 23 canton
balance, 44,092, owned by 9,948 iu d ^

Administration under the charee of Q
• ■
narge of a commission chosen by Parclasses, but some of the large credit establishments hold 3,000 or 4,000 shares each.

5 of capital reserved by law to the ca
private individuals.

No stockholders.
^transfer ° Pt **

° f diiT ute of heritage; the tribunal must consent to tlm

Individual shareholders must be Swit
m Switzerland. Every transfer mus

No stockholders.
ares required for a vote, but one shareholder can have no more than 50 votes.

Each share officially registered entitle
nolder can have more than 100 votes

No stockholders.
Meet annually and select 4 directors,

General annua! ..... „i„g hold a, R,„„o.

No stockholders.

30 shareholders, representing 10,000 she
tor extraordinary meetings), elect 15
sion of 3 members and 3 substitutes, -

«a s is s s s a

_ State.

0 1 only one"half of remaining profits, the rest going to the
1

Limited to 4 per cent dividends; the
surplus, goes to the Government.

A corage annual assignments to public treasury, 11.3 per cent of capital.

^bliliUons"1'
A t?
m
w
n
I
t
several department*.

t<
h "e

ymm I " * 1

b illS P ‘
o
»

aside to U u a
q id t)......I

^
H
3 mem?PPOiUted by le^ latu"h chairman by the
Chairman „uy
° f th
<5
e' 0Cted by

■>«»

bo ,p -

Nominally for parliamentary term of 3 years, practically longer.

1907-1910, 4 per cent.

Bank organizet

Direktorium— 3 members— elected (on
Local manager and submanager imm
by Buudesrat.

Indefinitely.
6 years.
Chairman of board may not be one of 3 managers.
Bank managers are not allowed to pra<
board of another banking institution.

Conduct business of bank.
The general manager is head of the administration of the bank.

Each has charge of one of the three den
and note issue.
r

manager' UIldor *•«•■ »» “ “
Ao S 'c h S i T

° f 24 members

b0th

*•». and

v s ttir-

at each

Bank council, 40 members.

Of Parliament

I’or the duration of each Parliament, 3 years.

15 elected by general meeting and 25 b-

Three years.
4 years.

" S ta S S S iffijS S S S

Must be Swiss citizens; not more than
more than 5 members of government

least 4 isneeded
Appoint bank staff upon recommendation of the general manager.

0VeM^ Daily
”

General supervision.
Audit committee appointed by Parliament.
GZ n ^ m ° 1
n
Stu(0ban tyl' l‘i' S * * * *

by

*° « P « v i » general Bank committee, 7 members; local cor
mission, 6 members.

None.
1 central bank in Rome.

Berne center for administration of note it

!6 .

“

S

ba"to’ a"d

1.
6

8 branches (including Berne and Zurich

11.
None.
lone,

t a t s i s w s t t a i w s f f i s a °f

None.

one.

also act - —

«■

13 agencies (1910).

ime as head office.
Same as central institution.
one.
No subbranches.
one.
Agencies reimburse notes, discount b
over transfers; act as mediator in all

/ central board.

By Federal Council on proposal of com
bject to general and special instructions.

stock issued; belongs to legislature.
None held by the Government.
directors11 KingLu'.J.'

R * U* “ * * ti othor

Confederation not allowed to possess
reserved to the Cantons.

by
b“ ‘

d e S ^ s S m e n t 6 1 8 beIon« in« ,0 note
11

monthly full balance, annually

A
nnual report.

.. .......... * •

.......

a . general

Statement required every 10 days on model furnished by Govern-

..... Ai„ii,

Special board of inspectors, whose o
treasuries, books, and securities are

1 proat. not necessary for assignment to surplu. is disposed of by Parliament

por cent.
empt from paying government taxes on real estate, income, etc.




l'ederal Council elects the chairman
23 other members of the council o
members of general management, di
Annual report, balance sheet, and an
before submission to general modi
*nont of assets and liabilities.

“ • ° * 7 3 to 8,800,000 lire (8686,900).
“ nne-hall of prefil,
Ill 1910 tins amounted »< V

•Insila (io ii"a n ,| K
,;n,!i!.',i ttT.m'tSl’"'/.’
........ ............ .......... ..........Tire bank

'Jhe remainder of the net profits, after
of a maximum dividend of 4 per cei
$2;>1,299 paid to the 'I’reasury.

! .1 1 ,„ r cent on productivo
,
k is free from every kind of fa

<J±i

IME

L E A J J IJ N G

>3).

C O U N T R I E S .— Sh e e t

B a n k o f S w itz e rla n d (1907).
(1 franc=$.193.)

$11,580,000. Surplus (ordinary
$1,930,000.

B a n k o f B e lg iu m (1850).

•

(Hranc=$.193.)

December 31, 1908: Raid capital, 25,000,000 francs ($4,825,000).
Unpaid capital, $4,825,000.

(1908) Capital, 50,000,000 francs
$6,860,216.

10 per cent of net profits, not exceeding 500,000 francs a year, is set aside for surplus
lund, until the surplus amouuts to 30 per cent of paid-in capital.

f of capital reserved by law to the cantons;

tribunal must consent to the

private individuals.

*to the old banks of issue, and 5 to
l

citizens, firms, or
!Individual shareholders must he Swiss be approved by thecorporations domiciled
1 1 Switzerland, Every transler must
1
bank committee.

ihave no more than 50 votes.

Each share officially registered entitles holder to one vote, but no private share­
holder can have more than 100 votes.
F
30 shareholders, representing 10,000 shares, a quorum, meet annually (or when called
for extraordinary meetings), elect 15 members of bank council, the audit commis. 8 0 1 of 3 members and 3 substitutes, and decide all affairs laid before the meeting
11

lal meeting held at Rome.

ig profits, the rest going to the

Limited to 4 per cent dividends; the rest, except for 10 per cent credited to the
surplus, goes to the Government.

ing put aside to liquidate old

1907-1910, 4 per cent.

ior council, but must be ap1

Bank organized in 1907.

Direktorium 3 members -elected (on proposal of bank council) by the Bundesrat
lj00al manager and submanager immediately under direktorium, also appointed
by Bundesrat.

($9,650,000).

‘

No reserve liability.

1
.
A m ount <

Surplus,

10 per cent of net profits in excess of 4 per cent per annum is set aside to meet
losses in capital and to insure a dividend of 4 per cent on capital.

’

10 004 shareholders (1910)
23 cantons hold 38,772 shares, 33 banks 16,536 shares;
balance, 44,692, owned by 9,948 individuals.
hold 3,000 or 4,000 shares each.

1.

Legal pro

’

<

50,000 shares. 24,221 nominative shares divided among 889 holders and 25 779
shares to bearer (1908).

Number

All classes.

Character

No restrictions as to ownership.

Re.striclio

10 shares required ior a vote, but 1 person can have no more than 5 votes either
as a shareholder or a proxy.

Re-.tricuo

Shareholders assembly meets twice a year; elects directors and censors. Acts
upon all matters placed before them by the council of administration or censors.

Powers of

Shareholders receive 4 per cent of net profits; 25 per cent of remainder goes to
state, J 0 per cent to reserve, and the rest to the shareholders.

Restrict io

(1899-1908) 15.01 per cent.

Average a

G
shareholdera d U g e o appointed by
e t or r
p y vn

o
i

2.
C h ie f

the King, 6 directors elected by

By w
6 years.
Bank managers are not allowed to practice any other profession or belong to the
board of another banking institution. Can not be members of the Nationalrat.
the bank.

Each has charge of one of the three departments: Discount and giro, management,
and note issue.

Governor serves 5 years.

May be reappointed.

For w

Governor must own 50 shaies, directors 25 shares; must reside in Brussels and can
boLdeofany oB ierbaS?

lgltV bd oda aSt Pension obelong to
el al e oy r rw t e
s
a
r

From

Each director is intrusted with control of one or more departments of the bank.

Fund

under general manager, and
Bank council, 40 members.

<

B o a rd

General council, 14 members (governor, 6 directors, and 7 censors).

Numb

i turn every 3 years at each
le shareholders.

15 elected by general meeting and 25 by Bundesrat.
4 years.

By shareholders.

By wl

6 years; may be reelected.

For wl

i

Must be Swiss citizens; not more than 5 can be members of Federal Chamber nor
more than 5 members of government of Cantons.
ral manager.

From

General supervision.
G o o u n !c„m m ttteT ^ SeS

:kholders to supervise general Bank committee, 7 members; local committees, 3 to 4 members; also audit com­
mission, 6 members.
Berne center for administration of note issue; Zurich center for general management.

eU l 8l,pervi”ion over afi"of bauk.
C''a
°
ta
r

<»
U
-

Council of censors (7), which audits books, etc., chosen by shareholders for 3 years.

Funct

O th e r c

1 head office or central institution (Brussels).
Number of

note-issuing banks, and have
es.

8 branches (including Berne and Zurich), all coordinate.

None.
>ranch in capital of each of 69
scan Bank were located.

None.

act as correspondents for the

13 agencies (1910).

1 branch at Antwerp.

Number uf

1 branch at Antwerp (as above).

Number ol

None.

Number o
l

39 agencies and 30 discount offices.

Number o

Apparently the same as at central or head office.

Functions

No subbranches.

No subbranches.

Functions

ict bills, redeem notes. Re:ount within certain limits.

Agencies reimburse notes, discount bills, grant loans against deposits, and take
over transfers; act as mediator in all other business.

Act as guarantors for much of the paper discounted by the bank.
private partnerships.

1 lie id assisted by < loc 31
.
i
/
every 6 years by assembly

By Federal Council on proposal of council of the bank.

1

Confederation not allowed to possess any shares of the bank; but ij of capital are
reserved to the Cantons.
the election of the general

model furnished by (jiovernreasury examines the assets,
es judgment upon mooted

Function!

Agents are appointed by the King from a double list furnished by tho administrative
council.

Managers

Discounts are granted provisionally by agents of the bank.

rectly. 1 y it iecenL inotlili*
3
within certain limits through

They are usually
J
J

Measure

!None held by tho Government.

4.

lederal Council elects the chairman and vice chairman of the bank council and
23 other members of the council of the bank; also on proposal of the council 1
members of general management, directors, and subdirectors of branches.
Annual report, balance sheet, and accounts must be approved by federal Council
before submission to general meeting. Required also to publish weekly state­ A statement of condition of the bank and agencies is forwarded every week to the
ment of assets and liabilities.
minister of finance and is published in official newspaper.
y

K^ ^ d y k0 eU B C0 b id -»
Vp liL ^ 7 “S^aPt °Vm; MM
y r

Special board of inspectors, whose officials are elected by Eedoral Council; the
treasuries, books, and securities are periodically verified.

<

“"“W
—

<
iovoriuni
Selection

F requeue

'1 lie remainder of the net profits, alter deduction of 10 per cent for the surplus and
of a maximum dividend of 4 per cent, is paid over to the Federal Treasury; 1910, Receives all profits from a discount above 3J per cent, together with 4 of excess of
net profits after payment of 4 per cent dividend to shareholders, and the profit
$254,290 paid to the 'Treasury.
on bills held for the State; all amounted to $892,470 in 1908

Part ioipat

inth per cent on productive
rnutl maximum, and 7$ pm
:overud by 4U per cent rush.

The bank is free from every kind of taxation.

Patent tax on gross volume of business (1908, $43,492), stamp tax on notes (1908,
$/2,674), tax of i of 1 per cent semiannually on excess of circulation above
$53,075, 000 ^
1908, $449,096).

Taxation.


1


1

.Methods ;

>er cent or one-half of profits
300,000 lire ($636,900).

■

Government commissioner watches over operations of the bank, lias right to exam­
ine the books, etc.
”

TG

C O U N T R I E S . —

S

h

e

itzerland (1907).
ic=S.193.)

e

t

1.

B a n k o f B e lg iu m (1850).

•

(1 franc=$.193.)

0,000 franca ($4,825,000).
$6,860,216.

50,000,000 francs

($9,650,000).

No reserve liability.

"

Surplus,

1. C A P I T A L A N D S T O C K H O L D E R S .
Amount of capital, reserve liability, and surplus.

500,000 franca a year, is B aaide for eurplua
et,
per cent of paid-in capital.
‘

10 per cent of net profits in excess of 4 per cent per annum is set aside to meet
losses in capital and to insure a dividend of 4 per cent on capital.

Legal provisions as to surplus.

hold 38,772 aharea, 33 banka 16,536 aharea;
yiduals.

50,000 shares. 24,221 nominative shares divided among 889 holders and 25,779
shares to bearer (1908).

Number of stockholders.

All classes.

Character of stockholders.

No restrictions as to ownership.

Restrictions upon ownership and transfer of stocks.

If* shares required for a vote, but 1 person can have no more than 5 votes either
as a shareholder or a proxy.

Restrictions upon voting power.

Shareholders assembly meets twice a year; elects directors and censors. Acts
upon ail matters placed before them by the council of administration or censors.

Powers of stockholders.

Shareholders receive 4 per cent of net profits; 25 per cent of remainder goes to
ktate, JO per cent to reserve, and the rest to the shareholders.

Restrictions upon profits of stockholders.

(1899-1908) 15.01 per cent.

Average annual dividends, 1901-1910.

Governor and deputy governor appointed by the King, 6 directors elected by
shareholders.
J

2. O R G A N I Z A T I O N A N D M A N A G E M E N T .
C h ie f o ffic ia ls:

tons; 5 to the old banka of iaeue, and

\

to

i citizens, firms, or corporations domiciled
, be approved by the bank committee.
holder to one vote, but no private sharees, a quorum, meet annually (or when called
lembera of bank council, the audit coinmisiil decide all affairs laid before the meeting.
est, except for 10 per cent credited to the

in 1907.
roposal of bank council) by the Bundesrat.
diately under direktorium, also appointed

By whom appointed.
Governor serves 5 years.
dice any other profession or belong to the
Can not be members of the Nationalrat.
artments: Discount and giro, management,

May be reappointed.

For what time.

Governor must own 50 shares, directors 25 shares; must reside in Brussels and can
not be a member of the legislative body or draw a State pension or belong to
board of any other bank.
b

From what classes or occupations, qualifications, etc.

Each director is intrusted with control of one or more departments of the bank.

Functions.

B o a r d o f d ir e c t o r s :

General council, 14 members (governor, 6 directors, and 7 censors;.

Number.
r Bundesrat.

By shareholders.

By whom selected.

6 years; may be reelected.

For what time.

) can be members of Federal Chamber nor
if Cantons.

From what classes or occupations, qualifications, etc.
G comat

cme tc3
Z ^,T .e

SUpervision over affaira of bank, appoints dis-

Functions.

unittees, 3 to 4 members; also audit comCouncil of censors (7), which audits books, etc., chosen by shareholders for 3 years.
me; Zurich center for general management.

, all coordinate.

O th e r c o m m itte e s.
3. B R A N C H E S .

1 head office or central institution (Brussels).
■

-

•

----- -----------

1 branch at Antwerp.

Number of branches in central city.
Number of branches in other cities.

1 branch at Antwerp (as above).
None.

Number of agencies.

Apparently the same as at central or head office.

Functions of head branches.

No subbranches.

of the bank.

Number of subbranches.

39 agencies and 30 discount offices.

, grant loans against deposits, and lake
icr business.

Number of head branches.

Functions of subbranchea.

Act as guarantors for much of the paper discounted by the bank.
private partnerships.

They are usually
J

Functions of agencies.

Agents are appointed by the King from a double list furnished by the administrative
council.

Managers of branches, how appointed.

Discounts are granted provisionally by ageuts of the bank.

Measure of discretion allowed.

shares of the bank; but i, of capital are
None held by the Government.
\ ice chairman of the bank council and
e bank; also on proposal of the council
prs, and subdirectora of branches,
ts must be approved by Federal Council
Required also to publish weekly statells are elected by federal Council; the
i dically vi rified.

King appoints governor and deputy governor; besides, a Government commissioner
is appointed by the State.

Selection of officials.

A statement of condition of the bank and agencies is forwarded every week to the
minister of finance and is published in official newspaper.

Frequency and character of reports required.

Government commissioner watches over operations of the bank, has right to exam­
ine the books, etc.

Methods and mechanism for government inspection.

luclion of 10 per cent for the surplus and
Receives all profits from a discount above 3£ per cent, together with i of excess of
i paid over to the Federal Treasury; 1910,
net profits after payment of 4 per cent dividend to shareholders, and the profit
on bills held for the State; all amounted to $892,470 in 1908.
Ion.




4. R E L A T I O N S T O G O V E R N M E N T .
Government ownership of stock.

Patent tax on gross volume of business (1908, $43,492), stamp tax on notes (1908,
$72,674), tax of i of 1 per cent semiannually on excess of circulation above
$53,075,000 (1908, $149,096).

Participation in profits.

Taxation.

Managers of branches, how appointed.

Measure of discretion allowed.

Discretion subject to supervision from head office.
- •
’
graphed each morning to •
branches.

B y chief m ouu/from 3 candidates proposed by

Selected by governor and directors.

Current London rates tele-

Subject to parent institution as regards rate of
managers are assisted by local board.

None held by Government.

None held by Government.

Government has no choice.

Chief of state appoints governor and deputy gov<

Weekly statements required in form proscribed by act of 1814, but no separation of
loans discounts, and securities, and no distinction between bankers’ balances
,
i
at
. ...........i __ tvhKI ich o r! w i t h ahatief ir»«
and other deposits. No annual reports published.

4. R E L A T I O N S T O G O V E R N M E N T .

Quarterly repo
required; weekly statomenm v
but with no separation of bankers balances lrc
published with statistics.
No regular examination, but minister of linanc
desires, and no resolution of the general coun
the hand of the governor, representing the Sta

Government ownership of stock....................................... •»•»•
Selection of officials.
Frequency and character of reports required.

No Government inspection.

Methods and mechanism for government inspection

In 1910, £186,731 ($908,726) for net profits on note issue in excess of £14,000 000.

General and special taxation totals about twoholders.

Subject to same local and general taxes as other banks, and to an annual payment of
£60 000 ($291 690) in consideration of exception of bank notes from stamp duty.

Pays general taxes, and special tax of one-twent
circulation, one-fiftieth of i per cent of “ uup
live means covered by loans and discounts
special taxes, $289,229.

Participation in profits.

T a x a tio n .

Royalty for use of Credit Agricole equaling one“ productive” circulation. Amounted to $1,4

Other payments required by Government.

Permanent loans to Government.

$53,604,984 (£11,015,100).

$54,040,000—$34,740,000 without interest, inclm
and $19,300,000 lixed government debt, law of

Other loans to Government and their limits.

About $115,000,000 additional of government securities, including treasury bills,
held by bank iu August, 1908.

Disposable government bonds, $19,228,800.

Custody of Government funds, with interest paid.

Bank is practically the sole depositary wherever it has branches.

Bank is sole depositary.

Further services rendered to Government and payments for same.

Manages and pays dividends on public debt, for which services during year ending
March, 1910, bank received £195,242 ($948,876.12), makes temporary advances, acts
as agent for the mint. (Receives also £200 annually on every million pounds in
securities in issue department.)
________ ___

Transfers funds, issues treasury bills, pays coup*

Duration of charter.

The charter of 1694 is perpetual, but subject to modification or repeal by Parliament.

Charter expires in 1920, terminable in 1911; las

The bank statements do not distinguish between loans, discounts, and non-govern­
ment securities. These aggregated, December 30, 1908, $219,413,121. Average
amouut, 1908, $144,165,196.

Average, $188,618,900.

About $5,000.

(1910) $119.60.
each.

5. D I S C O U N T S , L O A N S , E T C .
D is c o u n t s :
Average amount, 1910..................................................
Average and minimum size.

No interest paid.

No minimum.

No interest paid.

Minimum, $1 (5 fr.); 55 per cei

40 to 50 days.

Maximum duration allowed.
For what classes in community.

1906, 24 days; 1907, 26 days; 1908, 25 days; 19
age for 10 years, 24 days.

Maximum 4 months, exceptionally 6.

Average duration.

3 months, with possible renewal.

foreign exchange banks).
2 British names, of which one must be acceptor.

N umber of signatures required.

All classes, but about 70 per cent come through

3 names, of which two must be of residents of F:

Loan collateral acceptable in place of third signi

Other security accepted.

L o a n s on c o lla te ra l:

Not published separate from discounts and non-government securities.

Average for 1910, $106,227,200 on gold coin, gold 1

Average and minimum size

$500 to millions.

Many small.

Average duration

7 to 90 days.

Mostly for a short period, not less than 2 weeks.

Maximum duration allowed

3 months, subject to possible renewal.

3 months with possible renewal.

For what classes in community

Any person, firm, or company having a properly constituted account.

All classes.

Kinds of collateral accepted

Stock-exchange securities, except mining shares, or exceptionally other securities
of ascertainable value.

List published. Principal!y bonds issued or gua
cities, and colonies, gold, bullion, and foreign j

Varies according to class of security.

Margin varies according to collateral from 20 per

O v e rd ra fts

Not allowed except under very exceptional circumstances

Not allowed.

L o a n s on real estate

Have only been granted very exceptionally.

Not allowed.

S ec u ritie s h e ld :

Scarcely any restrictions. In reality the “ other securities” are supposed to include
railway debentures, bonds of colonial governments, and some corporation stocks.

Only government securities.

Government securities in banking department, average 1910, $74,266,000. “ Other
securities,” $146,577,600, include loans and discounts. Other securities in issue
department, 1910, about $36,133,000

December 24, 1910.

Average amount, 1910..
Minimum size 250 francs ($48.25).

—
Proportion of loan to collateral

What kinds allowed
Average amount, 1910

18507— 11




Disposable government sec:

By chief 6i 0 .0 from 3 candidates proposed by governor of bank.
10.1

Oil ru«-uiiiiiiumiuiiim ... ....
president.

’

"°

““

liy central lioara.

None held by Government.

Chief of state appoints governor and deputy governors of bank.
separation of
ers’ balances

Subject to parent institution as regards rate of discount and important matters;
managers are assisted by local board.
None held by Government.

m rates tele-

Head branches act under supervision of the Direktorium, subbranches under that
of the respective head branches.

Emperor appoints president and members of Direktorium, also 2 members of curatoriuin, of which Bundesrat selects other 3.

Quarterly reports required; weekly statements voluntarily published in some detail
but with no separation of bankers’ balances from other deposits. Annual reports
published with statistics.
No regular examination, but minister of finance can call for any information I10
desires, and no resolution of the general council can be executed unless under
the hand of the governor, representing the State.

Subject to general and sp

No stock issued; belongs (
Directors appointed bv a
directors. King names

Weekly statements required in some detail, but no separation of bankers’ balances
from other deposits. Annual reports published with statistics.

Weekly principal items b
detailed statement.

The curatorium, consisting of government officials, meets every 3 months to super­
vise conduct of the bank. (Accounts audited by Board of Accounts of German
Empire.)
About two-thirds total profits go to Government. Government receives 70 per cent
of profits after payment of 3£ per cent dividend. In 1908 this amounted to
$5,489,000, in 1910 to $3,826,500.

Inspected by a select com
committee appointed by

14,00U 000.

General and special taxation totals about two-thirds profits distributed to share­
holders.

il payment of
stamp duty.

Pays general taxes, and special tax of one-twentieth of i per cent of “ productive”
circulation, one-fiftieth of 1 per cent of “ unproductive” circulation. (Produc­
tive means covered by loans and discounts.) General taxes, 1910, $398,758;
special taxes, $289,229.

Exempted from Government income tax and license fees, but pays real estate tax
and 5 per cent tax on all uncovered notes in excess of $130,900,000, and at end ol
each quarter of $178,500,000.

Royalty for use of Credit Agricole equaling one-eighth average discount rate times
“ productive” circulation. Amounted to $1,419,901 in 1907.

Until 1925 an indemnity of $444,000 to Prussian Government.

$54,040,000—$34,740,000 without interest, including $7,720,000 for Credit Agricole,
and $19,300,000 fixed government debt, law of June 9, 1857.

None.

Disposable government bonds, $19,228,800.

Treasury bills amounting to $30,500,000 held December 31, 1910.

interest paid.

Bank is sole depositary.

Bank is sole depositary for funds of the Empire, but not for Federal States.
interest paid.

g year ending
advances, acts
ion pounds in

Transfers funds, issues treasury bills, pays coupons gratuitously for Government.

Transfers funds, discounts treasury bills, pays coupons.

y Parliament.

Charter expires in 1920, terminable in 1911; last renewed in 1897.

Charter runs for 10 years, but terminable at one year’s notice before expiration.
Renewed in 1909 for 10 years, to 1920.

1 non-govern21. Average

Average, $1S8,618,900.

Average 1910, local bills, $114,480,000; remitted bills, $88,805,000; foreign bills,
$33,488,000. Total, $236,773,000.
. . . »
5
> Inland bills, $31,748,000; all

(1910) $119.60.
each.

No minimum.

reasury bills,

No interest paid.

Minimum, $1 (5 fr.); 55 per cent of discounts less than 180 francs

1906, 24 days; 1907, 26 days; 1908, 25 days; 1909, 22 days; 1910, 24 days.
age for 10 years, 24 days.
'

Aver­

The administration of the m
balance of 6,500,000 krone
No

1906, 34 days; 1907, 33 days; 1908, 34 days; 1909, 32 days; 1910, 31 days.

All classes, but about 70 per cent come through banks.

3 names, of which two must be of residents of France.

2 names.

Loan collateral acceptable in place of third signature.

Loan collateral not acceptable in place of second signature.

Average for 1910, $106,227,200 on gold coin, gold bars, and securities.

Average, $23,439,000.

Many small.

Average 1910, $7,839.
individuals.

Minimum $120 for bankers and merchants and $24 for
v

3 months with possible renewal.

3 months, with possible renewal.

All classes, especially banks and bankers.

Margin varies according to collateral from 20 per cent to 40 per cent.

-- - . ___
Indefinite (i. e., nontermina

$573.

About 50 days.

(Inland bill

6 months.

All classes, provided bills rep

No regulation on this point.
$5,337,000, together with $1,
banks.
’

10 days (1910).

List published. Principally bonds issued or guaranteed by National Government,
cities, and colonies, gold, bullion, and foreign gold coins.

Makes all government paym

Must ho accepted (i. e., 2 sigi

Mostly for a short period, not less than 2 weeks.

ter securities

No interest paid.

___ ..
Average size, $465 in 1908; $524 in 1910.

All classes, but about 60 per cent of discounted bills come through bankers Of
66,700 customers, 2,400 banks, 24,000 merchants, 21,200 manufacturers 9 900
farmers, 9,200 miscellaneous.
’

All classes.

(See preceding.)

None.

3 months— in case of farmers, once renewable.

Minimum size 250 francs ($48.25).

Exempt from paying gover

None.

3 months, with possible renewal.
colonial and

All piulits not necessary fo

Securities, guaranteed by governments, mortgage bonds, discountable bill. tm.r
chandise, gold, and silver.
nief-

$10,713.

About 45 days.

6 months’ certain or in some cj

All classes.

Bonds, shares, or other docum

Margin varies according to collateral—50 and 25 per cent in case of homlT~k , ,
securities dl8C0Untab*e bills and &
old>at most i in case of merchandise anfforei-m

Not allowed.

Not allowed.

Not allowed.

Not allowed.

td to include
lion stocks.

Only government securities.

no “ other
ties in issue

No securities purchased for investment, but government and municipal hon<l. 1
,
for sale to customers, also treasury bills having an average of 30 dayato nm URht

December 24, 1910.

As directors determine.
Open credits, on security, areg
actual 1 drawn, plus a comm
v
Avcrac amount, 1910, $993,000

Average (1910), $27,842,000.




Disposable government securities amounted to $19,228,800.

'oivicn government bonds, of r
and bonds of the general mor
the bonds are quoted on forei
tec. 31, 1 0, bonds held, $3,47
91

•'*

j

der that

Uy central board.

of shareholders.
Agencies can not undertake discounting operations directly. By a recent modifi­
cation of the law “ first-class agencies” may discount within certain limits through
a small discounting committee.

Subject to general and special instructions.

*

1

*

Confederation not allowed to
reserved to the Cantons.
i

No stock issued; belongs to legislature.

None held by the Government.

of cura-

Directors appointed by a special joint committee of Parliament; other officials by
directors. King names chairman of board.

State does not select any officers, but must approve the election of the general
manager and submanager.

balances

Weekly principal items belonging to note issue, monthly full balance, annually
detailed statement.

Annual report.
ment.

Inspected by a select committee appointed by every regular Parliament.
committee appointed by Parliament for bank and each branch.

A central bureau of inspection at the ministry of the treasury examines the assets.
A permanent. commission of supervision also passes judgment upon mooted
questions.

Special board of inspectors,
treasuries, books, and securi

per cent 1
unted to j All profits not necessary for assignment to surplus is disposed of by Parliament.

Government receives one-third of profits in excess of 5 per cent or one-half of profits
in excess of 6 per cent. In 1910 this amounted to 3,300,000 lire ($636,900).

'1he remainder of the net prof
of a maximum dividend of ‘
$254,200 paid to the Treasm

state tax
at end of

Exempt from paying government taxes on real estate, income, etc.

In addition to general income and stamp taxes, one-tentli per cent on productive
circulation, and graded tax on issues in excess of normal maximum, and 7$ per
cent on issues beyond the maximum allowed or not covered by 40 per cent cash.

The bank is free from every k

None.

Bank contributed $6,000,000 to Italian Credit Fonder, which is now in liquidation.
Bank obliged to pay expense of Government supervision, $14,000 annually.

None.

None.

None.

None.

The administration of the national debt office is granted by the bank on uncovered
balance of 6,500,000 kroner ($402,000).

Bank of Italy obliged to lend Government up to $22,195,000, in case of need, at
1J per cent.

None.

No interest paid.

Bank is sole depositary.
$7,720,000.
‘

Government deposits bear int<

Makes all government payments and collections free of charge.

Helps in issue of loans.

Indefinite (i. e., non terminable).

30 years.

Inland bills, $31,748,000; all bills, $33,781,000.

$84,881,400.

Average 1907, $10,769,400; 190

$573.

Average in 1907, $269.72. 14 per cent were for amounts below $20 and about
70 per cent for amounts between $20 and $200.

1907, $1,403; 1908, $1,201; 190

59 days (1907).

1907, 28 days; 1908, 18 days;

6 months.

4 months.

90 days.

All classes, provided bills represent real business transactions.

Banks, credit societies, and all kinds of institutions, and at the agencies, industrial
people, agricultural landowners, and small tradespeople.

All classes, including agricu
transactions.

Must be accepted (i. e., 2 signatures at least).

At least 2.

2.

No regulation on this point.

Treasury bills, public warehouse warrants, or loan collateral.

None.

$5,337,000, together with $1,751,000 of special advances to former note-issuing
banks.

$18,837,765.

Loans on collateral, $3,60(1,45],

to superGeriuau

ates.

Audit

(See preceding.)

No

x pi rat iuu.

eign bills,

About 50 days.

nkers. <>
f
rers, 9,9n0

m $-jl (,,r
l

(Inland bills.)

Statement required every 10 days on model furnished by Govern­

Pays interest of 1£ per cent on deposits in excess of
"

Conducts the business of the treasury gratuitously.

Average size, 1907, $32,424; 19

1907, 15 days; 1908, 11 days; l

About 45 days.
6 months’ certain or in some cases
‘"

3

months’ notice.

4 months on government securities and 6 months on silk, etc.
extendable to 2 years.

On treasury billo

90 days.

'"

All classes.
b!:

Receives for custody, free of <
eration, and handles pay me
and board of alcohols.
20 years; expires 1927.

Expires 1923.

$10,713.

----- ---- ------- -----

Federal Council elects the ch
23 other members of the c
<
members of general manager
Annual report, balance sheet,
before submission to genera
ment of assets and liabilities

Ponds, shares, or other documents*; security, including warrants.

, •■! ’ ■ t
i
1 As directors determine.

All classes.

Mostly banks.

Securities guaranteed by governments, silk, warehouse warrants, and pledges to,
deliver commodities on a certain date.

Swiss federal, cantonal, and coi
quoted in Switzerland; hone
bars, coin, drafts.

From 50 to 100 per cent (the latter on treasury bills only).

On Federal loans, 90 per cent; 1
75 per cent; foreign securitio

Onen credits, on security, are grantc d at the 3 months’ discount rate on the amount
actually drawn, plus a commission generally of one-half of 1 per cent per annum.

t • IM
il.

Not allowed.

Average amount, 1910, $993,000, or ■bout 19 per cent of the loans.
1

Not allowed.

Not allowed

Title deeds accepted as collate

Foreign government, bonds, of readi v realizable kinds, Swedish government bonds,
and bonds of the general mortgag bank and other Swedish enterprises, provided
.............
the bonds are quoted on foreign <xchanges.

Stale securities and securities guaranteed by the State, including Italian rente, not
exceeding $15,000,000.

Interest-bearing bonds of the
temporary investment only;

December 31, 1910, $32,642,283.

Average, 1910, $2,441,000.

Dec. 31, 1910, bonds held, $3,476,0(»o.



t

.

•4

~ -------------------- ------- - --------------------------- -----------------council.

**

'

-

—

_

y discount within certain limits through
Discounts are granted provisionally by agents of the bank.

_________

lo

•t approve the election of the general

any “har“ o£ lho bauki bul * of capi<al

federal Council elects the chairman and vice chairman of the bank council and
— other members of the council of the bank; also on proposal of the council
members ot general management, directors, and subdirectors of branches.
Annual lepoit, balance sheet, and accounts must be approved by Federal Council
before submission to general meeting. Required also to publish weekly state­
ment of assets and liabilities.

1 days on model furnished by Govern0

1 also passes judgment upon mooted

Special board of inspectors, whoso oliicials are elected by Federal Council; the
treasuries, books, and securities are periodically verified.

sxcess of 5 per cent or one-half of profits
uuted to 3,300,000 lire ($030,900).

Jhe remainder of the net profits, after deduction of 10 per cent for the surplus and
of a maximum dividend of 4 per cent, is paid over to the Federal Treasury; 1910,
$254,290 paid to the Treasury.

xes, one-tentli per cent on productive
xcess of normal maximum, and 7$ per
ed or not covered by 40 per cent rash.

The bank is free from every kind of taxation.

t Fonder, which is now in liquidation,
m i supervision, $14,000 annually.

None.
1 None.

up to $22,195,000, in case of need, at

1£ per cent on deposits in excess of

ness of the treasury gratuitously.

“ f t s s s s ,r ; n ; s 2 . Jep,,,y '!o™ mor: b98id<M- a

■

minister of fiuamm and is

W
e<?k t0 the

0 t a r i u o t o £ ™ ; r o,,or TOtches ° ver • * - * - -

r

e

t

k

ba„k, h, s right to cxam;

;

P $72 674? 0
texB 8
rof8 4Vo fT n e 0
rf
$53^ 075,000^1908^ $449,096).C9Ut

!
^ 9° 8’ ?
,43-492>- BtamP
on notes (1908, 1
° n eXCeaB of circulation above

A payment of $44,390 toward expenses of treasury administration in the Provinces.
None.

None.

None.

Government deposits bear interest.

Government deposits bear no interest. Treasury funds in excess of requirements
of service are invested in commercial securities.
‘

Receives for custody, free of charge, securities and valuables belonging to Confed­
eration, and handles payments for the Federal Treasury, post office, the customs,
and board of alcohols.

Acts as Registrar and transfer officer of the national debt; as custodian of bonds
given by public officers and of various special funds, including those of the sav­
ings bank. Government’s deposits above 5,000,000 francs must be invested and
profit credited to State.

20 years; expires 1927.

Average 1907, $10,709,400; 1908, $12,159,000; 1909, $17,007,000; 1910, $21,899,000.
ere for amounts below $20 and about
$200.

None held by tho Government.

1907, $1,403; 1908, $1,201; 1909, $1,268; 1910, $1,221.

1907, 28 days; 1908, 18 days; 1909, 29 days; 1910, 26 days.

Charter extended in 1900; expires January I, 1929.

Discounts December 31, 1908, $95,237,450.

Average size accepted paper $421 and nonaccepted paper $62.

Average for accepted paper 46 days and for nonaccepted paper 43 days.

90 days.
itutions, and at the agencies, industrial
1 tradespeople.
1

100 days.

All classes, including agricultural business, provided bills represent business
transactions.

Merchants, manufacturers, and, under certain conditions, farmers.

! 2jr loan collateral.

None.

Loans on collateral, $3,606,451, as shown by the balance sheet December 31, 1910.

Average size, 1907, $32,424; 1908, $20,458.

1907, 15 days; 1908, 11 days; 1909, 13 days; 1910, 15 days.
nonths on silk, etc.

On treasury bills

3; but commercial bills with 2 signatures may be admitted under certain conditions
approved by minister of finance.
Warehouse receipts, merchandise, or public funds may be pledged in lieu of one
signature.
Loans on public securities, outstanding December 31, 1908, amounted to $9,923,890.
Not stated.

10 days to 4 months.

try bills only).

4 months and 1 extension allowed.

Mostly banks.
C warehouse warrants, and pledges to,
,

90 days.

Loans on securities to other than merchants are required to be registered at the cost
of the borrower at rate of iV of 1 per cent of the amount of the loan.

Sw iss federal, cantonal, and communal loans as far as quoted; loans of foreign States
quoted in Switzerland; bonds of first-class Swiss banks, if quoted, etc.; gold in
bars, coin, drafts.

National bonds, treasury bonds, and other securities guaranteed by the State.

On Federal loans, 90 per cent,; on cantonal loans, 80 per cent; other Swiss securities,
75 per cent; foreign securities, 70 per cent.

Securities accepted as collateral for not more than | of their current market value.

Not allowed.

Title deeds accepted as collateral for loans.
f the State, including Italian rente, not




Current accounts of those who overdraw are canceled by resolution of the council
,
of administration.
*
Not allowed.

Interest-bearing bonds of the Confederation, the Cantons, or foreign countries for
temporary investment only; precious metal in bars and coin.

National public securities and others guaranteed by the State.

Average, 1910, $2,441,000.

December 31, 1908, Government securities, $9,633,291.

£

®

Measure of discretion allowed.

I. R
---------------------- ------------ -------------Government E L A T I O of S T O
owner •} N stock.
Government ownership
governor and denutv imv«
i
1
-------------------- —
is appointed by the State 1 78 vtrnor; bedldo3>a Government commissioner Selection of ohiein!
election ol officials.

and vice chairman of the bank council and ~ .
u 1 U! bauk; also on proposal of the council

’
:)lul eubdirectora of branches.
count* m
accounts must be approved by Federal Council
ust
by
etmg.

G O V E R N M E N T.

K ing appoints

Required also to publish weekly state-

A statement of condition of the bank
T lt m ic ln f

#4._____ _

minister of
r
"

olficiab are elected by Federal Council; (he

i •

....

i

v.

s

to * *

---------- -a * newspaper.

' ' 7 ' ' !'<ali> Venfied:

~

Frequency and character of reports required.

operations of the bank, has right

i r Mm n o t i .m > . i rv _
.i
.
to txam- ! Methods *nd 1
fter deduction of 10 per cent for the surplus and
•, - n
. .____ __________
Iethods and mechanism for government inspection.
<cnt, is paid over to the Federal Treasury: 1910 ; tete.lves
Profits from a discount above"
3*"Der>enf”f«5^iRir— n r r -? ____ ____ *

’

^ t profits after payment of 4 percent d it i l l
’ together with } of excess of ,
on hills held for the State: all
^ ^ 4 7 0 t e l ^ ° lderB’ and the Profit 1>articipation in profits.

( taxation.
‘ f W b
$o3,075, 000 (1908, $149,090).

W on note. (1908
semiannually on excess of circulation above

A payment of $14,390 toward expenses of treasury administration in the Provinces.

Taxation.

Other payments required by Government.

None,
Permanent loans to Government.
None.
Other loans to Government and their limits.
“ service ariMn veBted *in commercial J c u r T t S * * *

l!l" Federal

rc<lnireme„l»

ClMtody (lf g,>vor„ meill fun<Ja wUh ,

^ custh
odian of boildb I *
J -to fiS ite fr S

--------------------

" ' ' ' * * * * * ab° VC *»“ * * • 'raScA nuS b o f t v t S ?nd i Furtllcr e» '-ic e 8 rendered to Government and payment. for name.

Charter extended in 1900; expires Jauuary 1, 1929.
,159,000; 1909, $17,007,000; 1910, $21,899 000
’
•

Duration of charter.

tv

Discounts December 31, 1908, $95,237,450.

5. D I S C O U N T S , L O A N S , E T C .

D is c o u n t s :
Average amount, 1910.

68; 1910, $1,221.
Average size accepted paper $421 and nonaccepted paper $62.

Average and minimum size.
!9 days; .1910, 26 days.
Average for accepted paper 46 days and for nonaccepted paper 43 days.

Average duration.

100 days.
Maximum duration allowed.
business, provided bills represent business
Merchants, manufacturers, and, under certain conditions, farmers.

3hpproTdTyrcm t o S
" S T

For what classes in community.

beEmitted under certom'conditiom,

Number of signatures required.

“ e.reCeipte' merc*lan(i'8e, or publictonds may be piedged in lieu of one
Other security accepted.

wn by the balance sheet December 31, 1910. j T .
____ I

° ® IW

',458.

..
— ------------------------ ----------1 sccuntles. outstanding December 31, 1908, amounted to $9,923,890.
0
L o a n « o n c o lla t e r a l:
_ __________
’
’
Average amount, 1910.

Not stated.
Average and minimum size.
days; 1910, 15 days.

10 days to 4 months.
Average duration.
4 months and 1 extension allowed.
Maximum duration allowed.

loans as far 1 quoted; loans of foreign KJUtlAHS
States
. I
0 * as 1 1...... ----------- -------t-ciass owiss banks, it quotpcl < * • cm in
*h
lrl
_______
’
'! °
’

Loans on security to oilier than merchants are required to be rnri.lM.il
of the borrower at rate of ft of 1per cent of the inount of the C

■

'

vi
,
National bonds, treasury bonds, and other securities guaranteed by the State.
____________

I* or what classes in community.

Kinds of collateral accepted.

--------------------------------!
8*CUriti»

I

“» *

than ' ol Uioir current market value.

c^ESte£222! * ",0* 'vbo ovurdr“w"o
tans.

nt il„. ., ,

a
t

fnal loans, 80per cent; other Swiss securities
'

i>
y

of thecouncil

ftop M U o . of

to - n . , —

O v e rd ra fts.

Not allowed.

L o a n s on rea l estate.
■ation, the Cantons, or foreign countries for
metal in bars and coin




interest paid.

. .
National public securities and others guaranteed by the State.

S ec u ritie s h e ld :
What kinds allowed.

December 31, 1908, Government securities, $9,633,291.

Average amount, 1910.

T

A

B

U

L

A

R

S

U

M

M

A

R

Y

B a n k o f E n g la n d (1691).

O

Bank of 1

(£-*4.8665.)

6. R A T E S F O R D I S C O U N T S A N D L O A N S .
R a te o f d is c o u n t:

( lir a

3.61 per cent.

2.95 per cent.

Maximum and minimum rates, 1901-1910...........................................

Maximum (1907), 7 per cent.
Minimum (1905-1909), 2$ per cent.

3 to 4 per cent.

Average number of changes per year...................................................

48 changes in 10 years; not more than 7 nor less than 2 changes in any one year.

4 changes in 10 years.

By whom official rate determined.......................................................

By governor and directors.

By the governor and general council.

How far actual rate conforms...............................................................

Depends on circumstances.

Uniform at bank and branches, but op
bank rate.

Not stated (but somewhat higher than discount rate).

3.57 per cent.

Not stated.

Maximum (1901-1910), 4$ per cent.
Minimum (1901-1910), 3$ per cent.

Average rate, 1901-1910.......................................................................

R a te fo r lo a n s :
Average rate, 1901-1910.......................................................................
Maximum and minimum rates, 1901-1910...........................................

By governor and board of central institu

By whom determined.......................................................................... By governors.

Relation to discount rate.....................................................................

(

Depends on circumstances.
above bank rate.)

(Advances on securities usually one-half of 1 per cent

7. N O T E I S S U E .
£5 ($24.33).

50 francs ($10).

Legal tender in England and Wales only.

Legal tender since Aug

Maximum (1910), $1,067,397,000.
Minimum (1901), $749,741,900.
Average $885,291,000.

Maximum (1910), $292,746,960.
Minimum (1903), $217,922,400. Issue Department.
Average, $253,862,100.

Maximum, minimum, and average amount, 1901-d910.........

Generally higher— $ to 1 per cent above

Same rate lor all.

Variations according to collateral........................................................

Minimum denomination and legal tender power............

Average, 1910, 3.50 per <

$1,003,168,100.

Average amount, 1910.

Maximum, minimum, and average annual fluctuation, 1901-1910.

Maximum (1910), $57,386,880.
Minimum (1902), $42,354,900.
Average, $48,804,120.

Maximum fluctuation (1910), $117,363,3
Minimum fluctuation (1904), $80,017,801
Average fluctuation, $95,926,800.

Average percentage fluctuation to issue, 1901-1910.

About 18$ per cent.

10.84 per cent.

Maximum issue allowed.

No limit if covered by gold coin and gold bullion.

6,800,000,000 francs ($1,312,400,000) b
($1,119,400,000) since Feb. 1906; w;
1897 to 1906.
Actual note issue Oct. 12, 1911, $1,051,2

Maximum uncovered issue allowed.

$89,786,925 (£18,450,000).

No special cover required.

Requirements as to covering of note issue.

$89,786,925 covered by government debt and securities; balance covered by gold
and silver, of which only one-fourth may be silver. (No silver actually held in
Issue Department since July 1, 1861.)

No special cover required.

Nature and amount (1910) of taxes upon note issue.

$291,990 (£60,000) for exemption from stamp duty, and net profit on all notes in
excess of $68,131,000 issued against securities about $907,512 (£186,731).

One-twentieth of 1 per cent on amount
issue), one-fiftieth of 1 per cent on rem
average discount rate on productive i;

Number of other banks of issue.

18 in England and Wales at close of 1910.

None.

Average amount other bank issues, 1901-1910.

Average notes of other banks in England and Wales, £609,500 ($2,952,170).

None.

Percentage average circulation other banks of issue in England and Wales to cir
lation Hank of England, to-day 0.6 per cent.

None.

$49,698,360.

$35,898,000.

Average amount, 1910.

$63,459,080.

$25,456,700.

Maximum, minimum, and average annual fluctuation, 1901-1910. . .

Maximum (1910), $104,616,360.
Minimum (1901), $40,450,000.
Average, $63,214,020.

Maximum (1901), $160,711,100.
Minimum (1908), $35,280,400.
Average, $58,143,200.

Interest paid on government deposits

No interest paid.

No interest paid.

Approximate percentage government to other deposits

31 per cent.

34 per cent.

$206,331,300.

$105,835,400.

Average amount, 1910.......................................................................... $202,997,340.

$118,328,300.

Percentage of other bank issues to central bank issue, 1901-1910
...............

8. D E P O S I T S A N D T R A N S F E R S .
G o v e rn m e n t d e p o s its :

(Notes not legal tender.)

Average amount, 1901-1910..........................................

O t h e r d e p o s it s :
Average amount, 1901-1910.

Maximum, minimum, and average annual fluctuation, 1901-1910___




Maximum (1903), $106,634,000.
Minimum (1901), $15,547,920.
Average, $70,650,300.

--'-------- — V
'-'-l----- -1

Maximum (1909), $257,230,400.
Minimum (1907), $47,323,600.
Average, $105,200,400.

n1.n fm ....... Ui,,,, 1j
m

Cnm
pnnipfl of all wirl^ and individuals, hi

U

M

M

A

R

Y

O F

T

H

E

L A W S ,

P R A C T I C E S ,

A

N

S T A T I S T I C S

D

P repared

fo r t h e

N a t io n a l M onet
#

B a n k o f F ra n c e (1800).

[PECK S

Bank o f

R e ic h s b a n k (1876).

(1 frano=-|.193.)

($1 —.2 0 m
4
urks.)

2.95 per cent.

4.4 per cent.

5.03 per cent (1902-1910 direct distou

3 to 4 per cent.

Maximum (1907-8), 7$ per cent.
Minimum (1902-1905), 3 per cent.

Maximum, 7 per cent Dec. 12, 19U/, j
1902, to Oct. 14, 1904, Feb. 15 to »
to Oct. 21, 1910.

4 changes in 10 years.

38 changes in 10 years.

21 changes in the 10 years.
and 1909, three each).

By the governor and general council.

By president and Direktorium.

By board of directors.

Uniform at bank and branches, but open discount rate in Paris sometimes under
bank rate.

“ Since 1896 one rate for everybody,” but in Berlin open rate is generally about
1 per cent lower.

Other banks quote same or £ per cent

3.57 per cent.

5.4 per cent.

Average, 1910, 3.50 per cent.

Not more than 7 or less than 1 in any one year.

Not exce

Varies with nature of collateral from <

Maximum (1901-1910), 4$ per cent.
Minimum (1901-1910), 3£ per cent.

Maximum, 8 per cent; minimum, 41

By governor and board of central institution.
1

By president and Direktorium.

By board of directors.

Generally higher— $ to 1 per cent above discount rates.

Usually 1 per cent higher than discount rate.

Varies from discount rate to 1 per cen

Same rate for all.

ent

Maximum (1907-8), 8J per cent.
Minimum (1902-1905), 4 per cent.

Only in case of gold being pledged the rate is equal to discount rate.

Real estate shares and warrants genera
of bonds at discount rate, or £ per c

20 marks ($5). (20, 50, 100, 1,000 marks.)
Reichsbank have legal-tender power.

Lowest denomination, 5 kroner=$1.3

50 francs ($10).

Legal tender since Aug. 12, 1870.

Since January 1, 1910, notes of the

Maximum (1910), $1,067,397,000.
Minimum (1901), $749,741,900.
Average $885,291,000.

Maximum (1910), $493,515,714.
Minimum (1901), $248,768,333.
Average, $330,129,286.

Maximum (1910), $57,422,000.
Minimum (1901), $14,255,000.
Average, $40,471,000.

$1,003,168,100.

$382,353,000.

$49,137,000.

Maximum fluctuation (1910), $117,363,300.
Minimum fluctuation (1904), $80,017,800.
Average fluctuation, $95,926,800.

Maximum (1909), $175,900,000.
Minimum (1901), $100,229,000.
Average, $132,809,000.

Maximum (1902), $15,481,000.
Minimum (1908), $9,921,000.
Average, $12,288,000.

10.84 per cent.

About 40 per cent.

30.4 per cent.

6,800,000,000 francs ($1,312,400,000) beginning Jan., 1912; 5,800,000,000 francs
($1,119,400,000) since Feb. 1906; was 5,000,000,000 francs ($965,000,000) from
1897 to 1906.
Actual note issue Oct. 12, 1911, $1,051,226,300.

Three times the specie, gold bullion, and government notes held by bank.

No special cover required.

From January 1, 1911, 550,000,000 marks ($130,900,000) of untaxed uncovered
notes has been allowed, and for the end of each quarter 750,000,000 marks
($178,500,000). All further issues must be covered or taxed.

>ld
in

No special cover required.

One-third by specie, gold bullion or government notes, two-thirds by bills of 3
months or less, bearing 2 signatures.

in

One-twentieth of 1 per cent on amount equal to loans and discounts (productive
issue), one-fiftieth of 1 per cent on remaining issue, also a royalty of one-eighth of
average discount rate on productive issue. (Amounted to $1,395,769 in 1910.)

5 per cent on issue in excess of 550,000,000 marks ($130,900,000) and since January,
1911, at the end of each quarter, in excess of 750,000,000 marks ($178,500,000), not
covered by specie, gold bullion, or notes of Government and other banks.
(Amounted in 1908 to $936,029.)

None since 1903. Between 1900 and 1
the Bank of Sweden.

None.

4.

None since 1903.

None.

Average, $34,640,000.

1901, $21,283,000; 1904, $800,000; 1906,

None.

10.5 per cent.

1901, 114.2 per cent; 1906, none.

$51,009,000.

$9,172,000 (1909).

$25,456,700.

$55,969,000.

$10,473,000 (1910).

Maximum (1901), $160,711,100.
Minimum (1908), $35,280,400.
Average, $58,143,200.

Maximum (1909), $126,737,000.
Minimum (1906), $29,255,000.
Average, $60,304,000.

Annual fluctuations, (1909) $9,269,000,

No interest paid.

No interest paid.

No interest paid.

34 per cent.

55.2 per cent.

Average 1910, 90.4 per cent of all depoi

$105,835,400.

$92,377,000.

1909, $1,313,000.

$118,328,300.

$98,484,000.

1910, $1,108,000.

Maximum (1909), $257,230,400.
Minimum (1907), $47,323,600.
Average, $105,200,400.

Maximum (1910), $54,368,000.
Minimum (1904), $28,908,000.
Average, $40,549,000.

(1909) $764,000, (1910) $271,000.

Companies of all sorts and individuals, but especially banks.
' ......
...... N

From all classes, especially from banks and bankers.

All classes—individuals, firms, etc.

u-

$35,898,000.


•


No limit when covered with gold or b«

100,000,000 kroner ($26,810,000) and th
40,000,000 kroner ($10,724,000) may
and government bonds.

40,000,000 kroner ($10,700,000) must g
least 30 per cent of all issues in exce

............................
_

_

_

_

_

_

(

r_

■

T A T I S T I O S

O F

T

H

E

P R I N C I P A L

B

A

N

K

S

O F

T

H

E

L E A D I 1

•AREI) FOR T H E N A TIO N A L M O N E T A R Y COMMISSION B Y A . P lA T T A N D R E W .
•

[D e c e m b e r ,

1011.]

B a n k o f S w ed e n (1668).

B a n k o f I t a ly (1893).

(1 krone-26.8 cents.)

(1 lire=*.193.)

B a n k o f 8\

5.03 per cent (1902-1910 direct discounts 4.98 per cent; rediscounts 4.68 per cent).

Official rate, 5 per cent (except November and December, 1907, 1908, and 1910, 5*
per cent).
Average actual rate, 4.555 per cent.

Average, 1907, 4.93 per cent; 1908, 3
per cent.

Maximum, 7 per cent Dec. 12,1907, to Jan. 29, 1908; minimum, 4$ percent Jan. 10,
1902, to Oct. 14, 1904, Feb. 15 to Sept. 22, 1905, Feb. 19 to Oct. 12, 1909, Jan. 24
to Oct. 21, 1910.

Maximum (1907, 1908, and 1910), 5J per cent.
Minimum (1904, 1905, and 1909), 3£ per cent.

1907-1910—Maximum, 6 percent; mil

21 changes in the 10 years.
and 1909, three each).

4 changes since 1894 in official, often in case of reduced rates.

4 changes in 1908; 3 in 1909; 5 in 1910

By board of directors.

Can not be changed without the approval of the Minister of the Treasury.

By direktorium, after obtaining opin
the principal branches.

Other banks quote same or £ per cent higher as a rule.

May discount for 1 per cent below official rate, and prime bills may be discounted
for minimum rate of 3 per cent. Must discount for cooperative credit societies at
reduced rate.

The bank has no right to discount bill

Varies with nature of collateral from discount rate to 1 per cent higher.

Sometimes lower than discount rates.
loans up to a certain point.

Average, 1908, 4.88 per cent; 1909, 3.8

Maximum, 8 per cent; minimum, 4i per cent.

From 5| to 3$ per cent.

1907-1910— Maximum, 6 per cent; mil

By board of directors.

By agreement between the three banks of issue if not less than 3 nor over the official
rate.

By direktorium as in case of discounts

Varies from discount rate to 1 per cent higher.

Generally the same; sometimes £ per cent lower.

i to 1 per cent higher.

Not ex ceding three in any one year (1905, 1906, 1908,

Real estate shares and warrants generally 1 per cent above discount.
of bonds at discount rate, or $ per cent above.

--- ------

" ----- ----

Generally the same rate for discount and

Certain classes

Not stated, except that rates for loans

Maximum (1910), $301,826,524.
Minimum (1901), $150,733,000.
Average, $206,655,715.

50 francs ($10) and, in extraordinary
issued temporarily.
Not declared legal tender, but bank a
payment.
1908-1910:
Maximum (1910), $59,442,470.
Minimum (1908), $23,126,225.

$49,137,000.

$276,019,014.

(1910) $48,284,450.

Maximum (1902), $15,481,000.
Minimum (1908), $9,921,000.
Average, $12,288,000.

Maximum (1910), $48,867,600.
Minimum (1902), $18,449,449.
Average, $36,826,909.

1908-1910:
Maximum (1908), $23,729,350.
Minimum (1909), $16,711,120.

30.4 per cent.

About 19.5 per cent.

About 39 per cent.

No limit when covered with gold or balances on current accounts abroad.

No legal limit to issue covered by metallic reserve.

No limit, if covered by 40 per cent coi

100,000,000 kroner ($26,810,000) and the amount with which the cash (gold) exceeds
40,000,000 kroner ($10,724,000) may be issued with a covering of bills of exchange
and government bonds.

1
6

Normal maximum of issue, covered by only 40 per cent cash, Bank of Italy,
660,000,000 lire ($127,380,000); Bank of Naples, 200,000,000 lire ($38,600,000);
Bank of Sicily, 48,000,000 lire ($9,264,000). In addition the Bank of Italy may
issue notes up to 150,000,000 lire if covered by only 40 per cent cash upon pay­
ment of graduated tax.

60 per cent of issue not covered by m
<
foreign bills.

40,000,000 kroner ($10,700,000) must generally be held in gold in Sweden, and at
least 30 per cent of all issues in excess of 00,000,000 kroner ($16,050,000).

40 per cent must be covered by cash, and of this 400,000,000 lire ($80,000,000) must
be held as special reserve for the notes.

40 per cent must be covered by metal
ei^n gold coin, or Swiss legal tender,
bills having not more than three m
days) must be covered by legal tend
count bills or foreign bills.

None since 1903. Between 1900 and 1903 1 percent on issues of other banks than
the Bank of Sweden.

On productive circulation (not covered by cash), one-tenth per cent. Issues in
excess of normal maximum as follows: For Bank of Italy 50,000,000 lire
($10,000,000), Naples 15,000,000 lire ($3,000,000), Sicily 4,000,000 lire ($800,000),
require tax one-third rate of discount. Similar additional installments, tax twothirds rate of discount. Similar third installments, tax wdiole rate of discount.
Further issues taxed 7$ per cent unless fully covered by cash.

No tax on note issue.

None since 1903.

2. Bank of Naples and Bank of Sicily.

None. The 36 note-issuing banks wh
capital of $50,000,000 and same amo
their notes by June 20, 1910.

1901, $21,283,000; 1904, $800,000; 114)6, no longer current.

December 31, 1910— Circulation Bank of Naples, $78,479,783.
December 31, 1910— Circulation Bank of Sicily, $18,659,626.

June, 30, 1907, $36,677,912; June 30, 1

1901, 114.2 per cent; 1906, none.

33 per cent on December 31, 1910.

June 30, 1907, 76.73 per cent; June 30,

i

.

.

Lowest denomination, 5 kroner=$1.34.

Legal tender.

50 lire ($10).

Maximum (1910), $57,422,000.
Minimum (1901), $14,255,000.
„
__ Average, $40,471,000.

J

y.
8-

$9,172,000 (1909).

Not legal tender after December 31, 1912.

$22,179,560.

Average amount, 1908, about $2,316,0(

$10,473,000 (1910).

$29,041,192.

Not stated separately in available s
deposits, $9,139,911.

Annual fluctuations, (1909) $9,269,000, (1910) $5,976,000.

Maximum (1901), $38,113,640.
Minimum (1908), $17,824,515.
Average, $28,575,580.

Not stated separately.

No interest paid.

Yes; 1$ per cent on deposits in excess of $7,720,000.

Interest is paid on government deposit

Average 1910, 90.4 per cent of all deposits.

About 70 per cent.

1909, $1,313,000.

Accounts current, $15,732,009.

Time deposits, $20,704,654.

Average, 1907 to 1910, about $3,500,00

1910, $1,108,000.

Accounts current, $13,811,369.

Time deposits, $24,160,242.

Average $2,605,500.
Demand deposits December 31, 1910, !

(1909) $764,000, (1910) $271,000.

Accounts Max. <1902) ’ $10,487,427.
current Mm. (1904), $5,054,091.
current, { A vg., $7,723,088.

All classes—individuals, firms, etc.
ties, and sealed packages.




Receives for safekeeping gold, silver, securi­

About 90 per cent.

Max. (1909), $10,294,041.
T, r,m.f Min. (1906), $4,897,568.
c
deposits, Avg., $6,572,615.

Customers include banks, cooperative credit societies, etc., and at the branches and
agencies, agricultural owners, industrial, and small trades people.

Banks, bankers, commercial and indue

S OF THE LEADING- COUNTRIES.—Sheet %
*

B a n k o f B e lg iu m (1850).

B a n k o f S w itz e rla n d (1907).

(1 franc—
$.193.)

(1 franc— .103.)
1

6. K A 1
nber, 1907, 1908, and 1910, 5^

Average, 1907, 4.93 per cent; 1908, 3.73 per cent; 1909, 3.22 per cent; 1910, 3.51
per cent.

___ * ,
__

K ate o f
Averag

1899-1908) 3.59+ per cent.

■.——. —

1907-1910— Maximum, 6 per cent; minimum, 3 per cent.

1899-1908) Maximum 1907-8, 6 per cent; minimum 1901-1905, and July 13, 1908,
( 3 per cent.

Maxim

4 changes in 1908; 3 in 1909; 5 in 1910.

2 changes in 10 years; 6, the maximum, in 1899; 5 changes in 1908.
5

Averag

d rates.

By direktorium, after obtaining opinion of the bank committee and managers of
the principal branches.

By council of administration by mutual agreement with the Minister of Finance

By wh<

iter of the Treasury.
>rime bills may be discounted
cooperative credit societies at

The bank has no right to discount bills at a rate lower than the official rate.

ie same rate for discount and

Average, 1908, 4.88 per cent; 1909, 3.88 per cent; 1910, 4.86 per cent.

How fa
H a t e l’o i
Averag

..................................................... ..... ......—---------------------------------- —------ —

Maxim

1907-1910— Maximum, 6 per cent; minimum, 3J per cent.
less than 3 nor over the official

By direktorium as in case of discounts.

.

i._ -.- ■ .

By council of administration, subject to the approval of the council of censors.

Relatii

i to 1 per cent higher.

v
—

Not stated, except that rates for loans on gold much lower than for other loans.
50 francs ($10) and, in extraordinary cases, 20 francs ($4) are permuted to be
issued temporarily.
..
^
, _. ,
,
.
Not declared legal tender, but bank and public offices obliged to accept them in
payment.
1908-1910:
Maximum (1910), $59,442,470.
Minimum (1908), $23,126,225.

112.

By wh

20 francs ($3.86) legal tender.

Minimum

Maximum (December 30, 1908), $154,438,600.1
Minimum (March 9, 1899), $98,758,100.
H899-1908.
Average, $125,331,003.

Maximum,

(1910) $48,284,450.

(1908) $145,350,000.

Average ai

1908—
1910\
Maximum (1908), $23,729,350.
Minimum (1909), $16,711,120.

Maximum (1908), $17,080,500.
Minimum (1900), $8,511,300. 1899-1908.
Average, $12,417,000.

Maximum,

About 39 per cent.

(1899-1908) 9.90 per cent.

Average p<

No limit, if covered by 40 per cent coin and bullion.

No limit, except that a metallic reserve equal to one-third of its notes and other
liabilities payable at sight is required. Under certain circumstances reserve per­
mitted to fall below one-third.

Maximum

>er cent cash, Bank of Italy,
200,000,000 lire ($38,000,000);
ddition the Bank of Italy may
tly 40 per cent cash upon pay-

60 per cent of issue not covered by metal must be offset by Swiss discount bills or
foreign bills.

,000,000 lire ($80,000,000) must

40 per cent must be covered by metallic reserve consisting of either bar gold, for­
eign gold coin, or Swiss legal tender, the remainder to be covered with discount
bills having not more than three months to run. All short-time liabilities (10
days) must be covered by legal tender, gold bars or foreign gold coins, Swiss dis­
count bills or foreign bills.

one-tenth per cent. Issues in
Bank of Italy 50,000,000 lire
Sicily 4,000,000 lire ($800,000),
Iditional installments, tax twoits, tax whole rate of discount.

No tax on note Issue.

j

Maximum

The demand liabilities must be covered to the extent of one-third by metallic
reserve and the rest by securities easily convertible into cash.

Ilequirem

J of 1 per cent semiannually on the excess of average circulation above $53,075,000,

amounting in 1908 to $449,096, together with annual stamp tax of 50 centimes
per 1,000 francs on average actual circulation; in 1908 amounting to $72,674.

Nature an

None. The 36 note-issuing banks which previously existed in Switzerland with
capital of $50,000,000 and same amount of note issue were required to liquidate None.
their notes by June 20, 1910.
_
June, 30, 1907, $36,677,912; June 30, 1908, $19,230,520; June 30, 1910, none.

None.

Average a

June 30, 1907, 76.73 per cent; June 30, 1908, 40.52 per cent; June 30, 1910, none.

None.

Percentag

Average amount, 1908, about $2,316,000.

1,479,783.
,659,626.

Number o

Average 9 years $2,930,281.

i

Not stated separately in available statistics.
deposits, $9,139,911.

December 31, 1908, government

Not stated separately.

Interest is paid on government deposits.

About 90 per cent.

G overr
Aver

(1908) $3,664,112.

Aver

(1899-1908) $2,445,753 in 1902; $3,664,112 in 1908.

Maxi
19

No interest paid; but profits from government funds invested go to Government.

Intel

About 33 per cent.

App

1,704,654.

Average, 1907 to 1910, about $3,500,000.

Weekly average 8 years, $15,282,000.

1,160,242.

Average $2,605,500.
Demand deposits December 31, 1910, $4,881,995.

Weekly average 1908, $16,313,000.
Maximum (1908), $15,092,000.
Minimum (1902), $7,893,700.
Average, $10,793,000.

4ax. (1909), $10,294,041.
Jin. (1906), $4,897,568.
Vvg., $6,572,615.
es, etc., and at the branches an<
1 trades people.
1
— :

-

ttt - :

“




Banks, bankers, commercial and industrial firms.

Commercial deposits only.

__ » „ ,J

(Current account.)

O th er
Ave

(Current account.)

Ave

Current account, eight years.

Max

Fro:
InU

( ’( UNTKI ES.—Sheet 2
.
,nd (1907).

B a n k o f B e lg iu m (1850).

(1 frano-1.13
9.)

int; 1909, 3.-2 per cent; 1910, 3.51

6. R A T E S F O R D I S C O U N T S A N D L O A N S .
R a te o f d is c o u n t:

(1899-1908) 3.59+ per cent.

Average rate, 1901-1910.
per cent.

(139per9
centMaXimUm 19° 7~8, 6 per cent; minimum 1901-1905, and July 13, 1908,

2o changes in 10 years; 6, the maximum, in 1899; 5 changes in 1908.

Maximum and minimum rates, 1901-1910.

Average number of changes per year.

bank committee and managers of
By council of administration by mutual agreement with the Minister of Finance.

By whom official rate determined.

lower than (he official rate.
How far actual rate conforms.
1910, 4.86 per cent.

R a te fo r lo a n s :
Average rate, 1901-1910.

per cent.
Maximum and minimum rates, 1901-1910.
By council of administration, subject to the approval of the council of censors.

By whom determined.

Relation to discount rate.
ich lower than for other loans.
Variations according to collateral.

francs ($4) are permitted to be
offices obliged to accept them in

20 francs ($3.86) legal tender.

7. N O T E I S S U E .
Minimum denomination and legal tender power.

Maximum (December 30, 1908), $154,438,600
Minimum (March 9, 1899), $98,758 100
1899-1908.
Average, $125,331,003.
'

Maximum, minimum, and average amount, 1901-1910.

(1908) $145,350,000.
Average amount, 1910.
Maximum (1908), $17,080,500
Minimum (1900), $8,511,300. 1899-1908.
Average, $12,417,000.

Maximum, minimum, and average annual fluctuation, 1901-1910.

(1899-1908) 9.90 per cent.
Average percentage fluctuation to issue, 1901-1910.
excePt
.
mitted to

. hat a. metallic
t

Sf b .£ w

reserve equal to one-third of its notes and other

on! a w eql'ired-

Under Certai“ Circum8<ance8

Per-

Maximum issue allowed.

offset by Swiss discount bills or
Maximum uncovered issue allowed.
consisting of either bar gold, fornder to be covered with discount
n. All short-time liabilities (10
s or foreign gold coins, Swiss dis-

The demand liabilities must be covered to the extent of one-third bv metallic
reserve and the rest by securities easily convertible into cash.
^

*

° f P ;erage c“ cuIation above $53,075,000,

pW M
i
sly existed in Switzerland with
issue were required to liquidate

Requirements as to covering of note issue.

s

j a

s

: ffss

sslsz

g

^

^ ^

<•«•) -

U„„ „„te i8 i,e.
P
a

None.
Number of other banks of issue.

1,520; June 30, 1910, none,

None.
Average amount other bank issues, 1901-1910.

per cent; June 30, 1910, none.

None.
I ercentage of other bank issues to central bank issue, 1901-1910.

8. D E P O S I T S A N D T R A N S F E R S .

Average 9 years $2,930,281.

Government deposits:
Average amount. 1901-1910.
•ecember 31, 1908, government




(1908) $3,664,112.
Average amount, 1910.
(1899-1908) $2,445,753 in 1902; $3,664,112 in 1908.
lOlQ1
Um> minimum’ aU(* average annual fluctuation, 1901No interest paid; but profits from government funds invested go to Government.
Interest paid on government deposits.
About 33 per cent.
Approximate percentage government to other deposits.
Weekly average 8 years, $15,282,000.

(Current account.)

O th e r d e p o s its :
Average amount, 1901-1910.

Weekly average 1908, $16,313,000.

(Current account.)
Average amount, 1910.

Maximum (1908), $15,092,000 ]

p a s s a g e 'I*— — *. "***
...

Maximum, minimum, and average annual fluctuation, 1901

Commercial deposits only.
From what classes received, requirements, etc.
Interest paid on other deposits: Demand (current accounts)

lUaAtUlUUi (ii/AUy, ijJiUl,UAU,ywv.

Minimum (1901), $40,450,(100.
Average, $03,214,020.

Minimum l 1908), $35,280,400.
Average, $58,143,200.

Interest paid on government deposits.................................................

No interest paid.

No interest paid.

Approximate percentage government to other deposits.......................

31 per cent.

34 per cent.

$206,331,300.

$105,835,400.

Average amount, 1910..........................................................................

$202,997,340.

$118,328,300.

Maximum, minimum, and average annual fluctuation, 1901-1910___

Maximum (1903), $106,634,000.
Minimum (1901), $45,547,920.
Average, $70,650,300.

Maximum (1909), $257,230,400.
Minimum (1907), $47,323,600.
Average, $105,200,400.

From what classes received, requirements, etc...................................

From all classes, but especially from banks and bankers; also from municipalities,
colonial and foreign governments, private firms, etc.

Companies of all sorts and individuals, b u t^ T
(Minimum deposit of 500 francs required t a H l|

Interest paid on other deposits: Demand (current accounts), time___

No interest paid (but in exceptional cases money borrowed in open market).

No interest paid.

Per cent bankers’ balances in other deposits.......................................

Not published.

Not published.

Maximum, minimum, and average annual fluctuation, 1901-1910.

..

O t h e r d e p o s it s :
Average amount, 1901-1910..................................................................

T r a n s fe r b u s in e s s :
Extent of transfer business..................................................................

(Supposed to average about $110,000,000, or about half.)

Large sums transferred between London banks and their branches through Bank,
1906, $61,858,000,000 clearings.

p B lS
frfnn

H

■

(1909), $41,339,000,000; (1910), $47,447,600,0^8

Charges for same..................................................................................

Gratuitous except for transfer from one place
counts or advances.

London, metropolitan, and country balances settled at Bank.
Relation of bank to clearing house....................................................................................................

Practically clearings are made through the B H f§
on the part of accounts holders. The F r e r^ ft
checks.

9. C A S H H O L D I N G S .

Gold and silver.

Notes and specie in Banking Department.
What is included as cash.........................................................................................................................................
Legal requirements as to cash holdings....................................................

None, except that note issue in excess of £18,450,000 must be covered by gold held
in Issue Department.

None.

H

Banking Department,
Average amount, 1901-1910........................................................................................................................................ notes and specie, $121,674,960.

$748,083,440 (gold and silver reserve).

Average notes and specie
Average amount, 1910....................................................................................................................................................... in Banking Department, $131,885,820.

$22,488,800.

H

Maximum (1905), $67,659,000.1
Minimum (1904), $46,043,640. [Fluctuation cash holdings Banking Department.
Maximum, minimum, and average annual fluctuations, 1901-1910......................
Average, $54,572,940.
j

Maximum (1908), $154,284,200.
Minimum (1901), $30,532,600.
Average, $64,421,470.

H

i

Average per cent fluctuation to average cash, 1901-1910.........................

44.8 per cent, Banking Department (notes and specie).

a Maximum (1910), 122.5 per cent.
Maximum, minimum, and average annual percent to note issue, 1901-1910. Minimum (1901), 53.6 per cent.
Average, 86.6 per cent.

f l

Jgfli

8.61 per cent.

H

Maximum (1905), 89.75 per cent.
Minimum (1907), 76.54 per cent.
Average, 84.50 per cent.

fl
H

fl

&Maximum (1904), 58.8 per cent.
Minimum (1902), 27.9 per cent.
Average, 47.4 per cent.

Maximum (1909), 76.09 per cent.
Minimum (1907), 66.37 per cent.
Average, 72.84 per cent.

Methods of controlling foreign exchange and gold movements..................

Primarily by discount rate, but sometimes by advancing money free of interest to
gold importers, by borrowing money in the open market, by selling consols, by
increasing price offered and charged for gold.

Ordinarily by discount rates, sometimes by re m fl
ing transit, by redemption of notes in silver, t f l

Under what conditions are emergency issues of notes permissible............

There are no arrangements for emergency issues.

Can be issued freely up to 6.800,000.000 francs ( f l
One-third must be covered by cash.
I

Maximum, minimum, and average annual per cent to demand liabilities,
1901-1910.

10. G E N E R A L P O L I C I E S .

18507— 11




.

fl
H
H

a Per cent of coin and bullion in issue and banking departments to circulating notes outside of bank.
I
&Per cent coin and bullion in issue and banking departments to circulating notes outside of bank and p u b fl

1

1

Minimum (1900), #29,250,000.
Average, $60,304,000.

Annual tlactuations, (1909) $9,209,000, (If

No interest paid.

No interest paid.

55.2 per cent.

Average 1910, 90.4 per cent of all deposits

$92,377,000.

1909, $1,313,000.

$98,484,000.

1910, $1,108,000.

Maximum (1910), $54,368,000.
Minimum (1904), $28,908,000.
Average, $40,549,000.

(1909) $764,000, (1910) $271,000.

From all classes, especially from banks and bankers.

All classes—individuals, firms, etc.
ties, and sealed packages.

No interest paid.

No interest paid, though law allows payments on deposits equal to capital and sur­
plus. Minimum balance of $250 required on accounts of business men.

None as a rule. May, however, open a
banks) which discount with the bank.

Not published.

March 31, 1908, about one-half; varies according to the time.
cent.

Not stated.

(1909), $41,339,000,000; (1910), $47,447,600,000 (clearings).

$10,534,470,000 (1910).

Gratuitous except for transfer from one place to another of sums not arising from dis­
counts or advances.

Gratuitous between customers.

Practically clearings are made through the Bank of France and consist of transfers
on the part of accounts holders. The French public makes but a limited use of

Balances settled at bank.
ings.

Gold and silver.

Specie, gold bullion, including foreign gold coin, government notes, and for the pur­
pose of the calculation of untaxed note issue, notes of other banks.

Gold, and for certain purposes balances o

One-third note issue.

May generally not be less than 40,000,000
and must amount to 30 per cent of all i:

$748,083,440 (gold and silver reserve).

$238,133,000, including government notes.

$17,327,000 quarterly average (gold).

$22,488,800.

$266,688,000.

$21,515,000 quarterly average (gold).

Maximum (1908), $154,284,200.
Minimum (1901), $30,532,600.
Average, $64,421,470.

Maximum (1903), $469,286,000.
Minimum (1905), $100,764,000.
Average, $72,994,000.

Maximum (1901), $2,762,000,1
Minimum (1910), $176,000,
quarterly a1
Average, $1,430,000,

8.61 per cent.

30.7 per cent.

Minimum (1908), $35,280,400.

No interest paid.

34 per cent.

$105,835,400.

$118,328,300.
Maximum (1909), $257,230,400.
Minimum (1907), $47,323,600.
Companies of all sorts and individuals, but especially banks.
(Minimum deposit of 500 francs required to open an account.)

None.

In 1910, $658,278,000 cleared at cleari
$152,819,000, or 23.2 per cent, were adj
Otherwise varying tariff.

Berlin and all other clearing houses in Reichsbank build­

None.
Bank keeps rooms and clerks necessary fo

8.3 per cent.
■
• -•

.

. ...

__I

J

Maximum (1902), 82 per cent.
Minimum (1907), 62.6 per cent.
Average, 72.5 per cent.

Maximum (1901), 60.1 per cent.
Minimum (1904), 39 per cent.
Average, 42.8 per cent.

Maximum (1902), 55.8 per cent.
Minimum (1907), 45 per cent.
Average, 50.4 per cent.

Not stated.

Ordinarily by discount rate and by selling foreign bills of exchange, sometimes by
remitting interest on gold imports during transit, by raising tariff on foreign gold
coin, anil by selling Treasury bills.

Arrangements with foreign banks or, in in
no open market in foreign bills in Swec
yet been necessary.

Can be issued freely up to 6,800,000.000 francs ($1,312,400,0001 after January, 1912. In excess of 550,000,000 marks on payment of 5 per cent tax, but at end of each
One-third must be covered by cash.
quarter the untaxed uncovered issue may amount to 750,000,000 marks.

Up to 100,000^,000 kroner notes may be is
ment bonds, if 30 per cent are covered

Maximum (1905), 89.75 per cent.
Minimum (1907), 76.54 per cent.
Average, 84.50 per cent.
Maximum (1909), 76.09 per cent.
Minimum (1907), 66.37 per cent.
Average, 72.84 per cent.

.

.

Ordinarily by discount rates, sometimes by remitting interest on gold imports dur­
ing transit, by redemption of notes in silver, by selling foreign bills.

j

June 15, 1910, 55 per

Bee

ments to circulating notes outside of bank.
. . . . . .
_ ,
.
lents to circulating notes outside of bank and public and other deposits (including 7-day notes).


•


nual fluctuations, (1909) $9,209,000, (1910) $5,976,000.

Minimum (1908), $17,824,515.
Average, $28,575,580.

Not stated separately.

interest paid.

Yes; 1} per cent on deposits in excess of $7,720,000.

Interest is paid on government deposits.

erage 1910, 90.4 per cent of all deposits.

About 70 per cent.

About 90 per cent.

9, $1,313,000.

Accounts current, $15,732,009.

Time deposits, $20,704,654.

Average, 1907 to 1910, about $3,500,000.

0, $1,108,000.

Accounts current, $13,811,369.

Time deposits, $24,160,242.

Average $2,605,500.
Demand deposits December 31, 1910, $4,881,

.
. Max. (1902), $10,487,427.
Current Min' (1904)’ $5,054,091.
current, A vg., $7,723,088.

09) $764,000, (1910) $271,000.

T[Max. (1909), $10,294,041.
deVogfts Min*( 1906) ’ $4,897,568.
deposits, [Ayg., $6,572,615.

Receives for safekeeping gold, silver, securi-

Customers include banks, cooperative credit societies, etc., and at the branches and
agencies, agricultural owners, industrial, and small trades people.

Banks, bankers, commercial and industrial fi

ne as a rule. May, however, open a check account with interest to firms (not
>anks) which discount with the bank.

May amount to one-third of the official discount rate; law allows two-thirds of rate
of postal savings banks, but in practice averages about one-half of 1 per cent.

No interest paid.

t stated.

Not stated.

About 90 per cent.

1910, $658,278,000 cleared at clearing house. The balances, amounting to
1152,819,000, or 23.2 per cent, were adjusted through Bank of Sweden.

Money orders (vaglia cambiari) very widely used, and payable by every branch
of the bank.

(1908) $2,047,752,002, (1910) $3,323,327,484.

classes—individuals, firms, etc.
ies, and sealed packages.

Free to customers.

ne.
mk keeps rooms and clerks necessary for clearings free of charge for the banks.

The Bank of Italy controls and regulates the clearing houses in Rome, Florence,
Genoa, and Milan. It clears stocks also.

Clearing houses (6), all under control of the 1

>ld, and for certain purposes balances on current account abroad.

At least 75 per cent must be gold and the rest silver coin of the Latin Union, but
foreign bills, certificates of deposit in foreign banks, treasury bills of solvent
Governments may be included to 11 per cent.

Gold (including gold bullion and foreign go
the Latin Union, besides notes of other
counted as cover for notes.

ly generally not be less than 40,000,000 kroner ($10,720,000) gold, held in Sweden,
and must amount to 30 per cent of all issues in excess of 60,000,000 kroner.

40 per cent of note issue, and of this $80,000,000 must always be held as a special
reserve for the notes, separate from other funds of bank.

A metallic reserve of 40 per cent of note issu<

7,327,000 quarterly average (gold).

$156,083,925 (gold and silver).

From July 1, 1907, to December 31, 1908, av<

1,515,000 quarterly average (gold).

$219,269,809 (gold and silver).

(1908) $20,538,867, (1909) $27,320,200, (1910)

aximum (1901), $2,762,000,1
inimum (1910), $176,000, [quarterly average.
verage, $L,430,000,
)

Maximum (1903), $31,635,981.
Minimum (1909), $4,766,714.
Average, $13,657,066.

Maximum (1907), $8,935,900.
Minimum (1910), $7,271,783.

3 per cent.

8.75 per cent.

(1908) 40.9 per cent, (1910) 22.7 per cent.

Maximum (1909), 89.09 per cent.
Minimum (1901), 51.37 per cent.
Average, 71.84 per cent.

Maximum (1908), 91.45 per cent.
Minimum (1908), 51.97 percent. 1907-1910.
Average, about 70 per cent.
,

ot stated.

Maximum (1909), 79.82 per cent.
Minimum (1902), 45.08 per cent.
Average, 65.08 per cent.

Maximum (1908), 74.02 per cent.)
Minimum (1908), 46.70 per cent. [1907-8.
Average, about 61 per cent.

rrangements with foreign banks or, in more serious cases, foreign loans. Ihere is
no open market in foreign bills in Sweden. Controlling gold movements has not
yet been necessary.

Purchase and sale of foreign bills and bank drafts.

By rate of discount and dealings in foreign ei

p to 100,000,000 kroner notes may be issued against bills of exchange or govern­
ment bonds, if 30 per cent are covered by cash.

The banks of issue have the right to issue notes covered by 40 per cent cash up to
certain fixed sum, which can be extended upon payment of a graduated tax
proportioned to the rate of discount.

40 per cent must be covered by metallic resei

aximum (1901), 60.1 per cent.
inimum (1904), 39 per cent,
verage, 42.8 per cent.




*
■

J

Not stated separately.

(1899-1908) $2,445,753 in 1902; $3,664,112 in 1908.

Maximum, m m u ^ H
1910.
am

Interest is paid on government deposits.

No interest paid; but profits from government funds invested go to Government.

Interest paid on

About 90 per cent.

About 33 per cent.

Approximate per<^H

Average, 1907 to 1910, about $3,500,000.

Weekly average 8 years, $15,282,000.

Average $2,605,500.
Demand deposits December 31, 1910, $4,881,995.

Weekly average 1908, $16,313,000.

O th e r d e p o s it s : ■ §
Average amount,

(Current account.)

Average amount,

Maximum (1908), $15,092,000.
Minimum (1902), $7,893,700.
Current account, eight years.
Average, $10,793,000.
,

10,294,041.
1,897,568.
DL
t the branches and

(Current account.)

Maximum, m in in^H
1910.
H

| Rome, Florence,

No interest paid.

No interest paid.

Interest paid on
time.

Not stated.

Per cent bankers’

(1908) $2,047,752,002, (1910) $3,323,327,484.

(1908) $317,497,297, representing 567,201 drafts for transfer of money.

Free to customers.

1 by every branch

Commercial deposits only.

About 90 per cent.

two-thirds of rate
bf 1 per cent.

Ranks, bankers, commercial and industrial firms.

None.

From what classe^H

T ra n s fe r h u s in o H
Extent of transfer HK
H
Charges for same.

Clearing houses (6), all under control of the bank.

Relation of bank t^ B
Specie and bullion (also foreign bills).

A metallic reserve of 40 per cent of note issue.

Required to maintain a stock of specie equal to one-tliird of note circulation and
other sight obligations. This requirement may be set aside by the Minister of
Finance at his discretion.
.

Legal requirements as

Average 1901 to 1908, $23,780,000.

Average amount, 1901-H

(1908) $20,538,867, (1909) $27,320,200, (1910) $31,884,400.

$29,326,350.

Maximum (1907), $8,935,900.
Minimum (1910), $7,271,783.

1901-1908:
Maximum (1908), $5,095,000.
Minimum (1905), $1,235,200.
Average, $3,256,875.

(1908) 40.9 per cent, (1910) 22.7 per cent.

Average for 8 years, 13.7 per cent.

Maximum (1908), 91.45 per cent.
Minimum (1908), 51.97 per cent. 1907-1910.
Average, about 70 per cent.

1 held as a special

Gold (including gold bullion and foreign gold coins), and silver 5-franc pieces of
the Latin Union, besides notes of other banks of issue; the latter can not be
counted as cover for notes.

From July 1, 1907, to December 31, 1908, average, $17,689,120.

[Latin Union, but
k' bills of solvent

1901-1908:
Maximum (1908), 20.5 per cent.
Minimum (1907), 16.8 per cent.
Average, 18.6 per cent.
1901-1908:c
Maximum (1908), 18.4 per cent.
Minimum (1907), 15.1 per cent.
Average, 16.6 per cent.

Maximum (1908), 74.02 per cent.
Minimum (1908), 46.70 per cent. 1907-8.
Average, about 61 per cent.
.
By rate of discount and dealings in foreign exchange.
l r cent cash up to
■ a graduated tax

40 per cent must be covered by metallic reserve.

I


http://fraser.stlouisfed.org/
1
Federal Reserve Bank of St. Louis

Otherwise no limit.

9. c l
What is included as ca^B

(Specie and bullion.)

(Specie and bullion.)

Average amount, 1910. H

Maximum, minimum, ^ B

Average per cent fluetuH
'

----Maximum, minimum, ^ B
1901-1910
B

Maximum, minimum, H
liabilities, 1901-1910. H
10. G i l

B y discount rates and by its large holdings of foreign bills. About one-fifth of
bills dealt with during last 20 years have been on foreign countries.

Methods of controlling f H

ihe Minister of Finance may, at his discretion, set aside requirement as to propor­
tion of reserve held against circulation.

Under what conditions

c Government deposits not included.

*

4

(1899-1908) $2,445,753 in 1902; $3,664,112 in 1908.

Maximum, minimum, ana average annual fluctuation, 1901­
1910.

No interest paid; but profits from government funds invested go to Government.

Interest paid on government deposits.

About 33 per cent.

Approximate percentage government to other deposits.

Weekly average 8 years, $15,282,000.

1
1

Weekly average 1908, $16,313,000.

(Current account.)

(Current account.)

Maximum (1908), $15,092,000.
Minimum (1902), $7,893,700.
Current account, eight years.
Average, $10,793,000.
,

O th e r d e p o s it s :
Average amount, 1901-1910.
Average amount, 1910.
Maximum, minimum, and average annual fluctuation, 1901­
1910.

Commercial deposits only.

From what classes received, requirements, etc.

No interest paid.

Interest paid on other deposits: Demand (current accounts),
time.

Not stated.

Per cent bankers’ balances in other deposits.

(1908) $317,497,297, representing 567,201 drafts for transfer of money.

None.

T ra n s fe r b u s in e s s :
Extent of transfer business.
Charges for same.

Relation of bank to clearing house.
Lnd silver 5-franc pieces
eue; the latter can not be

Specie and bullion (also foreign bills).

9. C A S H H O L D I N G S .
What is included as cash.

Required to maintain a stock of specie equal to one-tliird of note circulation and
other sight obligations. This requirement may be set aside by the Minister of
Finance at his discretion.
f89,120.

Legal requirements as to cash holdings.

Average 1901 to 1908, $23,780,000.

Average amount, 1901-1910.

$29,326,350.

(Specie and bullion.)

(Specie and bullion.)

Average amount, 1910.

1901-1908:
Maximum (1908), $5,095,000.
Minimum (1905), $1,235,200.
Average, $3,256,875.
Average for 8 years, 13.7 per cent.
►
----------------------------------------

Maximum, minimum, and average annual fluctuations, 1901-1910.

Average per cent fluctuation to average cash, 1901-1910.

1901-1908:
Maximum (1908), 20.5 per cent.
Minimum (1907), 16.8 per cent.
Average, 18.6 per cent.
1901-1908:c
Maximum (1908), 18.4 per cent.
Minimum (1907), 15.1 per cent.
Average, 16.6 per cent.
By discount rates and by its large holdings of foreign bills. About one-fifth of
bills dealt with during last 20 years have been on foreign countries.

erwise no limit.




The Minister of Finance may, at his discretion, set aside requirement as to propor­
tion of reserve held against circulation.
c Government deposits not included.

Maximum, minimum, and average annual per cent to note issue,
1901-1910

Maximum, minimum, and average annual per cent to demand
liabilities, 1901-1910.

10. G E N E R A L P O L I C I E S .
Methods of controlling foreign exchange and gold movements.
Under what conditions are emergency issues of notes permissible?

T

A

B

U

L

A

R

S

U

M

M

A

R

Y

O F

B a n k o f F ra

B a n k o f E n g la n d (1694).

(1 franc—

(£-$4.8065.)

Capital, 182,500,000 francs ($35,222,500).

Amount of capital, reserve liability, and surplus.....................

Capital, £14,55:1,000 ($70,822,175). No reserve liability. Surplus, called “ rest,”
about $17,000,000, but fluctuates from week to week; by unwritten custom is
never reduced below £3.000,000 ($14,599,500). (Value of bank buildings, perhaps
$25,000,000, not carried in account.)

Legal provisions as to surplus.

None.

Various requirements, including profits fro
the value of central bank building, etc.

1. C A P I T A L A N D S T O C K H O L D E R S .

Over 10,000.

Number of stockholders.

I

32,442 (Dec. 24, 1910).

Number of shares, 145,530 of £100 ($486.65) each, par value.

11,312 have not more than 1 share each, an
Character of stockholders.
Restrictions upon ownership and transfer of stocks.

None.

None, except that 6,028 shares belouginj
marked “ not transferable.”

Restrictions upon voting power.

Stockholder to vote must have 5 shares (par $486.65 each), but can have only 1 vote,
no matter how many additional shares he may own.

Only 200 largest shareholders vote.
to vote.

Elect governor, deputy governor, and directors, and vote by-laws.

Meet once a year, elect regents and censors

Powers of

stockholders

.............................................................

None, except that the Government receives
count rate above 5 per cent, also certain
tinned later.

Restrictions upon profits of stockholders.................................................... j None (except such as are due to taxes mentioned later).

Average annual dividends, 1901-1910........................................................j

2. O R G A N I Z A T I O N A N D M A N A G E M E N T .

Foreig

13.9 per cent.

Per cen^‘

In 1908, 16 per cent; in 191

By whom appointed..................... •

Governor and deputy governor, elected by stockholders (practically selected by
directors).

Governor and 2 deputy governors, appointe

1 year, customarily reelected a second year.

C h ie f o ffic ia ls:

No fixed period; removable at will of chie!

- i . v : - •- - •

For what time.

Deputy succeeds governor.

From what classes or occupations, qualifications, etc

From directors (who are generally merchant bankers or financiers).
hold 40 shares (£4,000), deputy governor 30 shares (£3,000).

Governor must

Functions.

Governor directs general policy, supervises business of head office.
governor supervises branch business.

Deputy

Can not be members of Chamber or Senate,
governors 50 shares each.
Governor directs general policy of bank,
management.

24.

General council consists of governor, depi
(auditors).

By stockholders holding 5 or more shares (but candidates practically nominated by
board of directors).

Elected by 200 largest shareholders.

1 year, but customarily reelected; 8 of the directors retire every year.

Regents for 5 years; censors for 3 years.

From what classes or occupations, qualifications, etc .

Usually merchant bankers or financiers, but can not be directors of other banks,
bill discounters, or brokers.

5 regents and the 3 censors must come fr
regents must come from general paying

Functions.

Meet, weekly, serve on various committees (decide with governors upon changes in
bank rate).

Meet once per week.

B o a r d o f d irectors:
Number....................
By whom selected.

For what time..........................................................

Vote upon changes

The general council (governor, deputy go
into 5 committees. The discount comm
holders who are merchants or manufaett

O th e r c o m m itte e s
3.

BRANCHES.

None.

Number of branches in central city.....................
200 branches and auxiliary bureaus.

Number of branches in other cities.

Number of head branches.
Number of subbranches................................................. ,...........................

No subbranches.

Number of agencies................................................................................... .

128 succurs lies (branches).

All of same class.

agencies.

72 bureaux auxiliaires.

312 villes rattachees (agencies).

Same as of central institution.

Functions of head branches....................................................................... j Same as of head office.

Functions of subbranches..................

None.

Same as of central institution except that a
branch.

Functions of agencies........................

None.

Only collect bills.

Managers of branches, how appointed.

Selected by governor and directors.

By chief of state from 3 candidates propose

Measure of discretion allowed.

Discretion subject to supervision from head office.
graphed each morning to branches.

4. R E L A T I O N S T O G O V E R N M E N T .

Current London rates tele­

Subject to parent institution as regards ri
managers are assisted, by local board.

None held by Government.

None held by Government.

Government has no choice.

Chief of state appoints governor and deput;

Frequency and character ot reports required.............................................

Weekly statements required in form prescribed by act of 1841, but no separation of
loans discounts, and securities, and no distinction between bankers’ balances
and other j epOHits. N(, annual reports published.

Methods and mechanism for government inspection..................................

No Government inspection.

Quarterly reports required; weekly statenu
but w'itli no separation of bankers’ balan
published with statistics.
No regular examination, but minister of i
desires, and no resolution of the genera
the hand of the governor, representing tl

Government ownership of stock..................................- ...........
Selection of officials.
,

,

Participation in profits

Taxation....................




.

,

.

,

.............

In ]910, £186,731 ($908,726) for net profits on note issue in excess of £14,000 000.

General and special taxation totals about
holders.

Subject to same local and general taxes as other banks, and to an annual payment of
£60,000 ($291,690) in consideration of exception of bank notes from stamp duty.

Pays general taxes, and special tax of onecirculation, one-fiftieth of 1 per cent of
tive means covered by loans and disc
special taxes, $289,229.
Kovnltv for use of ( ’r6dit Atrricolo ouualim

M

A

R

Y

O F

T

H

E

L A W S ,

P R A C T I C E S ,

S T A T I S T I C S
P repared

for

the

N

a t io n a l

M

O F
onetary

C om

[DECEMBlIt, 1011 J
.

B a n k o f F ra n c e (1800).

R e ic h s b a n k (1876).

(1 franc- 1.193.)

182,500,000 francs ($3o,222,500).

B a n k o f Sweden

($1— 4 2 marks.)
.0

No reserve liability.

Surplus, $8,206,234. Capital, 180,000,000 marks ($42,857,000).

.is requirements, including profits from discount rate in excess nf fi n e r
value of central bank building, etc.
P
—
_____
_

’

_

(1 krone- 2.8
6 cent

No reserve liability.

Surplus, $16,610 000.
> ! ) •

18,748 (December 31, 1910).

There are no stockholders.

have not more than 1 share each, and 1,468 over 20 shares each.

All classes or occupations, especially banks, bankers, and merchants.
native, 2,120 foreign.)

ext'fj)i that 6,028 shares belonging to married women, minors, etc., are

.
None, except that officials of the Reichsbank are prohibited from possessing shares.

not transferable.

!<» l a ^ t shareholders vote.

Nor«

in
T~,
T
-— -— —
----------- -------- ---------------------------------------------------------------reserve1 1 ° f 6Xte8S profita over a dividend of 3* per cent assigned to increasing So long as surplus is under 25 per cent of capital
1
i _________ _ ' ___ _
_
_
_
be assigned to surplus.

(Dec. 24, 1910).

ked

Capital, 50,000,000 k r o n e r ($13,400,OOo).
1910), $3,350,000.

Foreigners may own stock, but are no. allowed

(16 628

No stockholders.
liament.

Bank belongs to Par

Administration under the cha

No stockholders.

Each share of 1,000 marks gives 1 vote, provided that no more than 300 vote, be | ~ -------united in oue hand.
j No stockholders.

i
•rice a year, elect regents and censors, who meet usually once a week.

( At annual meeting elect Contral-Ausschuss, an advisory body, which meets once a ! w
T
,, ,,
month.
No stockholders.
axcept that Ihe Government receives three-fourths of all profi t from raising dis,
t rate above 5 per cent, also certain taxes and royalties on circulation men- Shareholders receive 3$ per cent dividends and (from January 1, 1911) only 20 per
3*
id later.
| cent of excess profits.
No stockholders.
cent.

In 1908, 16 per cent; in 1910, 14 per cent.

6.93 per cent.

Average annual assignments to public treasury, 1

The Direktorium,______
consisting of president, vice-president, and 8 managing directors
appointed by Emperor on recommendation of Bundesrat.
mperor
°

lor and 2 deputy governors, appointed by chief of state.

d period; removable at will of chief of state.

For life.

, be members of Chamber or Senate.
nors oO shares each.

Governor must own 100 shares; deputy
* J

,
,
..
No legal provisions.

•r directs general policy of bank.

Deputy governors look after details of

„„
,
1he Direktonum manages the bank and fixes the discount rate.

Administration managed by 7 directors, 6 appoin
Crown. From the board itself 3 members ar
Several donartmoTita
fH
i
.
„
several departments. Chairman may not be m
Nominally for parliamentary term of 3 years, pra

Chairman of board may not be one of 3 managers

! Conduct business of bank.

J_______________

council consists of governor, deputy governors, 15 regents, and 3 censors ~
~
■ t0rs')Central-Ausschuss, 15 members and 15 alternates, all stockholders.
by 200 largest shareholders.

Elected by stockholders.

for 5 years; censors for 3 years.

A special committee of 24 members of both house
names chairman.

Annually, but customarily reelected.

and the 3 censors must come from commercial and industrial classes; 3
must come from general paying treasurers. Must own 30 shares.
e per week.

\ 7.

Vote upon changes in the rate of discount.

ral council (governor, deputy governors, regents, and censors) is divided
£
1 1 dlscount committee of 12 members includes other shareG
-—
-T mamnacturors, as well as members of the council.

v .
No “ ^ructions.

I
In practice, bankers, merchants, landlords, and manufacturers.

A lonHultafivo body; meets once a month. May limit amount of securities mirt based and ot loans to Government.
f
„
.
C urat/>num, 5 members, including imperial chancellor, Prussian minister of finance
and 3 members ot Bundesrat selected by that body. Final seat of authority.
’

For the duration of each Parliament, 3 years.
----- ------------------------------- ------- .
______ ___________
During tenure of office may not be directors of any u
Can not be members of council of state, or niauag
«»- *
n
.
(
Meet weekly to supervise bank operations.
to transact lending business.

Daily

Audit committee appoin ted by Parliament.

1 central bank in Berlin.
None.
uhes and auxiliary bureaus,

488 (October. 1911).
26.

rsal 's (branches),

20 Iiauptstellen head offices (1911).

ix auxiliairea.

26.

70 Bankstellen offices (1911).
None.

ratiachees (agencies).

^merchandise)1 agende8 and auxiliar- branches (1908) (including 5 warehouses for
1
v
'

f central institution.

None.

Same as of central institution.
Same as head office.

»f central institution except that all discounts are referred to nearest head
A " bu8U,e"s d<me <di8count and

‘
Jet bills.

re fm e d l

'
None.

(See above).
None.

if btate from 3 candidates proposed by governor of bank.

Head managers (directors) of Hauptstellen (head offices) by the imuerial chan roll »•
»'
President;
of
b S !d U !b y t h e

parent institution as regards rate of discount and important matters3are assisted, by local board.
’

By central board.

lhe Direklori“ “ . “PbbranchM undo, that
Subject to general and special instructions.

by Government.

None held by Government.
No stock issued; belongs to legislature.

ite appoints governor and deputy governors of bank.
t
reports required; weekly statements voluntarily published in some detail
bankers’ balances from other deposits. Annual reports
examination, but minister of finance can call for any information he
uid no resolution ot the general council can be executed unless under
of the governor, representing the State.
id special taxation totals about two-thirds profits distributed to share-

Direktom “ ' * • 2 “

•* - r a -

WS
yJ l f ten ente-fequV‘ed in some detail, but no separation of bankers’ balances
from other deposits. Annual reports published with statistics.
The oura tori urn, consisting of government officials, meets every 3 months to miner
Empire”?

(Al'cou,,ts “udited

l tW th \\d * total Pro,itH g ° f-0 Government.
A

AhT

^

B<*rd of

Iccomdi of G

e S

Directors appointed by a special joint committee
directors. King names chairman of board.
Weekly principal items belonging to note issue,
detailed statement.
Inspected by a select committee appointed by ev<
committee appointed by Parliament for bank and

Government receives 70 per cent

$5,m m ! ‘! r i 9 K | 5 , 8 2 6 , M 0 Per Cen‘ diVidt" ,d '

In 1908 th“ araou“ ted to

All profits not necessary for assignment to surplus is

> 13°,900,000, and at end of
p

Exempt from paying government taxes on real estafc

Z ^ n ? f i S i h ^ M lr2? 0f I u,: twcntietl? of .1 per cent of “ productive”
n, one lunetli of 1 per cent, of unproductive” circulation
fProdue-

*28S y
°229

’>

*««. 1910, mTrM;

use of ( ledit Airricole equal inc* ono-eiirht.Vi avenure discount rate times




each quarter of $178,500,000.
TTr. t i l

to o -,

iln m n it v o f

*444 O O to
H

P r iliw in n O o v e r n m o n t

B T 1 C S
e

O F

T

H

N a t i o n a l M o n e t a r y C o m m is s io n

E

by

P K I N C I P A L

A. P

ia t t

A

B

A

N

K

S

O

F

T

H

E

L

E

A

D

I

N

G

C

n d r e w '.

[D kcemher, 1911.]
B a n k o f S w ed en (1668).
(1 krone— 0 cents.)
2 .8

B a n k o f S w it z e r la n d (I

B a n k o f It a ly (1893).

(1 franc— .193.)
$

(1 lire—
$.193.)
Paid capital, 180,000,000 lire ($34,740,000). Unpaid $11,580,000. Surplus (ordinary
legal, 1908), $9,264,000 and extraordinary surplus, $1,930,000.
(Each share is 800 lire nominal and 600 paid up.)

December 31, 1908: Paid capital, 25,000,000 francs ($4
Unpaid capital, $4,825,000.

Must equal one-fifth capital.

10 per cent of net profits, not exceeding 500,000 francs a
fund, until the surplus amounts to 30 per cent of pai

9,927, of which 9,703 in Italy and 224 abroad.

10,004 shareholders (1910). 23 cantons hold 38,772 sh
balance, 44,692, owned by 9,948 individuals.

All classes, but some of the large credit establishments hold 3,000 or 4,000 shares each.

| of capital reserved by law to the cantons; } to the
private individuals.

Iders.

None, except in cases of dispute of heritage; the tribunal must consent to the
transfer.

Individual shareholders must be Swiss citizens, firm
in Switzerland. Every transfer must be approved b

ders.

20 shares required for a vote, but one shareholder can have no more than 50 votes.

Each share officially registered entitles holder to one
holder can have more than 100 votes.

ders.

Meet annually and select 4 directors.

30 shareholders, representing 10,000 shares, a quorum, ir
for extraordinary meetings), elect 15 members of ban
sion of 3 members and 3 substitutes, and decide all af

ders.

Shareholders receive 5 per cent dividend on paid-in capital and two-thirds of profits
until 6 per cent and then only one-half of remaining profits, the rest going to the
State.

Limited to 4 per cent dividends; the rest, except for
surplus, goes to the Government.

lual assignments to public treasury, 11.3 per cent of capital.

3.275 per cent.
obligations.

1907-1910, 4 per cent.

ion managed by 7 directors, 6 appointed by legislature, chairman by the
i'rom the board itself 3 members are assigned the management of the
partments. Chairman may not be one of 3 managers.

General manager and submanager elected by superior council, but must be ap­
proved by the Government.

Direktorium— 3 members—elected (on proposal of bank
Local manager and submanager immediately under
by Bundesrat.

or parliamentary term of 3 years, practically longer,

Indefinitely.

6 years.

000,000 kroner ($13,400,000).
350,000.

No reserve liability.

Surplus (Dec. 31,

urplus is under 25 per cent of capital, 10 per cent of yearly profits must
ed to surplus.
'
o stockholders.
ders.

Bank belongs to Parliament.

Administration under the charge of a commission chosen by Par-

General annual mooting held at Rome.

During these years profits were being put aside to liquidate old

•

board may not be one of 3 managers.

Bank organized in 1907.

Bank managers are not allowed to practice any other
board of another banking institution. Gan not be m

The general manager is head of the administration of the bank.

Each has charge of one of the three departments: Disc<
and note issue.

Superior council of 22 members. (General manager, under general manager, and
superior council comprise the directory.)

Bank council, 40 members.

immittee of 24 members of both houses of Parliament appoints 6; King
urman.

18 elected by the shareholders at a meeting held in turn every 3 years at each
head branch and 4 elected annually in Rome by the shareholders.

15 elected by general meeting and 25 by Bundesrat.

ition of each Parliament, 3 years.

Three years.

4 years.

iiness of bank.

Must be Swiss citizens; not more than 5 can be memb
more than 5 members of government of Cantons.

ire of office may not be directors of any other bank, except savings banks,
e members of council of state, or managers of national debt office.
y to supervise bank operations.
t lending business.

Daily attendance of at least 4 is needed

Appoint bank staff upon recommendation of the general manager.

General supervision.

Committee of 3 or 5 syndics elected yearly by stockholders to supervise general Bank committee, 7 members; local committees, 3 to ■
mission, 6 members.
management of bank.

rittee appointed by Parliament.

1 central bank in Rome.

Berne center for administration of note issue; Zurich cei

Bank of Sicily and Bauk of Naples are independent note-issuing banks, and have
their head offices respectively in Palermo and Naples.

8 branches (including Berne and Zurich), all coordinat

11.

None.

69. The bank is obliged to have either head office or branch in capital of each of 69
Provinces, and in cities where branches of late Tuscan Bank were located.

None.

22. Many private banks and credit institutions also act as correspondents for the
collection of bills and payment of obligations.

13 agencies (1910).

Same as central institution.

id office.

•
No subbranches.

Can not discount directly, but receive deposits, collect bills, redeem notes. Re­
cently “ first-class agencies” have authority to discount within certain limits.
By general manager upon proposal of superior council. He is assisted by a local
board of from 8 to 12 councilors or censors, selected every 6 years by assembly
of shareholders.
Agencies can not undertake discounting operations directly. By a recent modifi­
cation of the law “ first-class agencies” may discount within certain limits through
a small discounting committee.

Doard.

eneral and special instructions.

Agencies reimburse notes, discount bills, grant loani
over transfers; act as mediator in all other business.
By Federal Council on proposal of council of the bank

Confederation not allowed to possess any shares of th
reserved to the Cantons.

ued; belongs to legislature.

None held by the Government.

jpointed by a special joint committee of Parliament; other officials by
King names chairman of board.

State does not select any officers, but must approve the election of the general
manager and submanager.

ncipal items belonging to note issue, monthly full balance, annually
tatement.

Annual report.
ment.

»y a select committee appointed by every regular Parliament.
e appointed by Parliament for bank and each branch.

A central bureau of inspection at the ministry of the treasury examines the assets.
A permanent commission of supervision also passes judgment upon mooted
questions.

Special board of inspectors, whose officials are elect
treasuries, books, and securities are periodically ver

lot necessary for assignment to surplus is disposed of by Parliament.

Government receives one-third of profits in excess of 5 per cent or one-half of profits
in excess of 6 per cent. In 1910 this amounted to 3,300,000 lire ($636,900).

The remainder of the net profits, after deduction of 1
C
of a maximum dividend of 4 per cent, is paid over t
$254,29tt paid to the Treasury.

m paying government taxes on real estate, income, etc.

In addition to general income and stamp taxes, one-tenth per cent on productive
circulation, and graded tax on issues in excess of normal maximum, and 7J per
cent on issues beyond the maximum allowed or not covered by 40 per cent cash.

The bank is free from every kind of taxation.


•


Audit

Statement required every 10 days on model furnished by Govern­
,

Federal Council elects the chairman and vice chairn
23 other members of the council of the bank; alsc
members of general management, directors, and sub
Annual report, balance sheet, and accounts must be a
before submission to general meeting. Required a
ment of assets and liabilities.

i .......... ...... ............ .....

.4

O F

T

H

E

L

E

A

D

I

N

G

C O U N T R I E S . —

S

h

e

B a n k o f S w itz e rla n d (1907).

1.

t

B a n k o f B e lg iu m

(1 franc—
*.193.)
Surplus(ordinary

e

(1850).

(1 franc- S 193.)
.

December 31, 1908: Paid capital, 25,000,000 franca ($4,825,000).
Unpaid capital, $4,825,000.

(1«ft8
2«nCoFita1, 50>
000>
000 francs

$ y t)U iO
OO ,£ .

(19,650,000).

No reserve liability.

Surplus,

1. C A P I T A
Amount of capital, re

10 per cent of net profits, not exceeding 500,000 franca a year, is set aside for surplus
fund, until the surplus amounts to 30 per cent of paid-in capital.
10,004 shareholders (1910). 23 cantons hold 38,772 shares, 33 banks 16,536 sharesbalance, 44,692, owned by 9,948 individuals.
’
4,000 shares each.
st consent to the

ore than 50 v o ies.
held at Rome.
o-thirds of profits
; rest going to the
e to liquidate old

but must be ap-

10 per cent of net profits in excess of 4 per cent per annum is set aside to meet
losses in capital and to insure a dividend of 4 per cent on capital.

Legal provisions as to

50,000 shares. 24,221 nominative shares divided among 889 holders and 25 779
shares to bearer (1908).
’

Number of stockhold<

1 of capital reserved by law to the cantons; £ to the old banks of issue and £ to
private individuals.

All classes.

Individual shareholders must be Swiss citizens, firms, or corporations domiciled
in Switzerland. Every transfer must be approved by the bank committee.

No restrictions as to ownership.

Each share officially registered entitles holder to one vote, but no private share­
holder can have more than 100 votes.

10 shares required for a vote, but 1 pereon can have no more than 5 votes either
as a shareholder or a proxy.

Restrictions upon vot:

Shareholders assembly meets twice a year; elects directors and censors. Acts
upon all matters placed before them by the council of administration or censors.

Powers of stockholder:

Shareholders receive 4 per cent of net profits; 25 per cent of remainder goes to
State, 10 per cent to reserve, and the rest to the shareholders.

Restrictions upon prol

Character of stockhoh

Restrictions upon ow:

30 shareholder^ representing 10,000 shares, a quorum , m eet annually (or when called

tor extraordinary meetings), elect 15 members of bank council, the audit commis­
sion ot 3 m em bers and 3 substitutes, and decide all affairs laid before the meeting
Limited to 4 per cent dividends; the rest, except for 10 per cent credited to the
surplus, goes to the Government.
1907-1910, 4 per cent.

Rank organized in 1907.

(1899-1908) 15.01 per cent.

Direktorium— 3 members— elected (on proposal of bank council) by the Bundesrat.
by R1!I(lesratF ^
1
su^ IIlanager immediately under direktorium, also appointed

Average annual divid

Governor and deputy governor appointed by the King, 6 directors elected by

2. O R G A N I Z A
C h ie f o ffic ia ls:
B y whom appoint

6 years.

Governor serves 5 years.

Bank managers are not allowed to practice any other profession or belong to the
board of another banking institution. Can not be members of the Nationalrat.
Each has charge of one of the three departments: Discount and giro, management
and note issue.
’
’

May be reappointed.

For what time.

nnt ^ ? momho- iceiue iin • , must reside in Brussels and can
ho a ’i f e tor8, 25, Hhareai .
---- .u
urusseis ana can
board of any other bank
B
body or draw a State P ™ “ ° “ ” belong to
Each director is intrusted with control of one or more departments of the bank.

From what classes

Functions.

ral manager, and
Bank council, 40 members.
/ 3 years at each
ers.

B o a r d o f directc

General council, 14 members (governor, 6 directors, and 7 censors).

Number.
15 elected by general meeting and 25 by Bundesrat.

By shareholders.

4 years.

By whom selected

6 years; may be reelected.

For what time.

Must be Swiss citizens; not more than 5 can be members of Federal Chamber nor
more than 5 members of government of Cantons.

From what classes

General supervision.
G count committee^etc^08
supervise general Bank committee, 7 members; local committees, 3 to 4 members; also audit com­
mission, 6 members.

8Upervision over

bank, appoints dis-

Council of censors (7), which audits books, etc., chosen by shareholders for 3 years.

Functions.

O th e r co m m itte

3

Berne center for administration of note issue; Zurich center for general management. j 1 head office or central institution (Brussels).
banks, and have

Number of branches in
8 branches (including Berne and Zurich), all coordinate.

1 branch at Antwerp.

None.
•ital of each of 69
ere located.
pendents for the

Number of branches in

1 branch at Autwerp (as above).

None.

t im b e r of head branc

None.

13 agencies (1910).

Number of subbranche

39 agencies and 30 discount offices.

Number of agencies.

Apparently the Bame as at central or head office.
No subbranches.
iem notes, ltecertain limits.

Functions of head bran

No subbranches.

Functions of subbranc

Agencies reimburse notes, discount bills, grant loans against deposits, and take
over transfers; act as mediator in all other business.

They are usually

Functions of agencies

A ™ " m ,7 “ ,p”illted by the K i“* ftom * dmlWe U * l«m u .c d by the adminiatratm

Managers of branches,

Discounts are granted provisionally by agents of the bank.

•ted by a local
by assembly

lh,! V H m

by the bank.

Measure of discretion

By federal Council on proposal of council of the bank.

recent niodilii limits through

of the general

lie■I b
\

overn-

ines the assets,
t upon mooted
le-half of profits
$636,900).
1on productive
1m, and 7J per
1
) per cent cash.

S3i’™!1 ,
.

10
any 8h °f lh° ba"k; but * °f “ Pital are None held by the Government.
ar“
',|iai™ :n .• !?ra enctuman a me Dunk council and I
an
d
---------------------- ------ — --- --------i •>
,
c a sis oi a» bank

4. R E L A T IC

23 nthor m
r.ttiiw.ru
»u
m »inh™ (if .rp.mn.1 t L o council of the bank; also on proposal of the council King appoints governor and deputy governor- besides a Gov
members of general management, directors, and subdirectors of branches.
is appointed by the State.
’
’ a Uov eminent commissioner
imual report, balance Hheet, and accounts must be approved by Federal Council !

u ^ s ! ....^

........... »L ■»

- Bkiy —

A

i

ovcry

* * • " ~

- - «— •

*9W ^
>

S

S

T

S

J

o„ l.illu held fur the Slate; all L ,„ u ,,l,,l to

S

.
i.‘ "Jos

f

t« = « *
’

Selection of officials.

Frequency and charact

Special board <rf inspectors, whose officials are elected by Federal Council: the r ..
...................
treasuries, books, and securities are periodically verified.
’
Government commissioner watches over operations of the bank has ri<rht in
r,.,
. .
, ,
me the books, etc.
’
10 examI he remainder of the net profit*, after deduction of 10 per cent for the surolua and
i>
n
w — r ____ ____________ a
_____________
y

Government ownership

‘ * * pr01"

Methods and mechanisi

Participation in profits

r
Ihe bank is free from every kind of taxation.

it.




ra$e2 674)X t e x ^ Vof1 n e°rf i l!f|nebfl ^ ° 8’ ? 492)’
7n
T
,43>
$53,’ 075, m (iSSst $449,096).
8Ctma,mUally 0n

tax on notes (1908,
of ^ d ilu tion above

Taxation.

C O U N T R I E S . —

•

----

S

h

e

e

1.

t

--------------------------- ... . _____ . .

-

(1907).

•

-

-

--------■
'.........-

B a n k o f B e lg iu m (1850).
(1 Jranc-1.193.)

($4,825,000).

(1908) Capital, 50,000,000 francs ($9,650,000).
$6,860,216.

No reserve liability.

Surplus,

1. C A P I T A I j A N D

STOCKHOLDERS.

Amount of capital, reserve liability, and surplus.
cs a year, is set aside for surplus
paid-in capital.

10 per cent of net profits in excess of 4 per cent per annum is set aside to meet
losses in capital and to insure a dividend of 4 per cent on capital.

Legal provisions as to surplus.

shares, 33 banks 16,536 shares;

50,000 shares. 24,221 nominative shares divided among 889 holders and 25 779
shares to bearer (1908).

Number of stockholders.

All classes.

Character of stockholders.

le old banks of issue, and § to

nne, or corporations domiciled
d by the bank committee.
>ne vote, but no private share-

No restrictions as to ownership.

Restrictions upon ownership and transfer of stocks.

lor 10 per cent credited to the

ink council) by the Bundesrat.
er direktorium, also appointed

Restrictions upon voting power.

Shareholders’ assembly meets twice a year; elects directors and censors. Acts
upon all matters placed before them by the council of administration or censors.

Powers of stockholders.

Shareholders receive 4 per cent of net profits; 25 per cent of remainder goes to
State, 10 per cent to reserve, and the rest to the shareholders.

Restrictions upon profits of stockholders.

(1899-1908) 15.01 per cent.

, meet annually (or when called
>ank council, the audit commis1affairs laid before the meeting.

10 shares required for a vote, but 1 person can have no more than 5 votes either
as a shareholder or a proxy.

Average annual dividends, 1901-1910.

Governor and deputy governor appointed by the King, 6 directors elected by

2. O R G A N I Z A T I O N A N D M A N A G E M E N T .
C h ie f o ffic ia ls:

shareholders.

By whom appointed.
Governor serves 5 years.
icr profession or belong to the
s members of the Nationalrat.
iscount and giro, management,

May be reappoiuted.

For what time.

Governor must own 50 shares, directors 25 shares; must reside in Brussels and can
not be a member of the legislative body or draw a State pension or belong to
board of any other bank.
b

From what classes or occupations, qualifications, etc.

Each director is intrusted with control of one or more departments of the bauk.

Functions.

General council, 14 members (governor, 6 directors, and 7 censors).

B o a rd o f d ire c to rs:
Number.

By shareholders.

By whom selected.

6 years; may be reelected.

For what time.

mbers of Federal Chamber nor
From what classes or occupations, qualifications, etc.
genera‘ 8,' pervisio,1 ° ver » * * » » f boa*. appoint. dw-

Functions.

to 4 members; also audit comCouncil of censors (7), which audits books, etc., chosen by shareholders for 3 years.
center for general management,

O th e r c o m m itte e s.
3. B R A N C H E S .

l head office or central institution (Brussels).

Number of branches in central city.
late.

1 branch at Antwerp.

Number of branches in other cities.

1 branch at Autwerp (as above).

£ lm b e r of head branches.

None.

Number of subbranches.

39 agencies and 30 discount offices.

Number of agencies.

Apparently the same as at central or head office.

Functions of head branches.

No subbranches.

Functions of subbranches.

.ns against deposits, and take
A ^ r i Y ^ apartnera^hips!UC^ ° f ^
ik.

pap6r discounted

the bank.

They are usually

Functions of agencies.

A ™ "“ " C appoi" ,ed b>'th0 K i“8 fr°">» double list furnished by the administrative

Managers of branches, how appointed.

Discounts are granted provisionally by agents of the bank.

Measure of discretion allowed.

lie bank; but if of capital are
None held by the Government.
man of the bank council and
r> on proposal of the council
^directors of branches,
approved by Federal Council
also to publish weekly state(ted bv Federal Council; the
0 per cent for the surplus and




4. R E L A T I O N S T O G O V E R N M E N T .
Government ownership of stock.

King appoints governor and deputy governor; besides, a Government commissioner
is appointed by the State.

Selection of officials.

A statement of condition of the bank and agencies is forwarded every week to the
minister of finance and is published in official newspaper.

1
*requeucy and character of reports required.

Government commissioner watches over operations of the bank, has ri<ffit to examme the book?, etc.

Methods and mechanism for government inspection.

Receives all nrofitn fmm
qj m .... , . ...rai , *
.
™
« discount above 3J per cent, together with 1 of excess of
!‘ >?10 i n ter
i
f
o f.f per ceut divi(len<1 to shareholders, and the profit
on bills held for the State; all amounted to $892,470 in 1908.
r
Pai? "

^ S

T
b/ooS u Sm !

Participation in profits,

volume of business (1908, $43,492), stamp tax on notes (1908,

$449,090). C6,lt 8e,nlannUally on ex™ * of circulation above

Taxation.

Managers of branches, how ap p oin ted .

Selected by governor and directors.

Measure of discretion allowed.

Discretion subject to supervision from head office.
graphed each morning to branches.

4 . R E L A T IO N S

TO G O VER NM ENT.

Current London rates tele­

Subject to parent institution as regards
managers are assisted, by local board.

None held by Government.

None held by Government.

Government has no choice.

Chief of state appoints governor and depu

Weeklvstatements required in form prescribed by act of 1841, but no separation of
loans, discounts, and securities, and no distinction between bankers’ balances
^
deposits. No annual reports published.

Quarterly reports required; weekly state
but with no separation of bankers’ balai
published with statistics.
No regular examination, but minister of
desires, and no resolution of the gener:
the hand of the governor, representing

Government ownership of stock.................................. - ...........
Selection of officials.
T
,

J ............. ............ ,Q
..............
character of reports required......................................
,

Frequency and

Methods and mechanism for government inspection.................................. j No Government inspection.

Taxation.

In 1910, £186,731 ($908,726) for net profits on note issue in excess of £14,000 000.

General and special taxation totals abou
holders.

Subject to same local and general taxes as other banks, and to an annual payment of
£60,000 ($291,690) in consideration of exception of bank notes from stamp duty.

Participation in protits..........................................................................

Pays general taxes, and special tax of on
circulation, one-fiftieth of 1 per cent, o
tive means covered by loans and dii
special taxes, $289,229.
Royalty for use of Credit Agricole equali
“ productive” circulation. Amounted

Other payments required by Government.

Permanent loans to Government...................................................

Other loans to Government and their limits..................................
Custody of Government funds, with interest paid........................

$53,604,984 (£11,015,100).

$54,040,000—$34,740,000 without interest
and $19,300,000 fixed government debt,

About $115,000,000 additional of government securities, including treasury bills,
held by bank in August, 1908.

Disposable government bonds, $19,228,S0(

Bank is practically the sole depositary wherever it has branches.

Bank is sole depositary.

No interest paid.

No interest paid

Further services rendered to Government and payments for same.

Manages and pays dividends on public debt, for which services during year ending
March, 1910, bank received £195,242 ($948,876.12), makestemporary advances, acts
as agent for the mint. (Receives also £200 annually on every million pounds in
securities in issue department.)

, .
....
Iranslers funds, issues treasury bills, pays

Duration of charter.

The charter of 1694 is perpetual, but subject to modification or repeal by Parliament.

Charter expires in 1920, terminable in 191

The bank statements do not distinguish between loans, discounts, and non-govern­
ment securities. These aggregated, December 30, 1908, $219,413,121. Average
amount, 1908, $144,165,196.

Average, $188,618,900.

About $5,000.

(1910) $119.60.
each.

5. D I S C O U N T S , L O A N S , E T C .
D is c o u n t s :
Average amount, 1910.
Average and minimum size.

No minimum.

Minimum, $1 (5 fr.); 55

A verage duration...............

40 to 50 days.

1906, 24 days; 1907, 26 days; 1908, 25 da
age for 10 years, 24 days.

Maximum duration allowed.

Maximum 4 months, exceptionally 6.

3 months, w >th possible renewal.

For what classes in community.

Any person, firm, or company having an account (including in reality colonial and
foreign exchange banks).

All classes, but about 70 per cent come tli:

Number of signatures required.

2 British names, of which one must be acceptor.

3 names, of which two must be of residents

Other security accepted .............................................................
L o a n s o n c o lla t e r a l:
Average amount, 1910.........................................................................

Loan collateral acceptable in place of third
Not published separate from discounts and non-goverument securities.

Average for 1910, $106,227,200 on gold coin,

Average and minimum size.................................................................

$500 to millions.

Many small.

Average duration.................................................................................

7 to 90 days.

Mostly for a short period, not less than 2 we

Maximum duration allowed.................................................................

3 months, subject to possible renewal.

3 months with possible renewal.

For what classes in community...........................................................

Any person, firm, or company having a properly constituted account.

All classes.

Kinds of collateral accepted................................................................

Stock-exchange securities, except mining shares, or exceptionally other securities
of ascertainable value.

List published. Principally bonds issued o
cities, and colonies, gold, bullion, and for

Proportion of loan to collateral............................................................

Varies according to class of security.

Margin varies according to collateral from 2(

Not allowed except under very exceptional circumstances.

Not allowed.

Have only been granted very exceptionally.

Not allowed.

S e c u r itie s h e ld :
What kinds allowed............................................................................

Scarcely any restrictions. In reality the “ other securities” are supposed to include
railway debentures, bonds of colonial governments, and some corporation stocks.

Only government securities.

Average amount, 1910.........................................................................

Government securities in banking department, average 1910, $74,266,000. “ Other
securities,” $146,577,600, include loans and discounts. Other securities in issue
department, 1910. about $36,133,000

December 24, 1910.

O v e rd ra fts

__________ ___ _______ _____- .................................

L o a n s o n real e sta te

18507— 11




........................ ..........................................

Minimum size 250 francs ($lf

Disposable governmen

l>y cmm ***

—

-

--------- ,

— ---

----------------- -------------------- --------------

|
tele-

vv**“ *** ------- -

president.

of

None held by Government.

Chief of state appoints governor and deputy governors of bank.
on

Head branches act under supervision of the Direktorium, subbranches under that
of the respective head branches.

None held by Government.

uncos

Subject to parent institution as regards rate of discount and important matters;
managers are assisted, by local board.

Emperor appoints president and members of Direktorium, also 9 members of curatorium, of which Bundesrat selects other 3.

Quarterly reports required; weekly statements voluntarily published in some detail
but with no separation of bankers’ balances from other deposits. Annual reports
published with statistics.
No regular examination, but minister of finance can call for any information he
desires, and no resolution of the general council can be executed unless under
the hand of the governor, representing the State.

Subject to general and special ins

No stock issued; belongs to legisla

Weekly statements required in some detail, but no separation of bankers’ balances
from other deposits. Annual reports published with statistics.

Directors appointed by a special
directors. King names cnairms
Weekly principal items belongin
detailed statement.

The euratorium, consisting of government officials, meets every 3 months to super­
vise conduct of the bank. (Accounts audited by Board of Accounts of German
Empire.)
About two-thirds total profits go to Government. Government receives 70 per cent
of profits after payment of 3* per cent dividend. In 1908 this amounted to
$5,489,000, in 1910 to $3,826,500.

All profits not necessary for assign

Exempt from paying government

Inspected by a select committee
committee appointed by Parliar

00.

General and special taxation totals about two-tliirds profits distributed to share­
holders.

R Of
llL
luty.

Pays general taxes, and special tax of one-twentieth of 1 per cent of “ productive”
circulation, one-fiftieth of 1 per cent of “ unproductive” circulation. (Produc­
tive means covered by loans and discounts.) General taxes, 1910, $398,758;
special taxes, $289,229.

Exempted from Government income tax and license fees, but pays real estate tax
and 5 per cent tax on all uncovered notes in excess of $130,900,000, and at end of
each quarter of $178,500,000.

Royalty for use of Credit Agricole equaling one-eighth average discount rate times
“ productive” circulation. Amounted to $1,419,901 in 1907.

Until 1925 an indemnity of $444,000 to Prussian Government.

$54,040,000—$34,740,000 without interest, including $7,720,000 for Credit Agricole,
and $19,300,000 fixed government debt, law of June 9, 1857.

None.

Disposable government bonds, $19,228,800.

Treasury bills amounting to $30,500,000 held December 31, 1910.

paid.

Bank is sole depositary.

Ba,nk is sole depositary for funds of the Empire, but not for Federal States.
interest paid.

id in','
i, acis
ids in

Transfers funds, issues treasury bills, pays coupons gratuitously for Government.

Transfers funds, discounts treasury bills, pays coupons.

nent,

Charter expires in 1920, terminable in 1911; lust renewed in 1897.

Charter runs for 10 years, but terminable at one year’s notice before expiration.
Renewed in 1909 for 10 years, to 1920.

Indefinite (i. e., non terminable).

vernerage

Average, $188,618,900.

Average 1910, local bills, $114,480,000; remitted bills, $88,805,000; foreign bills,
$33,488,000. Total, $236,773,000.
’

Inland bills, $31,748,000; all bills,

bills,

No interest paid.

None.

(See preceding.)

None.
The administration of the national
balance of 6,500,000 kroner ($401
No
No interest paid.

Makes all government payments ai

—

(1910) $119.00.
each.

Minimum, $1 (5 fr.); 55 per cent of discounts less than 180 francs

1906, 24 days; 1907, 26 days; 1908, 25 days; 1909, 22 days; 1910, 24 days.
age for 10 years, 24 days.

No minimum.

Aver­

Average size, $465 in 1908; $524 in 1910.

1906, 34 days; 1907, 33 days; 1908, 34 days; 1909, 32 days; 1910, 31 days.

$573.

About 50 days.

(Inland bills.)

3 months, \» ith possible renewal.

3 months— in case of farmers, once renewable.

All classes, but about 70 per cent come through banks.

All classes, but about 60 per cent of discounted bills come through bankers. Of
66,700 customers, 2,400 banks, 24,000 merchants, 21,200 manufacturers, 9,900
farmers, 9,200 miscellaneous.

3 names, of which tw o must be of residents of France.

2 names.

Loan collateral acceptable in place of third signature.

Loan collateral not acceptable in place of second signature.

No regulation on this point.

Average for 1910, $106,227,200 on gold coin, gold bars, and securities.

Average, $23,439,000.

$5,337,000, together with $1,751,06
banks.

Many small.

Average 1910, $7,839.
individuals.

L and

.

----------—

------------------------

6 months.

All classes, provided bills represent

Must be accepted (i. e., 2 signaturei

. . ____________ _____ ___

Minimum size 250 francs ($48.25).

Mostly for a short period, not less than 2 weeks.

Minimum $120 for bankers and merchants and $24 for

$10,713.

10 days (1910).

About 45 days.

3 months, with possible renewal.

6 months’ certain or in some cases 3

All classes.

All classes, especially banks and bankers.

All classes.

List published. Principally bonds issued or guaranteed by National Government,
cities, and colonies, gold, bullion, and foreign gold coins.

Securities, guaranteed by governments, mortgage bonds, discountable bills, mer­
chandise, gold, and silver.

Bonds, shares, or other documentary

Margin varies according to collateral from 20 per cent to 40 per cent.

Margin varies according to collateral—50 and 25 per cent in case of bonds, 5 per cent
in case of discountable bills and gold, at most | in case of merchandise and foreign
securities.

As directors determine.

3 months with possible renewal.

•itios

.

-------------------------- ----------------------------------------------------------------------------------------------------------

Not allowed.
1

Not allowed.

Not allowed.

Not allowed.

Open credits, on security, aregrante
actually drawn, plus a commissior
Average amount, 1910, $993,000, or i

_____________________________________________________ _____ ________________________________________________________ ___

lude
:ks.

Only government securities.

No securities purchased for investment, but government and municipal bonds bought
for sale to customers, also treasury bills having an average of 30 days to run.

December 24, 1910.

Average (1910), $27,842,000.

Foreign government bonds, of readil
and bonds of the general mortgage

tiler

ssuc

Disposable government securities amounted to $19,228,800.




Dec. 31, 1910, bonds held, $3,476,00(

•4

of shareholders.
Agencies can not undertake discounting operations directly. By a recent modifi­
cation of the law “ first-class agencies” may discount within certain limits through
a small discounting committee.

' v ------ -----------" " "

subject to general and special instructions.
s

1

.
stock issued; belongs to legislature.

cura-

directors appointed by a special joint committee of Parliament; other officials by
directors. King names chairman of board.

antes

Weekly principal items belonging to note issue, monthly full balance, annually
detailed statement.

mpereruian

Inspected by a select committee appointed by every regular Parliament.
committee appointed by Parliament for bank and each branch.

Confederation not allowed to posf
reserved to the Cantons.

1 None held by the Government.

Audit

State does not select any officers, but must approve the election of the general
manager and submanager.
Annual report.
ment.

Statement required every 10 days on model furnished by Govern­
*

A central bureau of inspection at the ministry of the treasury examines the assets.
A permanent commission of supervision also passes judgment upon mooted
questions.

federal Council elects the chain
23 other members of the couru
members of general managemen
Annual report, balance sheet, anc
before submission to general in
ment of assets and liabilities.
Special board of inspectors, who
treasuries, books, and securities

Government receives one-third of profits in excess of 5 per cent or one-half of profits
in excess of 6 per cent. In 1910 this amounted to 3,300,000 lire ($636,900).

1he remainder of the net profits,
of a maximum dividend of 4 pe
$254,290 paid to the Treasury.

In addition to general income and stamp taxes, one-tenth per cent on productive
circulation, and graded tax on issues in excess of normal maximum, and 7£ per
cent on issues beyond the maximum allowed or not covered by 40 per cent cash.

The bank is free from every kind

Bank contributed $0,000,000 to Italian Credit Foncier, which is uow in liquidation.
Bank obliged to pay expense of Government supervision, $14,000 annually.

None.

None.

None.

The administration of the national debt office is granted by the bank on uncovered
balance of 6,500,000 kroner ($402,000).

Bank of Italy obliged to lend Government up to $22,195,000, in case of need, at
1$ per cent.

None.

Bank is sole depositary.
$7,720,000.
‘

Government deposits bear interef

No interest paid.

Makes all government payments and collections free of charge.

Helps in issue of loans.

r cent
ted to

All profits not necessary for assignment to surplus is disposed of by Parliament.

te tax
end of

Exempt from paying government taxes on real estate, income, etc.

None.

( See preceding.)

None.

6.

No

ration.

Indefinite (i. e., non terminable).

30 years.

Pays interest of 1$ per cent on deposits in excess of

Conducts the business of the treasury gratuitously.

Receives for custody, free of cha
oration, and handles payments
and board of alcohols.
20 years; expires 1927.

Expires 1923.

Inland bills, $31,748,000; all bills, $33,781,000.

$84,881,400.

Average 1907, $10,769,400; 1908,

Average in 1907, $269.72. 14 per cent were for amounts below $20 and about
70 per cent for amounts between $20 and $200.

1907, $1,403; 1908, $1,201; 1909,

$573.

59 days (1907).

1907, 28 days; 1908, 18 days; 190

6 months.

4 months.

90 days.

All classes, provided bills represent real business transactions.

Banks, credit societies, and all kinds of institutions, and at the agencies, industrial
people, agricultural landowners, and small tradespeople.

All classes, including agricultu
transactions.

At least 2.

2.

Must be accepted (i. e., 2 signatures at least).

1 bills,

Treasury bills, public warehouse warrants, or loan collateral.

None.

About 50 days.

ire. Of
i, 9,900

(Inland bills.)

No regulation on this point.
$5,337,000, together with $1,751,000 of special advances to former note-issuing
banks.
$24 for

Loans on collateral, $3,606,451, at

$18,837,765.

Average size, 1907, $32,424; 1908,
$10,713.
1907, 15 days; 1908, 11 days; 190
About 45 days.
6 months’ certain or in some cases 3 months’ notice.

All classes.
1 s, inor1

Bonds, shares, or other documentary security, including warrants.

per ten 1
[1 foreign

As directors determine.

4 months on government securities and 6 months on silk, etc.
extendable to 2 years.

On treasury billo

All classes.
Securities guaranteed by governments, silk, warehouse warrants, and pledges to
deliver commodities on a certain date.

90 days.

Mostly banks.
quoted in Switzerland; bonds,
bars, coin, drafts.
On Federal loans, 90 per cent; on
75 per cent; foreign securities,

Open credits, on security, are granted at the 3 months’ discount rate on the amount
actually drawn, plus a commission generally of one-half of 1 per cent per annum.

Not allowed.

Not allowed.

Average amount, 1910, $993,000, or about 19 per cent of the loans.
1 1 iLi1
:
'
tun.

From 50 to 100 per cent (the latter on treasury bills only).

Not allowed

Foreign government bonds, of readily realizable kinds, Swedish government bonds,
and bonds of the general mortgage bank and other Swedish enterprises, provided
the bonds are quoted on foreign exchanges.

State securities and securities guaranteed by the Stale, including Italian rente, not
exceeding $15,000,000.

Interest-bearing bonds of the C
<
temporary investment only; p

Dec. 31, 1910, bonds held, $3,476,000.

December 31, 1910, $32,642,283.

Average, 1910, $2,441,000.


•


Title deeds accepted as collatera

-

-

-

-

-

*

*

council.

erations directly. By a recent modifir discount within certain limits through

Discounts are granted provisionally by agents of the bank.
Confederation not allowed to possess any shares of the bank; but $ of capital are
reserved to the Cantons.

t approve the election of the general

0 days on model furnished by Governry of the treasury examines the assets,
t also passes judgment upon mooted

Federal Council elects the chairman and vice chairman of the bank council and
23 other members of the council of the bank; also on proposal of the council
members of general management, directors, and subdirectors of branches.
Annual report, balance sheet, and accounts must be approved by Federal Council
before submission to general meeting. Required also to publish weekly state­
ment of assets and liabilities.

None held by the Government.

K“ e p ^ S
a

depuly B0VCr,10ri

a Government commissioner

A statement of condition of the bank and agencies is forwarded every week to the
minister of finance and is published in official newspaper.

Special board of inspectors, whose ollicials are elected by Federal Council; the
treasuries, books, and securities are periodically verified.

Government commissioner watches over operations of the bank, has rmht to exam­
ine the books, etc.
°

sxcess of 5 per cent or one-half of profits
unted to 3,300,000 lire ($630,900).

The remainder of the net profits, after deduction of 10 per cent for the surplus and
of a maximum dividend of 4 per cent, is paid over to the Federal Treasury; 1910, Receives all profits from a discount above 3£ per cent, together with 4 of excess of
$254,290 paid to the Treasury.
I1 ? ll° u a er Puy a\ei. t o f,f per cent dividend to shareholders, and the profit
fv
|
l
on bills held for the State; all amounted to $892 470 in 1908
*

ixes, one-tenth per cent on productive
xcess of normal maximum, and 7J per
red or not covered by 40 per cent cash.

The bank is free from every kind of taxation.

t Foncier, which is now in liquidation,
lent supervision, $14,000 annually.

None.

A payment of $44,390 toward expenses of treasury administration in the Provinces.

None.

None.

None.

None.

Government deposits bear interest.

Government deposits bear no interest. Treasury funds in excess of requirements
of service are invested in commercial securities.

Receives for custody, free of charge, securities and valuables belonging to Confed­
eration, and handles payments for the Federal Treasury, post office, the customs,
and board of alcohols.

Acts as registrar and transfer officer of the national debt; as custodian of bonds
given by public officers and of various special funds, including those of the sav­
ings bank. Government’s deposits above 5,000,000 francs must be invested and
profit credited to State.

20 years; expires 1927.

Charter extended in 1900; expires January 1, 1929.

Average 1907, $10,769,400; 1908, $12,159,000; 1909, $17,007,000; 1910, $21,899,000.

Discounts December 31, 1908, $95,237,450.

1907, $1,403; 1908, $1,201; 1909, $1,268; 1910, $1,221.

Average size accepted paper $421 and nonaccepted paper $62.

up to $22,195,000, in case of need, at

P * g ® * S * ° n gross volume of business (1908, $43,492), stamp tax on notes (1908,
153: 07S,'o m ) 1908^ $446,ti96),Cent

«f circulation above

i!
1J per cent on deposits in excess of

ness of the treasury gratuitously.

ere for amounts below $20 and about
S
200.

,

1907, 28 days; 1908, 18 days; 1909, 29 days; 1910 26 days.
90 days.

ir loan collateral.

100 days.

All classes, including agricultural business, provided bills represent business
transactions.

Merchants, manufacturers, and, under certain conditions, farmers.

2.

tutions, and at the agencies, industrial
l tradespeople.

Average for accepted paper 46 days and for nonaccepted paper 43 days.

3; but commercial bills with 2 signatures may be admitted under certain conditions
approved by minister of finance.

None.

Warehouse receipts, merchandise, or public funds may be pledged in lieu of one
signature.

Loans on collateral, $3,606,451, as shown by the balance sheet December 31, 1910.

i

Loans on public securities, outstanding December 31, 1908, amounted to $9,923,890.

Average size, 1907, $32,424; 1908, $20,458.

1907, 15 days; 1908, 11 days; 1909, 13 days; 1910, 15 days.

iry bills only).

p the State, including Italian rente, not




"
4 months and 1 extension allowed.
Loans on securities to other than merchants are required to be registered at the cost
of the borrower at rate of ^ of 1 per cent of the amount of the loan.

Swiss federal, cantonal, and communal loans as far as quoted ; loans of foreign States
quoted in Switzerland; bonds of first-class Swiss banks, if quoted, etc.; gold in
bars, coin, drafts.

National bonds, treasury bonds, and other securities guaranteed by the State.

On Federal loans, 90 per cent; on cantonal loans, 80 per cent; other Swiss securities,
75 per cent; foreign securities, 70 per cent.

Securities accepted as collateral for not more than £ of their current market value.
Current accounts of those who overdraw are canceled by resolution of the council
of administration.

o

Title deeds accepted as collateral for loans.

p warehouse warrants, and pledges to,
,

90 days.

Not allowed.

On treasury bills

10 days to 4 months.

Mostly banks.

fionths on silk, etc.

Not stated.

Not allowed.

I

Interest-bearing bonds of the Confederation, the Cantons, or foreign countries for
temporary investment only; precious metal in bars and coin.

National public securities and others guaranteed by the State.

s

Average, 1910, $2,441,000.

December 31, 1908, Government securities, $9,633,291.
1

'

|

j

"council.

"

Discounts are granted provisionally by agents of the bank.
r shares of the bank; but g of capital are

Measure of discretion allowed.

None held by the Government.

4. R E L A T I O N S T O
Government ownership of stock.

GOVERNM ENT.

1 vice chairman of the bank council and
le bank; also on proposal of the council
tors, and subdirectors of branches,
ms muit Be approved by Federal Council
Required also to publish weekly state­
____ ____ _________________________ _____

King appoints governor and deputy governor; besides, a Government commissioner
is appointed by the State.

Selection of officials.

A statement of condition of the bank and agencies is forwarded every week to the
minister of finance and is published in official newspaper.

Frequency and character of reports required.

ials are elected by Federal Council; the
iodically verified.

Government commissioner watches over operations of the bank, has right to exam­
ine the books, etc.

Methods and mechanism for government inspection.

iduction of 10 per cent for the surplus and
Receives all profits from a discount above 3£ per cent, together with } of excess of
is paid over to the Federal Treasury; 1910,
net profits after payment of 4 per cent dividend to shareholders, and the profit
on bills held for the State; all amounted to $892,470 in 1908.

Participation in profits.

Other payments required by Government.
Permanent loans to Government.

None.

Other loans to Government and their limits.

Government deposits bear no interest. Treasury funds in excess of requirements
of service are invested in commercial securities.

Custody of government funds, with interest paid.

Acts as registrar and transfer officer of the national debt; as custodian of bonds
given by public officers and of various special funds, including those of the sav­
ings bank. Government’s deposits above 5,000,000 francs must be invested and
profit credited to State.

Further services rendered to Government and payments for same.

Charter extended in 1900; expires January 1, 1929.

1,000; 1909, $17,007,000; 1910, $21,899,000.

Taxation.

None.

urities and valuables belonging to ConfedFederal Treasury, post office, the customs,

Patent tax on gross volume of business (1908, $43,492), stamp tax on notes (1908,
$72,674), tax of i of 1 per cent semiannually on excess of circulation above
$53,075,000 (1908, $449,096).
A payment of $44,390 toward expenses of treasury administration in the Provinces.

lion.

Duration of charter.

Discounts December 31, 1908, $95,237,450.

5. D I S C O U N T S , L O A N S , E T C .
D is c o u n t s :
Average amount, 1910.

1910, $1,221.

Average duration.
Maximum duration allowed.

Merchants, manufacturers, and, under certain conditions, farmers.

For what classes in community.

Number of signatures required.

Warehouse receipts, merchandise, or public funds may be pledged in lieu of one
signature.
n by the balance sheet December 31, 1910.

Average for accepted paper 46 days and for nonaccepted paper 43 days.

3; but commercial bills with 2 signatures may be admitted under certain conditions
approved by minister of finance.

isiness, provided bills represent business

Average and minimum size.

100 days.

ays; 1910, 26 days.

Average size accepted paper $421 and nonaccepted paper $62.

Other security accepted.

Loans on public securities, outstanding December 31, 1908, amounted to $9,923,890.

L o a n s on c o lla te ra l:
Average amount, 1910.

68.

Not stated.

Average and minimum size.

ays; 1910, 15 days.

10 days to 4 months.

Average duration.

I
----------- -4 months and 1 extension allowed.

--------Maximum duration allowed.

Loans on securities to other than merchants are required to be registered at the cost
of the borrower at rate of ^ of 1 per cent of the amount of the loan.
oans as far as quoted; loans of foreign States
;-class Swiss banks, if quoted, etc.; gold in
ial loans, 80 per cent; other Swiss securities,
cent.

For what classes in community.

National bonds, treasury bonds, and other securities guaranteed by the State.

Kinds of collateral accepted.

Securities accepted as collateral for not more than \ of their current market value.

Proportion of loan to collateral.

Current accounts of those who overdraw are canceled by resolution of the council
of administration.

O v e rd ra fts.

M IS .

Not allowed.

L o a n s on real estate.

■ation, the Cantons, or foreign countries for
metal in bars and coin.

National public securities and others guaranteed by the State.


http://fraser.stlouisfed.org/
•
Federal Reserve Bank of St. Louis

December 31, 1908, Government securities, $9,633,291.

S ec u ritie s h e ld :
What kinds allowed.
Average amount, 1910.

.

T

A

B

U

L

A

R

S

U

M

M

A

R

Y

1 , 1

B a n k o f E n g la n d (1694).

-------- —-------- 1

B a n k o f F ra n c e

(£-•4.8686.)
6 . R A T E S F O R D IS C O U N T S

O F

(1 frano=*.193.)

AND LOANS.
3.61 per cent.

R a te o f d is c o u n t:

2.95 per cent.

Maximum (1907), 7 percent.
Minimum (1905-1909), 2$ per cent.

3 to 4 per cent.

Average rate, 1901-1910................
Maximum and minimum rates, 1901-1910.......................................

Average number of changes per year................................................. - 48 changes in 10 years; not more than 7 nor less than 2 changes in any one year.

4 changes in 10 years.

By whom official rate determined..................................................... . By governor and directors.

By the governor and general council.

How far actual rate conforms............................................................. . Depends on circumstances.

Uniform at bank and branches, but open discou
bank rate.

R a te fo r lo a n s :
Average rate, 1901-1910..............................................
Maximum and minimum rates, 1901-1910........

Not stated (but somewhat higher than discount rate).

3.57 per cent.

Average, 1910, 3.50 per cent.

Maximum (1901-1910), 4$ per cent.
Minimum (1901-1910), 3$ per cent.

. Not stated.

By whom determined..................................

By governors.

Relation to discount rate................................

Depends on circumstances.
above bank rate.)

By governor and board of central institution.
(Advances on securities usually one-half of 1 per cent

Variations according to collateral..........

Generally higher— $ to 1 per cent above discount
Same rate for all.

7. N O T E I S S U E .
Minimum denomination and legal tender power

£5 ($24.33).

Maximum, minimum, and average amount, 1901-1910

\*
50 francs ($10).

Legal tender in England and Wales only.

Maximum (1910), $292,746,960.1
Minimum (1903), $217, 922,400. [issue Department.
Average, $253,862,100.
J

Legal tender since Aug. 12, 1870.

Maximum (1910), $1,067,397,000.
Minimum (1901), $749,741,900.
Average $885,291,000.

Average amount, 1910.........

$1,003,168,100.

Maximum, minimum, and average annual fluctuation, 1901-1910

Maximum (1910), $57,386,880.
Minimum (1902), $42,354,900.
Average, $48,804,120.

Average percentage fluctuation to issue. 1901-1910

About 18$ per cent.

10.84 per cent.

No limit if covered by gold coin and gold bullion.

6,800,000,000 francs ($1,312,400,000) beginning ,
($1,119,400,000) since Feb. 1906; was 5,000,00
1897 to 1906.
Actual note issue Oct. 12, 1911, $1,051,226,300.

$89,786,925 (£18,450,000).

No special cover required.

$89,786,925 covered by government debt and securities; balance covered by gold
and silver, of which only one-fourth may be silver. (No silver actually held in
Issue Department since July 1, 1861.)

No special cover required.

$291,990 (£60,000) for exemption from stamp duty, and net profit on all notes in
excess of $68,131,000 issued against securities about $907,512 (£186,731).

One-twentieth of 1 per cent on amount equal to 1
issue), one-fiftieth of 1 per cent on remaining issu
average discount rate on productive issue. (Amc

18 in England and Wales at close of 1910.

None.

Maximum issue allowed____

Maximum uncovered issue allowed

Requirements as to covering of note issue

Nature and amount (1910) of taxes upon note issue

Number of other banks of issue.

Average amount other bank issues, 1901-1910

Percentage of other bank issues to central bank issue. 1901-1910

8. D E P O S IT S A N D T R A N S F E R S .
G overnm ent d ep o sits:

....

'

(Notes not legal tender.)

Average notes of other banks in England and Wales, £609,500 ($2,952,170).

None.

Percentage average circulation other banks of issue in England and Wales to circu­
lation Hank of England, to-day 0.6 per cent.

None.

$49,698,360.

$35,898,000.

Average amount, 1901-1910. .
Average amount, 1910. ..

$63,459,080.

Maximum, minimum, and average annual fluctuation, 1901-1910___

Maximum (1910), $104,616,360.
Minimum (1901), $40,450,000.
Average, $63,214,020.

Interest paid on government deposits

$25,456,700.

“

~

-

'Jo interest paid.

Approximate percentage government to other deposits

Maximum fluctuation (1910), $117,363,300.
Minimum fluctuation (1904), $80,017,800.
Average fluctuation, $95,926,800.

----------------

Maximum (1901), $160,711,100.
Minimum (1908), $35,280,400.

\o interest paid.
T

1 per cent.
1

1 per cent.
4

>th er d e p o s its :
Average amount, 1901-1910

3206,331,300.

Average amount, 1910..

1
202,997,340.

Maximum, minimum, and average annual fluctuation, 1901-1910

---------------------- — _____________




laximum (1903), $106,634,000.
I Iinimum (1901), $15,547,920.
iverage, $70,650,300.
*

£105,835,400.
,

---------- -------------------------------- -j

£118,328,300.
Maximum (1909), $257,230,400.
dinimuin (1907), $47,323,600.
Ivercuro. *1 OS.200 400

1

S

U

M

M

A

R

Y

O F

T

H

E

L A W S ,

P R A C T I C E S ,

A R T )

S T A T I S T I C
P r epared for th e N ational

B a n k o f F ra n c e (1800).

B

R eich sbank (1876).

(1 f r a n o = |.1 9 3 .)

($ 1 = 4 .2 0 m a rk s .)

2.95 per cent.
4.4 per cent.
5.03 per cent (1902-1910 di
3 to 4 per cent.

Maximum, 7 per cent Dec.
1902, to Oct. 14, 1904, Fe
to Oct. 21, 1910.

38 changes in 10 years.

me year.

Maximum (1907-8),
per cent.
Minimum (1902-1905), 3 per cent.

21 changes in the 10 years,
and 1909, three each).

4 changes in 10 years.
Not more than 7 or less than 1 in any one year.

By the governor and general council.
By president and Direktorium.

By board of directors.
U bankm tt bank “ d
raa e

but °P en discount rate in Paris sometimes under
lJ
per cenf lower™16 ^

3.57 per cent.

everybody»” but in Berlin open rate is generally about

Other banks quote same or i

Average, 1910, 3.50 per cent.
5.4 per cent.
Varies with nature of collate

Maximum (1901-1910), 4* per cent.
Minimum (1901-1910), 3* per cent.

Maximum (1907-8), 8* per cent.
Minimum (1902-1905), 4 per cent.

Maximum, 8 per cent; mini

By governor and board of central institution.
By president and Direktorium.
1 per cent

By board of directors.

Generally higher— $ to 1 per cent above discount rates.
Usually 1 per cent higher than discount rate.

Varies from discount rate to

Same rate for all.
Only in case of gold being pledged the rate is equal to discount rate.
50 francs ($10).

Legal tender since Aug. 12, 1870.

20 marks ($5)
(20, 50, 100, 1,000 marks.)
Reichsbank have legal-tender power.

Maximum (1910), $1,067,397,000
Minimum (1901), $749,741,900.
Average $885,291,000.

Real estate shares and warran
of bonds at discount rate, o

Since January 1, 1910 notes of the
Lowest denomination, 5 kron

Maximum (1910), $493,515,714.
Minimum (1901), $248,768,333.
Average, $330,129,286.

$1,003,168,100.

Maximum (1910), $57,422,000
Minimum (1901), $14,255,000
Average, $40,471,000.

$382,353,000.
$49,137,000.

Maximum fluctuation (1910), $117,363,300.
Minimum fluctuation (1904), $80,017,800.
Average fluctuation, $95,926,800.

Maximum (1909), $175,900,000.
Minimum (1901), $100,229,000.
Average, $132,809,000.

Maximum (1902), $15,481,000
Minimum (1908), $9,921,000.
Average, $12,288,000.

10.84 per cent.
About 40 per cent.
6’8
f$l’ m ’4nn nnrvf^ ($1,3I 2{40d’dd0) beginning Jan., 1912; 5,800,000,000 francs
1897 to 1906°°°
Feb' 1906’ Wa® 5>
000-000-000 francs ($965,000,000) from
Actual note issue Oct. 12, 19 11, $1,051,226,300.

Tl
^

No special cover required.

^ e s ^ h a T l f e e n ^to w erf0^
|

by gold
’ held in

----------------- — -------- ----..
.
.
10168 * 6 sPecde’
bullion, and government notes held by bank.

($178,500,000).

’?00

/$],30’900>°°°) of untaxed uncovered

A l l ° a e M i u t r m t t b e A ! e S V S C 750’000-°00 marks
T

No limit when covered with g

100,000,000 kroner ($26,810,000,
40,000,000 kroner ($10,724,000
and government bonds.

No special cover required.

0^ t t a o S e S t ^ 1
1!S S ^ : gOTOT,m“ ‘
notes in

30.4 per cent.

^^ssuef^m fiftfeth nfF C nt on amount W al to loans and discounts (productive
i ^

t o t i d by b l , o 3
w-hrB
il f

5 l)er rent on issue in excess of 550,000 000 marks ($130 900 non)

■

40,000,000 kroner ($10,700,000)
least 30 per cent of all issues

T
None since 1903. Between 190
the Bank of Sweden.

None.
4.
None since 1903.

None.
Average, $34,640,000.
' circu-

1901, $21,283,000; 1904, $800,0 <
0

None.
10.5 per cent.

1901, 114.2 per cent; 1906, none
$35,898,000.
$51,009,000.
$9,172,000 (1909).
$25,456,700
$55,969,000.
Maximum (1901), $160,711,100.
Minimum (1908), $35,280,400
Average, $58,143,200.

Maximum (1909), $126,737,000
Minimum (1906), $29,255,000.
Average, $60,304,000.

No interest paid.

$10,473,000 (1910).

Annual fluctuations, (1909) $9,2<

No interest paid.
No interest paid.

34 per cent.
55.2 per cent.

Average 1910, 90.4 per cent of al

$105,835,400.
$92,377,000.

1909, $1,313,000.

$118,328,300.
$98,484,000.
Maximum (1909), $257,230,400.
Minimum (1907), $47,323,600
Average, $105,200,400.




Maximum (1910), $54,368,000.
Minimum (1904), $28,908,000

Average, $40,549,000.

1910, $1,108,000.
( 1909) $ 764, 000. 0 9 1 0 ) * 271.000

)

S T A T I S T I C S
P

repared

for

the

O F

T

H

N a t i o n a l M o n e t a r y C o m m is s io n

E
by

P R I N C I P A L
A.

P

ia t t

A

ndrew

B

A

N

K

S

O F

T

H

E

L E A I

.

[December, io n .]
B a n k o f Sw eden (1 6 6 8 ).
(1 krone-26.8cents.)
*

B a n k o f It a ly (1893).

Bank

(1 lire-*.1 3
9 .)
Official rate, 5 per cent (except November and December, 1907, 1908, and 1910, 54
per cent).
’
’ 2
Average actual rate, 4.555 per cent.

Average, 1907, 4.93 per cent;
per cent.

Maximum (1907, 1908, and 1910), 54 per cent.
Minimum (1904, 1905, and 1909), 3* per cent.

1907-1910—Maximum, 6 per c

4 changes since 1894 in official, often in case of reduced rates.

4 changes in 1908; 3 in 1909; l

Can not be changed without the approval of the Minister of the Treasury.

By direktorium, after obtaini
the principal branches.

May discount for 1 per cent below official rate, and prime bills may be discounted
lor minimum rate of 3 per cent. Must discount for cooperative credit societies at
reduced rate.

The bank has no right to disco

Varies with nature of collateral from discount rate to 1 per cent higher.

Sometimes lower than discount rates.
loans up to a certain point.

Average, 1908, 4.88 per cent; 1

Maximum, 8 per cent; minimum, 4J per cent.

From 5J to 34 per cent.

1907-1910— Maximum, 6 per c
<

By agreement between the three banks of issue if not less than 3 nor over the official
rate.

By direktorium as in case of d

Generally the same; sometimes 4 per cent lower.

4 to 1 per cent higher.

5.03 per cent (1902-1910 direct discounts 4.98 per cent; rediscounts 4.68 per cent).
Maximum 7 per cent Dec. 12,190/, to Jan. 29,1908; minimum, 4\ percent Jan. 10,
1902, to Oct. 14, 1904, K*b. la to bept. 22, 1905, Feb. 19 to Oct. 12, 1909, Jan 24
to Oct. 21, 1910.

r

! 21 changes in the 10 years.
and 1909, three each).

Not exceeding three in any one year (1905 1906 1908
’
’
’

By board of directors.
.rally about

(j(jjer bank8 quote same or $ per cent higher as a rule.

By board of directors.

Varies from discount rate to 1 per cent higher.
Real estate shares and warrants generally 1 per cent above discount.
of bonds at discount rate, or 4 per cent above.

Generally the same rate for discount and

Certain classes
Not stated, except that rates l'c

tea of the

Maximum (1910), $301,826,524.
Minimum (1901), $150,733,000.
Average, $206,655,715.

Lowest denomination, 5 kroner=$1.34.

Legal tender.

M^a I uiuiu (1910), L I ,42^1)0(1,
Minimum (1901), $14,255,000.
Average, $40,471,000.
$49,137,000.

50 francs ($10) and, in extra<
issued temporarily.
Not declared legal tender, but
payment.
1908-1910:
Maximum (1910), $59,442,
Minimum (1908), $23,126,2

50 lire ($10).

•

Not legal tender after December 31, 1912.

$276,019,014.

(1910) $48,284,450.

Maximum (1902), $lo,481,000.
Minimum (1908), $9,921,000.
Average, $12,288,000.

Maximum (1910), $48,867,600.
Minimum (1902), $18,449,449.
Average, $36,826,909.

1908-1910:
Maximum (1908), $23,729,3
Minimum (1909), $16,711,1

30.4 per cent.

About 19.5 per cent.

About 39 per cent.

No limit when covered with gold or balances on current accounts abroad.

No legal limit to issue covered by metallic reserve.

No limit, if covered by 40 per c

kroner ($26,810,000) and the amount with which the cash (gold) exceeds
40,000,000 kroner ($10,724,000) may be issued with a covering of bills of exchange
and government bonds.

Normal maximum of issue, covered by only 40 per cent cash, Bank of Italy,
660,000,000 lire ($127,380,000); Bank of Naples, 200,000,000 lire ($38,600,000);
Bank of Sicily, 48,000,000 lire ($9,264,000). In addition the Bank of Italy may
issue notes up to 150,000,000 lire if covered by only 40 per cent cash upon pay­
ment of graduated tax.
1
' ‘

60 per cent of issue not covere(
foreign bills.

40,000,000 kroner ($10,700,000) must generally be held in gold in Sweden, and at
least 30 per cent of all issues in excess of 60,000,000 kroner ($16,050,000).

40 per cent must be covered by cash, and of this 400,000,000 lire ($80,000,000) must
be held as special reserve for the notes.

40 per cent must be covered bj
ei<m gold coin, or Swiss legal
bills having not more than t
days) must be covered by leg
count bills or foreign bills.

1 January,
),000), not
None since 1903. Between 1900 and 1903 1 percent on issues of other banks than
er banks.
the Bank of Sweden.

On productive circulation (not covered by cash), one-tenth per cent. Issues in
excess of normal maximum as follows: For Bank of Italy 50,000,000 lire
($10,000,000), Naples 15,000,000 lire ($3,000,000), Sicily 4,000,000 lire ($800,000),
require tax one-third rate of discount. Similar additional installments, tax twothirds rate of discount. Similar third installments, tax whole rate of discount.
Further issues taxed 74 per cent unless fully covered by cash.

No tax on note issue.

None since 1903.

2. Bank of Naples and Bank of Sicily.

None. The 36 note-issuing ba:
capital of $50,000,000 and san
their notes by June 20, 1910.

1901, $21,283,000; 1904, $800,000; V .m , no longer current.

December 31, 1910— Circulation Bank of Naples, $78,479,783.
December 31, 1910— Circulation Bank of Sicily, $18,659,626.

June, 30, 1907, $36,677,912; Jue

33 per cent on December 31, 1910.

June 30, 1907, 76.73 per cent; J

$9,172,000 (1909).

$22,179,560.

Average amount, 1908, about $2

$10,473,000 (1910).

$29,041,192.

Not stated separately in avai
deposits, $9,139,911.

Annual fluctuations, (1909) $9,269,000, (1910) $5,976,000.

Maximum (1901), $38,113,640.
Minimum (1908), $17,824,515.
Average, $28,575,580.

Not stated separately.

No interest paid.

Yes; 14 per cent on deposits in excess of $7,720,000.

Interest is paid on government

Average 1910, 90.4 per cent of all deposits.

About 70 per cent.

About 90 per cent.

1909, $1,313,000.

Accounts current, $15,732,009.

Time deposits, $20,704,654.

1910, $1,108,000.

Accounts current, $13,811,369.

Time deposits, $24,160,242.

recovered
00 marks

bills of 3

------------------- —
______ _
1901, 114.2 per cent; 1906, none.

M
I (1909) $764,(K ), (1910) *271.000.



*

Accountn j

# * « > . ,^,487,427.

■

Timo

[Max. (1909), $10,294,041.

Average, 1907 to 1910, about $3
Average $2,605,500.
Demand deposits December 31.

•4

N

K

S

O F

T

H

E

L

E

A

I

N

G

C O U N T R I E S . —

Sh

e e t

B a n k o f S w i t z e r l a n d (1907).

U y (1 8 9 3 ).
.9.
13)
and December, 1907, 1908, and 1910, 5J

D

Bank

(1 franc—
$.193.)

2.

o f B e lg iu m

(1 8 5 0 ).

(1 franc—
$.103.)

Average, 1907, 4.93 per cent; 1908, 3.73 per cent; 1909, 3.22 per cent; 1910, 3.51
per cent.

(1899-1908) 3.59+ per cent.

ent.
snt.

1907-1910— Maximum, 6 per cent; minimum, 3 per cent.

(1899-1908) Maximum 1907-8, 6 per cent; minimum 1901-1905, and July 13, 1908,
3 per cent.

9 of reduced rates.

4 changes in 1908; 3 in 1909; 5 in 1910.

25 changes in 10 years; 6, the maximum, in 1899; 5 changes in 1908.

f the Minister of the Treasury.

By direktorium, after obtaining opinion of the bank committee and managers of
the principal branches.

By council of administration by mutual agreement with the Minister of Finance

■ate, and prime bills may be discounted
iscount for cooperative credit societies at

The bank has no right to discount bills at a rate lower than the official rate.

enerally the same rate for discount and

Average, 1908, 4.88 per cent; 1909, 3.88 per cent; 1910, 4.86 per cent.

1907-1910— Maximum, 6 per cent; minimum, 3J per cent.
ssue if not less than 3 nor over the official

By direktorium as in case of discounts.

ower.

i to 1 per cent higher.

By council of administration, subject to the approval of the council of censors.

Not stated, except that rates for loans on gold much lower than for other loans.
50 francs ($10) and, in extraordinary cases, 20 francs ($4) are permitted to be
issued temporarily.
Not declared legal tender, but bank and public offices obliged to accept them in
payment.
1908-1910:
Maximum (1910), $59,442,470.
Minimum (1908), $23,126,225.

Maximum (December 30, 1908), $154,438,600.1
Minimum (March 9, 1899), $98,758,100.
1899-1908.
Average, $125,331,003.

(1910) $48,284,450.

iber 31, 1912.

(1908) $145,350,000.

.

20 francs ($3.86) legal tender.

Maximum (1908), $17,080,500.1
Minimum (1900), $8,511,300. 1899-1908.
Average, $12,417,000.

1908-1910:
Maximum (1908), $23,729,350.
Minimum (1909), $16,711,120.
About 39 per cent.

(1899-1908) 9.90 per cent.
No limit, except that a metallic reserve equal to one-third of its notes and other
liabilities payable at sight is required. Under certain circumstances reserve per­
mitted to fall below one-third.

: reserve.

No limit, if covered by 40 per cent coin and bullion.

anly 40 per cent cash, Bank of Italy,
Naples, 200,000,000 lire ($38,600,000);
0). In addition the Bank of Italy may
red by only 40 per cent cash upon pay-

60 per cent of issue not covered by metal must be offset by Swiss discount bills or
foreign bills.

> this 400,000,000 lire ($80,000,000) must
f

40 per cent must be covered by metallic reserve consisting of either bar gold, for­
eign gold coin, or Swiss legal tender, the remainder to be covered with discount
bills having not more than three months to run. All short-time liabilities (10
days) must be covered by legal tender, gold bars or foreign gold coins, Swiss dis­
count bills or foreign bills.

The demand liabilities must be covered to the extent of one-third by metallic
reserve and the rest by securities easily convertible into cash.

iy cash), one-tenth per cent. Issues in
rs: For Bank of Italy 50,000,000 lire
000,000), Sicily 4,000,000 lire ($800,000),
Similar additional installments, tax twonstallinents, tax whole rate of discount,
lly covered by cash.

No tax on note issue.

i of 1 per cent semiannually on the excess of average circulation above $53,075,000,
amounting in 1908 to $449,096, together with annual stamp tax of 50 centimes
per 1,000 francs on average actual circulation; in 1908 amounting to $72,674.

None. The 36 note-issuing banks which previously existed in Switzerland with
capital of $50,000,000 and same amount of note issue were required to liquidate
their notes by June 20, 1910.

None.

June, 30, 1907, $36,677,912; June 30, 1908, $19,230,520; June 30, 1910, none.

None.

June 30, 1907, 76.73 per cent; June 30, 1908, 40.52 per cent; June 30, 1910, none.

None.

Average amount, 1908, about $2,316,000.

Average 9 years $2,930,281.

iples, $78,479,783.
icily, $18,659,626.

Not stated separately in available statistics.
deposits, $9,139,911.

December 31, 1908, government

•

(1908) $3,664,112.

Not stated separately.

(1899-1908) $2,445,753 in 1902; $3,664,112 in 1908.

Interest is paid on government deposits.

No interest paid; but profits from government funds invested go to Government.

About 90 per cent.

About 33 per cent.

osita, $20,704,654.

Average, 1907 to 1910, about $3,500,000.

Weekly average 8 years, $15,282,000.

oeits, $24,160,242.

Average $2,605,500.
Demand deposits December 31, 1910, $4,881,995.

Weekly average 1908, $16,313,000.

r,720,000.

Timo ( Max- 0*X>9), $10,294,041.

•


(Current account.)

(Current account.)

•4

O

’U N T R I E S . — S

h

nd (lf)0 7).

2 .

e e t

B a n k o f B e lg iu m (1850).
(1 franc=$.1 3
9 .)

ut; 1909, 3.22 per cent; 1910, 3.51

6 . R A T E S F O R D IS C O U N T S A N D L O A N S .
R a te o f d is c o u n t:

(1899-1908) 3.59+ per cent.

Average rate, 1901-1910.
(1899-1908) Maximum 1907-8, 6 per cent; minimum 1901-1905, and July 13, 1908,
3 per cent.

bank committee and managers of

Maximum and minimum rates, 1901-1910.

25 changes in 10 years; 6, the maximum, in 1899; 5 changes in 1908.

per cent.

Average number of changes per year.

By council of administration by mutual agreement with the Minister of Finance

By whom official rate determined.

lower than the official rate.

How far actual rate conforms.

R a te fo r lo a n s :

;; 1910, 4.80 per cent.

Average rate, 1901-1910.
per cent.

Maximum and minimum rates, 1901-1910.

•

By council of administration, subject to the approval of the council of censors.

By whom determined.

Relation to discount rate.
uch lower than for other loans.

Variations according to collateral.

0 francs ($4) are permitted to be
; offices obliged to accept them in

7. N O T E I S S U E .

20 francs ($3.86) legal tender.

Minimum denomination and legal tender power.
Maximum (December 30, 1908), $154,438,600.
Minimum (March 9, 1899), $98,758,100.
1899-1908.
Average, $125,331,003.

Maximum, minimum, and average amount, 1901-1910.

(1908) $145,350,000.

Average amount, 1910.

Maximum (1908), $17,080,500.1
Minimum (1900), $8,511,300. [1899-1908.
Average, $12,417,000.

Maximum, minimum, and average annual fluctuation, 1901-1910.

(1899-1908) 9.90 per cent.

Average percentage fluctuation to issue, 1901-1910.

No limit, except that a metallic reserve equal to one-third of its notes and other
liabilities payable at sight is required. Under certain circumstances reserve per­
mitted to fall below one-third.

Maximum issue allowed.

j

llion.

be offset by Swiss discount bills or

fe consisting of either bar gold, forlainder to be covered with discount
run. All short-time liabilities (10
bars or foreign gold coins, Swiss dis-

•

Maximum uncovered issue allowed.

The demand liabilities must be covered to the extent of one-third by metallic
reserve and the rest by securities easily convertible into cash.

Requirements as to covering of note issue.

i of 1 per cent semiannually on the excess of average circulation above $53,075,000,
amounting in 1908 to $449,096, together with annual stamp tax of 50 centimes
per 1,000 francs on average actual circulation; in 1908 amounting to $72,674.

Nature and amount (1910) of taxes upon note issue.

a issue w required
te
ere

iously existed in Switzerland with
to liquidate

None.

Number of other banks of issue.

230,520; Juno 30, 1910, none.

None.

Average amount other bank issues, 1901-1910.

).52 per cent;

None.

Percentage of other bank issues to central bank issue, 1901-1910.

''
June 30, 1910, none.

.................

'

............ '

8 . D E P O S IT S A N D T R A N S F E R S .
G o v e rn m e n t d e p o s it s :

Average 9 years $2,930,281.

Average amount, 1901-1910.

December 31, 1908, government

(1908) $3,664,112.

Average amount, 1910.

(1899-1908) $2,445,753 in 1902; $3,664,112 in 1908.

Maximum, minimum, and average annual fluctuation, 1901­
1910.

No interest paid; but profits from government funds invested go to Government.

Interest paid on government deposits

About 33 per cent.

Approximate percentage government to other deposits.

Weekly average 8 years, $15,282,000.

5.




Weekly average 1908, $16,313,000.

(Current account.)

(Current account.)

O t h e r d e p o s its :
Average amount, 1901-1910.
Average amount, 1910.

Interest paid on government deposits

Approximate percentage government to other deposits

O t h e r d e p o s it s :

Minimum (1901), $40,450,000.
Average, $03,214,020.

iV III l11
i
1 Hill 1
1'dUO), 4 O ,^ V ,**V S
> t> O S M.
Average, $58,143,200.

No interest paid.

No interest paid.

31 per cent.

34 per cent.

$206,331,300.

Maximum, minimum, and average annual fluctuation, 1901-1910. . .

$105,835,400.

Average amount, 1901-1910.
$118,328,300.

Average amount, 1910.

$202,997,340.

Maximum, minimum, and average annual fluctuation, 1901-1910.

Maximum (1903), $100,634,000.
Minimum (1901), $15,547,920.
Average, $70,650,300. __
_

From what classes received, requirements, etc.

From all classes, but especially from banks and bankers; also from municipalities,
colonial and foreign governments, private firms, etc.

Companies of all sorts and individuals, b
(Minimum deposit of 500 francs required

Interest paid on other deposits: Demand (current accounts), time.

No interest paid (but in exceptional cases money borrowed in open market).

No interest paid.

Per cent bankers’ balances in other deposits.

Not published.

Not published.

T ra n s fe r b u s in e s s :
Extent of transfer business.

________________

(Supposed to average about $110,000,000, or about half.)

Large sums transferred between London banks and their branches through Bank,
1906, $61,858,000,000 clearings.

Maximum (1909), $257,230,400.
Minimum (1907), $47,323,600.
Average, $105,200,400._________

(1909), $41,339,000,000; (1910), $47,447,60
Gratuitous except for transfer from one pi
counts or advances.

Charges for same.
Relation of bank to clearing house.

9. C A S H H O L D I N G S .
What is included as cash......................................

London, metropolitan, and country balances settled at Bank.

Practically clearings are made through tl
on the part of accounts holders. The ’
checks.
Gold and silver.

Notes and specie in Banking Department.
None, except that note issue in excess of £18,450,000 must be covered by gold held
in Issue Department.

None.

Banking Department, notes and specie, $121,674,960.

$748,083,440 (gold and silver reserve).

Average amount, 1910.

Average notes and specie in Banking Department, $131,885,820.

$22,488,800.

Maximum, minimum, and average annual fluctuations, 1901-1910.

Maximum (1905), $67,659,000.
Minimum (1904), $46,043,640. Fluctuation cash holdings Banking Department.
Average, $54,572,940.

Maximum (1908), $154,284,200.
Minimum (1901), $30,532,600.
Average, $64,421,470.

Average per cent fluctuation to average cash, 1901-1910.

44.8 per cent, Banking Department (notes and specie).

8.61 per cent.

Maximum, minimum, and average annual per cent, to note issue, 1901-1910.

a Maximum (1910), 122.5 per cent.
Minimum (1901), 53.6 per cent.
Average, 86.6 per cent.

Maximum 11905), 89.75 per cent.
Minimum (1907), 76.54 per cent.
Average, 84.50 per cent.

Maximum, minimum, and average annual per cent to demand liabilities,
1901-1910.

b Maximum (1904), 58.8 per cent.
Minimum (1902), 27.9 per cent.
Average, 47.4 per cent.

Maximum (1909), 76.09 per cent.
Minimum (1907), 66.37 per cent.
Average, 72.84 per cent.

Methods of controlling foreign exchange and gold movements.

Primarily by discount rate, but sometimes by advancing money free of interest to
gold importers, by borrowing money in the open market, by selling consols, by
increasing price offered and charged for gold.

Ordinarily by discount rates, sometimes b
ing transit, by redemption of notes in sil

Under what conditions are emergency issues of notes permissible.

There are no arrangements for emergency issues.

Can be issued freely up to 6.800,000.000 fr;
One-third must be covered by cash.

Legal requirements as to cash holdings.

Average amount, 1901-1910.

10. G E N E R A L P O L I C I E S .

18507— 11




° Per cent of coin and bullion in issue and banking departments to circulating notes outside of bank.
b Per cent coin and bullion in issue and banking departments to circulating notes outside of bank an

minimum u hwoj, foii,^ou,tuu.
Average, $58,143,200.

ItlililUiUUl ^1 / U ,
.L U J

No interest paid.

No interest paid.

Annum liucLuatiuiia

Average, $60,304,000.

No interest paid.

34 per cent.

55.2 per cent.

$105,835,400.

$92,377,000.

$118,328,300.

$98,484,000.

Maximum (1909), $257,230,400.
Minimum (1907), $47,323,600.
Average, $105,200,400.

Maximum (1910), $54,368,000.
Minimum (1904), $28,908,000.
Average, $40,549,000.

oni municipalities,

Companies of all sorts and individuals, but especially banks.
(Minimum deposit of 500 francs required to open an account.)

From all classes, especially from banks and bankers.

All classes—individ
ties, and sealed pi

>en market).

No interest paid.

No interest paid, though law allows payments on deposits equal to capital and sur­
plus. Minimum balance of $250 required on accounts of business men.

None as a rule. M
banks) which disc

tout half.)

Not published.

March 31, 1908, about one-half; varies according to the time.
cent.

(1909), $41,339,000,000; (1910), $47,447,600,000 (clearings).

$10,534,470,000 (1910).

Gratuitous except for transfer from one place to another of sums not arising from dis­
counts or advances.

Gratuitous between customers.

Practically clearings are made through the Bank of France and consist of transfers
on the part of accounts holders. The French public makes but a limited use of
checks.

Balances settled at bank.
ings.

Gold and silver.

Specie, gold bullion, including foreign gold coin, government notes, and for the pur­
pose of the calculation of untaxed note issue, notes of other banks.

None.

One-third note issue.

$748,083,440 (gold and silver reserve).

$238,133,000, including government notes.

:hes through Bank,

vered by gold held

$22,488,800.

ig Department.

Average 1910, 90.4

1909, $1,313,000.

1910, $1,108,000.
(1909) $764,000, (19

June 15, 1910, 55 per
Not stated.
In 1910, $658,278,0(
$152,819,000, or 23

Otherwise varying tariff.

None.

Berlin and all other clearing houses in Reichsbank build­
Bank keeps rooms an

May generally not be
and must amount t
$17,327,000 quarterly

$266,688,000.

Maximum (19081, $154,284,200.
Minimum (1901), $30,532,600.
Average, $64,421,470.

$21,515,000 quarterly

Maximum (1903), $469,286,000.
Minimum (1905), $100,764,000.
Average, $72,994,000.

Maximum (1901), $2,7
Minimum (1910), $176
Average, $1,430,000,

1

8.61 per cent.

Gold, and for certain

30.7 per cent.

8.3 per cent.

Maximum (1905), 89.75 per cent.
Minimum (1907), 76.54 per cent.
Average, 84.50 per cent.
Maximum (1909), 76.09 per cent.
Minimum (1907), 66.37 per cent.
Average, 72.84 per cent.

Maximum (1902), 55.8 per cent.
Minimum (1907), 45 per cent.
Average, 50.4 per cent.

Ordinarily by discount rates, sometimes by remitting interest on gold imports dur­
ing transit, by redemption of notes in silver, by selling foreign bills.

Ordinarily by discount rate and by selling foreign bills of exchange, sometimes by
remitting interest on gold imports during transit, by raising tariff on foreign gold
coin, and by selling Treasury bills.

Arrangements with for
no open market in f
vet been necessarv.

Can be issued freely up to 6,800,000.000 francs ($1,312,400,0001 after January, 1912. In excess of 550,000,000 marks on payment of 5 per cent tax, but at end of each
One-third must be covered by cash.
quarter the untaxed uncovered issue may amount to 750,000,000 marks.

free of interest to
selling consols, by

Maximum (1902), 82 per cent.
Minimum (1907), 62.6 per cent.
Average, 72.5 per cent.

Up to 100,000,000 kroi
ment bonds, if 30 pe

Maximum (1901), 60.1
Minimum (1904), 39 p
Average, 42.8 per cent
.
Not stated.

id banking departments to circulating notes outside of bank.
1 banking departments to circulating notes outside of bank and public and other deposits (including 7-day notes).
'I

.

•




■

■

I

Auuuai uuctuauous,

v
.-*-ax y
u

Average 1910, 90.4 per cent of all deposits.

e 15, 1910, 55 per

About 90 per cent.

Time deposits, $20,704,654.

Average, 1907 to 1910,

Time deposits, $24,160,242.

Average $2,605,500.
Demand deposits Decs

.
, (Max. (1902), $10,487,427.
Accounts lMi
(1904), $5,054,091.
current, |AvgMV,723,088.

(1909) $764,000, (1910) $271,000.

» capital and surbs men.

About 70 per cent.

Accounts current, $13,811,369.

1910, $1,108,000.

classes—individuals, firms, etc.
ties, and sealed packages.

Interest is paid on gov

Accounts current, $15,732,009.

1909, $1,313,000.

1 All

» jwxu.

Average, $28,575,580.
Yes; 1^ per cent on deposits in excess of $7,720,000.

No interest paid.

'

xtxiiAth i ka m ( locnjyj v* i

Receives for safekeeping gold, silver, securi­

None as a rule. May, however, open a check account with interest to firms (not
banks) which discount with the bank.
Not stated.
In 1910, $058,278,000 cleared at clearing house. The balances, amounting to
$152,819,000, or 23.2 per cent, were adjusted through Bank of bweden.

Tim _ (Max. (1909), $10,294,041.
Hon^its |Min- ( 1906)< $4,897,568.
deposits, [ Ayg> $6,572,615.

Customers include banks, cooperative credit societies, etc., and at the branches and
agencies, agricultural owners, industrial, and small trades people.

Banks, bankers, comm

May amount to one-third of the official discount rate; law' allow's two-thirds of rate
of postal savings banks, but in practice averages about one-half of 1 per cent.

No interest paid.

Not stated.

About 90 per cent.

Money orders (vaglia cambiari) very w'idely used, and payable by every branch
of the bank.

(1908) $2,047,752,002, (

Free to customers.
None.
leiclisbank build-

Bank keeps rooms and clerks necessary for clearings free of charge for the banks.

es, and for the pur-

Gold, and for certain purposes balances on current account abroad.
May generally not be less than 40,000,000 kroner ($10,720,000) ^ d^ eld
Sweden,
and must amount to 30 per cent of all issues in excess ot 60,000,000 kroner.
$17,327,000 quarterly average (gold).

$21,515,000 quarterly average (gold).
Maximum (1901), $2,762,000,1
Minimum (1910), $176,000, [quarterly average.
Average, $1,430,000,
J
8.3 per cent.
Maximum (1901), 60.1 per cent.
Minimum (1904), 39 per cent.
Average, 42.8 per cent.

Not stated.
nge, sometimes by
iff on foreign gold

Arrangements with foreign banks or, in more serious cases, foreign loans. There is
no open market in foreign bills in Sweden. Controlling gold movements has not
yet been necessary.

jut at end of each
)0 marks.

Un to 100,000,000 kroner notes may be issued against bills of exchange or govern­
ment bonds, if 30 per cent are covered by cash.




The Bank of Italy controls and regulates the clearing houses in Rome, Florence,
Genoa, and Milan. It clears stocks also.

Clearing houses (6), all

At least 75 per cent must be gold and the rest silver com of the Latin Union, but
foreign bills, certificates of deposit in foreign banks, treasury bills of solvent
Governments may be included to 11 per cent.

Gold (including gold
the Latin Union, b
counted as cover fo

40 per cent of note issue, and of this $80,000,000 must always be held as a special
reserve for the notes, separate from other funds of bank.

A metallic reserve of 4

$156,083,925 (gold and silver).

From July 1, 1907, to

$219,209,809 (gold and silver).

(1908) $20,538,807, (19<

Maximum (1903), $31,635,981.
Minimum (1909), $4,766,714.
Average, $13,657,066.

Maximum (1907), $8,9
Minimum (1910), $7,2'

(1908) 40.9 per cent, (

8.75 per cent.
Maximum (1909), 89.09 per cent.
Minimum (1901), 51.37 per cent.
Average, 71.84 per cent.

Maximum (1908), 91.4
Minimum (1908), 51.9
Average, about 70 per

Maximum (1909), 79.82 per cent.
Minimum (1902), 45.08 per cent.
Average, 65.08 per cent.

Maximum (1908), 74.0
Minimum (1908), 46.7
Average, about 01 per

Purchase and sale of foreign bills and bank drafts.

By rate of discount an

The banks of issue have the right to issue notes covered by 40 per cent cash up to
certain fixed sum, w'hich can be extended upon payment of a graduated tax
proportioned to the rate of discount.

40 per cent must be c
<

■

9

i\u t Kiateu separately.

^ io u y -i w o ; $ 2 , ^ 0 , /oa in ryuz; ?3,004,112 in 1908.

Interest is paid on government deposits.

No interest paid; but profits from government funds invested go to Government.

Interest paid o:

About 90 per cent.

About 33 per cent.

Approximate

Average, 1907 to 1910, about $3,500,000.

Weekly average 8 years, $15,282,000.

Average $2,605,500.
Demand deposits December 31, 1910, $4,881,995.

Weekly average 1908, $16,313,000.
Maximum (1908), $15,092,000.
Minimum (1902), $7,893,700.
Average, $10,793,000.

$10,294,041.
$4,897,568.
615.

(Current account.)

1910.

O th e r deposit
Average amoui

(Current account.)

Average amou:

Current account, eight years.

Maximum, mi:
1910.

at the branches and
•pie.

Banks, bankers, commercial and industrial firms.

Commercial deposits only.

From what ch

ws two-thirds of rate
If of 1 per cent.

No interest paid.

No interest paid.

Interest paid
time.

About 90 per cent.

Not Btated.

Per cent bank'

(1908) $2,047,752,002, (1910) $3,323,327,484.

(1908) $317,497,297, representing 567,201 drafts for transfer of money.

Free to customers.

None.

le by every branch

in Rome, Florence,
he Latin Union, but
mry bills of solvent

T r a n s fe r bus!
Extent of tran:
Charges for san

Relation of bar

Clearing houses (6), all under control of the bank.
Gold (including gold bullion and foreign gold coins), and sliver 5-franc pieces of
the Latin Union, besides notes of other banks of issue; the latter can not be
counted as cover for notes.

Specie and bullion (also foreign bills).

9
What is included i

^ metallic reserve of 40 per cent of note issue.

Required to maintain a stock of specie equal to one-third of note circulation and
other sight obligations. This requirement may be set aside by the Minister of
Finance at his discretion.

Legal requirement

From July 1, 1907, to December 31, 1908, average, $17,689,120.

Average 1901 to 1908, $23,780,000.

Average amount, 1

(1908) $20,538,867, (1909) $27,320,200, (1910) $31,884,400.

$29,326,350.

Maximum (1907), $8,935,900.
Minimum (1910), $7,271,783.

1901-1908:
Maximum (1908), $5,095,000.
Minimum (19051, $1,235,200.
Average, $3,256,875.

Maximum, minim

(1908) 40.9 per cent, (1910) 22.7 per cent.

be held as a special

Average for 8 years, 13.7 per cent.

Average per cent f

(Specie and bullion.)

(Specie and bullion.)

Maximum (1908), 74.02 per cent.)
Minimum (1908), 46.70 per cent. [1907-8.
Average, about 61 per cent.

1901-1908:
Maximum (1908), 20.5 per cent.
Minimum (1907), 16.8 per cent.
Average, 18.6 per cent.
1901-1908:c
Maximum (1908), 18.4 per cent.
Minimum (1907), 15.1 per cent.
Average, 16.6 per cent.

By rate of discount and dealings in foreign exchange.

By discount rates and by its large holdings of foreign bills. About one-fifth of
bills dealt ...........
last “
been on foreign countries.
............. with during la 20 years 'have ’
* '
‘ '

t
40 per cent must be covered by metallic reserve.

The Minister of Finance may, at his discretion, set aside requirement as to propor­
tion of reserve held against circulation.

Maximum (1908), 91.45 per cent.
Minimum (1908), 51.97 per cent. 1907-1910.
Average, about 70 per cent.

1 per cent cash up to
0
it of a graduated tax




. . . .
Otherwise no limit.

c Government deposits not included.

Average amount, 1

Maximum, minim
1901-1910.

Maximum, minim
liabilities, 1901-

10.
Methods of control
Under what condi

tz,«o,/oj in iyuz; $3,mj4,ii2 m iyu».

rtU U M V O ta g v a i i u u a i u u u t u a u u u ,

1910.
No interest paid; but profits from government funds invested go to Government.

Interest paid on government deposits

About 33 per cent.
Approximate percentage government to other deposits.
Weekly average 8 years, $15,282,000.

(Current account.)

O t h e r d e p o s its :
Average amount, 1901-1910.

Weekly average 1908, $16,313,000.
Maximum (1908), $15,092,000.
Minimum (1902), $7,893,700.
Average, $10,793,000.

(Current account.)

Current account, eight years.

Commercial deposits only.

Average amount, 1910.
Maximum, minimum, and average annual fluctuation, 1901-

From what classes received, requirements, etc.

No interest paid.

Interest paid on other deposits: Demand (current accounts)
time.
"

Not stated.
Per cent bankers’ balances in other deposits.
(1908) $317,497,297, representing 567,201 drafts for transfer of money.

T r a n s fe r b u s in e s s :
Extent of transfer business.

None.
Charges for same.

Relation of bank to clearing house.
coins), and silver 5-franc pieces of
nks of issue; the latter can not be

bpecie and bullion (also foreign bills).

9. C A S H H O L D I N G S .
What is included as cash.

R n ' t h T h l ? ^ a 8t0S - 0f specie C(l ual to one-third of note circulation and
i^ a n c e at C S S n .
8 K ' im K m c n t
bc
« “ • by » • M W — of
~e, $17,689,120.

1,884,400.

Average 1901 to 1908, $23,780,000.
$29,326,350.

(Specie and bullion.)

(Specie and bullion.)

1901-1908:
Maximum (1908), $5,095,000.
Minimum (19051, $1,235,200.
Average, $3,256,875.

Legal requirements as to cash holdings.

Average amount, 1901-1910.

Average amount, 1910.

Maximum, minimum, and average annual fluctuations, 1901-1910.

Average for 8 years, 13.7 per cent.
Average per cent fluctuation to average cash, 1901-1910.
1901-1908:’
Maximum (1908), 20.5 per cent.
Minimum (1907), 16.8 per cent.
___ Average, 18.6 per cent.
1901-1908:c
Maximum (1908), 18.4 per cent.
Minimum (1907), 15.1 per cent.
Average, 16.6 per cent._________
nge.

B

Jrt/n8ianji *7 lt on
8 IarKe h° Idin?8 of forei-n 'nils. About one-fifth of
bills dealt with during last 20 years have been on foreign countries.

Maximum, minimum, and average annual per cent to note issue,
1901-1910•

Maximum, minimum, and average annual per cent to demand
liabilities, 1901-1910.
10 . G E N E R A L P O L I C I E S .
Methods of controlling foreign exchange and gold movements.

e.

Otherwise no limit.




rheMinkter of F inrace may, at

his discretion, set aside requirement as to propor­
tion of reserve held against circulation.
11
Government deposits not included.

Lnder what conditions are emergency issues of notes permissible?


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102