Little Falls transcript. [volume] (Little Falls, Morrison County, Minn.) 1876-1894, 1879-10-09
THE BANK OF SPAIN.

D. THE BANK OF SPAIN. |
A Curious Kind Of Bank-How Its Notes are
f.i Redeemed. sz1a,
Correspondence London Times, Aug IT,.
There are only two institutions that
may be said to be highly fourishing
south of the Pyrcnees, and these are the
bull-fght and the Bank of Spain. The
latter enjoys the patronage of the govern
meut, which appoints its governor, leav-
ing the election of the directors to the
body OF the shareholders. While the
Spanish per cents. are at Is, and pay
for the present only per cent. interest,
the shares of the Bank of Spain, origi-
nally issued at 100, are now quoted at |
900, and yield an interest of rs per cent. |
The central establishment Of the bank is,
Of course at Madrid, but it has branches
or succursales in all the provincial cities,
and to great extent monopolizes the
banking business of the peninsula. It
issues notes of different value, from so
to 1000 pesetas or francs and upwards to
al amount four times representing the
bullion which is supposed to con-
stitute its metallic reserve. These
notes have a forced currency; they are
paid in cash to all government officials
and pensioners, the bank discharging
all the money transactions of the state,
both as paymaster and collector. All
these duties, however, lie lightly on the
bank, which in all its operations consults
Its own interest and convenience, with
utter disregard to the claims of the pub
lie. Spanish bank-notes, in the hand
either of Spanish subject or of a foreign
traveller, are to all practical purposes
little better than as many dry leaves A
note issued at Madrid is not payable at
any of the provincial branches, not even
in payment Of taxes due the state-the
provincial AGENT declaring that his bust
ness is to transmit nothing but gold and
silver to the treasury. In Madrid itself,
up to the year 1874, the bank protested
to 'cash its own notes in gold and silver"
but in that year the wording of notes was
altered-the bank only spromised to
pay without saying in what coin-so
that man laying down a 1OO-tranc note
on the table of the bank receives now in
exchange 50-franc notes. The rule for
cash payments was at all times and is
limited to 1OO-franc notes; and, as
the bank Is beset by customers from
morning to evening, and there is only one
clerk at one window, and he has right
to pay in four-real and two-real Zone
franc and halfa france pieces, the paying
work is distressingly slow. The custom
ers are kept cooling their heels in long
queue, and, without the most heroic per-
severance and great exertion of elbows,
a man has chance Of leaving the bank
as empty as he came. The consequence
is that, as rule, in Madrid, and abso-
lutely in all other places, a man can turn
his notes to no purpose exceptby paying
a percentage at an exchange office.
In great commercial places like Bar
celona, Bilbao, Seville, and Madrid itself,
Bank Of England or Bank of France
notes are accepted eagerly by all private
bankers, and even by first-c'ass hotel
keepers. 1t is only Spanish bank-notes
that inspire no confidence, and are look
ed upon as wholly unmarketable. In
provincial towns, as at Segovia, or even
at the royal seat at La Granla, traveller,
can only pay his way in gold and silver;
! and if he is away from home for any
length of time. he must carry with him
huge weight of metal, which would
expose him to considerable danger of
highway robbery had not the Civil
guards, or gendarmes, sufficient corps,
to a great extent rid the country OF the
brlgandage which was once its greatest
scourge.
The Bank of Spain employs 81 per
cent. of its capital in its transactions
with the government. Only the remain
ing 13 per cent. is supposed to be at the
disposal Of It's other customers is,
of the public, at whose expense the bank
itself lives and thrives. But, in sober
fact: while the government obtains loans
from the bank to any amount at per
cent interest, private persons apply in
vain for an advance. OF cash ON any terms.
and even On the best security, unless
they possess strong influence with some
of the directors, or with influential men
connected with the government. Thus,
for any real benefit accruing to trade and
industry, the Bank of Spain may as we'll
be said to have no existence. The Bank
| of Spain is, in fact, nothing but great
government jobbing concern. 1t keeps
the government afoat in it's dire emer
gencies, by levying percentage on the
public revenue and expenditure; and en-
ploys the money thus obtained either for
the exclusive benefit Of Its own share
holders or for that of the government,
which allows it to break or evade the
rules laid down in it's charter with utter
IMMUNITY.
It is difficult to understand how the
Spanish people can put up with such a
state of things. The complaint of the
! public about this shameful abuse of the
! public trust is, indeed, loud and incess-
ant. But the press seems not to have
one word to say on the subject. The
| Spanish press is too poor to aspire to in
dependence. There are matters on which
| it is easily made worth Its while to hold
its tongue, and on which any uttcrance
might be attended with disastrous conse.
quences. Attempts are made now and
then to denounce abuses, but these are
followed by warnings which are seldom
! disregarded. Freedom of the press in
Spain is an egregious deluslon. A Jour-
nal is suspended or suppressed by the
| authorities at the home Office at their
own discretion, without chance of ap-
peal or redress. And are not these au-
thortles bound to screen from attacks all
their colleagues, and especially the min
lister Of finance and his obliging servants,
the governor and directors of the bank2
Yet, that the Bank of Spain is one of the
very worst "things Of Spain,", is thing
that admits of no dispute. A journey Of
a few months in the peninsula will give
practical evidence Of the fact to the
most indulgent and least cautious stranger
Uncle Andrews Romance.
Uncle Andrew sat leaning his elbows
on the table, supporting his head on his
hand. Traces Of fresh tears were upon
his cheeks, and his eyes were fixed on the
ivory miniature which lay before him,