The Washington critic., 1886-01-23


Bank Of England notes are legal tender
so long as the bank pays them in gold
coin on demand. 1t seems that the
Scotch and Irish banks have no securl-
ties especially held against their issues.
According to the latest official intorma-
tion, the outstanding circulation of the
United Kingdom was as follows
Notes Of the Bank of England. ... S129, ,235.OO0
Notes of other banks IN England. lj.Gjl,s0
Notes Of banks in scotland....... 1l,0g5bio
Notes of banks In Ireland ....,.. 1910, 100
Total l.................... S21l, ,G23, 800
Under the general banking act of
Canada none but chartered banks are
permitted to issue notes. The bank
notes of bank outstanding at any one
time must never exceed its unimplired
capital, subject to penalty In case of
insolvency the notes are first charge
upon all the assets of the bank. No
particular amount of cash reserves is
required, and there appears to be no
special security whatever against loss
by holders of notes. The whole
amount Of Dominion bank notes out.
standing August 81, 1885, was
$17 400, $50.
Banking in Australasia is carried on
under the Scotch system, and the only
security for circulating notes issued be-
ing the general assets of the banks.
The coin reserve held by the banks is
over 20 per cent. on all liabilities. The
outstanding note circulation of all the
colonies is about 500, ,000,00
In France bank notes are issued only
by the Bank of France, its notes being
based upon the security Of the general
assets of the bank which are at times
re- enforced by loan on the part of the
Government of its credit. There is no
limitation of the circulation of the
bank, and its notes are legal tender aud
redcemablc at sight, either in gold or
silver, at the option of the bank. On
October /, 1855, the notes of the Bank
of France in circulation amounted to
$551 ,210 900.
The Imperial, or Reichsbank of Ger
many, so far as the issue of its notes
is concerned is on footing similar to
that of the Bank of England. 1t is al
lowed circulation of S62, 900, 900,
while the seventeen banks permitted to
continue after the organization of the
Imperial Bank are allowed but S27,-
000,000. The Imperial Bank is com.
PEELED to hold an amount equal to at
least one-,hird of its issues in German
coin, gold bars or foreign coin or i'm
perial legal tender notes; the remaining
two-thirds of its issues must be repre-.
sented by discount bills having not more
than three months to run.
The Austro- Hungarian Bank has the
exclusive right of note issue of the
empire of Austria. The notes of The
bank are redeemable in the coin of the
realm, and if not redeemed within
twenty-four hours after demand the
bank forfeits its charter. The bank
Is authorized to issue 800, 900, 900 of
notes without security being deposited
in trust, but is compelled to maintain
sufficient reserve to meet demands un-
der the penalty above stated. The bank
has also the privilege Of issuing addi-
tional circulation upon the security of
gold orsilver bullion and miscellaneous
securities.
In Belgium the issue of bank notes
is confined to the National Bank, and
its notes are legal tender to the gov
ernment. The security to the note
holder rests upon the government
supervision of the bank, the invest
ment Of portion of its capital and re.
serve in government funds, and to Its
being compelled to hold coin or bullion
to one-third of its total deposits and
notes outstanding. There appears to
be no limit to the issue of circulation.
The Nederlandschc National Bank
has the exclusive right of issuing bank
notes in the Netherlands. 1t issues
State notes" to the amount of 81 ,000,.
600, and bank notes proper to any
amount, The bank is compelled tc
carry at least 40 per cent. of gold coin
or bullion against the aggregate liabil
tiles TO the public for deposits on cal
and bank notes.
The Bank of Copenhagen has the
monopoly of issuing bank notes in Den
mark They may be issued without
limit, and rest upon the security of the
general assets of the bank. The banl
must hold good and convertible assets
to the amount of 80 per cent. of tho
first issue Of $4,000, 900 of notes, and ,
metallic reserve not less than three
eights of the whole circulation. From
the last report obtainable the bank
notes outstanding in Denmark amount
ed to $40, 800, 900.
The Norgcs Bank has the sole privi
legc of note issue in Norway. Tht
bank is allowed to issue unsccurcj
notes in proportion to its capital, ant
the notes are full legal tender. They
are secured in general way by the re
serve of coin and bullion and the assets
| of the bank. From latest reports tht
bank notes outstanding in Norwa,
amounted to $40 ,000, 900 and over.
The Riks Bank of Sweden claims th,
invention of the bank note. The banl
has circulation of about $40, 900, 900
with reserve of $i,100,000 in golC
and bullion. The other, or Enskilda
banks deposit % per cent. Of their cap
ital in a place of public safety agains
their issue of bank notes.
In Russia bank notes are issued eX
clusiyely by the Imperial bank, ant
there Is no limit to its issue and littl
security, The outstanding notes il
Russia amount TO over 5000, 900, 900.
Notes are issued in Switzerland b,
cantonal and joint stock bankers. Tn
issues are unlimited, and note holder
have no preference over other credit
OTIS. The present issue of notes is owe
$25, 600, 600.
Bank notes in Italy are issued by 81
associated banks. They issue $500, 700,
600 to the government, and the circula
tion practically becomes the debt O
the government. Each of the 81
banks can put out II circulation of il
own to 40 per cent. of its capita
Their notes are redeemablc in coin G
in notes of the association,
Bank notes are issued in Spain onl
by the Bank of Spain. The bank
permitted to issue notes to three time
its capital, and they are issued cntirel
upon its credit, although reserve c
33 per cent, of its note issue is require
TO be kept in coin or bullion.
Tn Dartnun1 bonl ,,o,oc o,a ;or,nl I,