The Republican. [volume] (Oakland, Md.) 1877-current, 1896-05-21
AN ODD INSTITUTION.
How Business Is Done in a Norway Ma
tiOnal Bank.

How Business Is Done in a Norway Na-
tional Bank.
Probably the most independent and
aristocratic bank in the world is lie
Norges, or National bank of Norway}It
seems to be wholly Indifferent to doing
business of any KING, and what it does
do it insists upon doing in its dclibeTate
way.
Socially, the bank is of considerable
Importance. The directors meet twiee
It week, and these friendly gatherings
are said to be most enjoyable affairs.
Loans and dlscoulsts form the chief sFb
iects of conversation. No loan or dis.
count can be made without the Approval
OF three of the directors. Supposesthe
directors are to hold a meeting ON
Wednesday and you want to borrow 40
krone on Monday. You apply to# he
Norges bank, and are told that the nat
ter will be taken under considerationat
the directors meeting on Wednesday.
and you may look for an answer to your
application by Thursday. 1t does not
matter in the least that you want the
100 krone Monday, and not Thursday;I
you simply have to wait. After all
there is not so much absurdity or in
convenience to the borrower in this ar
rangement as seems at first glance.
He who may want loan only antici-.
pates his reeds and prepares for it a f&l
days in advance, instead of waiting un-
Til the hour before he wants it. And the
bank is always able to make sure that
its loans are safe ones.
The origin of this institution was as
peculiar IS its management is unusual
Soon after the nominal union of Norway
and Sweden, in 1914, the latter country
began to feel the need of greater money
facilities to meet the demands of the
rapidly-increaSing commerce. The sit
uation was not unlike that in the Unite,l
States at the formation of the first
United States bank.
The problem of'securing the necessary
capital for a great national institution
was very simple one for the Norwegian
government. 1t raised stockholders for
the bank just as it raised soldiers for its
armies. Every well-to-do citizen was
compelled to take so much stock. He
was always at liberty to take more if hr
chose, but always in amounts divisible
by five. Bookkeeping was made easy Oh
new principle, in accordance with
which sums ending in other figures
than five and zero were to be excluded
from the books.
This national bank is also national
pawnshop. 1t is authorized by law to
lend money on any non-perishabIe
goods, provided they can be deposited
in the bank and kept under lock and
key. For this service it charges rather
less than the usual pawnbrokers inter
est, which may, perhaps, account for
the rarity of private pawnshops in Nor
way. In the regular loan department
the curious rule is enforced that loans
may not be made for less than one
month nor for more than six, and
only for sums of at least 400 krone
($12O).
American bank managers would look
askance at the rule which subjects all
deposits to a charge of one-tenth per
cent. for taking them in. Vengeance is
also taken with a liberal hand on the
unlucky wight who happens to over
draw his account. He is fined one per
cent. of the excess amount, which fine is
Immediately charged against him, ana
payment of the draft is totally refused
If by accident or for any reason an Off
cial honors such an overdraft, he is per-
sonally responsible. The Norges ban;,
unquestiorable does a safe business
Detroit Free Press.