The Ketchum keystone. [volume] (Ketchum, Idaho) 1885-1899, 1896-05-23
BANKING IN NORWAY.
It IL CondhAted a ~ Safe aid
Unique Manner.
Dspositors Are Charged for Leaving
Their Money In tho Bank Some
Of the Queer Rules Of the
Institution.

Probably the nn1t dependent and
aristoefatic bank in4the world ~4ss4hS
Norges, or National bank of Norway. 1t
seems to be wholly Indifferent to doing
business of any Kind, and what.it does
do it insists upon doing in its deliberate
way.
Socially, the bank is of considerable
;mpertance.. The directors meet twice
"a week, and these friendly gatherincs
are said to be most enjoyable affairs.
Loans and discounts form the chief SUBJ
jects of conversation. No loan or dis.
count can be made without the approval
of three of the directors. Suppose the.
directors are to hold a meeting on
Wednesday and you want to borrow loo
krone on Monday. You apply to the
Norges bank, and are told that the mat
ter will be taken under consideration at
the directors meeting on Wednesday.
and you may look for an answer to your
application by Thursday. It does not
matter in the least that you want the
100 krone Monday, and not Thursday;
you simply have to wait. After all.
there is not So much absurt1ity or in
convenience to the borrowersin this ar
rangement as seems at first glance.
He who may want loan only antici-
pates his reeds and prepares for it a few
days in advance, instead of waiting lih-
til the hour before he wants it. And tho
bank is always able to make sure that
its loans are safe ones.
The origin of this institution was as
peculiar as its management is unusua.
Soon afte. 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
apidly-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 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. Tie
was always at liberty to take more if h.
by five. Bookkeeping was made easy Oh
a 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. It is authorized by law to
lend money on any non-perishable
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 pawnbroker's inter-
est, which may, perhaps, account fo-
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
(s12o).
American bank managers would look
askance.a the rule which subjects all
deposits to change of one-tenth per
cent. for taking them in. Vengeance is
also taken. with 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, and
payment of the draft is totally refused.
If by accident or for any reason an Off
cia4 honors such an overdraft, he is per-
sonally responsible. The Norges bans
unquestionable does q safe business
Detroit Free Press: # ,s