The Providence news. (Providence [R.I.]) 1891-1906, 1897-05-13

bills are Of So denomination or less; two
thirds are Of $40 or less. In Europe one
very seldom finds national bank bill tor
less than $50. In England thero are no
bills for less than S25 In France one
tenth OF tho issue is of $40 bills, the re-
mainder are Of $40 and upward. In Ger
many there are no bills for less than SIS.
The reason for this is that ID Is desired
TO keep the coin within actual circulation.
The Bank OF England.
The Bank of England Is the central and
almost the only bank of issue In England,
as IL issues nine-tenths of all the notes in
the country. For years it had the exclu-
sive right of issue and had contSol of the
bonding system OF the country. but in
1926 concession was obtained that gave
joint stock banks "a right of issue ptovid-
ing they were not located within 90 miles
Of London. AS the Bank of England was
prevented from increasing the legal issue
OF notes this bank law did not prevent
panics, as it was intended TO do, until the
bank was permitted to disregard the law.
In spite of this, however the law worked
so well that the notes of the Bank OF Eng
land today arc as good as gold certificates.
Germany had always been great people
to profit by the experience OF others and
10 built its economic system after careful
study of those of other countries. In this
Ii chiefly followed England but in passing
its laws it overcame its difficulties and
simply adopted those sections that had
met with success Besides the Imperial
Bank there are now but eight banks that
have the right of issue. The uncovered
issue today is 1886, 600, 600 and of this the
Imperial Bank has $500, 600, 600. When
they desire TO increase their issue they
can do so, however, by the payment OF
B per cent tax 20 that the German system
Is the English system modified and the
"A tH.at tf.t,- ArAfs
The French System.
The French system is very simple. The
right Of issue rests in the hands OF the
Bank OF France. which has between two
and three hundred branches. The limit
is placed at $500, 900 but tho bank is not
required TO keep any reserve and can re-
tire or advance its issue as it secs fit
This has worked well for the Bank of
France is as safe an institution today as
any In the world although its success Is
not SO much due to any legislation as to
wise management. The other banking
systems are based upon one or another of
these three.
In closing his remarks Professor Gard
ner suggested the wisdom Of the adop-
ton, by the banks OF this country, of the
Canadian system of branch banks by
which the big institutions were able to
supply the needs of many sections Of the
country that would not be able TO sup
port its own banks.
Foreign Exchanges.
John +. Moors, Esq, of Boston then
spoke at some length on the subject OF
foreign exchange giving detailed des-
cription of the methods of exchange and
pointing out many fallicies, by which this
foreign. exchange was supposed TO have an
influence upon the financial conditions
of this country. He held that it was not
good thing for Europe 10 purchase too
many of our securities and claimed that
it was the attempt to influence the foreign
exchange market in 1895 that caused
the period of depression that had culmi-
mated in Bryan.
Colonel John c. Wyman concluded the
speech making with one Of those happy
and appropriate addresses for which he is
distinguished and which dismissed the
members and guests in thoroughly good
humor.
During the evening the orchestra, under
the direction Of Mr.. A. ;. Joslin, rendered
an excellent program.