The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-01-02
BANK OF FRANCE RECHARrERED,


BANK OF FRANCE RECHARTERED.
The renewal Of the charter Of the
Bank Of France for forty years in 1857
expired and a. new charter has been
granted to run twenty-three years, but
terminable by parliament after fifteen
years. The monopoly Of note issue is
continued, but the bank Is required to
increase the number Of its branches
from ninety-tWo, the present number,
to 112, with thirty new ones to be es-
tablished in the next two years, and
after 1900 at least one a year until a
minimum limit Of fifteen Is reached.
The notes are still to be legal tender
for all government dues and in pay
ment Of debts so long as the bank
maintains specie payment. The ex-
paEsiOn Of authorized note issues con-
tinues. Beginning with limitation Of
35O,0O00CO francs in 1900 the limit has
been repeatedly increased until 4000,-
100000 francs was fixed by act Of 1893.
w.
600 francs, $1,000 OO0. 900. At no time, how
ever, has the full amount authorized
been issued, the proportion being left
to the discretion of the government of
the bank. In September the bank held
$S94,974,S73 in gold and $237 ,626, 1929 in
silver against $703, 978,157 in notes is
sued leaving only ST, $50 in notes
uncovered by a metallic reserve.
But the noticeable feature Of the con-
cess1on is the compensation exacted by
the state for the privilege granted the
bank The loan to the government,
bearing TO interest, is increased from
$2S.CCG,C90 to $36,000,000, and the branch
banks are to be increased as noted.
In addition to the gratuitous loan the
state exacts share Of the profits Of
the bank. 1t is to have one-eighth of
the rate Of discount in the banks pro-
ductive circulation, but with mini
mum for this account Of 1000 900
francs. Further, when the bank rate
Of discount rises above per cent one
fourth Of the surplus is to be added to
the banks reserves and three fourths Is
to be paid into the state treasury.
There is in this tax and this sharing Of
the profits a recognition Of the princi-
pie that, when government grants a
monopoly, or when artificial or natural
conditions permit the creation Of one.
the government should limit the profits
to reasonable percentage and take
over the excess to itself for the common
benefit. This is the principle Of the
Gcthenberg system of administering
the liquor traffic which the government
monopolies and farms out to compan-
les whose profits are limited to 6 per
cent on the capital invested All above
that is paid into the public treasury.
If time shall determine that our pre-
sent industrial tendency to combina-
tons in trade. manufacturing, trans
portation and other forms Of corpor-
ate enterprise, Is to be a permanent
change Of methods, an evolutionary
step, creating virtual monopoly of the
production or provision Of things es-
sential to the well-being of the people.
then the government may well exert
its powers as the supreme monopoly and
place limit upon the profits that the
various minor monopolies can take to
themselves, requiring the excess to be
paid into the common treasury for the
common good. This would involve the
right to limit their capitalization, a
right that should have been reserved
and used from the beginning; for, as
profits can exist only after fixed
charges are paid, it would be possible
to deprive the government Of revenue
by excessive capitalization. In fact it
is not clear that the best remedy for or
treatment Of the trusts that now con.
troll all the leading lines of Industry
would not be limitation Of their can
italization and profits, with the ex-
cess Of the latter above a reasonable
percentage made a source of govern
mental revenue.
A MODEL RECEIVER,
The general impression is that a re-
ceiver is for the purpose of using I'D