Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1906-10-12
WAYS OF FRENCH BANKS.
Wide Difference Between American
and French Methods.

The French banks charge one-six.
teenth to one-eighth per cent. on large
accounts for bookkeeping and check
ing, and allow one-half to one per
cent. interest on the balances of ac-
tive accounts, according to the De-
troit News-Tribune. The charge for
collecting drafts and checks on banks
In other cities is one-eighth to one
quarter of one per cent. 1t has not
been the custom of French people to
make payments by check, most trans
actions being settled by actual cash.
Foreigners are, however, gradually in
Producing this practice. Indeed, the
law and local custom require in many
instances that payments, such as
taxes, rent, etc, shall be made in cash.
The following reasons are assigned
for this: Banks are not required by
law to demand proof of identity when
paying a check; they are merely held
to prove that they are not guilty of
negligence. The check falls on the
drawer of the check. The practice is
to pay most checks at once. When
the amounts are large the banks
sometimes refuse immediate payment,
in which case the person can call in
the service of process server of a
court, who presents the check at the
bank and 1t is at once paid, the bank
also paying the servers fee of 80
cents. Also, as banks in France are
required by law to preserve all record
books and vouchers for at least ten
years, checks are not returned after
payment to the drawer.
All checks on Paris banks must
bear an official stamp for ten centimes
1.-TWO cents), while checks on country
or foreign banks must bear a stamp
for 20 centimes. The clearinghouse
system does not prevail to any great
extent in France. most checks being
presented directly at the bank for
payment.
Private bankers do not take timo
deposits. These are only accepted by
financial institutions, and as a rule
for terms of not less than one year
and not longer than five years. At
present two per cent. per annum Is
allowed for one or two year deposits,
2R per cent. for two or three years,
and 3h per cent. up to five years. In
terest is credited every six months.
1t is customary for French banks to
discount papers for patrons and buy
papers from note brokers. Prime &C.
ceptances are usually discounted with.
out any charge other than interest,
the latter depending, of course, upon
the value of money at the time. Such
acceptances are generally discounted
in the open market below the official
rate of the Bank of France; for in.
stance, at present at about 21a to "a
per cent. per annum, as against an
official rate of three per cent. On
ordinary paper discounted by bankers
to their patrons there may be a charge
of commission according to nature OF
paper and standing of indorser, vary
ing between one-sixteenth and one
half of one per cent.
Banks in France pay both state and
municipal taxes, scaled according to
the number of employees and the rent
of their offices. They are not con
trolled or supervised by the govern
ment, the sole exception being the
Bank of France. whose governors are
government nominees. The dividends
declared by lending banks have fol
he last few years averaged between
six and ten per cert., while couple
have paid up to IL per cent. No banl
other than the Bank of France can is
sue circulating currency in the repub
lie.