Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1908-07-03

bank We're very much like our own
clearing house certificates, except
they circulate more widely.
Germany.
8 /. The Imperial Bank of Germany
is regulated in all important matters
directly by the government, only loo
al matters being left to the local
board. The bank is at Berlin, the
capital, and has branches in all inn
portant cities. The bank issues an
asset currency Of a very elastic kind.
For the security Of these notes there
are no government guarantees, bonds
or redemption funds, but the bank is
required to hold in its vaults one
third the circulation in gold or gov
eminent gold certificates, and the
balance in discounted notes which
bear the names of two good solvent
parties, the notes not to run over
80 days at most. Thus 81 in gold
is the basis Of So in notes. The bank
may pass this Limit, if necessary, and
issue more notes on good discounted
paper. by paying a tax of per cent
on such issue. This 5 per cent taxed
currency has been issued 121 times
during thirty years.
2. The Imperial Banks capital is
$37 500,0 coo, surplus $10,126 900, and
metallic reserve about $20O,OO0,O 900.
8. Four other banks issue notes
to the extent of about SIS, 900, 600.
This right or note-issue, however,
will eventually pass to the central
bank.
4. The central bank regulates the
discount rate. 1t has raised this
rate to Z per cent once In thirty
years, except during our 1907 panic
when it was Z 1-2 per cent.
France.
1. France Is the most conspicu-
Gus example Of the great central bank
with branches, with monopoly Of note
issue, the notes being secured only
by the general assets Of the bank.
Note issue is under the law laid down
by Napoleon in 1903, namely, ..The
notes shall be covered either by,eoin
held by the bank or by notes secured
by collateral, or by notes signed by
three responsible persons. /" The gov
eminent has set an arbitrary limit,
but SO high as to be looked on as
no limit. namely 81, 160 900. 5.
2. The bank has capital OF $685.
100000. Its outstanding circulation
is about 900, 900, 900, and its coin re-
serve 100000. It's deposits run from
$50, 100000 to 500. OOo,o 900, showing
clearly that the Frenchman prefers
to have a bank deposit, and to carry
q wallet of bills rather than check
book.
3. The central bank here, like the
English and German, controls the
discount rate. Is
Canada. 485
When we come to Canada we come
to country very much like our
own in population, In resources, and
IN government. AS is well known.
Canada has the branch bank system
with an asset currency. For our
purpose the essential features to note
are:
Canadian banks have large
capital, 100000 now being the mini
mum, half Of which must be paid
up in full before starting a bank.
2. There are 81 large central
banks with branches III all parts Of
the Dominion.
9. Banks are perfectly free to is-
sue notes up to the limit Of their
capital.
Z. the highest issue Is about 65
per cont of this limit.
5. Redemption is prompt. Each
bank treats its neighbor's notes ais
IT does her checks. and, In fact, AZ
You yourselves treat Canadian bank
notes that is the receiving bank pre-
sents them to clearing house for
redemption. Or, If there is no clear
ing house, they are presented inde-
pendently Banks must establish
agencies for redemption at certain