The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1910-06-13

J, N. D. MONDAY, JUNE Is
business due to the increase Of pop
ulahoo and the accelerated economic
development In Germany.
Quarter Day Demands.
In establlshinG IN increase the fact
has to DO rsckoosd With that the de-
mands on the Reichsbank are regular
ly made to IN especially large extent
ct the quarter days. The condition,
resulting from custom, that ut the be-
ginning oe quarter large liabilities
have to be met-for instance, in re-
gard to mortgages. rent. interest and
salaries-causes ct those times an ex-
traordinarily heavy demand for in
struments Of payment, which 1t 10 the
Reichsbank'S unavoidable obligation
to meet. In accordance with this view
the new law increased the limit OF
authorized issues, covered by a re-
serve Of one-third, to $4,000, 600
marks. and In addition provided that
this issue might be permitted to rise
to 760.000,000 marks ($178,20O,O00) at
the close of March, June, September
and December in each year.
Another important point in which
the new law departs from the old
charter of the bank is in making the
notes Of the bank legal tender. There
was q strong disinclination to this
policy when the bank was established
which is explained by the earnest de-
sire then prevailing to do away with
the existing paper regime and to place
the metallic currency on a firm foun-
dation. This aim has been realized
to such an extent that at the present
time Germans metallic circulation is
abundant for all demands Of trade.
On the other hand, bank notes also are
regularly taken in payment, and for
payments of large amounts they are
used almost exclusively. In view Of
the fact that the legal status of this
mode Of payment was somewhat un.
certain, however, SUCH institutions az
had to make numerous payments
banks especially, gsnerally felt oblig-
ed for precautionary reasons to pro-
vide themselves. with a considerable
stock of gold ihsorder to be prepared
for any demand for gold that they
Ah6ut nave W luGSt.S
Followed England.
In proposing thiS measure the new
law followed the examples of England
and France. In England the notes OF
the Bank Of England have been legal
tender since January 1, 1884. In
France the notes of the Bank OF
France were invested with this quail.
ity by the acts of August 12, 1870, and
August 3. 1876. !.
The conferring u the legal tender
quality upon the Reichsbank notes
does not in any way affect the main.
tenance Of the goia standard, as IL
proved by the exsmble of the Bank ol
England In orderSto emphasize thil
more strongly. the Words legally cur.
rent German money! in the paragraph
relating to- redemption of notes, have
been replaced by German gold coin. :
This expresses bey3nd a doubt that
even a single noteiof the denomina.
tion Of twenty mSrks mpst be re.
deemed In gold. although the amour,
OF twenty marks, comes still within
the limit up to which imperial silver
coin Is decreed legal tender by the
currency act Of July 8, 1873.
Thus the new law, while expanding
the legal limit of the untaxed circula.
tion, provides for direct REDEMPTION ot
notes In gold at the bank and gives
uniformity, as far as possibly, to the
paper circulation. Another important
provision of the law authorizes the
bank. and also the private banks Of
issue to purchase checks. Since the
act of March IL, 1909, In relation to
checks made it possible for a holder
of check to obtain legal protection
for his claim, just the same as the
holder Of a bill, the committee de.
clared that the fundamental objections
to the purchase of checks were re-
moved.
BY permitting their purchase by the
Refchsbank. the holder of check pay
able to another city could get cash
for 1t at any moment by having II
discounted, whereas under the old
method the amount was paid only af.
ter the check had been collected-that
is, after lapse Of several days-and
no liability was accepted by the bank
for the presentation of the check for
payment within the legal time limit
The discounted check, in accordance
with its intrinsic purpose, would be
presented for collection by the bank
as quickly as possible. and its equival-
ent put at the disposal of the party
presenting 1t by means of the giro This
account current being credited with
the amount, the necessity of cash
remittance being thus avoided. It is
expected that the purchase Of checks
by the Rtichsbank will stimulate the
use of checks and. in general, pro-
mote monetary intercourse without
the employment of cash.
TO ABROGATE TREATY
japanese Government Seeking Get
Treaties Down to Date.
Washington, June 13-The japanese
government, according to the present
program on Friday will ronoun,a