The weekly chieftain. [volume] (Vinita, Craig County, Okla.) 1905-1913, 1910-03-18

such deposits as are attracted shall
be those growing out of commercial
operations and not those partaking OF
the nature OF investments made for
the sake OF the interest earned The
outstanding issues of notes, which
reached In 1908 an amount in excess
of 500, 100000 francs ($160,0O0,0O0l for
a poulation of less than 100000 con-
stlute the chief liability of the bank,
Current deposit accounts constitute
only about one-tenth of the assets Of
about 1,OOO,OO0,OOO francs ($20O,OOO,-
000), which represent the banking and
issuing functions Of the bank.
Regulation of the money market
is attained in part, as in other Euro
pean countries lowered with central
bank of issue, by changing the dis
count rate. The problem OF money
and exchange In Belgium has been
complicated by the large amount OF
silver coins which were issued before
the suspension of free coinage by the
Latin Union in 1873, and by the fact
that this silver has degenerated into
the position OF token coin. kept at
gold par largely through the control
exercised by the national bank over
exchange Gold has practically disap.
poared from circulation. partly by rea-
son of the issue of notes in large
amounts down to the denomination
of 20 francs ($3S6) and partly as the
result of some hesitation on the part
of the bank to raise the discount rate
sharply 10 Offset the adverse current
of exchange The bank has preferred
to large extent the policy of the
Bank of France OF replenishing It's gold
reserve at its own expense rather than
by the elevation of the discount rate.
The organization of the National
Bank of Belgium is not unlike that OF
the banks Of France and Germany.
The governor of the bank is appointed
by the king but the government has
no share In the ownership. aud the
administrative boards are chosen by
the shareholders The state has kept
its hands clean from dipping into the
resources of the bank by loans. but II
has from time 70 time. with the re-
newal of the charter, added to the
burdens imposed upon the bank by
way OF gratIitous services and tax
alton The bank was organized with
the view of performing the fiscal func-
tions of the treasury, and It's 80 agen.
cies have been distributed in the chief
places of Belgium as much to facili. |
tate this end as for the convenience
of TIE commercial community. So
oonsi cradle is the work performed |
for the state that payments IN and out |
of the bank for the public treasury !
have come to exceed $1,000. .000. 600 |
exclusive OF the many other
operations In the payment of coupons
and conversion OF the debt which |
have been imposed without compensa.
tion upon the bank.
The subjects OF banking theory and
practice has been more thoroughly dis.
eussed Ia Belgium than in some other
countries. because each renewal of
the charter OF the national bank has
been for nearly thirty years. the last
renewal continuing the life OF the
bank to January 1. 1928 This has
led. perhaps. TO more thorough ex-
animation of the questions involved
than whore charters run for shorter
terms and proposals for renewal fall
more within the channels OF routine.
At the time Of the renewal OF the char.
Ter Of the national bank in 1900 the
reports alone Of the various commit.
ees flied folio volume OF GIG pages.
md the debates In the chambers a
ltill greater space
Interest was given to the debate by
he presence OF the Belgian Chamber
u Deputies OF some OF the most
scholarly and advanced advocates of
ltate socialism, who made deter.
mined onslaught upon the organlza-
ion of the bank. Hardly a voice was
'aised. however. against the theory of ,
central bank organized to regulate
he exchanges or against the system
II note issue under which the bank .
lad operated for forty years. The
OF the socialist deputies {
we're directed rather to the questions
4 the terms Of the charter, ownership 4
4 the bank by private individuals I
ather than By the state. and the pro a