The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1910-07-11

oAN aTe TeueemADle In gold on de-
mand at the head Office. The capital
OF the bank is 50.000.O0O crowns (}l3.-
100000, and the metallic reserve is
fixed at 100000 crowns ($1O,720,-
000), or forty per cent OF the author
lied circulation Of 100000 900 crowds
but any additional amount may be
issued when fully covered by gold or
foreign balances.
Protection to Country
In order to protect the country
against any reduction of credit facil-
tiles by taking away the function of
note issue from the local banks, sew
eral duties were laid upon these
banks and several privileges were
granted to them. The number Of
branches of the Royal bank was re-
quired to be 80 increased that there
should be one in each OF the twenty
four districts into which Sweden is
divided for local government pur-
poses. excepting the one Immediately
adjacent to Stockholm. which is serv-
ed by the head Office. The law of
1897 was subsequently modified in
respect to the privileges granted the
enskilda banks by law Of May 8,
1901. This law provided that the
time for abandoning its note issues
having been settled by arrangement
between an enskilda bank and the
Riksbank, and on condition that none
of the offices open on January 1. 1896.
should be closed during the term COW
cred by the arrangement, unless with
the permission OF the crown, on the
recommendation of the managers of
the Riksbank, the enskilda Link
might he granted, against approved
collateral. loans, not exceeding sixty
five per cent Of its notes outstanding
on January 1, 1901, and an open cred
it not exceeding ten per cent of the
same amount. The interest charge on
these loans and advances was fixed
at two per cent below the three
months discount rate of the Riks-
bank, though not in any case lower
than two per cent, and the usual COM
mission on the open credit was remit
ted. Further, rediscounts up to twen-
ty-five per cent of the notes outstand-
ing on January /, 1901, might be
granted at rate not exceeding two
thirds OF that otherwise charged by
the Riksbank.
Annually Decreased
AT the end of each year, beginning
with 1908, the amount of the maxi
mum limit of each of these special
privileges is decreased by one-eighth
OF Its original amount, so that they
lapse entirely at the end of 1910.
These concessions to the enskilda
banks were SO liberal that they. led
to the surrender of their rights ear
lier than the date fixed in the law for
their definite termination. Several Of
the enskilda banks availed themselves
of the privileges of conversion into
joint-stock banks with limited liabili-
ty, but those os~both types continued
to increase. thiir ofiices and the vol
ume of business " done throughout
Sweden.
At the end Of 1900 the Riksbank had
19 offices: note-issuing banks. 1888;
limited-liability banks, 90; and peo-
pies banks, 32; total of $50 offices.
At the end Of 1908 the Riksbank had
25 offices; the unlimited banks On-
cluding one peoples bank), 1879 Of
fees; limited-liability banks. with
capitals Of at least $1,0Oo,00O crowns.
304 Offices; and lesser banks, 81 Of
fees; or total Of SO Offices. There
was thus an increase In the eight
years OF 249 offices, to which must he
added those of number of institu-
tions representing former peoples
banks, and a couple Of exchange Of
fees of larger banks not included in
the above totals. No less than fifty
nine offices We're opened in 1907. and
forty-three in 1908, so that the devel-
opment seems by no means at an end.
There was at the end of 1908 a bank
Office for every $500 inhabitants on
the average. whereas at the end of
1900 there were over $4,000 inhabi-
tants for each bank office.
The different banks quote rates,
both for loans and for deposits, that
are very nearly the same. The ex-
istence Of branches Of more than one
bank in many districts insurcs this
advantage Of competition. The Riks-
banks discount rate gives, in conse-
quence. measure of the rates cur
rent everywhere. though there re-
mains some variation in the rates re-
turned by the several banks in the
monthly accounts. These fuctua-
tions may perhaps represent, in part
IL not entirely. the differences be-
tween the classes of business secured
by the different institutions.
During the panic of 1907 heavy de-
mands were made upon the Royal
bank. which reduced its foreign bal
.ances, because the bank failed to i'm
pose with sufficient energy and
promptness the check of an increas-
ed discount rate on the speculative
spirit manifested in business circles.
The rate was raised on November 9,
1907, to six and one-half per cent.
when the London rate was seven per
cent. and the Berlin rate seven and
one-half per cent. The bank was ben
Gifted, however, by the fact that a
new Swedish government loan had
been arranged in France for about
$13.000,000, against which the bank
was enabled to sell drafts pending the
need for the use of the money at
home. In 1907 over ninety-two per
cent of the rediscounts of the other
banks were made with the Royal bank
and in 1905 over ninety-four per cent
and about three-fourths of the inland
bills held by the Royal bank were OBJ