The Bridgeport evening farmer., 1910-04-05
FRENCH BPANKING SYSTEM
U. S. Monetary Commission Educating the People, to the Central Bank
 Scheme - [

Washington, April .5-How the Bank 1 of France has steered it's course clear
 of political complications and has pre-
 vented financial crises by serving as l a. -harbor of refuge for the joint stock l banks is told in a gra pIic manner in i a question-and- answer interview with | M Pallain, governor of the bank, in cluded in the publication of the Ma tiona1 Monetary Commission which will be issued tomorrow under the ti- tie Interviews on the Banking and
 Currency System of England, France, Germany, Switzerland, Scotland and italy, The story of the French bank was told in a conference held at the
 Bank of France when Senator Aldrich
 Representative Vreeland and other members of the commission were in
 Europe holding similar conferences
 with the heads of the great note-is-
 suing and joint-stock banks The
 Bank of France was founded in the
 year 1900, and it's charter was re-
 newed in 1897, expiring in 1920. Almost
 the first question asked Governor Pal
 lain was whether sSe bank was ever
 political parties. He answered in
 these words:
 ssNo charge has ever been made
 that the bank favored or aided any
 political party There is never any
 claim that politics enters in any de
 gree into the management of the bank. j Except for the renewal of the char
 ter in 1897, no legislation affecting the
 bank has been enacted since 1857.
 There is no sentiment for any change
 in banking methods nor for any new
 legislation. It should be added that
 neither the governor nor deputy gov
 ernor is permitted to be member
 of either body of Parliament"
 The government does not own share of the capital of 182, ,500, 900 francs
 (S35 225, ,OO0), but exercises decisive in fIuence through the appointment of the governor and deputy governors and one of the boards of the bank d6DIItV ernors are appointed by decree of the President of the Republic upon the proposal of the minister of finance. Their terms of service are not fixed, but usually extend over many years.
 Some light is thrown upon the ab- sence of political hostility to the bank by the number of it's branches, the manner in which it aids small com merce, and the strength which 1t af- lords to the banking system of the country. There are about 800 banking offices scattered over France, the more important, to the number of 127, be- ing known as branches, and the others managers are renunerated by fixed salaries, which does not, however, pre- vent the bank from letting all the staff participate in the results of par tional allowances. There is also a pension system for employees, which guarantees to each agent entitled thereto at least one-ha1f the annual salary after thirty years service
 The bank is not limited to redis- l copnts, but has a line of clients of its own It was stated by M. Pallain that about TO per cent of the paper heEI bears the signature of some bank | as one of the indorsers, but the mum | Der of merchants and manufacturers a asking for direct discounts has recent l Iy been increasing. The average ma turfty of paper discounted during the | wear 1907 was twenty-six days, and 1 the average value of bills discounted 1 was 732 francs ($141. This low aver | age. obtained from the Iningling of | bills for very large amounts with snlal- | Ter ones, is due to the extent to which | the bank discounts or rediscountS bills | for very small amounts The minimum 1 limit admitted to discount was lowered | in 1898 to 5 francs (96 1-2 cents) and the number of small bills discounted has never ceased to increase since that time Tn 1907 the number of bills belew 100 francs ($19.3o) was more than 3. .5OD GOO in a total of 7,500, 900. Any one who is known to the bank can open an account, the minimum be- ing only 800 francs G$96.50 After an i accuunt is once opened, the depositor | Inaz-s discount paper for as small stlris as francs provided it meets st1lrr requirements ts-
 Fsefe bank has for many years shasseed the lowest rates in Europe siusSst consecutlveIg for discounting !