New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-11-18
FINANCE & INVESTMENT
(FOURTH ARTICLE)
Banking Systems of the World.

There Is a marked difference between
the charter powers and methods Of con-
Quoting business in the leading banking
institutions OF the several countries Of
the world, but the general principles which
control operations and govern the systems
are striHngly similar. The central plan OF
banking and paper money issuing power
his been evolved as the most practical
one in the majority OF political divisions,
and only in few instances do govern
ments issue notes.
Bank of England.
The Bank of England is the most an
cient Of the important issue-banks OF the
world, though it is not the oldest bank.
This institution was projected by William
Patterson, and incorporated July q, 1894
The original capital was G120O,o00. which
was loaned at per cent TO the Royal
Treasury. From time to time its capital
was increased until in 1876 when the gold
standard was adopted, the capital of the
bank was G1LJ53,O00, at which figure It
has remained. In 1874, after years Of
money disturbances brought about by the
Napoleonic wars and other causes, a re-
vision Of the paper currency laws Of Eng
issuing power was limited as follows The
bank may have outstanding notes based
on public debt 10 the amount Of Gl4,050,-
600, or about the extent Of it's capital.
Any issue in excess thereof must be COW
cred by coin and bullion. Bond secured
notes may be increased from time to time
TO the extent Of two thirds of the amount
OF notes Of other banks permanently re-
tired. The act OF 1874 also forced sepa-
ration Of note issuing business from the
regular banking business, and a public
weekly report Of its condition was re-
quired.
The Bank Of England acts as the treas
urer Of the government, IN addition to its
private banking deposits. Other English
banks carry large balances with the Bank
OF England. It's loans arc made chiefly
by redisCounting for other banks. The
Bank Of England is managed by board
Of twenty-four directors, who, with the
chief officer, a member of the govern
ment and his deputy, none of whom is q
director, are chosen by the shareholders.
amount of his stock holding The capt
tai stock IS divided into shares OF rOO par
value each. No shareholder IS entitled
TO moro than one vote at a stockholders
meeting, irrespective of the number OF
shares he may hold, but no shareholder
may vote who owns less than five shares.
The bank pays no interest on deposits.
never allows any overdraft and never
loans on real estate security II man
ages the public debt and buys and sells
government securities for It's customers;
also acts as the settling Office for the
London Clearing House. In addition 70
the Bank OF England, there are numerous
other banks which constitute the larger
part OF the British banking system. These
banks are divided In joint stock incorpo-
rated institutions and private banks, un-
der the classification Of reporting banks.
There are also many private banks MAX
Ing no government reports. The use OF
checks IS much more extensive IN Great
britain than I'm any other country
Scottish Banks.
The banks IN Scotland are all private
corporations. and consist Of a system OF
ten banks. Of which the Bank OF Scot
land. chartered in 1926, IS the chief Note
issues OF these banks are regulated by
an act passed in 1885, and are limited. as
In England. business IS carried on very
extensively by checks; IN fact, according
to population, the system Of check or
credits is more generally carried on In
Scotland than elsewhere.
Irish Banks.
In Ireland a system Of six banks con-
stltutos the main banking power. The
Bank OF ireland is the chief institution,
chartered In l7S There are also private
banking corporations, all regulated by
law. The check system In Ireland is less
developed than IN Scotland or other parts
Of the United Kingdom.
10 be continued Monday November 20