New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-09
FINANCE & INVESTMENT
Italian Banks.
(SIXTH ARTICLE
BY Marc M. Reynolds.

The credit of having established the
first banks of Europe is ascribed to Italy.
These banks were the Bank Of Venice, IN
1885, and the Bank of Genoa, in 1915.
Since that period the monetary system
OF Italy has passed through many vicis-
STUDIES and the country has experienced
numerous changes. Since 1893 the Bank
of Italy has been the central bank Of
note issues. though the government still
issues about 430.O0O000 lire Of legal ten
der notes, and the Bank OF Naples les
tablished in 1880 and the Bank of Sicily
still exercise their ancient issue functions.
Note issues are limited TO about three
times the capital Of the banks, against
which there must be held 40 per cent OF
coin. ree-fourths Of which must be in
gold. The notes not covered by coin are
subject to a tax, which is one-ffth OF
the ordinary discount rate, not exceeding
per cent. Further issues are allowed on
actual coin received, and issues on credit
may be made subject to a tax graduated
according to the amount of over-issues
not covered by coin. varying from two
thirds OF the discount rate up to twice
the amount.
Belgium National Bank.
The little kingdom of Belgium has the
French monetary system. and French is
the chief language spoken there. The
Banque Rationale de Belgulque was es-
tablished in 1850. and is similar in general
banking principles TO the Bank of France.
Prior 10 1880 the multiple issue bank sys-
TEN prevailed, but was abandoned owing
TO currency difficulties which resulted
from irregularity Of issue. The bank OPP
crates under a charter which expires in
1920. II is privately owned but the gov
eminent supervises its operations, through
the appointment Of its chief officers. IL
is the depository for the government and
serves the fiscal department literally
when requested. Notes of the bank are
legal tender where they are redeemable
in coin. The capital Is 100000 francs.
and resources aggregate about 100000 900
francs, most of which is held against
notes in circulation, deposits being small.
The head Office is In Brussels; there IL a
branch in Antwerp. and thirty-nine agen-
cies give ample banking facilities
throughout the kingdom.
Spanish Banking System.
The Bank OF Spain (Banco de Espehal
is the leading financial institution OF that
kingdom, and has the exclusive power OF
issuing notes. II was established in lS4s,
but was not granted a monopoly Of issue
until 1874 The bank is controlled by pri-
vate ownership. and the shareholders
choose a council. which appoints the di-
rectors. but the government appoints the
governor and two deputy governors. The
Charter, in 1874. was FOR thirty years. and
permitted note issues 10 five times the
capital. but as a deficit In its revenues en-
sued for several years. an increased issu-
ing power was granted in 1891, and later
IN 1901 was enlarged, owing 70 the Imam
cial requirements q the war between
Spain and the United States. The charter
was also extended 10 1921. with the pro-
vso that the bank extend further assist
ance 10 the government. The note Issuing
power is now regulated as follows 1900
GOO. 900 pesetas 10 be backed hy one-third
in coin. half Of which must be In goll'
the balance 10 be covered by commercial
paper and securities 300,o00.000 pesetas
20 be fully covered by metal, 40 per cent
Of which must be In gold. and 50o,o0O.O0o
pesetas 10 be fully covered by metal, one
half OF which must be IN gold. The capl-
tai OF the bank. which is private cor
poratlon, Is 150.O0O,O0O pesetas, each
peseta equalling franc. The resources
are more than 400. 100000 pesetas' and
the bank has sixty-one branches and
agencies. There are numerous other
banks in the kingdom which make re-
rorts, the total resources OF which are
about 600 600 600 pesetas The head office
Of the Banco de Espaha II in Madrid
TO be continued Monday. December l7J