The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1913-10-15
Institution Was Created
BY Napoleon.
HAS LARGEST SUPPLY OF GOLD
OF Any One Bank On Earth
Has Been Mainstay
OF France.
PECULIAR BANKING BUSINESS

t, is engaged in campaign for an en-
tirely new banking and currency sys.
TEN. People do not get nearly 50
much excited about il as they might
over a baseball game. and yet every
individual will ultimately feel the
results of such a change.
Napoleon did many wonderful
things. but the creation of the Bank
of France was one of the most en-
during. lit is easier to watch one
bank than many" was his motive in
1900 for starting the new institu-
ton. Considering all that has hap
pened in France during the ll3 in
tervening years. there have been as
tonishingly few important changes
in it,
The Bank of France survived the
downfall of its creators empire and
the collapse of the two succeeding
Kingdoms. republic and another
empire. II assisted powerfully in
the greatest single international
money transaction since the world
began-the payment to Germany of
n bilIion-dollar war indemnify
To-day the Bank of France holds
by far the largest supply OF gold in
any one bank on earth.
When Napoleon started the Bank
of France il had 100000 capital
exactly the sum with which the
Bank of England began. The par
value of the shares was made 1000
francs. or about 5000. Napoleon
subscribed for 80 shares, and all the
members of his family took a few
Hortense. his stepdaughter. bought
10. and Marshal Murat. his brother
in-law. took two shares.
The Bank of France has multiple
ed it's capital by more than five since
it's founding. II is not the greatest
bank in the world in the amount of
deposits. 1t is not essentially a de-
pOHit Oohhs w htl II tAttlS Oth-
ers and derives its great revenue is
in its monopoly of the issue of bank
notes in France.
This huge concern now has a note
circulation of billion dollars. and
usually is about seven times as great
as that of the Bank of England.
The Bank of France has a gold re-
serve approximating s70O. 900. 900.
although it is less just now than it
was last year. The reserve is so
vastly greater than the deposits that
depOsitors in the Bank of France
have a quadruple protection.
The bank pays the French Gov
eminent heavy tax on its circula-
ton and also a stamp tax. OF the
banks total yearly expenses of
about 100000 the taxes paid to
the State amount to about one
third.
Bank checks are not so common
in France as in America There
nearly all big settlements in bust
ness are made with Bank of France
notes.-the real money
Its great service to the French !
people Is rendered by the bank i'm |
the way of making small loans. Mil |
lions of loans in amounts less than |
$40 are made every year 1t is gem
timely peoples bank and scarcely |
anybody is too poor to be able to |
negotiate loan at the great bank.
II was originally proposed to fix
rate of discount, but
wisdom here flashed
forth in his decree that the govern
Drs should remain free to fix the
rate as the stress OF time should die /
ate.
Napoleon's bank has helped
France in many a crisis. When his
nephew. Napoleon the Third. was
iriven from his throne by Won
Noltke's soldiers and Germany in
iicted its unparalleled war indem-
lity. to be paid in three years, the
Bank OF France really saved the ma
ion. II Immediately loaned the
Government $500. 900. 900. Through
is energies the peasants of France
lug up the boards OF gold and sill
'er they had hidden away. and with
hem purchased government securi-
les.
The billion dollars indemnity was
aid to Germany in less than the
hree years stipulated. and II was
lone with an actual export OF gold
~ oliver coin Of less than $780,
100000. or under one-tenth OF the
otal indemnify.
Bank OF France notes were not
ccepted by Germany. but the bank
cry cleverly negotiated foreign
redits. which were acceptable to
he Kaiser. and SO put a far greater