Estimated Stock of Money in Austria-Hungary.-Gold, $130,000,000; Silver (mainly full legal tender), $120,000,000; uncovered notes, $155,000,000; being Government notes, $165,000,000, plus bank notes, $230,000,000, less metallic reserve, $240,000,000.

THE LATIN UNION.

FRANCE, BELGIUM, ITALY, SWITZERLAND AND GREECE.

Previous to the formation of the Latin Union there had existed a de facto monetary union between France, Belgium, Italy and Switzerland, the three latter countries having adopted the system established by the French law of the 17th of Germinal, year XI. (April 6, 1803), the basis and monetary unit of which was the silver franc, and which granted legal currency to gold at the ratio in coinage of gold to silver of 1 to 15%.

The change, however, in the commercial ratio of the value of the precious. metals, consequent on the enormous production of gold in California and Australia, caused an ever increasing substitution of gold for silver in the monetary systems of these great countries. In the years 1850-1865 silver began to be exported from them, and a great dearth of silver coins to be felt. By the monetary convention of December 22, 1865, and the formation of the Latin Union, the contracting States maintained the double standard and the existing ratio of value of 1 to 15%, but limited the standard silver coins to be stamped to the 5-franc silver piece.

By the convention of 1865 each of the contracting States obligated itself to receive into its treasuries the coins manufactured by the others, without limitation as to the value, in the case of gold coins and 5-franc silver pieces, and to the amount of 100 francs in the case of other silver pieces in any one payment. It was further stipulated that the latter should be legal tender in the country that issued them, to the amount of 50 francs, between private parties in any one payment, and that they should be taken back by such country and exchanged for gold or 5-franc silver pieces, this obligation to be prolonged during the two years beginning with the expiration of the convention. This first convention of the Latin Union, to which Greece became a party in 1867, was concluded for a period of fifteen years, with a provision for tacit renewal. It maintained the fineness of 0.900 for the 5-franc silver piece, and provided for the free coinage of both metals, thus putting the Latin Union under the bimetallic system.

The depreciation of silver, which began in 1872, forced the contracting powers first to limit, and then to suspend the coinage of the 5-franc silver piece. These measures were taken in fulfillment of special conventions dated January 31, 1874; April 26, 1875; February 3, 1876, and November 5, 1878, and were sanctioned by the conventions of November 5, 1878, and November 6, 1885.

The convention of 1865 expired on the 1st of January, 1880. A new convention of the 5th of November, 1878, prolonged the duration of the Latin Union for five years. The convention now in force is dated November 6, 1885. By its terms the suspension of the coinage of the 5-franc silver piece is maintained in the countries of the Union. It was likewise stipulated in the convention of 1885 that the coins of each of the contracting powers should be received by the treasuries of the others as well as by the banks of France and Belgium, and that the Union might be terminated any time after January 1, 1891, by giving one year's notice.

During the year following the termination of the convention the several governments are to proceed to the exchange, and return to the country that issued them, of the 5-franc silver pieces, any balance remaining after the exchange having to be settled in gold, or bills of exchange on the debtor State.

In brief, therefore, the Latin Union has now the single gold standard-the coinage of gold being unlimited and that of silver suspended. The ratio of gold to silver is 1 to 15; 3,100 francs being coined out of the kilogram of standard gold, and 200 francs out of the kilogram of standard silver; 3,444 francs out of the kilogram of pure gold, and 2223 francs out of the kilogram of pure silver. The coinage charge is 7 francs per kilogram fine for silver. Gold coins and the 5-franc silver pieces are unlimited legal tender.

Silver. The franc is known as the lire in Italy, and as the drachma in Greece. The only full legal tender silver coin is the 5-franc piece, legal weight 25 grams; fineness, 0.900; fine weight, 22.5 grams, or 347.22 grains. The divisional silver coins are :

The centime is called the centesimo (plural, centesimi) in Italy, and the lepton (plural, lepta) in Greece. These silver coins are legal tender between individuals to the amount of 50 francs, and are receivable by the State to the amount of 100 francs in single payments.

FRANCE.-Bank Notes.-The only bank of issue in France is the Bank of France with its branches. Its capital belongs entirely to its shareholders. The governor and the two sub-governors of the bank, however, are appointed by decree of the President of the Republic. It was founded on the 13th of February, 1800, with a capital of 30,000,000 francs, which was increased to 45,000,000 in 1803, to 90,000,000 in 1806, to 91,250,000 in 1848, and to 182,500,000 francs in 1875. Its charter, granted originally for fifteen years, was renewed several times, the last time on June 9, 1857, for a period of forty years. It will not expire until December 31, 1897. The renewal of its charter is now under discussion in the French Chamber. There is no doubt of its renewal, but on what terms, especially for how long a period, is a question which is being warmly debated. The State has no share in its profits. The direct taxes it is required to pay are 3 per cent. on its dividends, stamp duties on its shares and notes in circulation, and various other stamp duties. Its capital is represented by 182,500 shares, of the nominal value of 1,000 francs each.

There is no charter limitation on the amount of notes the bank may issue, but its note circulation has been successively limited by law to 350,000,000 francs, 452,000,000, 525,000,000, 1,800,000,000, 2,400,000,000, 2,800,000,000, 3,500,000,000, and finally by the law of January 25, 1893, to 4,000,000,000.

The notes of the bank are legal tender at the public treasuries and between private parties so long as they are redeemed by the bank on demand. The issue of notes within the limit fixed by law and the proportion to be observed between the amount of circulation and the metallic reserve are left to the discretion of the government of the bank.

Estimated Stock of Money in France.-Gold, $775,000,000; silver (full legal tender), $435,000,000, limited tender, $58,000,000; uncovered paper, $90,000,000, being composed of bank notes, $665,000,000 and less metallic reserves, $575,000,000.

BELGIUM.-Bank Notes.-The National Bank of Belgium, established by the Law of May 5, 1850, is the only joint stock company authorized in Belgium to issue notes payable to the bearer at sight; but individuals and associations are free to issue bank notes on their own responsibility. The National Bank of Belgium is not, properly speaking, a State bank, although the treasury receives a large share of its profits, fixed at first at one-sixth and since 1872 at one-fourth of the profits it realizes over and above 6 per cent. It also receives one-fourth per cent. on the average circulation of the bank over 275,000,000 francs. Receipts from discounts go to the State if the rate exceed 5 per cent. The Government does not interfere in the management of the bank, but may veto any measure which it deems opposed to the bank's charter, the law, or the interest of the State.

The bank, located in Brussels, has a branch at Anvers and agencies throughout the kingdom. Its capital is 50,000,000 francs, divided into 50,000 shares (of the nominal value of 1,000 francs each). The issue of notes is not limited in an absolute manner, but the law requires that it should be represented by securities which may be easily realized upon, and that the bank should have a metallic reserve (unless otherwise authorized in special cases by the Minister of Finance) equal to one-third of the obligation it must meet on demand. The notes of the bank have legal but not forced currency, and are in denominations of 1,000, 500, 100, 50 and 20 francs. It is the financial agent of the treasury.

The bank notes outstanding December 31, 1893, amounted to 450,756,000 francs. against which a metallic reserve of 112,000,000 francs was held.

Estimated Stock of Money in Belgium.-Gold, $55,000,000; silver, (full legal tender), $48,000,000, limited legal tender, $6,900,000; uncovered paper, $65,500,000, being Bank Notes, $87,000,000, less metallic reserves, $21,000,000.

ITALY.-State Notes.-In 1874 the six banks mentioned below formed a syndicate to lend the Government 1,000.000,000 lire, and to issue notes in representation thereof. Upon the abandonment of forced currency the syndicate was dissolved, and the syndicate notes became a State debt. The amount of these State notes outstanding at the end of 1893 was 352,791,605 lire, against which the treasury held a metallic reserve amounting to 135,925,895 lire.

Bank Notes.-Italy has no State bank. There are in the country six banks of issue, which, by virtue of the Law of April 30, 1874, are authorized to issue notes, payable on demand, to the amount, as an extreme limit, of three times their paidup capital. But the total of the notes and obligations immediately payable, arising from deposits and accounts current, at sight, must not exceed three times the amount of coin and bullion in the banks. Their notes have not legal currency. All issue notes of 50, 100, 500 and 1,000 lire. By the law of 1874 on forced currency, the six banks were authorized to issue a maximum circulation as follows, but have not always kept within the legal limit: National Bank of the Kingdom, 450,000,000 francs; Roman Bank, 45,000,000 francs; National Bank of Tuscany, 63,000,000 francs; Tuscan Bank of Credit, 15,000,000 francs; Bank of Napies, 146,250,000 francs; Bank of Sicily, 36,000,000 francs. Total, 755,250,000 francs.

Since the abolition of forced currency this limit has been done away with in the interest of the monetary circulation, and the banks of issue have been authorized to emit additional notes provided the excess is covered by a second metallic reserve (of two-thirds gold and one-third silver) to an equal amount.

By an act bearing date August 10, 1893, a fusion of the National Bank of the Kingdom with the Tuscan National Bank and the Tuscan Bank of Credit was authorized to assume the name of "Bank of Italy," their paid-up capital being increased from 173,000,000 lire to 210,000,000 lire.

The power to issue notes is granted to the new Bank of Italy and confirmed to the Bank of Naples and Bank of Sicily for twenty years, the maximum limit of their circulation for a period of four years being fixed at 1,097,000,000 lire, distributed as follows: Bank of Italy, 800,000,000 lire; Bank of Naples, 242,000,000; Bank of Sicily, 55,000, 000. At the expiration of these four years each institution shall begin a gradual reduction of its circulation in such way that by ten years thereafter the circulation will be reduced to: Bank of Italy, 630,000,000 lire; Bank of Naples, 190,000,000 lire; Bank of Sicily, 44,000,000-total, 864,000,000. And if the circulation of either bank shall then exceed three times its paid-up capital it shall reduce its circulation still further.

In addition to the issues as thus limited, notes may be issued when fully covered by metallic reserves, or when representing advances to the State.

The amount of bank notes outstanding at the close of December, 1893, was 1,212,451,660 lire ($234,000,000), the amount of metallic reserve held by the banks being 561,028,391-lire ($108,600,000).

Estimated Stock of Money in Italy.-Gold, $96,000,000; silver, $50,200,000; uncovered paper, $168,000,000, being composed of State notes, $68,000,000, plus bank notes, $234,000,000, less metallic reserves, $134,000,000.

SWITZERLAND.-Bank Notes.-The banks of issue in Switzerland, some founded by individual enterprise and others with cantonal assistance, are of comparatively recent institution. The oldest is that of St. Gall, established in 1836. The Swiss federal law on the issue and redemption of bank notes is dated March 8, 1881.

Previous governmental authorization is necessary to the establishment of a bank of issue. The number of such banks is not limited. The Federal Assembly reserves the right of fixing at all times the total issue of the Republic, and determining the quota of each bank. The banks are required to hold a metallic reserve, distinct and independent of all other reserves of the bank, equal at least to 40 per cent. of their circulation, while the remaining 60 per cent. must be covered by securities readily convertible. Each bank is required to take the notes of the other banks in payment, and to procure the redemption of the notes of other banks without compensation. The amount outstanding at the close of 1893 was 181,488,750 francs.

The right of the emission banks to issue notes, however, will be discontinued in the near future in accordance with an amendment of the Constitution in 1891 asserting the right to issue bank notes and all other fiduciary money to belong exclusively to the Confederation, but leaving to the Federal Council to determine whether the monopoly should be exercised by means of a State bank or a joint stock bank controlled by the Confederation. On January 24, 1894, the Council decided in favor of a State bank, pure and simple, the administration of which, however, is to be entirely independent and free from political influence. The pian, as outlined by the Department of Finance, contemplates the establishment of the central bank at Berne, with branches throughout the Confederation. The present wanks of issue may be incorporated with and made branches of the new State bank. The obligatory acceptance of bank notes or of any other form of fiduciary

money shall not be decreed by the Confederation, except in case of necessity in time of war.

Estimated Stock of Money in Switzerland.-Gold, $15,000,000; silver $15,000,000; uncovered paper, $17,500,000, being composed of bank notes, $35,000,000, less metallic reserve, $17,500,000.

GREECE.-Bank Notes.-Greece has three banks authorized to issue notes, but these have forced currency; the metallic reserves are merely nominal, and the country at this time is so completely under an irredeemable paper money regime that it may be said to have no bank-of-issue system. The amount of bank notes outstanding is about 135,000,000 drachmas, in addition to which there are some 83,000,000 drachmas of Government notes in circulation.

Gold is at a premium, averaging for the year 1893 1.61 drachmas to the franc; highest, 1.804; lowest, 1.41}.

Estimated Stock of Money in Greece.-Gold, $2,000,000; silver, $4.000,000; uncovered paper, $41,500,000; being composed of Government notes, $16,000,000, plus bank notes, $26,000,000, less metallic reserves, $500,000.

Estimated Total Stock of Money in Latin Union.—Gold, $943,000,000; silver, $617,000,000; uncovered paper, $382,500,000.

SPAIN.

By a decree of the 19th of October, 1868, Spain adopted the monetary system of the Latin Union. It is, therefore, bimetallic with the silver peseta, equivalent to the franc, as a monetary unit. It has the same gold and silver coins as the Union, to which a gold 25-peseta piece was added by a decree of August 20, 1876.

The coinage of gold is free, and there is no coinage charge for that metal, but depositors cannot get the coined gold until eighteen days after the delivery of the bullion to the mint. Since 1878 silver has been coined only on account of the State. The ratio of gold to silver is 1 to 15. Gold and the 5-peseta silver piece are unlimited legal tender; divisional silver coin, i. e., all silver coins of less value than 5 francs, only to the amount of 50 pesetas.

Bank Notes.-The only bank of issue in the country is the Bank of Spain, founded in 1829, reorganized in 1856, with a franchise of twenty-five years, which was renewed in 1874 for a period of thirty years. It has enjoyed the exclusive privilege of issuing bank notes, however, only since March 19, 1874. The law of that date raised its capital to 100,000,000 pesetas, divided into 200,000 shares (of the nominal value of 500 pesetas). Since then it nas been raised to 150000,000. The eighteen provincial banks of issue existing at that time have been liquidated. The bank is not a State bank, and the State has no share in its profits. The State, however, may require of it advances, on sufficient security, to the maximum amount of 125.000,000 pesetas. It is located at Madrid, with branches in the principal cities. It has a reserve fund equal to 10 per cent. of its paid-up capital. Any diminution of this reserve fund has to be made good from the yearly profits over and above 6 per cent. It is authorized to issue bank notes to an amount equal to five times its paid-up capital; but may not, under any circumstances, issue more than four times its metallic reserve. Its notes have legal currency, and are of denominations of 1,000, 500, 100, 50 and 25 pesetas. The aggregate amount outstanding at the end of 1893 amounted to 927,654,450 pesetas. The average premium on gold has been, during the last year, about 18 per cent.

Estimated Stock of Money in Spain.-Gold, $40,000,000; silver (full tender), $120,000,000; silver (limited tender), $38,000,000; uncovered notes, $107000,000; being bank notes, $179,000,000, less metallic reserve, $72,000,000.

SCANDINAVIAN UNION.

SWEDEN, NORWAY AND DENMARK.

The Scandinavian Monetary Union embraces Sweden, Norway and Denmark. These three kingdoms concluded in 1873 and 1875 a monetary convention based on the employment of the single gold standard and on a common system of coins and money of account. The krone or crown, divided into 100 öre, is the monetary

(2,480 kronen are manufactured out of 1 kilogram of fine gold.) The coinage of gold is unlimited. The coinage charges for gold are one-quarter per cent. per kilogram fine for 20-kronen pieces, and one-third per cent. per kilogram fine for 10-kronen pieces. Silver is coined only on account of the Government.

Silver coins are legal tender as follows: The 2 kronen and 1 kronen pieces to the amount of 20 kronen; the 50, 40, 25 and 10 ore pieces to the amount of 5 kronen. All the coins above mentioned have legal currency in the three kingdoms. The Monetary Convention does not limit the coinage by the Governments of the silver or bronze coins. In each of the three States there are public treasuries at which any sum of fractional coin divisible by 10 kronen may be exchanged for gold.

SWEDEN. Bank Notes.-Sweden has a State bank of issue, called the Bank of Sweden, whose capital belongs to the nation, whose profits may figure in the budget, and whose administration is confided to a commission elected annually by the Diet. Banks of issue may be established by joint stock companies with the authorization of the king. Their charters run for ten years and may be renewed. The responsibility of the shareholders is unlimited. There are some thirty of these banks, and the right to issue notes belongs to them jointly with the Bank of Sweden. The latter's capital is fixed at 25,000,000 crowns and its reserve fund at 5,000,000. The Constitution guarantees the legal currency of its notes. Its circulation is limited by the law to a fixed sum of 30,000,000 crowns plus the amount of its credits and accounts current with foreign banks and its metallic reserve, which must not fall below 10,000,000 crowns. The notes of the private banks are not legal tender, and are redeemable in gold only and not in the notes of the Bank of Sweden. Only the notes of the bank of the State are receivable at the public treasuries. The circulation of a private bank may not exceed the total of the following sums:

(a) The amount of the company's capital converted into mortgages; (b) the part of its reserve invested in mortgage titles; (c) one-half the total credits of the bank; (d) the whole of its metallic stock less a reserve in gold equivalent to 10 per cent. of the company's capital.

The Bank of Sweden issues about four-ninths and the private banks about fiveninths of the total notes in circulation in the kingdom, as may be seen from the following statement of the amount of bank notes outstanding at the close of 1893 :

Bank of Sweden (Riksbank) notes. -
Private bank notes...

Crowns.

47,828,400

59,058,892

106,887,292

Of the notes of the Bank of Sweden, 17,368,828 crowns were uncovered. The uncovered notes of the private banks on the same date amounted to about 40,000,000 crowns.

NORWAY. Bank Notes.-Norway has only one central bank of issue-the Bank of Norway, founded in 1814. It is a joint stock bank with the state as principal shareholder, and is under the direction of State officials. Its capital is 10,000,000 kronen. Its issue of notes, which have legal currency in the country, may not exceed twice its metallic reserve, but the bank is authorized to place one-third of that reserve with its correspondents in foreign countries. The outstanding notes Dec. 31, 1893, amounted to 47,199,800 crowns, which exceeds the metallic reserve by 14,694,000

crowns.

DENMARK.

Bank Notes.-The National Bank of Denmark, founded in 1818, is the only bank of issue in the Kingdom. Its capital is 27,000,000 kronen, and its issue of notes may, by royal decree of 1877, exceed its metallic reserve by 30,000,000 kronen. At the end of December, 1893, the aggregate circulation amounted to 81,000,000 crowns, of which 20,000,000 crowns are "uncovered."

Estimated Stock of Money in Scandinavian Union.-Gold, $32,000,000; silver (subsidiary), $11,000,000; uncovered notes, $27,000,000, being bank notes, $60,000,000, less metallic reserve, $33,000,000.