BANK OF FRANCE US. BANK OF SAVOY-POWER TO ISSUE NOTES.--A · great commotion has been excited in commercial circles at Paris, by a singular affair. At the time Savoy formed part of the dominions of King Victor Emanuel, there existed a Bank of Savoy with a capital of only 4,000,000f. ($800,000), but possessed of the of issuing notes privileges of establishing branches, of increasing its capital at will, and of being of in The dividend of the Massachusetts Bank is 3 1-5 per cent (par $250,) equal to $8 per share. Freeman's not official. definite duration. In the treaty annexing the province to France, no special stipulation was made with regard to this bank, and accordingly it came within the clause by which France guaranteed to all companies and establishments in that province the maintenance of the rights and privileges they had enjoyed. After a while the directors of the Bank of Savoy fancied that they had no chance of maintaining their ground against the Bank of France, and they accordingly proposed to sell purely and simply their business and their privileges to that establishment. Negotiations took place and extended over an unreasonably long time. But at last they were broken off, because the Bank of France would not consent to give the price demanded by the Bank of Savoy. On the rupture of these negotiations, the directors of the Bank went to Messrs. PEREIRE, and these great financiers saw at once that the Bank of France had committed a gross blunder as regarded its own interests, and that the Bank of Savoy might be turned to account in a manner which it had not the sagacity to foresee. They entered into a provisional agreement for purchasing the privileges of the Bank, and about the first of October that agreement became definitive. The Bank of Savoy, therefore, is theirs. When their purchase had become a fait accompli, the great fact that the Bank of Savoy can issue notes presented itself, with appalling sternness, to the directors of the Bank of France. are aware, has hitherto had the exclusive privilege of issuing notes; and This latter Bank, as our readers it has certainly good reason to be troubled at seeing that great privilege invaded by financiers of such high authority and vast resources as Messrs. PEREIRE. Yet, although the Bank of France is determined now to make a vigorous opposition to the Bank of Savoy, it appears that it not only peremptorily refused to allow the Bank of Savoy to amalgamate with it, as the latter wished, and as the Emperor himself, it is alleged, desired, but that it would not even consent to buy up its privilege of issuing notes, except for a sum absurdly small ($120,000), and except on the condition that the bank should undergo a complete transformation, which would have rendered its other privileges useless, and have made it an abject dependence of the French establishment: What is still stranger is, that the Bank of France strongly recommended the Bank of Savoy, for its own sake and for the sake of the people of the province, to continue its operations that is, to exercise its privileges of issuing notes, increasing its capital at will, forming branches, &c. is useful and necessary," said the Bank of France directors, in a "memoir" "The maintenance of this bank (as such things are called there) which they drew up against the projected amalgamation; "it is desired by the Bank of France itself." Bank of Savoy," they added, "has been useful; it is still indispensable; "The its suppression would be evidently injurious, and even a political error." These facts, as to the action of the Bank of France, came out at the meeting of the directors of the Bank of Savoy, held Sunday the fourth of October. After thus refusing to buy up the Savoy Bank, and after making such admissions as these, the Bank of France has clearly no moral right to raise clamors against that establishment, because, following the advice given, it has resolved to continue to exist, and in order to do so effectively has obtained the co-operation of two distinguished financiers. It must be evident to everybody that if the Bank of France thought the maintenance of the Savoy establishment "useful and necessary" before Messrs. VOL. XLIX. —NO. V. 26 PEREIRE had anything to do with it, the contrary opinion cannot with any decency be expressed now that those gentlemen have taken it in hand. The Bank of France has clearly put itself out of court. Nevertheless, we are told that this bank and its friends-in which term is included most of the principal bankers of Paris-will, on what they call public grounds, make a vigorous opposition to the Bank of Savoy. On this point, we take the following from the Paris correspondent of the London Economist, October 10th: "The Bank of France and principal bankers in Paris have already succeeded in inducing the Government Commissioner who attended the meeting of shareholders of the Bank of Savoy at Annecy the other day to declare that a vote which was passed for increasing the capital from 4,000,000f. to 40,000,000f. (£160,000 to £1,600,000) must be considered as given " under reserve "- mere matter of form, it is true, but still indicative of a wish to thwart, if possible, the arrangements between Messrs. PEREIRE and the Bank. Judging, however, from the reasons the adversaries of that arrangement have already presented, the opposition is not likely to succeed. The first objection they raise is that as the Bank of France has the exclusive privilege of issuing notes in France, no other establishment can be allowed to create notes. This objection would have prevailed if France had retained the limits she possessed when that privilege was granted; but it is of no weight when applied to a new territory annexed to France, and the commercial establishments in which were, by the treaty of annexation, guaranteed the maintenance of all the rights and privileges they had possessed under the Government to which the territory had previously belonged. M. DUFAURE, one of the most learned advocates in this country, having been consulted on the matter, has expressed the opinion that the Bank of Savoy, by French law, undoubtedly retains under annexation all the powers it held before. Another objection is that two sorts of bank notes in a country will present inconvenience and even danger. But when you ask-why? no answer is forthcoming. Great Britain and America know something of banking matters; and in both there is more than one species of note in circulation. Moreover, the Bank of France has itself demolished this objection in the Memoir' referred to, it proclaims that, though the Government "is favorable to the unity of banks and the uniformity of circulating paper,' it has 'not interdicted itself from coming to a compromise with that principle, and from admitting exceptions.' While these, and other objections equally unfounded, are urged against the great act which Messrs. PEREIRE and the Bank of Savoy have accomplished, loud praises of it are uttered by a large portion of the financial and commercial circles, and no small thing-it is almost unanimously approved of by economists. In the first place, a strong conviction is entertained by these classes that banking-including in that term the power of issuing notes-ought to be free; and they consider that the setting up of a bank of issue in the presence of the Bank of France is the first step toward obtaining freedom-the introduction of the wedge which is destined to shatter monopoly to pieces. In the next place, they think that as the Bank of Savoy can issue notes of 501. and even 20f., whereas the Bank of France refuses to go lower than 100f, it can give a great impetus to credit. In the third place, the Bank of Savoy will discount bills with two signatures, whereas the Bank of France cannot by its charter accept less than three; and the former will thus relieve the higher class of commerce from a heavy charge-for the third signature is almost always that of a banker, and he of course does not give it for nothing-whilst at the same time it can accept the paper of a vast number of petty traders, who hitherto have had difficulty in obtaining discount accommodation. Lastly, the Bank of Savoy can discount at four or six months, or even longer dates, whereas the Bank of France never accepts bills of more than three months, though in certain important branches of commerce such a short period is not adopted. "The report presented to the shareholders of the Bank of Savoy, in their meeting on Sunday, may be considered one of the most remarkable documents in financial history. It shows, on the one hand, the almost inconceivable blindness of a great fi nancial establishment; on the other, the acuteness of two eminent men. The Bank of France had the greatest interest in preventing another bank of issue from being tolerated in France; and yet it obstinately refused to come to an arrangement with the only establishment which could compete with it in that capacity. Messrs. PE REIRE, on this point, saw at once that what the bank so disdainfully rejected was nothing less than the most powerful instrument that existed in the financial world, apart from the Bank of France-inasmuch as it would not only enable a powerful opposition to be raised to that establishment, but would be a sort of revolution in the financial system of the country." CITY BANK RETURNS.-The returns of the Boston and Philadelphia banks exhibit no marked changes during the month; but in New York city there has been a loss of nearly fourteen millions in the deposits, while the loans have not changed materially, as will be seen by the following statement: $13,593,176 Decrease in net deposits since September 26..... It is said that the New York city banks now hold about fifteen million in legal tenders. Below will be found our usual returns for the three cities brought down to the latest dates: Date. 66 10,..... 66 17,..... 46 24,..... February 7,..... 14,. 66 66 March 46 66 April 46 ... 21,.... 7,..... 21,..... 11,..... Loans. NEW YORK BANKS. NEW YORK BANKS. (Capital, Jan., 1863, $69,494,577; Jan., 1862, $69,493,577.) Specie. Circulation. Net Deposits. Clearings. January 3,..... $173,810,009 $35,954,550 $9,754,355 $159,163,246 $186,861,762 175,816,010 36,770,746 9,551,563 162,878,249 249,796,489 176,606,558 37,581,465 9,241,670 164,666,003 314,471,457 179,288,266 38,549,794 9,083,419 168,269,228 298,861,366 179,892,161 38,243,839 8,780,154 166,342,777 302,352,571 173,103,592 38,426,460 8,756,217 167,720,880 265,139,104 178,335,880 87,981,310 8,752,536 170,103,758 291,242,929 179,958,842 39,512,256 8,739,969 173,912,695 840,574,444 181,098,322 39,705,089 8,693,175 174,689,212 344,484,442 177,875,949 36,110,085 8,657,016 172,944,034 307,370,817 173,829,479 33,955,122 8,609,723 167,004,466 277,831,351 172,448,526 34,317,691 8,560,602 163,363,846 281,326,258 4,..... 173,038,019 34,257,121 8,348,094 160,216,418 287,347,704 170,845,283 35,406,145 8,178,091 159,894,731 264,468,080 169,132,822 36,761,696 8,039,558 164,122,146 259,417,565 171,079,322 37,175,067 7,555,549 167,863,999 258,654,781 177,364,956 36,846,528 7,201,169 167,696,916 355,557,732 180,114,983 38,002,633 7,080,565 163,656,518 367,560,731 180,711,072 38,556,642 6,901,700 168,879,130 353,346,664 181,319,851 38,544,865 6,780,678 167,655,658 380,304,748 181,825,856 37,692,634 6,494,375 166,261,121 307,680,918 182,745,080 37,241,670 6,841,091 162,767,154 289,757,539 180,808,823 37,884,128 6,210,404 159,551,150 302,377,276 177,083,295 38,314,206 6,120,252 157,123,301 259,483,221 175,682,421 38,271,202 6,004,177 158,539,308 264,819,856 4...... 174,337,384 38,302,826 5,998,914 158,642,825 267,785,773 11,..... 175,087,485 38,712,397 5,927,071 160,733,496 319,945,652 18,..... 173,126,387 38,254,427 5,880,623 163,319,544 251,168,769 25,..... 173,036,336 35,910,227 5,775,188 164,133,549 284,684,421 1,..... 176,208,597 33,746,681 5,700,452 161,173,146 292,211,821 8,..... 176,559,840 32,156,548 5.706,024 155,868,116 297,384,006 175,305,471 32,874,913 5,613,177 155,950,043 298,936,160 175,713,139 31,520,499 5,545,970 156,588,095 373,755,630 176,748,618 32,030,055 5,475,964 156,671,695 392,404,680 178,477,037 31,989,381 5,456,016 158,110,687 394,814,312 Loans. Specie. Circulation. Net Depostis. Clearings. 200,028,980 32,018,107 5,457,366 178,588,622 371,510,559 185,576,199 343,263,949 207,679,456 31,014,411 5,414,643 BOSTON BANKS. BOSTON BANKS. (Capital, Jan., 1863, $38,231,700; Jan., 1862, $38,231,700.) Specie. Circulation. Deposits. Jan. 5,.. $77,339,046 $7,672,028 $8,190,496 $38,372,648 12,.. 77,427,173 7,751,000 8,373,000 33,063,800 19,.. 76,624,700 7,710,600 8,199,600 33,382,000 26,.. 76,354,000 7,710,700 8,008,500 88,847,000 16,811,700 13,958,000 Feb. 2,.. 76,496,800 7,685,000 8,865,000 84,076,800 16,889,000 14,490,000 46 64 9,.. 78,421,000 7,707,000 8,074,000 35,178,600 16,932,000 14,183,000 66 16,.. 78,431,000 7,794,000 8,001,000 34,903,000 17,070,700 14,095,500 28,.. 78,782,600 7,624,000 8,002,000 34,965,500 17,331,000 14,583,800 Mar. 2,.. 79,127,500 7,553,000 8,001,980 35,245,500 17,523,500 15,004,000 79,274,700 7,582,000 8,225,000 85,215,000 17,340,400 14,446,500 79,636,184 7,609,238 7,780,062 32,955,149 17,230,300 18,434,500 77,935,000 7,572,600 7,598,800 31,604,500 17,074,400 11,601,300 46 9,.. "16,.. "80... April 6,.. 76,933,600 7,703,800 7,963,500 32,687,000 15,444,000 12,280,600 13,.. 74,551,018 7,812,895 7,762,915 32,494,822 14,557,000 12,947,800 "20,.. 78,459,160 7,799,315 7,278,506 33,209,742 14,132,000 12,653,000 27,.. 73,558,000 7,838,800 7,040,000 82,781,500 13,803,000 11,966,700 May 4,.. 73,218,155 7,854,781 7,433,496 31,949,762 13,237,700 11,622,600 11,.. 73,062,789 7,847,849 7,688,238 31,309,985 13,147,000 11,800,000 "18,.. 73,068,598 7,794,046 7,167,327 32,192,770 12,863,500 11,782,000 "25,.. 72,874,000 7,777,000 7,011,700 33,000,000 12,787,000 11,748,000 June 1,.. 73,424,000 7,751,000 6,913,000 32,575,000 12,735,000 10,704,500 66 8,.. 73,592,000 7,738,557 7,030,286 31,728,285 12,626,700 10,874,700 "15,.. 78,237,000 7,780,000 7,109,000 81,477,600 12,285,500 10,541,000 "22,.. 73,351,000 7,697,000 7,344,500 31,355,800 12,504,600 10,914,700 "29,.. 73,421,084 7,683,987 7,040,624 31,477,596 12,888,000 10,900,000 July 6,.. 73,548,918 7,744,827 7,478,800 31,509,263 12,233,000 10,891,000 18,.. 73,485,675 7,774,991 7,508,442 80,277,502 12,193,000 10,712,000 20,.. 73,421,000 7,684,000 7,401,500 29,287,000 13,802,000 27... 72,850,716 7,811,513 7,246,797 28,011,571 12,950,000 Aug. 3,.. 72,390,364 7,793,916 7,317,402 28,384,096 12,655,000 71,997,503 7,798,276 7,440,212 28,247,266 12,822,673 17,.. 71,860,078 7,813,497 7,198,917 27,898,073 12,765,527 24,.. 71,447,520 7,780,905 7,303,757 27,510,154 12,662,321 46 31,.. 71,478,116 7,752,516 7,227,704 27,762,955 12,614,000 Sept. 7,.. 71,717,995 7,637,402 7,527,036 28,778,498 12,379,000 75,599,232 7,591,589 7,600,556 31,143,588 13,424,000 11,097,000 66 21,.. 79,595,740 7,595,358 7,604,161 34,509,214 13,565,000 11,487,500 28,.. 78,358,387 7,707,106 7,620,371 34,495,540 18,315,000 12,138,000 Oct. 5,.. 77,798,427 8,042,052 8,107,720 35,435,811 18,498,000 13,765,500 10,154,600 9,864,300 9,646,000 10,135,180 9,603,257 9,578,673 9,820,500 10,874,700 12,.. 78,160,899 7,991,999 8,399,769 35,784,989 18,909,500 14,128,700 19,.. 78,216,435 7,880,832 8,323,451 35,127,597 13,506,500 13,967,000 PHILADELPHIA BANKS. PHILADELPHIA BANKS. (Capital, Jan., 1863, $11,740,080; 1862, $11,970,130.) Loans. Due Due Date. Specie. Circulation. Deposits. to banks. from banks. Jan. 5,... $37,679,675 $4,510,750 $4,504,115 $28,429,189 $6,948,785 $1,994,928 46 12,... 87,533,757 4,544,786 4,450,676 28,018,792 6,890,963 1,848,932 64 19,... 37,416,694 4,549,369 4,382,520 27,877,069 7,050,847 2,275,905 66 26,... 37,479,712 4,572,419 4,284,947 28,778,517 6,755,980 2,638,985 |