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soon as the extra fund was exhausted, the proportional system
commenced to take effect, but this has not happened since 1870.
Since 1893, the differential system pure and simple has been
established, the bank now being authorised to issue notes to the amount
of kr. 24,000,000, or less, over and above its stock of gold. This
limit may, as an exception, be exceeded, provided, however, that
any excess which has taken place in the course of a month be
settled before the end of the next month. This permission has
been made use of by the bank twice in the year 1899.
The coin reserve of the bank and its note circulation amounted
to kr. 16,608,000 and kr. 28,388,000 respectively, at the end of
1870, at the end of 1880 to kr. 33,721,000 and kr. 38,714,000, at
the end of 1890 to kr. 38,896,000 and kr. 49,671,000, and at the
end of 1898 to kr. 44,324,000 and kr. 63,416,000.
Besides issuing paper money, the bank also does business as a
loan, circulation, discount and deposit bank. It accepts money
on call, but does not pay any interest thereon, and thus does not
compete with the other banks and savings banks which chiefly
carry on their business bv means of borrowed money. The money
placed in the Bank of Norway on call, amounting at the end of 1898
to kr. 9,300,000, may most appropriately be considered as cash
in hand for some of the other banks and for the Treasury.
The manner chiefly adopted by the bank in order to make its
means productive of revenue is by lending them in return for
bills of exchange and «vexelobligationer» [1] and also by lending
them against deposit and by placing them in interest-yielding
securities and drafts on foreign countries [[** sic, punktum mgl]]
The bank is obliged, without compensation, to take charge of
the money transactions of the state, and of the exchange of
subsidiary coin incumbent on the Treasury. In accordance with
certain rules, the net income of the bank is divided between the
stock-holders, the Treasury, and the reserve fund. The dividend
paid to the stock-holders in the year 1898, amounted to 9 ⅕ %.
The head office of the bank was formerly at Throndhjem, but
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