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have contributed to the development of banking in
Finland. Still more, however, is this an expression of
the high economic position held by the Finlanders.
In one point the Finns have not continued to
imitate the old Scotch system, nor the modern Canadian,
which latter country continues prominent in this
matter. We refer to the liberty of the banks to issue
notes. As will be remembered, this liberty was limited
in Scotland in 1845, the year after the enactment
of the Bank Act in England, to the amount of notes
which the banks then had in circulation; and twice a
year when the Scotch banks need more money they
must send to London for gold, only to send it back
again a short time afterwards. In Finland the Union
Bank began to imitate the Scotch banks by issuing
notes. From 1867 onwards it issued 1½ million marks’
worth of notes; having obtained the recognition of
this right in the banking law of 1866. The Senate
might approve statutes containing the right to issue
notes of an amount equal to the stock capital of the
bank, and secured by the deposit of bonds of
one-ninth more value than the notes; it being only
allowable to issue nine-tenths of the value of these bonds.
The shareholders were not jointly responsible as in
Scotland and Sweden. When later, in 1872, the
Joint-Stock Bank of the North was formed it desired
to issue notes also, but gave up the idea, as it could
only obtain permission to issue notes for one million
marks and in amounts not less than 100 marks. It
is true that bank-notes in Finland, as in other countries,
hold a less considerable place under the greater
economic development; the deposit of money and the
issue of cheques on deposit holding now a far larger
place in Finland as elsewhere. The notes continue,
however, to be of importance, particularly in the
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