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has wisely increased its capital from 10 to 25 millions
by means of earned profit, while at the same time it
holds a reserve of 15 millions, and how it has finally
increased its right of note-issue from 35 to 40 millions
without special covering, while at the same time it
allows foreign bills to be included in the legal covering
for notes, which represents a monetary increase of
another 5 millions. Several other countries have recently
adopted similar measures. It is an equally wise policy
that silver, except coins, should no longer be regarded
as cash. Some of the large countries which have
gathered enormous masses of silver as reserves for their
banks, reckoning it at a nominal value, which is often
double that of the real value, have only a fictitious
reserve. In all countries the government is closely
connected with the leading banks, and it is therefore
not without interest to notice the situation of the
Treasury. The Finnish government has in three years
decreased the amount of its credit in other countries
by a few millions, the decrease being from 11 to 7
millions. Herr Theodore Wegelius reckoned that in
the same three years, up to the autumn of 1900,
several institutions sold foreign bonds to the value of
about 9 million marks. In the same period 53 millions
had to be reckoned to the credit of the country, the
result of foreign borrowing, besides some conversions,
some municipal loans, and loans made by the
Hypothekskassa (or Mortgage Bank) and the Joint-Stock
Bank of the North. Finally the government
itself borrowed 25 millions as part of the expenses of
the construction of railroads, to be spread over four
years. All such transactions have to be considered on
their merits. They are only a part of the whole mass
of transactions forming an international balance: they
are commendable if they pay, not because of their
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