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xi. banking, credit, and insurance.
The Origin of the Joint-Stock Banks. The Joint-Stock Companies Act
of 1848 brought into being banks with limited liability, but without the
right to issue notes. The first joint-stock bank was opened in 1863. It
was not till 1886 that the joint-stock banks were brought under special
legislation, whereby their activity was subjected to legal restrictions
similar to those in force respecting the "Enskilda" banks. The Act of
1886 was superseded by the Joint-Stock Banks Act of 1903, which Act
in its turn was rescinded by the Banks Act of 1911. Altogether, 98
Joint-Stock banks have been established in Sweden; 63 of these are still in
existence.
The Banks Reform of 1897. The value to the Swedish industrial
community of the services performed by the "Enskilda" note-issuing banks
were indeed generally admitted: they were useful as credit-providing
institutions, more especially as by their ramifying network of branch offices
they served the needs of a great many and even quite small places, thus
greatly facilitating the collection and utilizing of the savings of the public.
Nevertheless, as the nineteenth century drew towards its close, it was felt
that the time had come to bestow on the country the benefit of a central
bank in the proper sense, enjoying a monopoly as regards the note issue. It
was generally agreed that the bank which was to be invested with that
monopoly must be the Riksbank; on the other hand, people were not in
accord as to the organization best adapted to fit the bank for its special
mission. Two Committees (1881—83 and 1889—90) brought forward
proposals on the subject, but it was not till the 1897 Riksdag that the measure
of reform was actually carried into effect. Pursuant to the resolutions
then adopted, the Riksbank was still to have the Riksdag at its back and
remain subject to its supervision, private stockholders continuing to be
excluded. Laws affecting the Riksbank were to be enacted by King and
Riksdag conjointly, the King being accorded besides some influence in
the constitution of its governing body. The Riksbank was to exercise the
monopoly of note issue from and after 1904 (though, as a matter of fact,
the note-issuing rights of the "Enskilda" banks lapsed on August 1 1903).
Present Administration and Business Activity of the Riksbank.
The principal stipulations respecting the administration and business
activity of the Riksbank are to be found in part in the Fundamental Laws
of the Realm, in part in an Act of the Riksdag passed May 12, 1897; the
latter has been to some extent modified since by amending clauses being
added, the last dated Aug. 31, 1914. Consequently those principal
stipulations are the result of the joint legislative work of the Riksdag and the
Government. There exist, however, supplementary stipulations respecting
the more detailed organization of the Riksbank over which the Riksdag
alone exercises control.
The Court of Directors (Styrelsen) consists of seven members who bear
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