ered
through the branches. Through this network of offices, every part of
the country is brought into direct and easy access to the Bank.

The Bank of France is the only institution in the country privileged
to issue circulating notes. The maximum allowed it is regulated by law
and is increased from time to time. At present it amounts to
5,800,000,000 francs, or approximately $1,160,000,000. The bank is
obliged to redeem these notes on demand in gold coin or silver
five-franc pieces, but it is free to determine how much cash it shall
keep on hand for that purpose, and when and under what conditions it
shall issue them.

Its discount operations are limited by law to bills maturing in not
more than three months, and bearing the signatures of at least three
solvent persons, or two signatures and secured in addition by
specified forms of collateral. It is also permitted to make loans or
advances, as they are called, on securities of the French government
maturing at fixed dates, gold and silver bullion, and the money of
foreign countries, and obligations of the French railroads, French
cities, and departments, the Credit Foncier, and the Societe
Algerienne. It is also obliged to loan 180,000,000 francs
($36,000,000) to the government without interest.

One of the chief branches of the business of the Bank of France is the
service of the public treasury and the performance of other financial
duties imposed upon it by the government. It serves as the depository
and disbursing agent for the government, and performs important
functions connected with the public debt, the mints, the savings
institutions, and publicly administered trusts of various kinds. It is
also the depository for the banking reserves of the country. In
France, as in England, it is not the custom of banking and other
financial institutions to hoard money in their vaults, but to depend
upon the Bank of France for supplies as needed. To this end they keep
funds on deposit there, and regularly rediscount the paper of their
customers when balances need to be replenished.

Through its network of branches and agencies spread over the entire
country, the Bank of France is able economically and expeditiously to
conduct the intermunicipal exchanges of the country. It participates
in local clearings through membership in the clearing houses, at which
balances are paid by checks drawn against credits on its books
maintained for that purpose by all members, and it c