Page:Japan by the Japanese (1904).djvu/403

The figures in the above table are based on the returns for December, 1900. Special reserves are included in reserves, and sub-branches in branches. There were at that date fifty-two ordinary banks besides those in the above table, but some of these had not yet commenced their business, being in course of establishment. Their aggregate capital amounted to 4,568,500 yen.

The following seven banks, viz., the Bank of Japan, the Yokohama Specie Bank, the Hypothec Bank, the Agricultural and Industrial Banks, the Bank for Colonization and Exploitation of Hokkaido, the Bank of Formosa, and the Industrial Bank of Japan, are banks established under the special patronage of the Government, each with some special object, as is mentioned before under the head of each of these banks. While their branches of business are more or less limited, corresponding to the objects for which they are founded, they are all endowed with some privileges more or less lucrative, which more than balance the disadvantages of their limited sphere of action. At the same time they are subject to the strict control of the Government; not only their statutes, but also particular cases of their action, as is pointed out in the laws, are subject to the special permission of the Minister of Finance. Besides, one or more Special Commissioners are appointed for each of these banks, to supervise the course of their business and make report on it to the Minister. The governors, presidents, and directors of these banks are either directly appointed by the Government or approved by the latter after they are elected in the general meetings of the banks.

The amount of convertible notes at the end of October, 1900, was as follows:

Kind.	Amount of Issue.
​
Bank of Japan’s notes …		On cash reserve	…	67,349,129		228,570,032
		On security reserve	…	161,220,903
Formosan bank-notes …		On cash reserve	…	2,071,861		3,583,390
		On security reserve	…	1,511,529
​

The system of banking established in Japan not long after the Restoration was modelled on that in the United States. National banks which came into existence under the National Bank Act of 1872 were allowed to issue notes with Government bonds as their securities. But, after an experience extending for several years and more than one alteration in the