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JAPAN BY THE JAPANESE
  1. To subscribe or take up public loan bonds, local loan bonds, and companies’ debentures.
  2. To accept deposit of money and custody of valuable objects.
  3. To transact various kinds of trust business with local loan bonds, companies’ debentures and shares.

Thus, loans without security, or on the security of other than negotiable papers and discounts of bills, are not within the scope of the bank’s business. In order to enable it to obtain the necessary amount of capital for carrying out its object, the bank is also endowed with the privilege of issuing debentures to an amount of five times its paid-up capital, which, however, may not exceed the total amount of advances made by the bank, the local loan bonds and companies’ debentures appropriated by it. Besides, for the first five years dividend of 5 per cent. of its paid-up capital is guaranteed by the Government.

Rates of Profits.
Years Capital
paid up.
Reserves. Net
Profits.
Dividends. Rates of
Net
Profits on
Capital
and
Reserves.
Rates of
Dividends.
To make
Loss
Good.
For
Equaliza-
tion of
Dividend.
Yen. Yen. Yen. Yen. Yen. Yen. Yen.
1899,
1st half
2,500,000 08,700 02,175 115,654 182,500 4.606 3.300
1899,
2nd half
2,500,000 27,202 06,801 126,718 187,500 5.001 3.500
1900,
1st half
2,500,000 46,801 11,701 132,811 195,000 5.260 3.800
1900,
2nd half
2,500,000 56,739 14,186 179,587 112,500 6.985 4.500
The Agricultural and Industrial Banks.

The Agricultural and Industrial Banks were established in accordance with the Law for the Agricultural and Industrial Banks (Law No. 84, 1886), as local organs of credit for the same object as that of the Hypothec Bank, each with a capital of 20,000 yen or upwards. Each bank has, as a general rule, for its business district the whole part of the prefecture where it is established, each prefecture having one bank; but it is provided that, if the circumstances require, a prefecture may be divided into two or more districts in respect of agricultural and industrial banks by special Imperial ordinances, which provision, however, has not yet been made use of.