and the private banks. This tendency has evolved branch banking and given magnitude to individual banks. Of the five largest systems of this character, Lloyds Bank stands first. The tabulation of this one will give some estimate of their importance. Lloyds has $120,361,000 subscribed capital: $19,258,000 paid up capital: $14,500,000 reserve fund and $314,112,145 current and deposit accounts. The Bank of England and the joint-stock banks in all of the United Kingdom, including the adjoining islands, have eighty-two banks. These eighty-two banks have a paid capital of $397,200,715 with a reserve fund of $244,302,080, and the enormous deposit and current accounts of $4,174.167,265.

There are twelve private banks in England and Wales, with partners capital and reserve of $21,969,525 and deposit and current accounts amounting to $138,875,095. These do not include the colonial and foreign banks doing business in London.

The avowed purpose of the Act of 1844 was to limit the issuing of notes to the Bank of England. This purpose has become more apparent with each passing decade until 1906, only thirty-one banks possessed this right. The unfair discrimination is to be observed in the amount of notes allowed to be issued by each bank. All outside the Bank of England have an authorized maximum issue of $8,141,710 with an actual circulation of $2,889,320. From its Issue Department, the Bank of England is authorized to issue $70,000,000 under Government securities. This can be increased. If other banks forfeit their right or allow the issuing to lapse, the Bank of England can add two-thirds of their authorized grant to its issue. This amount now stands at $92,250,000. If notes, in excess of this authorized amount, are issued, they must be made secure by the deposit of bullion or coin to the same amount. The bank rarely resorts to a silver deposit, but if it

should, the white metal cannot make more than one-fifth of the entire deposit. All standard gold bullions offered to the Issue Department are bought at the rate of three pounds, seventeen shillings and nine pence per ounce. It does not always hold fast these figures. If competing with other banks for gold, the Bank sometimes pays more and if the demand by foreign countries is urgent, the Bank raises its selling price. Notes when not needed in circulation are retained in the Banking Department and constitute a great part of the reserve of the Bank of England. During normal business conditions, the active circulation is slightly more than half of the entire issue. The demand for a convenient and elastic currency has never approximated the proportions assumed in this country. On three occasions, 1847, 1857, and 1866, under extraordinary stress, the issue of notes exceeded the bank's power to grant, and the Government intervened. Notes issued by the Bank of England are legal tender in transactions and payment outside the Bank and its branches. Notwithstanding several persistent efforts to create notes of smaller denomination, the Bank of England issues nothing less than a twenty-five dollar note.

Since every English bank is within the compass of a day's journey, the system of clearing checks is the simplest in the world. In different important centers local checks are cleared through local clearing houses, but the vast majority of checks gravitate to the banking center and are cleared at the London Clearing House. The difficulty with which seats were secured in the Clearing House and the traditional jealousy that safeguards such high privileges prevented the joint-stock banks possessing seats until 1854. Every bank enjoying the honor of a seat in the Clearing House is compelled by rule to keep an account with the Bank of England. A central account called the Clearing Banker's Account is also kept and at

In the face of the fact that the world acknowledges London its only free market for gold, you would be startled to know that the precious metal in her stock is sometimes below the amount possessed by other countries. There is more actual gold today in Paris than in London. The Bank of France in some respects shows a finer annual record than does the Bank of England. France has more actual distributed wealth than any other country today. An Associated Press dispatch recently announced that the United States possessed a fraction over $34.00 per capita. France has $117.00 per capita. It may be asked how London holds the center in the banking world and operates such tremendous schemes on so small a gold basis. 1st: Her economy in a single simple centralized reserve system. In the union of financial forces and means, there is an irresistible power. The good wrought by such a power is incomprehensible, if that power is directed by some judgment and controlled by equitable standards. 2nd: England's thoroughly compact organization and the durability and smoothness of its machinery. In the third place the Bank's unquestionable methods have inspired confidence everywhere. Like some monster magnet, the Bank's credit draws the rich nuggets of gold from other countries at once. After all, the greatest asset that any concern can possess is the unswerving business confidence of the people. The foundation of any eminently successful national insti

tution is its undisputed integrity which must enlist universal confidence. The English banking system eliminates all questionable methods and stands as the noonday sun on the face of a clear sky as regards graft.

However, there is an undercurrent tendency on the part of large business houses to get the Bank of England to increase her gold reserve, especially since several other countries have adopted the gold standard. No doubt that London is keeping her banking eye on New York. During the panic here in 1907, when America was drawing gold across by millions of dollars, the Bank of England's rate of discount bounded out of reason. The metropolitan monthlies and dailies expatiated on the situation at great length. The London financial journals set forth by contrast in extended tabulated reports the frightfully unsafe banking system in America. Somehow I seemed to read between the lines that conscious fear which lurks under the cover of an apparently friendly message where a deep-seated jealousy exists.

With the chivalry of a Chesterfield, the astute editors analyzed the farreaching catastrophe and appeared to get healing balm from the fact that it would only strenghten the English banking system in the estimation and support of the world, and at the same time drive farther away New York's hopes of becoming the great banking center of the world. It is scarcely possible to realize the enormous obligations under which London rests as regards the banking of all the world. The British banks owe $4,500,000,000 in gold to their depositors. Caution is their watchword. Prudence has become an unerring instinct. Their deposits payable on demand are simply immense and keep the banks from schemes of speculation. Only gilt-edge securities are considered at all on the stock exchange. The large banks are practically free from political entanglements

and are not encumbered as promoters of commercial undertakings. The London banks pay but little attention to foreign bills and foreign exchange.

Threadneedle and Lombard streets form the business places of a large body of people who constitute what is called the London Money Market. These men borrow and loan on short time. The Bill brokers and Stock Exchange, together with a miscellaneous company of financiers form part one. While the Bank of England with its reserve funds stands near at hand, and makes part two. Between these two there are numerous other financial institutions and organizations doing business. The Money Market has as an esteemed patron the British Government. The India Council represents the Government of India in making large loans to the market. The Bank Rate of the Market is determined by the discounting of bills by the Bank of England. The Bank of England fixes its rate of discount according to the inflow or outflow of gold, but they strive to keep it as high as possible.

The vast populace who borrow in the Market endeavor to keep the rate as low as they can. This gives the other banks of London an opportunity to strike a balance between the Bank of England and the multitude of borrowers. When great quantities of money are in circulation, the other banks can force the gold reserve in the Bank of England very low. The funds under the control of the joint-stock banks far exceed those of the Bank of England. The English banks' liabilities are to be found in the balances of current accounts in their possession which are payable on demand, and on which it is not customary to pay any interest. Next, time deposits payable at a fixed notice on which one and a half per cent below the Bank of England's discount rate is allowed by the other banks of London.

England's wonderful banking system has figured very conspicuously in the

marvelous development of the enormous empire. A thoroughly reliable financial institution was absolutely necessary in the building of such a comprehensive scheme of government. English capital has played such a tremendous part in the material development of many countries. If the actual amount of English capital invested in different enterprises in the United States could be shown in some way to be readily grasped, the figures would startle nearly every citizen. Factories, cotton and flouring mills, railroads and real estate, in fact almost every avenue of legitimate business investment stands under obligation in some way to English capital. There is scarcely a rural community but what is under tribute to English Life or Fire Insurance Companies. It is English capital that practically developed the vast stretches of Canadian territory. British money largely built the Canadian Pacific Railway which spans the continent and ties the two oceans together with iron rails. This road, with its connected and controlled ship lines, owns the greatest single system in America and has the largest shops in all the world at Montreal. The Grand Trunk Line, now about completed, will eventually become one of the biggest, best constructed double-track transcontinental lines in existence. English gold figured largely in this splendid work.

The uninformed would be surprised at the vast sum of British coin invested in the rapidly growing enterprises and institutions of the South American republics. Especially is this true with reference to Argentine and Brazil. Time will not permit us to write of English capital in the United States of South Africa. In that magic city of Johannesburg, hovering over the mines of gold and keeping watch of the scores of diamonds, the British are to furnish this great new city with power and light transmitted about six hundred miles across the desert from Victoria

Falls. At Elizabethtown are fine ostrich farms. Boats frequently land at Southampton carrying millions of dollars worth of gold bricks, crude bricks, crude diamonds and fine ostrich feath ers. This was made possible largely by English finance.

What shall we say of the fertile soil of the ancient Nile? Centuries rolled by with but little change or improvement. After other European powers had failed, England assumed the tremendous task of the physical regeneration of the great Nile valley. Lord Cromer was the government's efficient representative. With that peculiar statesmanlike wisdom born of centuries of experience, Lord Cromer governed Egypt through the Egyptians. He soon inaugurated that vast system of irrigation which finally culminated in the construction of the big dam. The rich valley smiled under her wealth of soil and produced great harvests never before dreamed of. British money did it.

So you see that indirectly, the Bank of England through the British Imperial government has practically unlimited scope for its operations. And since the two are distinct yet thoroughly coordinate in their financial affairs, it stands to reason that a national institution of such prestige and unlimited scope must wield an incalculable power in the development of an Empire. The remarkable thing is that this absolute confidence has never been be trayed. Even when the undertakings were imperial in proportion and the opportunity for graft entrancingly inviting, the Bank has maintained its business integrity and thus held universal confidence.

With this unlimited scope and untrammeled power there comes correspondingly grave responsibilities, and the standard of business integrity in the light of these far-reaching responsibilities have kept the Bank's operations within the path of prudence and justice.

Beware!

Beware!

A

MONG the stories and traditions which make up the gossip of every hamlet and village, one of the strangest chapters is that about the man who "went crazy." The men as they talk at their work, the women in their households, and the children on their way to and from school, pass on from one to another the account of the strange doings of a man who tried to harness his team to the wagon, wrongend foremost, or to drive into the barn without opening the doors, or who thought the angels were talking to him, or that devils were after him, or who chased children, or who unexpectedly attacked a friend. The recital usually ends with the phrase, "and they had to take him off to an asylum."

It is for many reasons unfortunate that this kindly removal of the afflicted person to a hospital in which he may be humanely cared for, protected from injury to himself or others and receive the best of medical treatment, removes him from further observation by the community. The lessons which would The lessons which would bo learned by each community if its insane were cared for in its own sight, so to speak, would be exceedingly valuable. If people generally saw more of the insane after the first onset of the disease they would learn many things which now are known only to a few. They would learn, for instance, that most of the insane are practically harmless; that mental troubles differ greatly in degree and in kind; and that patience, kindness, and sympathy are the chief factors in healing the diseases of the mind as in healing many other ills. The seriousness of the affliction, and the burden which it imposes on the community would be more fully realized, and there would be readier appreciation of the importance of

any new detail thrown by science upon the nature, cause and preventability of insanity.

It will doubtless surprise most persons to learn that the number of insane in hospitals in the United States on January first, 1904 (no later figures are available for the country as a whole), was not less than 150,151. This was more than double the number in 1890, which was 74,928. From 1904 to 1910 the insane in hospitals in New York alone increased 25 per cent. It is safe to say that the insane now in hospitals in the United States number at least 200,000. These unfortunates, if gathered together in one place, would make up a city approximately the size of Rochester, St. Paul, Seattle, Denver, or Louisville. The population of the State of Delaware in 1910 is almost exactly the same as the number of insane in the United States in 1904. The population of Nevada and Wyoming in 1910 together is about equal to the population of the hospitals for the insane in the United States. the United States. The total annual cost of caring for the insane in the United States is in the neighborhood of $50,000,000 per year. About one-sixth of the total expenditure of the State of New York is for the care of the insane.

It is, of course, entirely impossible for any one of us to appreciate such totals. If we recall the distress in any household in which insanity has developed, the sufferings of the patient, the anguish of his family and friends, the loss of his earnings with, in many cases, the resulting pinch of poverty, we will acknowledge our inability to fully measure the length, breadth, and depth of the calamity in one single instance. By what process of mental arithmetic shall we multiply by the