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MANAGEMENT AND BD8INES8 OP THE BANK OP SWEDEN. 1027
the right of paper issue for the private banks ought to be withdrawn
and this issue concentrated to one particular bank. At the same time
it was, however, pointed out that such a change could not take place
without producing great difficulties in our national economy, therefore
such an alteration in the State Bank organization and work must first
take place to enable it to take up the total paper issue. For this
reason the committee put forward a temporary bill requiring a further
limit in the right of the private banks to issue paper and a better
rendering for the safety of the payment of the notes. This bill,
however, was refused, and in 1889 a new committee was appointed, which
held the same view as the committee of 1881 regarding the desirability
of having a monopolized currency issuing bank, and worked out a series
of proposals for the realization of this desire. The committee pointed out
that the Government ought to obtain some influence in the management
of the State Bank. Propositions on basis of the committee’s report
were laid before the Riksdag but were passed only in 1897, and then
in a very different condition. The question of the note issue was,
however, thus finally solved, so that the right of issue should cease for
the private banks with the end of 1903; thus from 1904 inclusive, the
State Bank has the monopoly of issuing paper-currency. The chief points
of the reform are to be found in the act of May 12, 1897, with reference
to the Bank of Sweden, and it contains the decisions accounted for below.
Present management and business of the Bank of Sweden.
The rules for the management and business of the Bank of Sweden
are partly laid down in the fundamental laws, partly in an act issued
by the Government and the Riksdag. The law now in force of this
latter kind is, as afore mentioned, the law of May 12, 1897. The statutes
supplementing these laws are fixed by the Riksdag alone. The Board
of the Bank of Sweden consists of seven delegates (called Fullmäktige),
elected for three years, one of whom, the Chairman, is nominated by
the Government, the others being chosen by the Riksdag through
electors. The Board chooses from among its members, elected by the
Riksdag, two Deputies, who act as managers of the Bank. A delegate
must not be a member of the administration of any other bank than a
savings-bank or the Post Office Savings-Bank.
The capital stock of the Bank shall amount to 50,000,000 kronor. —
The reserve fund (at present 7,090,000 kronor) shall increase through
annual deposits until it amounts to 25 % of the capital stock. The
current amount may with 100 million kronor surmount the cash,
which latter includes not only the stock of gold the Bank possesses
in the country but also the gold under transportation from abroad,
and the net amount to its credit in current accounts with foreign
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