August 1928
563
FEDERAL RESERVE BULLETIN
AUGUST, 1928
LEGAL RESERVE REQUIREMENTS OF FOREIGN CENTRAL BANKS
Reserve requirements
Country-
Albania. _
Australia.
Austria
Belgium..
Bulgaria..
Chile
Liabilities against which reserves
must be held
Notes
Notes
Notes plus other demand liabilities,
minus amount represented by
Federal loan debt.
Notes and deposits
Notes and other demand liabilities..
Notes and deposits
Gold
Gold
and
foreign
exchange
Per cent
Per cent
Foreign exchange may not exceed two-thirds.
25
2 24
30
Notes
Ecuador..
Notes and deposits...
Egypt....
Notes
England-
Notes in excess of fiduciary issue of
£260,000,000.
Notes and other demand liabilities...
Estonia...
Finland .
France
Germany..
Greece
Hungary..
Notes and other demand liabilities
in excess of 1,200,000,000 markka.
Java...
Notes and other demand liabilities...
Notes
Notes and deposits
Notes plus other demand liabilities,
minus amount represented by
State debt.
Notes and deposits exclusive of
Treasury fixed deposit account.
Notes in excess of fiduciary issue of
120,000,000 yen.
Notes and other demand liabilities...
Latvia
Lithuania
Netherlands..
Notes
Notes
Notes and other demand liabilities...
Norway
Notes in excess of fiduciary issue of
250,000,000 kroner.
Notes and other demand liabilities..
Notes and deposits...
Notes
Notes, deposits, and bills payable
Italy..
Japan.
Peru..
Poland
Russia
South AfricaSpain
Notes..
2 60
l 2 22
30
50
100
40
Reserve ratio to be increased at 5-year intervals ending January 2,
1938, the successive ratios being 20 per cent, 24 per cent, 28 per cent,
and 33)£ per cent.
The bank will take steps to raise the reserve ratio to 40 per cent.
Foreign exchange may consist only of demand deposits payable in
New York or London.
Foreign exchange may consist only of demand deposits.
Silver in reserve may not exceed one-fourth. Beginning April 1,
1926, with reserve ratio of 20 per cent, the bank will increase it by
1 per cent each year over a period of 15 years.
100 per cent reserve must be held against circulation in excess of 100
gulden per capita. Foreign exchange may consist only of demand
claims on the Bank of England.
Foreign exchange may consist only of the bank's noninterest-bearing
demand balances with Bank of Norway and Swedish Riksbank,
less indebtedness to these two banks, and noninterest-bearing demand balances in special account with German Reichsbank. The
bank, when authorized by royal proclamation and subject to payment of a tax, may permit the reserve ratio to fall below the legal
minimum.
Foreign exchange may consist only of deposits payable in gold on
demand or on 3 days' notice in New York or London.
The original requirement was a gold reserve ratio of 50 per cent, but
on October 30, 1916, the bank was authorized to substitute British
Treasury bills for gold.
Fiduciary issue may be increased by authorization of Treasury.
Power to suspend requirement is vested in the Government.
Markka
300,000
Per cent
35
2 30
100
2 40
40
220
40
»100
»20
50
100
2 30
"V46"
37,47
50
Switzerland
Uruguay
Notes.
Notes in denominations of 10 pesos
or more and deposits.
»40
40
Foreign exchange may consist only of undisputed balances with
foreign correspondents.
Power to suspend requirement is vested in the Government.
Reserve ratio to be increased at 5-year intervals ending June 24,1939,
the successive ratios being 20 per cent, 24 per cent, 28 per cent, and
3 3 ^ per cent.
Silver in reserve may not exceed one-fourth. Fiduciary issue may be
increased by authorization of Minister of Finance.
Previous to emergency legislation in 1914 the reserve requirement was
40 per cent.
Additional requirements for notes in excess of 100,000,000 lats.
Previous to emergency legislation in 1914 the reserve requirement was
40 per cent.
Fiduciary issue may be increased, subject to tax, by authority of King
and Storting.
•20
Notes in excess of fiduciary issue of
125,000,000 kronor.
Digitized for FRASER
http://fraser.stlouisfed.org/
Federal Reserve Bank of St. Louis
50
2 50
Sweden.
1
May legally
2
The bank is
3
40
2 50
Notes and deposits
Colombia
Czechoslovakia. Notes plus other demand liabilities,
minus amount represented by
debt in respect of state notes outstanding.
Danzig
Notes
Denmark
Qualifying provisions, etc.
50
2 40
125
45, 160
60
Reserve may include platinum.
Silver in reserve may not exceed one-fifth. The bank, subject to tax and
with consent of the Government, may suspend reserve requirements.
Note circulation limited to 6,000,000,000 pesetas and may exceed
5,000,000,000 only with consent of the Government. Consent of
the Government required for any reduction of gold holdings and
can not be given unless these holdings are in excess of the requirement necessary for a circulation of 6,000,000,000 pesetas. First
4,000,Qp0,000 pesetas require 45 per cent reserve; at least 37 per
cent must be gold; 5 per cent may be silver and 3 per cent foreign
exchange. Circulation above 4,000,000,000 pesetas requires 60 per
cent reserve; at least 47 per cent must be gold; 10 per cent may be
silver and 3 per cent foreign exchange.
Gold reserve may not fall below 75,000,000 kronor. In emergency
the King and Riksdag acting together may extend the fiduciary
issue by 125,000,000 kronor.
Silver in reserve may not exceed one-fifth.
Note issue in denominations of less than 10 pesos may not exceed
one-half paid-up capital of the bank. Note issue in denominations
of 10 pesos or more is limited in relation to capital of the bank,
gold deposited by commercial banks, and a war loan made to th«
French Government.
include silver as well as gold and foreign exchange.
specifically authorized, subject to the payment of a tax, to permit the reserve ratio to fall below the legal minimum.
Metallic reserve \may legally include sil ver as well as gold.