A Single Bank of Issue. 
373 
the finances and administration of government and of the judi¬ 
ciary was the result. 1 
The conditions of banking were not far advanced at this time 
in France. There were private banks issuing notes subject to 
redemption but privileged only within the cities in which they 
were located. On the 13th of February, 1800, Napoleon founded 
the Bank of France. 2 It had no special privileges and although 
its capital stock was large for the time, 30,000,000 francs, it 
was merely a competitor among other Paris city banks. Of the 
30,000 shares of stock for sale at 1,000 francs per share, the 
government bought 5,000. A general assembly was constituted 
to consist of the two hundred largest shareholders, every five 
shares conferring one vote, but no one person or corporation to 
have more than four votes. This assembly chose the officers of the 
bank consisting of fifteen directors and three supervising cen¬ 
sors. 
In 1803 an apparent change of policy was made and the bank 
was given the monopoly of note issue within the walls of Paris. 
Its capital stock was increased to 45,000,000 francs, and the 
charter was continued to 1818. This capital, however, was too 
large for the business and the bank, becoming involved in the 
operations of the French treasury, was allowed, by legislative 
enactment in 1805, to restrict its redemptions to 600,000 
francs per day. The law of 1803 also provided that no one could 
have more than one vote in the geneial council of the bank. 
Notwithstanding that the capital employed was already too 
large, it was again increased in 1806 to 90,000,000 francs. The 
amount actually sold in 1810-11 was between eighty-one and 
eighty-two million, and by redemption was brought down to 67,- 
900,000 francs, where it remained until 1848. This legislation 
3 Victor Duruy, “Hist, of France.” Trans, from 17th Fr. ed. N. Y. 
(Crowell), p. 586. 
2 As general references upon the history and constitution of the Bank 
of France, consult, article “Banque” by Leon Smith and Neymarck in 
Say’s “Nouveau Dictionnaire d’Economie Politique ” Tome I; Max Wirth, 
“Grunizuge der National Oekonomie,” Bd. Ill; Alphonse Courtois, Art. 
“Renewal of Privilege of the Bank of France,” Banker’s Magazine, N. Y., 
vol. 46,1892, also by same author “Historie des Banques en France, ” 2nd 
ed., Paris, 1881; Tooke, “Hist, of Prices,” vol. VI, § 11-16 incl. pp. 44-74. 
