Competitive Banks of Issue. 
881 
the same principle that he had carried out in the army. 1 Many 
considered the forced absorption of the provincial banks 2 3 into 
a privileged private company at the seat of the capital 8 as an 
evidence of both private and sectional favoritism. 4 Not only 
was this felt but an oligarchical character in the organization 
was pointed out. 5 The shares were in sums of 1,000 francs, but 
even at this a voice in the general assembly was limited to the 
two hundred highest shareholders. 6 The lowest notes of issue 
were from 1803 fixed at 500 francs, with 250 francs as the 
minimum for the branch departments. In 1847 this was re¬ 
duced to 200 francs for the central bank, and in the following 
year 100 francs was established for both the central bank and 
its branches. 7 
The profits of note issue might, it was urged, have served as 
an inducement to the founding of banks which would have 
given the accommodations of credit to large classes of people in 
all parts of France. The bank had indeed tried to found suc¬ 
cessful branch departments, but the restrictions laid upon its 
business methods were found too great to allow of close con¬ 
nection with trade. 8 It was a banker’s bank and so strictly 
limited that institutions sprang up, as occasion offered, to oc¬ 
cupy the field. 9 The competition was just enough to prevent 
the bank from supporting the supplementary institutions as it 
should have done, and not enough to offer any check upon the 
business methods of either. 10 
1 Gustave du Puynode, ‘Mourn, des Econ.,” vol. 26, p. 218. Courtois, 
op. cit. p. 540. 
2 Courtois, op. cit. p. 784. 
3 Hellwald “Culturgeschichte” Bd. II, p. 562. 
4 The provincial stock-holders were almost entirely without representa¬ 
tion. E. Fournier de Flaix, op. cit. p. 203. The three provincial offi¬ 
cials in fact represented only central and government interests. 
5 Courtois, op. cit. p. 607. 
6 Fournier de Flaix, op. cit. p. 203. 
7 Tooke, “Hist, of Prices,” vol. VI, pp. 45-46. 
8 Courtois, op. cit. pp. 608 et suiv. Fournier de Flaix, op. cit. p. 203. 
The bank was likened by J. B. Say to an insurance company which 
would only insure where there was no risk. Du Puynode, op. cit. p. 227. 
9 For general program promulgated by the Credit Mobilier. See Tooke, 
op. cit. vol. VI, pp. 106-109 and 115. 
10 Tooke, op. cit. vol. VI, pp. 133-134. 
