& The Bank of Chosen.—This bank was established in 1909 and was first called the Bank of Korea, but renamed the Bank of Chosen in 1911, and has its head office in Keijo (Seoul). At the end of 1915 it had a registered capital amounting to $2,000,000 (fully paid up), and reserves amounting to $189,250. It engages in a general banking business and owns the privi lege of issuing bank notes convertible into gold coin or the Bank of Japan convertible notes. The issue of the notes, backed by security re serves, is limited to $15,000,000. According to requirements of the money market, the bank may, subject to permission by the governor general of Chosen, issue notes in excess over this limit. At the end of 1915 the amount of convertible notes issued stood at $17,193,760. The bank has its branch offices in Tokio, Muk den, Dairen, Cheng-chun, Ssu-ping-chieh, Kai yuan, Harping and Ying-kou.
Ordinary Banks.— By ordinary banks is meant those banks which engage in a general banking business in accordance with the Bank ing Regulation. Of all banks, these are under the most lenient supervision by the government.
Those who desire to engage in ordinary banking business must obtain the sanction of the Minister of Finance. The amount of the capital of an ordinary bank was formerly with out any limitation, but since 1901 all banks have been ordered to possess a capital amounting to $250,000 at least. The classification, number and amount of capital of ordinary banks existing in Japan at the end of 1915 were as follows: enumerated were instituted. As a result of the measure the savings banks now invest their money in a similar way as ordinary banks. The number and amount of registered capital of savings banks at the end of 1915 were 657 and $96,662,175, •respectively. According to in vestigation under the same date the paid-up aggregated $60,463,596 and the reserves 216, The government postal savings banks re corded in April 1917 total deposits amounting to $159,580,639.
Clearing-houses.— The clearing-house in Japan was first established in Osaka in 1879 after the model of similar institutions in Europe and America. Subsequently it was organized in Tokio and other places, there being at present 11. clearing houses in Japan. The one in Tokio has the following regulations, and those in other places have on the whole similar regula tions:. (1) Members are limited to those banks
which are members of the Tokio Bankers' As sociation and which have current account con nections with the Bank of Japan. (2) New membership shall be awarded with approval of more than three-fourths of the total number of members, to be decided by open ballot. (3) Members shall deposit security money with the house, and in the event of their failing to re pay their debts in the clearance of bills, the account will 'be settled with the security money. In that case the defaulter loses his membership.
(4) Members may represent non-member banks in clearing bills, provided that a majority of the members approve of the representation.
(5) In the case of the above clause, the repre senting bank shall demand a money security from the represented bank, and use that money for settling accounts in case the latter fails to repay debts due to clearing its bills. In that case the clearing house shall refuse to enter tain the representation of that particular bank.
(6) In the event of the payer of bills cleared failing to pay, the name of that payer shall be made public. (7) The clearing-house accounts of members are settled by current account at the Bank of Japan. Number and value of bills cleared at different clearing houses in Japan in 1915 were as follows: According to investigations made at the end of 1915, paid-up capital totalled $179,255,992 and reserves $63,849,702.50.
Savings Banks.— The savings banks receive deposits at the rate of compound interest, and are subject to government supervision more strict than given to ordinary banks, in the fol lowing points: (1) They must be organized as joint-stock companies, limited. (2) They must not amend their company contract with out the sanction of the government. (3) Di rectors must be under unlimited liabilities. (4) They must reserve one-fourth of savings deposits in the shape of public loan bonds or other sound securities and deposit them with the government as security for depositors. At first there were restrictions with regard to the sort of investment to be made by the savings banks. But these restrictions were removed in 1895, and instead the four provisions above