The question, therefore, resolves itself into one of having a state bank or a private bank to help the treasury to control and regulate adequately both currency and banking. Dr. Vissering in his able work on the banking problem has discussed this point. So far as the distinction between state bank and a private bank is concerned, I am inclined to agree with him in all his remarks. Even when a private bank has the right of issue it is not altogether private, because the very right of issue involves an obligation on the part of the Government to pay special attention and maintain strict supervision over the issue of bank-notes by the bank. Dr. Vissering also points out that the weak points of the state bank are that in periods of tension it so easily loses the confidence of the public; that it is not only completely dependent on the state, but is even entirely made use of, in the interest of the Government, or even of a single political party, against the interests of many others; that it has bureaucratic views instead of sane commercial methods, in consequence of which the bank is estranged from actual economic life, and may even act in conflict with it. Without going into unnecessary-details, it may readily be accepted that a bank of issue or private concern more or less under the control of the state has certainly proved to be better than a state bank. History has shown in Spain and Russia that the government's central bank was no help to keep up the value of Government paper money. Again, as governments are too prone to make issues of money through a state bank when they are in need, without paying sufficient attention to economic conditions, government paper money has never been received with the same confidence as the money of the banks of issue. In France during the revolution, in America during the Civil War, in Austria, Russia and Italy, government paper money has depreciated badly at one time or other. So late as 1911 paper money of the Republic of Nicaragua was worth only 5 per cent of its face value; the Central and South American States generally all suffer from depreciated currency on account of the state bank being used by the governments in defiance of the economic conditions.