Besides those of England, France, Germany, the United States, and Canada, no banking systems have been developed in any part of the world worthy of being described as types. Every country, however, has some sort of a system, developed sometimes independently, but frequently patterned in many respects after some one of those already described. The features of the English and German systems have been most frequently copied. The system most commonly found is that consisting of a national bank with branches, controlled directly or indirectly by the central government, and possessing either a monopoly or a major share of the note issues. In most countries, besides this national bank, are to be found private and frequently joint-stock institutions whose business is chiefly confined to the discounting of commercial or agricultural securities. A few instances may be cited by way of illustration: -

Austria-Hungary possesses a strong national institution, called the Austro-Hungarian Bank, which has thirty-four branches in Austria and two in Hungary, and which enjoys a monopoly of note issues. Private and joint-stock banks situated in both parts of the empire transact a large proportion of the deposit business. These institutions, however, are closely connected with the Austro-Hungarian Bank by means of the clearinghouse system conducted through clearing institutions located in Vienna, Budapest, Prague, and Brun. No bank is permitted to belong to these associations which does not have an account with the Austro-Hungarian Bank, and all balances are paid by transfers upon the books of the national institution.

Italy has a national bank, which, however, shares the right of note issue with two other large institutions, namely, the Bank of Naples and the Bank of Sicily. Each of these has numerous branches, and share between them the greater part of the banking business of the country.

Denmark, Norway, and Sweden also present good illustrations of the combination of strong national banks with joint-stock and private institutions. The national bank of Denmark has four branches and enjoys a monopoly of note issues. In addition there are in this country The Chief Banking Systems of the World. 209 sixty-nine private banks, with an aggregate of capital and deposits in excess of that of the national institution. In Sweden there is a national bank with nine branches, which shares the right of note issue with a number of private institutions, many of which have numerous branches. A recent law, however, provides for the assumption of a complete monopoly of note issues by the national bank in 1904. In 1898 there were also in Sweden thirty-six joint-stock banks. Norway possesses a national bank with twelve branches and a monopoly of note issues. It seems to be the policy of this institution to establish branches in each of the circles of the kingdom. Private banks play a smaller part in this country than in either Sweden or Denmark.

South America presents us with a number of interesting illustrations of experimentation in the banking business, although none of the states have developed stable systems. In many of them the most important part of the banking business is conducted by foreigners, especially by Englishmen.

All the national banks of Europe, and indeed all the important banks in other parts of the world, are in direct business relations with the city of London through accounts established there with correspondents. There are sixty or more institutions in this city engaged exclusively in the business of international banking. These have branches in various parts of the world and act as correspondents for banks in every country. This fact constitutes the city of London the real centre of the world's banking system, and the Bank of England its controlling institution. Through the connections thus established every part of the banking system of the world is connected with every other part, and the whole constitutes a means of conducting exchanges of enormous magnitude and remarkable efficiency.