iron and iron goods, textiles and articles of clothing. From Great Britain goods to the value of a good fifth of the total import value were imported in 1922, the biggest items being coal, coke, etc., and soft goods. Practically every kind of commodity is, however, imported from that country, such as groceries, yarn, oil, iron and iron goods. The United States were represented by about 14 per cent. of the import value. The heaviest items were grain and feeding stuffs as well as fuel oil, but apart from these there were considerable imports of motor cars, especially in parts for assembling in this country, groceries, raw materials for the textile industry, and leather. Of the imports from Sweden twofifths were timber and wooden articles, whilst the next biggest items were soft goods and cereals. Of the imports from Norway one-half were fertilisers, while three-fifths of the Danish imports from Finland were lumber. Great Britain bought two-thirds of the exports of Danish goods, which was rather more than before the war. The principal part of these exports was prepared agricultural produce. On the other hand, Germany's share was only 7 per cent. as compared with 25 per cent. before the war, owing to the failing purchasing capacity of that country. Of the exports to Germany live animals (horses, cattle and pigs) formed the greatest part. Norway and Sweden together accounted for one-tenth of the export value; to Norway went, apart from agricultural produce, ships to a considerable value (especially newly-built Diesel motor ships), as well as a large number of various goods. One-fifth of the exports to Sweden were agricultural goods, whilst of the other big items may be named hides and skins and motor cars. Belgium, France and Switzerland imported large quantities especially of prepared agricultural produce, whilst a fairly large portion of the exports to Czecho-Slovakia were live animals. Of the exports to Holland two-thirds were meat. With regard to re-exports, more than two-fifths went to Sweden in 1922, about one-sixth to Norway and a little less than one-tenth to Germany and Finland, whilst Germany and Sweden before the war took about one-fourth of the re-exports each. FINANCIAL INSTITUTIONS BANKS Danish banking is characterised by a very great concentration, the greater part of the banking business of the country being in the hands of the five largest banks, all of which have their headquarters in Copenhagen. Thus two-thirds of the totals of all the balance sheets of the banks are represented by these five principal Banks. This concentration, which is connected with the general concentration of trade in Copenhagen, has only been effected to a slight degree by means of fusions, and although several of the metropolitan banks have extensive nets of provincial branches, this has not prevented the appearance of independent banks in the provinces. On the contrary, there are all over the country a very large number of independent banks, which are, however, almost exclusively of merely local importance, and in most cases not very large. >>Nationalbanken i København« is the only note-issuing bank in Denmark. It was established in 1813 as a State bank, »Rigsbanken«<, but in 1818 it was formed into a private joint stock bank, on which occasion it received its present name. Its capital is 27 million kroner (reserves in 1923 amounted to 42 million kroner), and it is administered by five directors, two of whom are appointed by the Crown. According to the regulations in force, the Metal Fund, in which is reckoned legal tender at face value, as well as gold in bullion and foreign currencies, must form at least one-third of the amount of notes in circulation, but the gold, coin, and bullion stock of the Fund must not be less than 30 per cent. of the notes issued. Of the annual profits of the National Bank, the State has a priority claim on 750,000 kroner. The remainder is divided in accordance with fixed rules between the State, the Reserve Fund, and the shareholders. When the war broke out in August, 1914, the National Bank was exempted from its obligation to redeem its notes with gold, and this exemption has subsequently been prolonged by Acts of Parliament. The note circulation of this bank was in 1914 a little over 150 million kroner, and is now about 450 million kroner, or 53 and 135 kroner respectively per inhabitant. The gold reserve, which was about 80 million kroner in 1914, amounted to 210 million kroner in 1923. By means of its branches the National Bank is represented in the various parts of the country, and it has, besides, a foreign branch at Flensburg, which dates from the time prior to the cession of Slesvig to Prussia in 1864. The development of the banks which have no right of issue dates from about 1850. The four banks which, besides the National Bank, are looked upon as the principal banks of the country, are »Privatbanken i København«, established 1857, (capital and reserves at December 31st, 1922, 82.5 million kroner), »Den danske Landmandsbank, Hypotek og Vekselbank«, established in 1871 (110 million kroner), »Københavns Handelsbank«, established in 1873 (79.3 million kroner), and »Københavns Diskontobank og Revisionsbank«, established in 1895 (38.2 million kroner). At the end of 1923 there were in all 188 private banks, with a balance sheet total of about 4,100 million kroner, of which 2,500 millions represent the four principal banks. According to their balance sheets, the assets and liabilities of the banks were distributed as follows: Assets National Bank Other Banks A Banks Act was passed in 1919, prescribing a number of special rules for these institutions. According to this Act the banks are placed under the supervision of a Bank Inspector appointed by the Government, and accounts and monthly returns are to be submitted to him in a form prescribed by the Ministry of Commerce. The Bank Inspector periodically examines the activities of the various banks. The Banks Act does not demand any concession for carrying on banking business, but the approval by the Minister of Commerce of the statutes of banks established after the passing of the Act is a necessary condition of their commencing business. THE SAVINGS BANKS The number of savings banks is about 500, with a total deposit capital of about 1,800 million kroner. The savings banks are all private undertakings, there having been no desire for a post-office savings bank in Denmark. The number of savings banks is large, and they are evenly distributed over the country. It has been of special importance that there is a large number of small savings banks in the rural districts. In the Capital there are a few, very large institutions of this kind. The savings banks in the provincial towns have the greatest total deposits, as will be seen from the following figures, which are based upon the latest detailed information available (1922): Four of the savings banks, three of which are in Copenhagen, have deposits of more than 100 million kroner, eight have between 20 and 100 million kroner; 55 between 5 and 20 millions, 71 between 1 and 5 millions, 150 between a quarter and one million kroner, whilst 206, mostly in the rural districts, have deposits amounting to less than 250,000 kroner each. In North Slesvig there were at the end of March 1924, 39 savings banks, the total deposits of which amounted to about 28 million kroner. These savings bank are not included in the figures given above. The total funds were invested in the following manner in 1922: The savings banks adhere as far as possible to the principle of a fixed, low deposit interest. This can better be practised in Copenhagen than in the provinces, where the competition with the bank's for deposit funds is more keen. Since 1880 the savings banks have been under the supervision of a Savings Banks Inspector. They must not deal in bills of exchange, but otherwise they are not subject to any regulations as to the investment of funds, rate of interest or their administration as a whole. Financial institutions, in which participation in profits and surplus is reserved to founders, guarantors or shareholders, must not, however, call themselves savings banks. MORTGAGE INSTITUTIONS Credit on the security of landed property in Denmark is organised through Mortgage Credit and Hypothec Societies in a manner which facilitates the obtaining of cheap loans and at the same time offers the lender satisfactory security. These societies are, with one single exception, associations of loan-seeking property owners who, through joint liability, offer greater security and therefore obtain cheaper loans. The Mortgage Credit Societies grant loans on first mortgages up to three-fifths of the assessed value. The borrower issues an ordinary mortgage bond to the Society and receives in return a number of cash bonds issued by the Society for round sums. These can be sold in the open market, and the bonds of the various Societies are quoted daily on the Copenhagen exchange. The loans are redeemed by means of a fixed annual payment, including both interest and amortisation. The redemption is, as a rule, completed in the course of about 60 years. The cash |