A. Certainly, and it is an important part.
Q. Could you give us an estimate of the proportion of bills which are discounted for banks and those discounted for other customers?
A. I should estimate that about 70 per cent. of the paper now held bears the signature of some bank as one of the indorsers; but it is manifest to us that the number of merchants and manufacturers who appreciate the facilities given by the bank for direct discounting and who profit by it increases perceptibly every day.
Q. Does the Bank of France make the same charge for the discount of bills and for loans upon collateral?
A. The bank usually charges somewhat more for loans upon collateral than for the discount of bills. The rates at present are 3 per cent. and 4 per cent., respectively.
Q. Could we obtain an estimate of the percentage of the deposits of the other banks at the Bank of France in comparison with the whole of such deposits?
A. In the credit establishments which you will visit you will be able to establish the fact that the liquid cash is, in comparison with their turnover, relatively very small. In France we consider that the strength of a bank consists more in the composition of its portfolio, i. e., in the value of its commercial bills, rather than in the importance of its cash reserve.
Q. Is the amount of all taxes paid by the bank to the State included in your report?
A. Yes. The public charges of the bank in 1907 were more than 11,000,000 francs, whereas the profits distributed were 31,000,000 francs.
Q. Have you a system of transfers similar to that used by the Reichsbank?