During our repast, Mr Stephenson gave us much information about the Island. He told us a bank had lately been opened in the capital, which he hoped would soon be followed by a branch at Akureyri, a progress of civilisation which must of necessity circulate money more freely, and make the present system of barter less common—ponies, sheep, fish, etc., being now given in preference to money in exchange for goods.
Sending or receiving money in Iceland anywhere except in its capital, is a difficult matter, as there is no organised post office method for such transactions.
The following history and constitution of the[p. 44] bank in Reykjavik, furnished me by Mr Gordon, may be interesting to my readers.
'There is one bank, the State Bank. Its capital consists of the revenues of the Island; there are no shareholders. The manager is an Icelander, who has one assistant only, who keeps the books. Two inspectors or auditors are appointed by the Governor of Iceland. The Bank has just been started under the control of the Governor and Council of Iceland; and on the 1st July 1886 began an issue of State notes—legal tender in Iceland only. Danish notes are also tender in Iceland, though the reverse is not the case. The issue is limited to Kr. 500,000, or £27,777. They are issued against the security of the revenues of the Island, and they are forced on the people, who do not as yet take to them, and no wonder, considering the great want of communication even in the summer months. They are convertible for either silver or gold at Reykjavik. Branch banks will probably be opened at Akureyri, Seydisfjord, and Isafjord. The Bank publishes a statement of its affairs periodically. The Bank charges 6 per cent., as a rule, on advances, and grants 3 per cent. on deposits. The Bank advances against land, and houses (the latter in the capital only, as they cannot be insured elsewhere against fire), and personal security. The advances are said to stand at Kr. 130,000, or £7222. When against personal security a promissory note is taken, signed by the borrower and two irresponsible witnesses, or by[p. 45] two responsible obligants, according to standing. Title-deeds are taken as collateral security. The Bank has its own forms for loan-documents. The probability is that the Bank will soon become the possessor of a great deal of property in houses and land in Iceland, as bad seasons are frequent, which prevent prompt payment.'
ICELANDIC AND ENGLISH MONEY TABLE.
| £ | s. | d. | £ | s. | d. | ||||||
| 7½ | öre, | 0 | 0 | 1 | Kr. | 9.00 | öre, | 0 | 10 | 0 | |
| 15 | " | 0 | 0 | 2 | " | 9.90 | " | 0 | 11 | 0 | |
| 22½ | " | 0 | 0 | 3 | " | 10.80 | " | 0 | 12 | 0 | |
| 30 | " | 0 | 0 | 4 | " | 11.70 | " | 0 | 13 | 0 | |
| 37½ | " | 0 | 0 | 5 | " | 12.60 | " | 0 | 14 | 0 | |
| 45 | " | 0 | 0 | 6 | " | 13.59 | " | 0 | 15 | 0 | |
| 52½ | " | 0 | 0 | 7 | " | 14.40 | " | 0 | 16 | 0 | |
| 60 | " | 0 | 0 | 8 | " | 15.30 | " | 0 | 17 | 0 | |
| 67½ | " | 0 | 0 | 9 | " | 16.20 | " | 0 | 18 | 0 | |
| 75 | " | 0 | 0 | 10 | " | 17.10 | " | 0 | 19 | 0 | |
| 82½ | " | 0 | 0 | 11 | " | 18.00 | " | 1 | 0 | 0 | |
| 90 | " | 0 | 1 | 0 | " | 36.00 | " | 2 | 0 | 0 | |
| Kr. | 1.80 | " | 0 | 2 | 0 | " | 54.00 | " | 3 | 0 | 0 |
| " | 2.70 | " | 0 | 3 | 0 | " | 72.00 | " | 4 | 0 | 0 |
| " | 3.60 | " | 0 | 4 | 0 | " | 90.00 | " | 5 | 0 | 0 |
| " | 4.50 | " | 0 | 5 | 0 | " | 108.00 | " | 6 | 0 | 0 |
| " | 5.40 | " | 0 | 6 | 0 | " | 126.00 | " | 7 | 0 | 0 |
| " | 6.30 | " | 0 | 7 | 0 | " | 144.00 | " | 8 | 0 | 0 |
| " | 7.20 | " | 0 | 8 | 0 | " | 162.00 | " | 9 | 0 | 0 |
| " | 8.10 | " | 0 | 9 | 0 | " | 180.00 | " | 10 | 0 | 0 |
After dinner, we visited the small Lutheran Church. Unfortunately we had no opportunity of attending a service, though, to judge from the plainness of the ecclesiastical buildings, such[p. 46] must be very simple. The clergyman wears a black gown, and an enormous white Elizabethan frill, with a tight-fitting black cap. This little church accommodates about 100 persons, and in place of pews, has merely wooden forms. Over the altar was an old painting of the crucifixion, done by a native artist, and surrounded by a little rail. The walls were plainly whitewashed, the windows bare, and no musical instrument was visible. There was, however, both a font and a pulpit.
The town boasts of a hospital, a free library, and two printing establishments. At night we returned to our ship quarters.
The next day, there being nothing more to be seen in Akureyri, we decided to take a ride, in order to visit a waterfall, which Mr Stephenson told us would repay the fatigue, and also give us some idea of what an Icelandic expedition was like. Truly that first ride is a never-to-be-forgotten experience. Our road lay over rough stones, and 'frost-mounds.' These latter are a recognised feature in Icelandic travel; they are small earth hillocks, about 2½ feet wide and 2 feet high, caused, according to Professor Geikie, by the action of the frost. In some parts these mounds cover the ground, lying close to each other, so as to leave little or no room for the ponies to step between, and they have to walk over them, a movement which sways the rider from side to side, causing many a tumble even[p. 47] to experienced native horsemen. It is like riding over a country graveyard,
'Where heaves the turf in many a mouldering heap.'