188 ECONOMIC PRINCIPLES
deposits of gold, which it holds in trust for the redemption
of the certificates. Such paper bears a close resemblance to
the notes which the Bank of England issues against a deposit
of gold. It is true that the fiduciary part of the English
issue is not distinguishable in practice from the rest of the
issue, while the U.S. greenbacks and gold certificates have
different forms. Together, the latter make up a circulation
whose basis resembles that of the issues of the Bank of
England in striking degree. Until the Treasury Notes
issued for the purchase of silver bullion under the Act of
1890 are retired, the gold reserve of 150,000,000 dollars may
be used for their redemption. They are being gradually
withdrawn, and only a small amount remains in circulation,
so that their existence does not practically interfere with the
accuracy of the above statement. There are also certificates
in circulation against silver deposited in the Treasury, and
redeemable in silver. These may be regarded as a more
convenient form of token coin currency, the value of which,
as of all token currencies, is maintained by limitation of
issues to such amounts as involve no inconvenience in being
redeemed in standard coin whenever desired. If they
cannot be classed as token coins, they may be regarded as
an addition to the fiduciary circulation, limited in amount
only by the requirement of the deposit of silver coin against
them.
An interesting variant of the modes of limitation of noteissues
 is afforded by the requirements of the law in Holland
and Belgium. A fixed proportion of metallic reserve to
liabilities, on note-issue and demand-deposit jointly, is set as
a minimum. The Bank of the Netherlands maintains a
reserve in excess of the 40 per cent. required of it, counting
gold and silver together. while the National Bank of Belgium
has long failed to maintain the proportion of one-third
nominally demanded. In both cases, practical redemption
has been maintained.
One further illustration of regulated note-issues may be
taken from the National Bank currency of the United States.
The National Banks number between 4000 and 5000, and
each has the right of issue up to the limit of its capital.