10
(The Bank of Iceland) was established by law of 1903, and commenced
ils activities two years later. For a term of 30 years it was granted
the sole right of issue in Iceland in excess of the 3/4 million krénur
which the National Bank of Iceland was entitled to issue on behalf of
the treasury. This right was retained by f[slandsbanki for a period
of 19 years (1904—1922). But in 1921 it was enacted by law that
its note-issuing privilege should lapse in 1933, and its note circulation
be reduced by fixed annual amounts. When [slandsbanki was taken
over by Otvegsbanki Islands the circulation had come down to 4
million krénur. This amount is (according to the act under which Utvegsbanki
fslands is founded) to be withdrawn at once and the sole right
of issue handed over to the National Bank. But while [slandsbanki
was thus withdrawing its notes the National Bank was by law obliged
to re-discount for it sound commercial bills on certain specified
terms, to an amount not exceeding 5 million krénur. The amount for
which the National Bank was legally bound to re-discount bills should,
however, be annually reduced until it was entirely discontinued. The
special terms thus enjoyed by [slandsbanki are now transferred to
Utvegsbanki fslands.
According to the Balance Sheet the assets and liabilities of [slandsbanki
on 31. December 1928 were as follows:
Gold . . . . . .
Bonds & Stocks . .
Loans . . . . . . . . . ..
Bills of Exchange kr. 24 632 680.88
less Net Profit — 583 003.16
Kr. 24 049 677.72
less estimated
loss according
to Bank Inspector’s
estimate . — 1014 982.62 23 034 695.10
To balance (see Bills of Exchange) 1014 982.62
Banking Correspondents . , , 261 208.18
Foreign Currency . . . . . , — 7 184.93
Bank Premises and other real Estate — 2 034 809.09
Cash in Hand . . . . — 451 882.55
Kr. 38 774 962.51
Assets,
. . kr.
1 878 049.65
2 535 831.07
7 556 319.32
Capital Paid up . . . . .
Notes in Circulation . . ,
Bank Bonds . . . . . .
Liabilities,
. . kr. 4500 000.00
. - 4811 000.00
«0 o—- 706 000.00
Kr. 10 170 000.00
