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introduction of this system. It is a system consisting of
giving credit to any reliable man against deposit of
good paper or the furnishing of good personal security,
with this peculiar feature, that he only pays interest
on the money he actually uses. The system was
first introduced into Denmark ten years later by
the author of this book, by the establishment of the
Landmandsbank there. This plan of calculating interest
only on money actually used is the same as in the
case of current accounts, on which in Finland 2 per
cent. is generally paid; only that the latter case
presupposes money deposited. Cash credit, however,
means that money is lent by the bank, and ordinary
interest paid on this, together with a small amount for
the whole credit, in Finland generally ½ per cent. per
annum. One advantage of this form of credit is that
it frequently gives the bank a chance of following the
whole business of their clients. Another excellent
system brought into use by the Finnish banks is that
of the so-called “post bills,” the issue against a very
small payment (formerly 1 mark per 1000, now
only ½ per 1000) of cheques payable at any branch,
even at any branch of any bank. This is an excellent
means of sending money, particularly valuable where
the post is not sufficiently cheap, as is the case in
Finland since it has come under Russian direction.
For a time the Union Bank issued these bills “to
bearer,” and reissued them when they came back, so
that they were really a kind of note. As we are told
by banking history, cosmopolitan Sweden was one of
the first countries to develop modern banks. It is
even said to have been the first country of modern
times to introduce notes, which were first used there
in the middle of the seventeenth century. Undoubtedly
the ideas gained during the union with Sweden
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