Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1868-09-27

Most detailed knowledge OF all tie hrml
OF persons ~transacting business with it
is in the possession of the bank, which
uses the information obtained With such
discretion and secrecy, that many of tht
larger firms do not hesitate to conlmuni.
cate their yearly balance to this then
great fin ncial supporter. Through
special az IS the directors are constantly
keptinformed as to the financial standing
and even the private character of the
men with whom they have mostly to
deal. Sometimes, before the public OF
even the interested persons have any
suspiclon, the bank knows, orr guesses,
that this or that firm is on the verge OF
bankruptcy, and therefore almost always
breaks off its connection in due time to
save itself. This remarkable foreEnowl-
edge is explained by the official weekly
reports, which the bank receives with
regard to the condition of every business
firm in Prussia. All the branches
G. Filiale") of the bank in the other
cities of Prussia have their special and
volunteer lnformers, the results of whose
Investigations are communicated to the
chief establishment, to which, in doubt
ful eases, the branches have to apply.
The magnitude and difficulty of this may
be conceived when it is known that the
number of firms to be watched" in
Cologne, for instance, a secoDd-rate COM
mercial city, is four thousand. The
weekly reports are carefully examined
and compared with one another, so that
the bank, by looking into its portfGuiHs,
knows to a nicely the amount of bills
drawn on a house. If it appears that
they equal the generally reputed property
ofthe house, the directors communicate to
the firm hat the maximum" of credit
has been reached. No information of
outsiders however, is acted upon
without their veracity having been first
ascertained. This system works very
we'll in a state like Prussia, where even
commerce i conducted, in the main, with
military accuracy.
In the bank-Hote department, the bank
.otes received from the Government
printing Office, where they are printed,
are signed, put in circulation, and cashed
again. The bank-notes returning to the
bank are first marked off iu the registers,
kept for that purpose, stamped with the
words No value, then filed on an iron
bar, and finally burnt in an Y e especi-
ally constructed for the purpose, under
the inspection of the bank-note commits
s%ioners.
The bank exhibits power and its
beneficent operation most conspieuously
in times Of threatened crisis. One of
these crises, it viii be remembered, oc-
CURED in 1866. 1t was met without any
serious consequences, the bank keeping
down the rate Of interest by issuing sup
Elementary bank-notes to the firms In
want of money to meet their obligations.
The bank besides, in order to depress
the then high rate of foreign exchanges,
issued out of its porte-feuiHe the necessary
bills of exchange, thereby putting a stop
to the flow Of silver to the former money
center of Germany-to Frankfort on the
Mainland it bought forty millions of
thalers, in order to keep up with
the demand for them which the war
created.
Less extensive than the discounting
business is the Lon,Gard business or
money on deposits of stocks, on
gold, silver-plate, and on goods generally,
making the bank a sort of pawnbroking
establishment. The giro business, or
transfers from and to accounts, is also
Insignificant if compared with the bust
ness done by ether Berlin banks.
One part of the bank vaults is reserved
used as a safe deposit room for PER
'onal property, precious documents, and
yaluables belonging TO private
Individuals. The bank receives ali these
if packed in a box, and issues,
without taking notice of the contents,
'eceipts, on presentation of which the
ean fetch them out again. Some
interesting incidents sometimes occur in
connection with this department. A
made the disagreeable discovery
hat her diamond jewelry, brought to
nd redrawn from the bank by her hus-
and, was, on return, changed into email.
instead of diamonds. After a severe
Examination she found that her own
husband had effected the enlargement de
,e~coroaion, in order to pay debts con-
racted at the g~aming-table.
The administration of the bank CORES
Ionds with its dualistic nature, it being
.alf a Government and half a private
ank. The "chief" is the Minister of
commerce, now Herr Won der Heydt, and
" curatorium" of five high Government
assembling every three months,
under him. The shareholders hold a
early meeting, where they elect the .
entral committee, controlling the bank
perations, receive the report, and revise
ne statutes. The working capital con-
OF the Government contribution of
20 millions the deposited capital Of
yenty-three millions, and the reserve :
md of four millions, the total being :
bout fifty millions of thalers. The bank !
otes In circulation amountto 1876. 148.O01 :
.'llers; the coin on hand, reserved for =
.deeming, is seventy millions. The /
hole returns of the bank, in 1865, were Z
573,608;200 thalers; the net profit !
ade, after deduction of a sixth for the d
iserve-fund, was two millions, TO be I
Iually divided between the Government {
ID the shareholders. The weekly L
the " status" of the bank and ita /
'anches, is published weekly in the .
'wspapers. Once a month the revision
the cash takes place, and then the
stitute is closed during a part of the <
S
The brilliant results of the institute "
we, however, not been attained without a
eat struggles, and only in the course of u
e last twenty years. CARL WINTER. e
RUSSIA. b