The Bridgeport evening farmer., 1910-04-09
GERMAN BANKING AND
 THE IMPERIAL BANK
Only One Rate of Discount A-No Bills Over Months Accepted and Each Must Bear Endorse ment of Two Solvent Persons-Rate
 Raised to Add to Gold Reserve

GalS0Q to AQQ 1 Washington, April 9-The National l Monetary Commission issued recently | it's volume. Interviews on the Bank 1 ing and Currency Systems of England. l France, Germany, Switzerland, Scot l land, and Italy, The interviews, in 1 quest tion-and-an form, recite clear l ly and concisely the essentials desired | by both the ordinary reader and the
 expert student of banking. Especially | entertaining is the account of the Ger man system, in which is set forth the manner in which the Reichsbank. or 1 Imperial Bank of Germany, endeavors | to aid German commerce and to hold the balance even between different i types of borrowers. This interview took place between Senator Aldrich and his associates of the commission leading officials of the Reichsbank- | Herr Doctor vcn G1asenapp, vice pres ident. and Herr Doctor von Lumm. di- rector.
 Searching questions were asked by Senator Aldrich and his associates of
 the commission, to which the officers replies. Duscissing the question of
 the character of the business of the bank, it was declared .sthe Reichsbank is not only a bank for banks. but for the commercial and industrial enter prises of the Empire It was de- clared. however, that the law pre- E
 bank may take. They must not ex-
 ceed three months in time and there
 must be on the bill the names of at
 least two parties known to be solvent.
 Discussing the uniformity Of discount
 rates at the bank, the following collo-
 quy occurred:
 town in south Germany get his bill discounted at per cent today?-A.
 Yes; and at every branch of the
 O. Could anyone get a lower rate than per cent. "A. No; the Reichs-
 bank has only one rate of discount.
 bank did 8 similar business to that
 which the Bank of England does now, i. e., that they would purchase in the
 market prime bills at a more favor able rate, but in 1896 it was decided to have but one rate for everybody.
 e. Please state the reason for the portant reason was that it was thought that a great central institution like duties to the whole of the commun- ity, ought not to make a distinction of any class, or make an exception in favor of any one. It is the policy of the bank to serve all alike.
 O. Was there any question on the part of the other banks as to the com this change of policy made because of any agitation?-A. No: there were no complaints by private banks. The
 
 @. Is the Reichsbank disposed to favor every application for discount or loans If the character of the offer ing be satfsfactory?--A. It is their duty to listen to everyone who comes for accommodation. whether he has ssan account or not. The principle of the Reichsbank is not toss serve a part of the community, but the whole. The Reichsbank is for everybody.
 How the Government is aided with temporary accommodation to tide over periods of deficient revenue was set forth as fo' lows:
 ''The Government deposits Treasury bills with us for safekeeping. They also deposit funds with us as a private firm or bank might do. If they with slsualy us s purchase from them ar Treasury bills crediting their account with the proceeds.n
 o. What rate do they bear?-A. They do not bear a. fixed rate. but are discounted as any other bills.
 e. Is there an exception made in
 e. To any other institution or per- son "A. No.
 e. What are the relations of the the conduct of it's business? What is required of the bank?- A. First, the bank has to regulate the circula- handle the transfer business and to make payments for the Govern ment, as well as to receive the sums due to the same, wherever branches of the Reichsbank exist. ]
 o. Does the Government deposit in the different branches of the Reichs- bank?-A Yes. Every department 1 of the Government has it's own ac- count and is treated the same as any l other customer. The Reichsbank is the fiscal agent of the Imperial Gov ernment, and they do everything that | is required without compensation. 1 Without being obliged. the Reichsbank | might head syndicate for taking | over a government loan.
 On the question of the contingent note issue. under special tax of | per cent, which has attracted so much | attention in the United States the i policy of the bank in supplying the 1 market with the amount of notes re- rate to the puolic was discussed be- tween senator Aldrich and his asso- eiates on the one side and the bank officers on the other. as follows.
 o. Do you always charge a higher rate of discount for bills when you have large amount of taxed notes the Reichsbank has not increased it's ate of discount above per cent. At times we have discounted even at per cent, when we have had to pay a l ,ax of 5 per cent.
 o. It has been suggested to us as m matter u of policy in times of stress -he per cent. tax to the rate of dis sount.-A- The Reichsbank must be considered in the first place as pub ic Institution which has to take care If the public interest. and that it is secondarily a n1oney-making institu- ion.
 Q. Is there any connection between he rate of discount and the issue of -axed notes: in other words. could here be a condition of affairs where he rate was 67% per cent. and there were no taxed notes outstanding "A es. That has happened. The fact of the Reichsbank having to pay ax at certain times does not in itself influence the rate of discount The directors decide whether in their judg- nent the conditions warrant or re- Iuire the raising of the rate.
 It was further explained by the of icers of the Reichsbank that foreign pills of exchange could be used as ,art of the security for note issue but he notes were never treated as an as- let. Upon this point the following ,o1loduy occurred:
 o. According to your weekly state nent you carry none of your own .OteS asset "A Nh