The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1910-07-18

and a coinage provided for all of Ger
many uniform In character and de-
nominations, although permitted in
some of the states to bear the dis
unctive stamp of the local sovereign.
The coinage having been unified,
the government set about the reform
OF the banking system on lines which
suggest In some respects the financial
history OF the United States. Proyis-
lon was made for reducing the circu-
lation Of government paper, and
committee was appointed to investi-
gate the subject Of uniform and more
careful restrictions upon the banks.
The issue OF notes below so marks
Sl2) was prohibited after July 1,
1875. and the banks were required
to publish monthly reports. A bill
embodying further reforms. including
a duty Of four per cent on uncovered
notes above certain amount, was
substituted to the reichstag on Nov.
5, 1874. The discussions on the SUBJ
1ect. however. compelled recognition
OF the general desire for an imperial
bank to be established in the public
interest. So strong was this sentiment
that the discussion was adjourned
until bill could be prepared estab-
fishing the Reichsbank and providing
for Its gradual absorption of the note
Issuing function throughout Germany.
This bill became law on March IA,
1876. and, with some notifications in
1889. 1899 and 1909. as still the funda-
mental banking law of the empire.
Bank System Compromise.
This act rested, according to the
analysis of DR.. Koch. on compro-
mise Of the central bank system with
the system of plurality of banks,
which latter had It's root in the ex-
listing conditions. First of all, it
created for number of years a tran
sitional stage. freed from the most
pressing evils, in order that ulti-
mately experience would lead to the
adoption OF an adequate uniform sys-
tenn. New note privileges could be
granted only by imperial legislation.
The reichsbank thus appears, though
IN moderate sense, as the central
note bank Of Germany. The economic
and political position on which its
special rights and duties rest Is shown
not only in the classification of its
public duties, but also in the close
connection indicated by its name with
the institutions of the empire. It's
management must not be governed
solely. or even chiefly. by considera-
tions Of gain. Thus, owing to Its capt.
tai and the network of branches ac-
quired from the Bank Of Prussia in
virtue Of the authority given to it by
the bank act, which secured the i'm
mediate support of the whole empire,
the reichsbank forms. especially in
bad times. the stronghold for the
credit Of the country. 1t aids the
whole system Of exchange. not only
by the purchase of short time bills
and other paper, but also by its COL
lection. deposit and disbursement
business, and chiefly by it's enormous
IS developed giro or t9assfer opera
tions.
Thus, according to the narrative of
DR.. Koch, Germany passed through
somewhat the same transitional
stages as are now being discussed in
the United States-a currency issued
by great variety of institutions,
which we're not co-ordinated with
each other in such a manner as to
meet the pressure of crisis and whose
condition led to the demand for more
drastic regulation by the imperial
government and finally to the grant
Of general powers of direction over
the money market to single great
institution.
The volume Just issued contains, in
addition to the banking laws, the text
Of the laws and regulations govern
ing stock exchange operations in Ger
many, which have attracted so much
discussion in recent years.