The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-23
ro,nI Nearly Two Billions.

But upor tho outbreak % tho war
~ JJ' millions Government reserve We're
ADDED % the amount already IN possession
N the Re.chs bank, making her metallic
total amount 10 nearly two billion marks
against which about four billion mark.
~ - hoo, ooo. 200 In bills are ready for
sue
ION '7e other hand Just before the
declaration Or war the Government de-
nosts V''h tho RcIchsbank showed eN-
'rm".y 1.gn balances In addition ~
his ue must take the $50 million dollars
extraordinary national defence tax lust
N be collected from the people THIS
one account alone puts another billion
marks a. tho di, posal OF the Kaiser Be
SIDE these amounts and the $50 millions
- ne julius Tower. the Roichst8g In it,
spec.aI session Of August 4 passed a law
'o' 'tyc billion marks extraordinary war
credits
"I' Vts not only q precaution on the
rsrt of tho Reich bank that q raised IL.
81" n discount from 20 and from ,
- per cont. but II was its duty to try
. hold the metal by these means The
eusne world could not he hit as hard
nv these measures as II would have been
~ other poss blities How carefully IN.
tfn- ,stration handled this auction IL
shown In comparison with the Bank of
England. which seemed To have lost all
s common sense and raised It's rate
rom TO and from s to 10 per cent
And tho fear Of run induced II to close
doors for four DAYS.
N"iHlns Of all this happened IN Ger
MANY Here the different stock exchanges
nfrd muc1 stronger than those OF Paris
md london. which appear To- have broken
'o"n completely as the rumors OF immi-
rem var spread.
Everything was handled with careful
'strsint and cOnslderate Circumspection
=, Germany. and what IN" management
~ N" Imperial Bank could not do the
''f1'tdE took good care 10 perform.
Special Laws Passed.
thus IN that short session OF August
'e'"rd! laws were passed, one EXEMPT
~ the Rc.chshank from the note tax.
80 me so-called "Darlehnskassen" Ooan
'.'.sl were founded with tho assistance
' Tho Imperial Bank which have the
'.,'ld' right 10 issue notes up to I,d00
'''oo marks. Their purpose IL to help
M" business world and to lend money
s''7'' securities and goods at a cheaper
=" 'l7n tho big banks could do. Fur
'''7'"re. the Rei"hshank. IN order TO
"'p mo metal In IT'S vaults, was eX-
'T'''d from tho duty TO pay gold sAln INST
~ ''0 bills. II must he admitted that
'fr'0s the arst DAYS OF the war fearful
pton'e kept rs much metal 40 possible
- ''n' thus dcprivng tho financial
mi.f' ~ many millions. ~ matter
'al after the political situation had
cared ~ little about $50. Don. 0O0
MARKS ~ gold 'oated back TO the Berlin
'''t' within one week
This Is briefly the way in which Ger
NAM has moblized her financial forces
'ol'N" had she not been so archi-
F'' these meacures might easily have
'.o'Nl q failure, and much higher rate
discount a. well a. more stringent
avs. would have been necessary, with
m ultimate result Of heavy damage "a
't''nan credit and trade for all time.
W. matter Of d"fencc only a mora
o''In ~ three months has been declared
" 80 Rund"srdth. However. this does
~" appl' 10 bills drawn on German
centres hv foreign drawers Up To the
''r'''i because NJ the great financial
'ad"e~s OF the nation, 2 general mora
'r9m has not been deemed necessary
~ oven useful.
~ must he added that the banks are
.'hF their utmost 10 help their GUS
'N"'S IN every possible way. Everybody
"a accepts the great duties which
us VAR has imposed"