The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-05-15
THE RETCHSBANK REPORT.
Germany's Financial Condition at the
Close Of 1918.

To THE EDITOR or TuE SCN--Sr: Tho
German Reichsbank has recently Issued
It's report for the year 1915. The detained
balance sheet will call for close scrutiny.
as IL reflects the state Of anairs WITHIN
Germany during the last year. Ii CON
firms recent reports about GermanyS
easy financial situation, due To Ger
many's commercial isolation. The Eng
lish blockade has created a universe oil
Its own within Germany's boundaries
and az long as German science and or
ganization enable the country to exist
upon It's W resources no financial set
backs are to be feared.
Tho report of the Re~ichsbank gives a
succinct review of Gcrnany's INDUSTRIAL
situation. German industry. II says.
had to adapt itself to wal conditions ny
producing war material and substitutes
for missing imports. The cessation Oh
imports had one slight advantage In 40 far
as the financial situation was concerned,
distressing as were it's effects In other
ways. Dealers and merchants received
higher prices for their accumulated
stocks and the banks benefited by In
, creased deposits. This beneficial infu-
4 ence was emphasized by another de-
velopment.
Exports and imports having ceased.
the large amount OF capital which had
hitherto been active In foreign trade
was now free 70 operate In the domestic
market. Bills Of exchange and drafts
were reduced In all the banks. while
deposits increased. The German war
loans benefited by this available capital.
Thus the circulation OF capital within
Germany was strengthened and no debts
In foreign countries could he contracted.
II. nevertheless. foreign exchange took a
very unfavorable turn the explanation
must be sought In the paraly cation or
Germany's shipping business and the
curtailed revenues on German invest
ments In foreign countries. which in
times of peace largely contributed in
UNFOLDING Germany's foreign exchange
In the face Of imports by far surprising
German exports.
The report gives a synopsis OF the
subscription to the hrst three war
loans. showing hat the war loan
banks have become Of less and less
importance In financing the loans.
II further proof for tho easy tinan-
cisl situation were needed IT could
he found In the continual increase OF
the percentage OF subscriptions which
were fully paid at the date when the
frst instalment was due. For the first
loan 573 per cent. was fully paid at
the date OF first ins;alment. Sos per cent.
at the date OF the second and IT'S per
cent. AT inat or the 10lrl.
Concerning the activity of the Reichs-
bank the most conspicuous feature orig
mating IN the war was the necessity Of
providing the army with small currency.
Industrial or commercial loans were not
applied for In SO great sums as in time
OF peace. whereas the transactions with
the Imperial Treasury We're. Of course.
very large. Loans to tho Imperial
Treasury were usually granted against
short term treasury bonds which. how
ever, found an easy sale IN the open
market. and after a certain time were
covered by means Of a loan issued by the
Government. Thus the grand total OF
the R~eichsbank's transactions In 1915
amounted to nearly 1000 billion marks
tS2. 500. 600. 0o0), or double the amount
OF the previous year. The stock OF gold
Increased by 352 0Oo. 900 marks In 1915
: tsss. 900. ooo). and by lice. 900. 900 marks
t29s.o0o. ooo) since tho war began. In
the middle OF last month the Reichs-
banks gold stock amounted to $500. 000.-
900 marks 1925. 900, 00O).
The gross earnings Of the Reichsbank
In 1915 amount TO 213.0oO, 900 marks
($6s.250.000). whereas the net earnings
were $4,000 900 marks Hcs. 500. oO0).
The Reichsbank being a private corpora
ton with Iso,o0o. 900 marks s,5.oOO.-
ooo) capital. the shareholders received
n dividend of s?7 per cent, whereas the
Imperial Treasury in form of taxes. war
taxes and dividend received nearly 200.-
o0o.0 900 marks $3.50. 900. 0o0).
II may be added that, according to
the latest weekly balance of the Reichs-
bank. OF April Is. 1915. the German
bank notes are covered with gold 10 81
per cent. whereas the notes of the Bank
Of France are only covered to 80 per
cent. Or X. !. OBERroHREN
NEW YORK, Nav 10.