New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-23
Finance in a
War-Mad State
Report of Reichsbank Tells
OF Methods Used to
Secure Gold


translation Of which has just been re-
ceived in this country.
Thanks to the unbroken economic
and financial strength of Germany"
reads the report. land supported by the
liquidity of the German money market,
which, compared with last year, had
even perhaps increased, the Imperial
Bank could again fully meet the de-
mands which were made on It's credit
by private concerns. but more especial
~ by the empire for the successful
continuation Of the war, and this con-
tinuously, and without any difficulty
or any diminution Of its power of car
rying on its business.
"As nothing was altered in the attl-
tude Of the administration of the army
toward commerce and industry, and as
the position Of the money market al
lowed of an adequate satisfaction OF
the requirements Of private credit out
side of the Imperial Bank, relatively
few claims were made on the bank
on this account during the time we
are dealing with. On the other hand,
the essential changes in the require
ments for credit which have taken place
during the war, and which along with
the progressive liquidity of business
transactions led to a lasting increase
Of the credit demanded by the empire,
were bound to keep up the demands
made by the empire on the Imperial
Bank. But by the further sale of con-
siderable amounts of Treasury bonds
handed to the bank by the empire. and
in consequence of the again surpr sing
~ rapid and early payments made FOR
the fourth and fifth war loans. the I'm
peria Bank was continually greatly as.
sisted, so that it vas possible 10 deal
with the volume of the new demands
made on it. measured by the increase
OF investments minus the rise IN for
eign money. during the year 1916 IN
the same manner as in the previous
year.
Iron for Coins
The greatly increased demand Tor
currency. in comparison with 1915. had,
in consequence Of the very small
amount Of divisional money and Inn
perial Treasury notes, TO be satisfied
By the issue of banknotes, and, so far
as smaller change still was required, by
means of the Loan Bureau notes at the
DISPOSAL of the bank. The provision
for the army and occupied territories,
the area Of which was larger than the
territory OF the German Empire,
formed again one Of the chief tasks OF
the Imperial Bank. But the demands
Of the remaining branches Of business
especially in the last quarter, were
also relatively strong. az the payments
required for the harvest az this time
and the requirements of the end OF the
year for large sections of the popula-
ton led 70 an accumulation of liquid
money. which through the general rise
in prices and in many cases through
a regrettable want OF economic insight
rose TO 2 height far beyond what Is
usual. In spite of the preparation by
the empire of large amounts OF newly
minted iron coins and hallmark pieces
in silver, there arose in the dlstrlbu-
ton of the smaller coins certain dif'i
culties. and AZ times the Imperial Bank
was considerably hampered in the eX'
ecution of its tasks in these direc'
tons"
Increases Gold Reserve
The report boasts Of how the I'm
perial Bank increased its gold reserve
the solid backbone Of its existence.
BY sl7.000,0O0 in 1916, so that. to-
gether with the increases in the pre-
ceding period Of the war, the amour,
is more than 1925, 900. How this
oh e
planned in the report as folloUs:
The amount Of gold continually
being received AZ the Imperial Bank
thanks 10 the enduring patriotic energy
Of all classes o. the population. con.
sisted in the year 1915 at first again
chiefly Of German gold coins. OF which
apparently. very considerable amounts
are still in circulation. During the later
months the universally organized pur'
chase OF articles in gold. supported by
the bank. and instituted for the
strengthening of the reserve in gold
Of the Imperial Bank. obtained special
Importance. This collection of gold
jewellery and articles in gold was &C
lively furthered by the Crown Princess
placing herself as patroness at the
head of the whole organization. In
the larger towns there have been es-
tablished centres for the purchase o.
gold, and in the smaller towns and IN
the country districts auxiliary branches
were opened. The valuation Of the
articles of jewellery handed in, the
/ gold value Of which is repaid, is en-
trusted to expert goldsmiths, so that
I the transaction is carried out fairly
/ Care is taken that the purchase OF
articles in gold should not take the
form OF a mere business transaction.
Wedding Rings Excepted
"For those selling watch chains OF
gold there exist, as commemorative
objects Of the war. watch chains OF
iron on payment of the cost price
Excluded from the purchase are wed
ding rings. unless they belong to peo'
pie who have died. In order TO pre-
vent articles Of gold with an inherent
artistic or cultural value being melted