The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-06-16

The annual report Of the reicirbank
Germany's counterpart of the Federal
Reserve banks and OF the Bank of Eng
land. is an optimistic document. II
recounts the achievement of the gov
eminent in raising the great credits
necessary for the war. and of particu.
lar outside interest are the statements
it makes regarding the foreign OK
changes. The New York Times quotes
the Norddeutsche Allgemeine Zeitung
in paraphrase OF the report as fol
lows:
up to the end of October or the
beginning of November German ex-
change on the neutral markets
continued to deteriorate with but
slight Interruptions. The causes
for this. according to the report.
were the same as in the previous
years since the outbreak of the
war In addition to those causes,
however, the declaration OF war by
the United States of Amer lea
brought about further contrac-
tion of the market with an even
more unfavorable balance of trade
against Germany.
Through the adoption of a very
definite policy which found It's ex-
preston in a series of regulations,
the reichsbank succeeded gradu-
influence upon the market and pre-
pared a foundation for n recovery
which was finally accomplished TO
surprising degree and in an I'M
eZpectedly brief time. through the
Intervention Of the bank on the
neutral markets, all this being
made possible by the development
Of fayorah BILE political and military
situation, The depreciation of the
it's lowest point TO the end OF the
year from As per cent to "a per
cent in Amsterdam. from 81 per
cent to 81 per cent in Switzerland,
and from So per cent to 33 per cent
In Stockholm.
The recovery Of German exchange Is
strongly suspected to have been not
only due TO the psychological effect on
the nearby neutra1s OF German politi-
cal aRgressiveness. but to a systematic
transfer Of German commercial credit.
and credit established by turning Ger
man property over whenever II could
be done. 70 the nearby neutral countries
~ Europe which the thorough control
over all phases OF foreign exchange
esta blished by this country in co-ope-
ration with the allies is designed TO
checkmate. In its Characteristic way.
the imperial government OF Germany
is close to the German banking situa-
report is very Significant.
report report II very iE-
nifcArt.
The situation as to bills OF ex-
change checks and discounted
treasury notes--tn other words. the
harkable collaters developed also
to no unimportant degree, reflect
ing therein the growing demands
OK the government upon the bank
as the cost OF the war increased.
Tue total amount Of capital repre-
scented hv this collateral during the
fiscal year increased from 9,705,-
oVo DpH marks in the beginning Of
January TO 1850. 90 900 marks in
the end Of December. In other
words, It difference Of 4,9s1 900, GOO
marks Against those figures. how
ever. tile bank had at its disposal
su unprecedented amount 81 for
eign moneys. They aggregated on
December 81. 1917. 5000, 100000
marks ~ against ASA 600. 600
marks IA the beginning OF the year;
that Is. an increase OF 34Ss.o GEO.,
coo marks as compared with 2,2Hs.-
Geo. 0s0 marks in the preceding
year.
Just what this nearly 81 DOE 00n 900
" orth Of increased foreign moneySsob.
tanned In t9i5 were, can only be ar.