GIPE-PUNE-OIIOI2 - DSpace@GIPE

.fQ:ndioning, first and foremost, In their distinCtive feature,
:"hamely, in their "ordinary barikingoperations,as comrner­
'"Cial banks., Like'industrial, agricultural or bther banking"
:'note-banking also has its own risks' and.inethods of
,,avoiding or controlling those risks. The new Reichsbank
{1924) and the new Banque de France (1928) are being
,placed in the perspective of the Bank of England and
:some light is being thrown on the problems; first, of note­
:banking, and j secondly, of commercial banking vs.
note-banking, such as these issue-banks have to solve~
Five Note-Banks in Germany
In 1851 there were 10 Note-Banks In Germany.
Their number rose to 30 in 1860 and 33 m 1875. In
.Prussia alone there were, 8 Note-Banks excluding the
~ank of Prussia, a state-institution. l
The law of January 30, J 875 was enacted to introduce
uniformity in banking practice and management. But
monetary unity of the Empire was also one of th~ chief
aims of this legislation.
By the law of 1875 all the 33 banks were authorized
to issue notes., But the total amount was not to exceed
385 millions of Marks. The Reichsbank was one 'of these
:33 institutions, and was privileged to circulate 250 million
,Marks. But it was also clecreed that should any of these
'banks cease to- exist or decide 'to renounce the privileges
of note-issue, the Reichsbank would inherit those privileges
and have the right to issue notes to the extent
'allowed to the defunct or ser.eding institution.,
1 Obst: Geld- und Borsenwesen (Stuttgart, 1921); see'the chapter
'-on Banques allemande. in Courcelle·Seneuil and Liesse: Les Operations de
,Banque (Paris, 1922).