GIPE-PUNE-OIIOI2 - DSpace@GIPE

36 THE RE-MAKING OF THE REICHSBANK
the remaining % ds of the circulated notes covered by
good securities (although not ··cash". as explained
above). As a rule, these were to be due in 3 months ~d
to possess two signatures.
Suppose . the Reichsbank had a circulation of
;too,OOO,OOO Marks in notes. The cover (or pledge) as
sanctioned by the law of 1875 might then be indicated
as follows:- .
I ··Cash,"---either 'I
(a) German money
- (i) gold coiris,
(ii) silver coins,
(iii) nickel and copper
coins,' ~ 33,333,333!1M.
(iv) Reichsk,assenscheine I
or
(b)~ gold
(i) bullion,
"I
(ii) foreign coins
II
··Securities"
(a)- ··gilt-edged" so to say
(b) bills due in 3 months'
I
J
66 ,666 ,666%M.
The entire note-circulation of the Reichsbank
was thus covered. But a -certain amount of uncovered
1I.0te-issu~ was also sanctioned by law. The maximum,
however, was 550,000,000 M.
Should. however , this privileged limit have to be
exceeded, the excess must have to be fully covered by
··cash n
as defined above. Or a tax of 5 p.c. per annum
was _
(
to be paid to the state as long as this excess was in
circulation.
But altogether the German _ currency 'system looked
-uPon every -piece of note as bu~ equivalent to or identical