GIPE-PUNE-OIIOI2 - DSpace@GIPE

AND THE BANQUE DE FRANCE 39
hauling of the Reichsbank,~has been effected by the
Bank Act of 1924. The government of the institution -
thus reconstructed is vested in 5 different organs :-
(1) Reichsbank,direk,torium or Directorate of the
Reichsbank, (2) Generalrat or General Council, (3) Com~
missar for note-issue, (4) General As,sembly 'of Share~
holders and (5) Central Committee of Share~holders.
The most important organ from the standpoint of
bank~technique is the Directorate, because it regulates the
currency, discount and credit policies. It is to consist. of
as many members as are likely to be required. One of
them is called the president. All the members of the
directorate must be German citizens. The simple law of
majority is the general rule. In case of equal division
the president eXe!'cises the casting vo~.
The president is elected by the "General Council"
in such a manner that there is a majority of 9 in his favour
of whom at least 6 are Germans. No non-German has
thus any possibility of being elected. But the contrast
with the situation previous to 1924 is marked. The president
in those days used to be appointed by the government
and was in all respects a government official. Now
he is elected by a council over whom the government has
hardly any control and which indeed is composed, as we
shall see later, of a large number of non-Germans. He
can also be dismissed by the "General Council." Be it
observed, however, that the letter of appointment on the
str.ength of which the president ioins his office is signed
.s bank-administration is concerned. But there is one great difference in
in so far as the Young Plan (1929- ) has enfranchised the management
from the control by non-Germans.