GIPE-PUNE-OIIOI2 - DSpace@GIPE

AND THE BANQUE DE FRANCE 41
It is interesting to observe that there is no provision
by which the government can control the functions of the
Direktorium. Its independence in a legal sense is perhaps
absolute. Equally interesting is the fact that the Direktorium
is in its technical bank functions almost
thoroughly independent of the "General Council".
although elected by the latter.
The "king-maker" of the Reichsbank is the Generalrat,
the general council, a peculiar institution, the like
of which is not to be found in any other note-bank or
central bank. Of the 14 members .composing this body
half are Germans. The seven non-German members
come from England, France, Italy, Belgium, U.S.A.,
Holland and Switzerland. The president of the Direktorium
is one of the seven German members. He is
likewise the chairman of the "General Council." The
commissar for note-issue is one of the seven foreign members
of the council. The number of German members
may be increased but that of foreigners cannot.
Two important bank-technical matters require the
authorization of the General Council. No long-period
government loans may be accepted as securities in bank
business without the permission of this body. Besides.
whenever it is necessary to violate the law of the 40 p.c.
cover for notes the' sanction must come from the General
Council.
Only German share~holders of the Reichsbank have
the right "to elect the German members of the General
Council with the exceptioX: of the president. The first
foreign members were nominated by the organization
committee. In the case of subsequent members the rule
has been laid down that the vacancy is to be fined up