GIPE-PUNE-OIIOI2 - DSpace@GIPE

46 THE· RE-MAKING OF THE REICHSBANK
no note" has at last been realized without any
qualification.
In regard to the cover ~ especially the gold-cover, however,
the new Reichsbank has been furnished with certain
leniencies subject to the. approval of the Gerieral
Council. The circumstances must be exceptional, the
suggestion has to come from· .the Direktorium, and the
approval must be unanimous minus one.
The 40 p,c. gold-cover may then be obviated on two
conditions. First, a tax is to be paid by the Reichsbank
to the government according to a statutory scale. In case
the reduction of the cover is nece.ssary for more than one
week, the tax is to be as follows:-
per year
Gold-cover between 37 and 40 .p.c.-3 p.c.
.. "35,, 37 p.c.-5 p.c.
" "33!~,, 35· p.c.-8 p.c.
Gold-coyer less than 33 V3 p.c.-8 p.c: together
with 1 p.c. per year for every per cent by
which the cover is less than 33V3 p.c.
The second condition on ~hich the gold-cover may'
be reduced runs to the effect that, first .. the rate of discount
is not to be lower·than 5 p.c. during the er.tire period, and' .
.,setondly, the rate of discount is to be raised by at least·
one-third of the tax, whenever it has to be paid to the·
government.
. III. Sonder-deckun~ or special cover (40 p.c. of
daily liabilities). .
In addition to th~ above· cover. for notes •. the.·law of.
,1924. co~pel$ . the' Reichsbank, to provide itself .with. a.