GIPE-PUNE-OIIOI2 - DSpace@GIPE

AND THE BANQUE DE FRANCE 69
the Banque as well as the big three may be seen below
(in millions):
Year Credit Lyonnais Societe Comptoir Sanque
1920 3.239 3.090 2.651 3.276
1925 4.797 4.706 3.n7 3573
1926 5.226 5.369 4.220 4.540
It is clear that the Banque manages somehow to run
abreast of the "big three." But in the perspective of the
entire discounting business in the country its role is very
modest indeed.
The Reichsbank is like the Bank of England and the
Banque de France a bank of banks or bankers' bank. It
keeps the deposits of these institutions and serves, so to
say. to centralize the financial resources of the German
Empire. Its responsibilities as the "reserve bank" of the
entire country are therefore considerable. It is compelled.
as a consequence. to keep a strict eye on its "cover", i.e.,
the amount of "cash" buillion and securities.
The cover maintained by the Reichsbank is in the
last analysis the "reserve" for the whole Empire,-fcr the
Government as well as for the other banks. As a reserve
bank the Reichsbank' s functions are identical with those
of the Banking Department of the Bank of England. It
need be recalled that banking of any sort is not permitted
to the Issue Department of the British institution.
The method of protecting the reserve is the same in
Gerinany as in England. The "legal" reserve is likely
to be depleted under two ~ets of "economic" circumstances.
First. because of industrial expansion or
commercial boom of all sorts. an extraordinary volume of
bills of different kinds may come into existence. In