GIPE-PUNE-OIIOI2 - DSpace@GIPE

78 THERE-MAKING 01;' THE,REICHSBANK
1900 previous to the war. The Act of Aug~st 30~
1924, has also reconsidered the situation and decided
upon new rates. Each one of these laws has distributed
the net profits among the following categories: (1) reserve
funds, (2) shareholders' dividend, (a) paid and (b) carried
forward to the next year, and (3) government.
From 1876 to 1913 the important role of the state as
profit-sharer in the· Reichsbank business would be
apparent from the actual distributions as follows:-
Gross Earnings 1,368,093,611 M.
Total Expenses 589,063,611 M.
Net Profit 779,029,860 M.
Government's Share of
Net profit
376,280,083 M.
Shareholders' Share· of
Net profit:
(a) Paid
364,064,000 M.
(b) Carry forward
1,014M.
Reserve Fund
38,684,763 M.
The government thus enjoyed the "lion's share" in
the net profits, 28 amounting to 48·3 p.c. of the total
whereas the "paid" portion of the shareholders' share
made up 46'7 p.c.
In this sens,e, however, the old . Reichsbank was not
more of a state-institution than the Banque de France. 29
For, the financial advantages of the French government
in'return for. the privileges renewed to the Banque de
Fr~c~,bythe law c;>(Nov:. 17,,·1897 are not tobe ignored. 31l
first', th~ sta~e was noqo pay' interest on the loan of 140
, 28 Die Reichsl?anl( 1901.1925, . Tabellen 54, 55.
, 29F or. a full.Hedged state-ba,nksee the chaptet on the "State.Ban~ of
Sovie('Russia" in SarkarI Economic Development; . . .
... ~ 30 Loi. et .tatuts; pp., 161-16~, ,193,.243,