GIPE-PUNE-OIIOI2 - DSpace@GIPE

'So
THE RE-MAKING OF THE REICHSBANK
without intereSt to the state} is, then, 3,200 millions {of
•'new" francs}.31
The government of the Bank of England is entirely
private. The state po~esses hardly any control over it.
The shareholders constitute the supreme authority. They
-elect from among themselves a board of directors. The
directorate consists of 24 members, but none of them are
to have connections with any banking institution in an
official or proprietary capacity. There is a governor who
is assisted. by a deputy governor. Each is appointed for
two years by election. But both of them must belong to
the di;rectorate. .
The lavish grants and interest-free loans enjoyed by
the French government from the Banque . are unknown in
the Reichsbank Act of 1924. The German government
. cannot' obtain a loan of more than 100 million Marks and
is bound to repay the Reichsbank in the course of the
·official year. Interest has to be paid. The Reichsbank
is, however, authorized to make loans not exceeding 200
million Marks to the Government Post· and Railway
Departments. Besides, after 12 p.c. of net profits has
been placed in the reserve and 8 p.c. paid to shareholders
-the government has a right to "profit-sharing" with the
Reichsbank.
That the "profit-sharing" of the German Republic
in the new Reichsbank' s business does not reach modest
'. .proportions. w~uld be evident from the first year' s record
in stabilized currency. The following figures for 1924
;.tell their own st~ry : c .
31 Compte rendu (Paris 1932}. p. 24.