GIPE-PUNE-OIIOI2 - DSpace@GIPE

AND THE BANQUE DE FRANCE
81
Gross Earnings
Total Expenses
Net Profits
Reserve Fund
Shareholders' Dividend
307,073,350 Reichsmarks
184,559,159 "
122,514,191 "
24,502,838 ..
(a) paid-up 9,000,000"
(b) carry forward 33.403,600 "
Government's Share 55,608,514 "
Although the new Reichsbank has been almost completely
emancipated from the state, the lion's share of the
net-profits still belongs to the latter, amounting to 45·4p.c.
But we are transported to another world in the Bank
.of England. Emancipation from government control or
even from contact with the state IS assured
by the very constitution of the Bank aa
indicated above. Constitutionally, it is more independent
of the state than even the new Reichsbank
in which the election of the president is to a
certain extent subject to the voice of the Reichspraesident.
Besides, not to speak of the interest-free avances a l'Etat
\uch as the Banque de France grants, the enormous
portions of profits such as both the French and the German
institutions have all along been' transferring to the state
are unknown in the history of the Bank of England. The
British government, however, obtains "the profits arising
in respect of each year in the issue department" which as
a rule does not go beyond a modest figure. On the other
hand, the government pays interest for its debts to th~
Bank at stipulated rates. For services rendered by the
Ba~k it is, moreover, paid by the government as almost
any .other banking institution would be paid. The relations
of nearly complete independence should.
therefore, appear to prevail on both sides.
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