United States or Belgium ? Vote for the TOP Country of the Week !
But this was not all. Although Germany agreed, under the first extension of the Armistice, not to export gold without Allied permission, this permission could not be always withheld. There were liabilities of the Reichsbank accruing in the neighboring neutral countries, which could not be met otherwise than in gold.
People are "requested" to give up their jewelry, to make a patriotic sacrifice of it for the Fatherland. Cards are printed in the newspapers urging the people for the sake of the Fatherland to bring all their gold into the Reichsbank. So fine is the search for gold that wedding rings are given from the fingers of the women, and iron rings are substituted as badges of patriotism.
In other words, Kautsky denies that partial nationalization or collectivism is necessarily even a step towards Socialism, and asserts that it may be a step in the other direction. The German Socialists acted on this principle when they opposed the nationalization of the Reichsbank, and it has often guided other Socialist parties.
The suddenness of the declaration of war had for its effect, and perhaps also for one of its objects, the stemming of the flow of gold from the Reichsbank before it had exceeded the total of 100,000,000 marks and also the prevention of its disappearance from the country.
Prussia was by far the dominant member of the union, as it comprised 70% of the population and land mass of the future Germany. This last collaboration was to be a short lived affair, Prussia and Austria having declared war on each other in 1866. He founded the Reichsbank in 1875 and charged it with issuing the crisp new Reichsmark.
The failure of the Reichsbank to meet its liabilities would have caused a depreciation of the exchange so injurious to Germany's credit as to react on the future prospects of Reparation. In some cases, therefore, permission to export gold was accorded to the Reichsbank by the Supreme Economic Council of the Allies.
Much time was expended in the exploration of all possible alternatives; but it was evident at last that, even if German exports and saleable foreign securities had been available to a sufficient value, they could not be liquidated in time, and that the financial exhaustion of Germany was so complete that nothing whatever was immediately available in substantial amounts except the gold in the Reichsbank.
The Hansa-Bund, for instance, founded a War Credit Bank for "the Middle Classes" which, with the authorization of the Reichsbank, rediscounts bills of exchange drawn by individuals for whom the Commune vouches. Associations were constituted in the country and in towns, and the nature of their work is evidenced by the 18,000 rural Savings and Credit Banks and 16,000 urban and trade associations.
It is a curious psychical and social phenomenon that, though we are as suspicious as criminals of one another's good faith in keeping the peace, we are veritable angels of innocence in trusting one another financially, for back of these huge debts we keep in ready money, that is, gold, to pay them: Germany at the present writing $275,000,000 in the Reichsbank; France $640,000,000 in the Bank of France; England a paltry $175,000,000 in the Bank of England; and Russia $625,000,000 in the Bank of Russia.
L'Invasione tedesca in Italia. Ezio M. Gray. Firenze. Of all German financial institutions the most influential and prosperous is the Deutsche Bank. It has been aptly termed an empire within the empire. Its capital, 250 million francs, exceeds that of the Reichsbank by thirty millions.
Word Of The Day