DISCONTO-GESELLSCHAFT, BERLIN, established in 1851 as a cooperative credit-association, carries on since 1856 in the form of a Commandit joint stock company all lines of commercial and issuing banking business. By its promoting and issue activities its name is prominently connected with the home and colonial economic development. Numerous important German and foreign loans have in the past been floated under its auspices.
Since 1901 the Disconto-Gesellschaft extended its technical organisations beyond Berlin throughout Germany. The taking over of the Norddeutsche Bank in Hamburg and of the A. Schaaffhausen'scher Bankverein in Cologne carried its sphere of business also to oversea countries and the Rhenish Westphalian district. Since the absorption of the Stahl and Federer A.G. in Stuttgart (Wurttemberg) and the Bank fur Thuringen vorm. B. M. Strupp in Meiningen (Thuringen) the Disconto-Gesellschaft owns 127 branches and branch offices covering the whole of Germany. Participations are furthermore held in the Siiddeutsche Disconto-Gesellschaft A.G., Mannheim, and in the banking firm of L. Pfeiffer, Cassel.
The expansion of the business of the Disconto-Gesellschaft led to the establishment of subsidiary banks abroad and participation in other European banks : the Handelmaatschappij H. Albert de Bary and Company in Amsterdam, Kreditbank in Sofia and the bank's interest in the banking firm of Ephrussi and Company in Vienna. In oversea countries the Disconto-Gesellschaft founded in conjunction with the Norddeutsche Bank in Hamburg the Brasilianische Bank fur Deutschland, now Banco Brasileiro Al lemao in Rio de Janeiro with branches in Sao Paulo, Santos, Porto Alegre, Recife, Bahia, further the Banco de Chile y Alemania in Valparaiso with branches in Santiago, Concepcion, Temuco, and Valdivia. In addition to the foregoing the bank also took an active and leading part in the foundation of the Deutsche-Asiatische Bank in Shanghai. In Oct. 1929 a merger was arranged with the Deutsche Bank (q.v.), the capital and reserves of the Disconto Gesellschaf t then standing at about 186,000,000 Reichsmark.
(H. FU.)