The condition of the Reichsbank is indicated from the following figures taken from the re port for 23 April 1917 (in round numbers): Cash reserve, 3,108,220,000 marks, comprising coin and bullion, to the amount of 2,549,000,000 marks, and treasury and loan bank notes to the amount of 550,420,01100 marks; other bank notes, 8,800,000 marks; bills discounted, 8,484,800,000 marks; advances, 9,280,000 marks; investments, 105,160,000 marks; other securities, 1,088,000,000 marks; notes in circulation, 8,144,920,000 marks; deposits, 4,014,320,000 marks; other liabilities, 366240,000 marks; and reserve fund, 83,460,000 marks. The note issue in circulation on this particular date was 8,144,920,000 marks, or 5,036,700,000 marks in excess of the cash re serve. This excess was secured primarily by discounted bills amounting to 8,484,800,000 marks, in addition to the other bank assets amounting to 1,218,984,000 marks, a total of 9,703,784,000 marks, which, minus liabilities of 4,380,570,000, leaves net a balance of 5,323,214,000 marks. The note circulation based upOn bills
discounted constitutes what is denominated the "elastics part of the whole note issue, in that it is closely adapted to the varying state of the market, based, as it is upon the actual evi dences of everyday business. What profit un due inflation would give to the bank and its stockholders is counterbalanced by the 5 per cent tax on same that the government receives charge that maintains the excess note issue to the actual needs of business.
During its first 35 years of existence (1876 1911) the Reichsbank's net profits amounted in round figures to 691,000,000 marks; during the same period the Imperial Treasury received 325,500,000 marks and the stockholders 336, 400,000 marks of these net profits, this being for the latter an annual average of 6.92 per cent. Consult Reisser, J., 'Die deutsche Gross bank= and ihre Konzentration' (1909) ; 'Ger many's Economic Forces' (1913) ; 'Report on Co-operation in American Export Trade' (Washington 1916).