GERMANY - CO-OPERATION AND ASSOCIATION 



a credit of only 141,088 marks. This represents an increase of three million 

 marks on the debts at the end of 1914. 



The same causes have led to an increase of the capital emploj'ed in the 

 trading sections of the branches of the Central Bank. At the end of 1914 

 only 4,700,000 marks was thus emploj-ed but on 31 December 1915 this 

 sum had come to be 8,500,000 marks. 



The movement of money between the Central Bank and the large 

 banks, that is those furnishing money in the form of loans, has an aspect 

 like that, alread}^ described, of the movement between the rural banks and 

 the Central Bank. Since receipts exceed expenditure and there is thus 

 a balance of money, the Central Bank instead of taking loans pays mone}'' in 

 quantities to these large banks, so that from their debtor it has become 

 their creditor. 



The debit and credit accounts of the Central Bank with these banks 

 give the following figures : 



31 December 191 3 31 December 1914 31 December 1 915 



Debit Account . . . marks 20,984,000 3,060,000 3,000,000 



* 

 Credit " ... " 824,000 3,281,000 15,658,000 



Excess of Debit Ac- Excess of Credit 



count " 20,160,000 Account marks 2,221,000 12,658,000 



Since the Central Bank has a considerable balance in mone^^ its credit 

 with these large banks would be yet more important if this balance were 

 not employed on investments to which before the war there was little or 

 no recourse. 



It has been invested in a) State b^lls ; b) loans to communes ; c) parti- 

 cipation in the bitsiness of co-operative producers' societies. 



On 31 December 1915 the bank held State bills of the value of 18,839,166 

 marks ; whereas on 31 December 1914 the value of those it held was 

 7,800,162 marks, and on 31 December 1913 it was 3,680,616 marks. 



Its loans to communes amounted on 31 December 1915 to 83,272,574.62 

 marks. It then participated in the business of co-operative producers' 

 societies to the extent of 920,050 marks. 



Togiyeaclearer idea of the business of the Central Bank we reproduce 

 some items of its balance-sheets : 



