INFORMATION RELATING TO CREDIT ']'] 



The excess of receipts over expenditure (profits) amounted thus to 

 992.018.96 marks, as against 558,313.30 marks in 1914-1915 and 742,926.32 

 marks in 1913-1914. Deducting the shares due to the dismortgaging 

 funds (21,466.30 marks) and 159,160 marks due to the manager and the 

 employees, we find that the net profits amounted to 811,392.10 marks. 



This sum is distributed as follows : 



1. To the bank's savings reserv^e fund 28,879.11 marks 



2. Three quarters to the special fund of the lyand- 

 schaft of East Prussia (entered on debit side of 

 balance-sheet) 586,884.74 » 



3. One quarter to the bank's general reserv^e fund 195,628.25 » 



The Savings Bank. — The Landschaft is responsible for investments 

 in the savings bank, which has the recognized power of receiving trust funds. 

 It had the activity expected of it. In spite of much variation in the sums 

 entrusted to it, owing to the investment of savings in the war loans and 

 the subscription of 4.5 million marks to the third and fourth of these loans, 

 the total amount of savings was increased by about one and a half million 

 marks during the year and was at its close more than nine and a half 

 million marks. The profits of the savings bank were much reduced by the 

 amortization of its title-deeds. The amount of its investments was : 



on I April 1915 (11,723 savings bank books) 8,027,701.77 marks 

 on 31 March 1916 (13,509 » » « ) 9,605,115.14 » 



(including credited interest amounting to 319,391.73 marks) 



The savings reserve fund is invested at the Landschaft in Prussian 

 Ivoan consolidated stock and in the public debt, etc. : Its amount was : 



on I April 1915 186,097.00 marks 



on 31 March 1916 (including total profit for 1915- 



1916 of 28,879.11 marks) 222,779.10 ;; 



The bank's general reserve fund passed during the year under review 

 from 961,844.33 marks — including interest and the quarter of the net pro- 

 fits — to 1,199,426.56 marks. 



The bank's total profit is noticeabl}^ more than in the preceding year, 

 the increase corresponding to that in the circulation of funds and the sums 

 on the balance-sheet. In addition to the profits reahzed as commissions 

 on subscriptions to the war loans, which more than compensated for the 

 depreciation of title deeds by the lowering of the currency, and indepen- 

 dently of the increased profits on other commissions, the increased sum com- 

 ing under the head of interest decided the results of the year. Costs of 

 administration certainly increased noticeably, owing to the increase in 

 taxes, in contributions to enterprises of public utility, etc. Before the bank's 

 net profit was determined sums destined for the amortization of its buildings 



