429 



Miscellaneous, 



The Prussian Central State Bank.— It now only remains to notice the 

 action taken by the Prussian Government for the assistance of co-operative banking 

 by the foundation in 1895 of the Prussian Central State Bank. The funds placed at 

 its disposal were at first £250,000, which was increased in 189(5 to £1,000,000. and in 1898 

 to £2,500,000. Dr. Heiligenstadt, the president of the bank, in a memorandum on the 

 subject, thus explains the view taken by its promoters : "When dealing with co- 

 operative organisations, even by the comparatively easy method of current accounts, 

 the great banking institutions of the country obviously cannot forego the condition of 

 demanding adequate bankable security. Bankable security, however, is just what 

 co-operative institutions are rarely in a position to supply to any considerable amount, 

 because in co-operative institutions the formation of capital or pledgeable assets is 

 by the very nature of things slow, and need is sure to be greatest where such forma- 

 tion is least developed. And this hindrance may be said to hamper even societies 

 of old standing, in which the creation of capital has been in progress for some time, 

 and which have as a rule succeeded in some measure in adapting themselves to the 

 requirements of the banking market. In more recently-formed societies, more parti- 

 cularly in agricultural districts, the obstacle is painfully in evidence. Such societies 

 are only very rarely in a position to satisfy bankers' requirements at all. The 

 Prussian Central State Bank was formed to bridge over the existing chasm and bring 

 demand and supply together by interposing between them a powerful institution 

 which, having no selfish interest of gain or profit to study, might be employed to 

 satisfy the need of personal credit on reasonable conditions in the case of the lower 

 and middle classes when combined for productive purposes in co-operative societies." 



The State Bank only advances money, except on tangible security, to unions 

 of co-operative societies, such as central banks, &c, and not to individual societies. 

 In the case of unlimited liability societies the advances are limited to 10 per cent, of 

 the total value of the property involved, and in the case of limited liability to some- 

 thing less than the actual sum guaranteed. 



At the close of March, 1904, the bank had business relations with fifty-two 

 central banks, nineteen of which were mainly urban and industrial, representing 

 405 societies and 80,563 members, while thirty-three were rural and agricultural, 

 representing 8,940.societies and 807,101 members. The balance-sheet showed that it 

 held £393,664 on cunent account and £1,370,684 on deposit, and had £1,877,118 out- 

 standing for advances on bills of exchange, &c, the net profits amounted to £110,000, 

 or 4-41 per cent, on the capital. The bills discounted in 1903 amounted to £3,957,000. 



In several other German States, i.e., Bavaria, Saxony, and Wurtemberg, the 

 Governments, without actually establishing State banks, have given subventions or 

 some form of financial assistance to a central co-operative bank, and claimed a 

 reasonable amount of representation in the management.— -The Journal of the Board 

 of Agriculture, March, 1906, Vol. XII. No. 12. 



Correspondence. 



MONEY, WEIGHTS AND MEASURES IN EASTERN COUNTRIES. 



Managua, 20th March, 1906. 

 Sir, — Would it not be a good idea if you would have every year once a table 

 printed with the equivalents of measures, weights and money values most in use all 

 over the East, I mean in Colombo, B, India, Dutch, French possessions, Japan and 

 China ? It would make your paper so much more valuable in every respect and 

 a good many things more comprehensible. 

 With my best regards, 



Yours truly, 



H. E. LOW. 



