Reichsbank: Difference between revisions

The monetary institutions in Germany had been unsuited for its economic development for several decades before unification. In the [[Kingdom of Prussia]], the [[Bank of Prussia]] had been established in 1847 and, in the aftermath of the [[German revolutions of 1848–1849|revolution of 1848]], five additional banks had been granted a note-issuance privilege (the {{ill|Berliner Kassenverein|de}}, {{lang|de|Kölnische Privatbank}}, {{lang|de|Magdeburger Privatbank}}, {{lang|de|Ritterschaftliche Privatbank in Pommern}} at [[Stettin]], and {{lang|de|Städtische Bank in Breslau}}), but that was still insufficient to sustain adequate monetary conditions.<ref>{{citation |title=The Political Calculus of Capital: Banking and the Business Class in Prussia, 1848-1856 |author=James M. Brophy |journal=Central European History |issue=25:2 |year=1992 |pages=149-176 |url=https://www.jstor.org/stable/4546258 }}</ref>{{rp|156}} By 1851, 9 banks in the whole of Germany (not including Austria) were chartered to issue banknotes.<ref name=Guinnane>{{citation |url=https://www.econstor.eu/bitstream/10419/98270/1/cdp835.pdf |author=Timothy W. Guinnane |year=2001 |title=Delegated Monitors, Large and Small: The Development of Germany's Banking System, 1800-1914 |publisher=Yale University Economic Growth Center |location=New Haven CT}}</ref>{{rp|16}} By early 1870, that number had grown to 31 banks in the territories that would become the [[German Reich]] the next year, typically private-sector entities (albeit often under specific government oversight) known in German as {{lang|de|Notenbanken}}.<ref name=NMC>{{citation |title=The German Great Banks and Their Concentration in connection with The Economic Development of Germany |url=https://historyofeconomicthought.mcmaster.ca/riesser/GreatGermanBanks.pdf |year=1911 |author=Jacob Riesser |publisher=National Monetary Commission |location=Washington DC}}</ref>{{rp|141}} Twelve of these were in Prussia, four in the [[Kingdom of Saxony]], one in the [[Kingdom of Bavaria]], and the other 14 in various duchies, principalities and [[Free imperial city|free cities]].