The Encyclopedia Americana (1920)/Deutsche Bank, The
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Deutsche Bank, The
|Edition of 1920. See also Deutsche Bank on Wikipedia, and the disclaimer.|
DEUTSCHE BANK, The. The Deutsche Bank (Deutsche Bank in Berlin) was founded in 1870 with a capital of 15,000,000 marks. Its object, as stated in its charter, was “the transaction of all sorts of banking business, particularly the fostering and facilitating of commercial relations between Germany, the other European countries and over-seas markets.” Previous to its founding, German importers and exporters were dependent upon English and French banking institutions in the world markets — a serious handicap in that German bills were almost unknown in international commerce, generally disliked and subject to a higher rate of discount than English or French bills. The wisdom of its establishment is evident. Following certain difficulties and criticisms during its early years, the Deutsche Bank in time established branches and connections that have given it an international standing. In 1873, after one failure and another partially successful attempt, a branch was opened in London — a prime necessity for the establishment of credit in the world's money centre for the German trade. In addition, to keep in touch with the great promising export and import centres, branches were opened at Bremen (1871), Hamburg (1872), Frankfort-on-the-Main (1886), Munich (1889), Leipzig and Dresden (1900), Nüremburg (1905), and Constantinople (1909). In addition, it has two silent partnerships, known as “commandites,” and 77 deposit offices. Subsidiary offices have been founded in whole or part by the Deutsche Bank in the United States, Asia, South America (seven countries), Spain, Italy, East Africa, Central America and Mexico; the whole representing a large capitalization. In addition communities of interest have been established with 13 important banks throughout Germany, these last having 94 branches. Through its ramifications there is hardly a financial organization in any community in the German Empire in which the Deutsche Bank has not some proprietary connection; and no commercial country in which it has not an active or silent financial connection. In addition to its purely banking functions, it has representatives on the boards of German and foreign manufacturing and trading organizations, many of which are pre-eminent internationally in their respective lines. This representation in 1910 concerned 116 such institutions. The capital of the Deutsche Bank (1915) was 250,000,000 marks; surplus, 180,000,000 marks; and dividend 12½ per cent. The capital power of the Deutsche Bank group (1908) was 786,858,095 marks, of which 588,900,800 marks constituted capital, and 197,957,295 marks surplus. Consult Riesser, J., ‘Die deutsche Grossbanken und ihre Konzentration’ (1909); ‘Germany's Economic Forces’ (1913); ‘Report on Cooperation in American Export Trade’ (Washington 1916).