The Encyclopedia Americana (1920)/Dresdner Bank, The
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Dresdner Bank, The
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DRESDNER BANK, The. The Dresdner Bank was founded in Dresden in 1872 with a capital of 9,600,000 marks, and in 1881, by the establishment of a branch, transferred its centre of activity to Berlin. Its first success was in its deposit business, in which it is to-day one of Germany's leading institutions. It is particularly strong in southern Germany through the number of banking institutions absorbed or established there. In many respects it has pursued a policy parallel to that of the Deutsche Bank, both in domestic finance and overseas business, the latter being initiated in 1892 by the absorbtion of a branch in Hamburg, followed in 1895 by a branch in Bremen and in 1901 in London. In all, the Dresdner Bank had (beginning of 1909) 27 branches, all, with the exception of the one in London, being located in Germany. In addition it has one Commandite and 57 deposit offices, 23 being in Berlin. Its foreign business is carried on through subsidiaries in China, Japan, Italy, Switzerland, Turkey, Greece, Egypt, Morocco, Argentina, Mexico and Canada, and in 1905 a close alliance was formed with the banking house of J. P. Morgan & Co., New York, for joint action in international finance and issue operations, particularly the absorption of American securities by German investors. Operations in the Orient and South America have been carried on jointly in co-operation with the A. Schaaffhausen'scher Bankverein. Between 1872 and 1909-10, important German banks and banking firms having numerous branches throughout Germany were absorbed by the Dresdner Bank. Important among these was the Deutsche Genossenschaftbank (Bank for Co-operative Credit Societies), Sörgel, Parrisius & Co., of Berlin and Frankfort-on-the-Main, closely identified with German industrial and agricultural co-operative societies. A special department of the Dresdner Bank is also concerned with the fostering of these interests. In addition, in 1904, jointly with the A. Schaaffhausen'scher Bankverein, the banking house of Von Erlanger & Söhne of Frankfort-on-the-Main was absorbed, this latter having 8 branches and 97 agencies, besides community-of-interest connections with 2 banks having 52 agencies. In addition, through board supervision or stock control, 12 other important banks with numerous branches and agencies are included within the Dresdner Bank group. The relations of the Dresdner Bank to the industrial life of Germany are indicated by the fact that at the beginning of 1909 representation was had on the boards of 87 other important industrial and financial organizations. In 1908 the capital was 180,000,000 marks (increased in 1910 to 200,000,000 marks), surplus 51,500,000 marks and dividend 7½ per cent. The total capital power of the Dresdner Bank group in the same year amounted to 283,942,419 marks, of which 227,680,000 constituted the capital and 56,262,419 marks the surplus. Consult Riesser, Dr. J., ‘Die Deutsche Grossbanken und ihre Konzentration’ (1909); ‘Germany's Economic Forces’ (1913); ‘Report on Cooperation in American Export Trade’ (Washington 1916).