A. Only on collateral acceptable by the Reichsbank. The railroad would probably in such a case go to private banks to be financed.
Q. Assume that there is a manufacturer in Bremen, making well-known articles, which he ships to a merchant in Berlin and draws a bill against that merchant, would it be a satisfactory bill to the Reichsbank?
A. Yes; but in that instance also the merchant would probably go to the private bank, where he would get a better rate of discount.
Q. If there were a severe money stringency, would he still go to his bank?
A. Yes; that would probably be the case, and his bank might afterwards take his bills to the Reichsbank.
Q. What is the smallest bill the bank will discount?
A. We have no minimum. We discount bills as low as 10 marks.
Q. Upon what kind of a bill does the farmer secure an advance from the bank?
A. He sells his produce, draws a bill upon the purchaser, and takes the bill to the bank as any other man would do, or a bill might be drawn upon a farmer and accepted by him.
Q. When he borrows money in the spring with which to buy seeds, how does he secure the cash?