Q. Is there a limit to the amount of discretion given to the branch directors on first-class bills?
A. Each of the main branches has a fixed capital arbitrarily set aside by the Deutsche Bank. They have a sum according to the importance of the branch, and they must do business according to it.
Q. The Reichsbank has branches everywhere?
A. Yes; in every place where there is sufficient business. It has about 500 branches. We transferred through the Reichsbank last year 21,000,000,000 marks. Our strength is the Reichsbank. Our branch in Bremen, for instance, wants money when cotton shipments start, and the money is transferred to them. The importers in Bremen sell the cotton to the large manufacturers. When they get the money the money comes back to us.
Q. In London the joint-stock banks usually pay interest at about 1-1/2 per cent. below the bank rate. In the country they have to pay more. What is the custom here?
A. There is no strict rule. The bank rate is now 4 per cent. and we allow 1-1/2 per cent. on call money. In the interior our branches allow a little more. It is the same as in England.
Q. Does the bank rate influence your rate for discounts?
A. Yes; we are influenced. The bank rate is now 4 per cent. and our private discount rate is 2-1/2 per cent.
Q. If a mercantile customer came with a four months' bill satisfactory in character, what would be the rate to him?
A. We have no fixed rate. It depends upon the man and the bill.