Q. Referring to the item "Shares in other banks," $6,662,753, do you control all banks in which you have any interest?
A. Yes; practically. We probably have not the majority of the stock in any bank; but our holdings are sufficiently large to give us control.
Q. Is the tendency toward bank consolidation? Are the smaller banks becoming more closely affiliated with the larger banks?
A. Yes; because it serves a mutual advantage. The smaller bank needs better facilities to take care of the increasing business. If a bank wants to increase its capital, and the shareholders do not care to subscribe for the increase, the new shares are frequently offered to us. We look out for the business of these banks in the centres and give them participations in some of our important undertakings.
Q. In Great Britain we found that banking interests were practically controlled by from 15 to 20 large banks. Does that condition prevail in Germany?
A. No; but the tendency is in that direction. One difference between the banks of England and Germany is this—in England the primary purpose of the banks seems to be to secure large earnings for their shareholders. In Germany our banks are largely responsible for the development in the Empire, having fostered and built up its industries.
Q. Would it be any reflection upon a bank if it should go to the Reichsbank for discounts or loans in easy times?
A. No; we seldom go in easy times, however, because there is no need of our doing so.
Q. Is there strong competition between the important banks of Berlin or do they work more or less together?
A. Of course there is strong competition between the large, important banks, but there is no lack of harmony, and they very frequently work together in syndicate operations. While it is the desire and endeavour of each bank to build up its business, it must be recognised that each institution has more or less its own field of operation, which is in a measure respected by the other banks. As, for instance, the Deutsche Bank has done a very large volume of business with Turkey, and business emanating from that source is expected to and naturally does go to the Deutsche Bank, while another institution may have been largely identified with Roumania, or another with some large local interest. We ourselves are recognised as representing the Krupp interest and have just recently formed a syndicate to finance one of their operations.