Private Central Bank Act

Basic data
Title:	Private Central Bank Act
Type:	Imperial Law
Scope:	German Empire
Legal matter:	Commercial law
Issued on:	August 30, 1924 (RGBl. II, 1924, No. 32, p. 246 ff)
Entry into force on:	October 11, 1924
Please note the note on the applicable legal version.

The German Private Central Bank Act of August 30, 1924 was passed by the Reichstag in order to better regulate private central banks in Germany after the hyperinflation of 1923 .

history

When the Reich was founded in 1871, the Reichsbank did not receive a monopoly on the issue of banknotes . The existing central banks retained the right to issue banknotes to the extent specified in the annex to Section 9 of the Banking Act of March 14, 1875. Before the Banking Act of March 14, 1875, there were 33 private central banks in the German Empire, most of which were founded between 1850 and 1860. The state Reichsbank emerged from the Prussian Central Bank through the Banking Act. Since this developed into the dominant institute, the number of competing private central banks shrank to 17 institutions by 1878 (see list of German private central banks ). At the beginning of the 20th century there were still seven central banks.

With the end of the Empire in 1918, there were only four private central banks in Germany: the Bavarian central bank in Munich, the Badische Bank in Mannheim, the Saxon Bank in Dresden and the Württembergische central bank in Stuttgart. After the hyperinflation of 1923, the Private Central Bank Act of August 30, 1924 was enacted. According to this law, the Bavarian Central Bank and the Saxon Bank of Dresden were allowed to issue a maximum of 70 million Reichsmark banknotes each year ; the other two banks set the total at 27 million Reichsmarks each.

After the seizure of power of the Nazis the score privilege was abolished by law at the end of the 1934th The basis was the possibility of termination in the law on private central banks after ten years.

literature

• Dietrich OA Klose: The Mark - a German Fate: History of the Mark up to 1945. State Coin Collection, Munich, 2002.
• Deutsche Bundesbank : Paper money in the German Empire 1871–1948. Frankfurt am Main, 1965.

Individual evidence

1. ↑ Annex to Section 9 of the Banking Act of March 14, 1875
2. ↑ Banking Act RGBl. 1875, pp. 177-198 of March 14, 1875 [1]
3. ↑ Private Central Bank Act of August 30, 1924, in RGBl. II, 1924, No. 32, p. 246 ff