The Freedmen's Savings Bank

Bibliographic data

Monograph

Identifikator:: 885200373

URN:: urn:nbn:de:zbw-retromon-11321

Document type:: Monograph

Author:: Wetter, Ernst http://d-nb.info/gnd/1051891450

Title:: Die Lokal- und Mittelbanken der Schweiz

Place of publication:: Zürich

Publisher:: Orell Füssli

Year of publication:: 1914

Scope:: 1 Online-Ressource (114 Seiten)

Digitisation:: 2017

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: III. Der gegenwärtige Stand des Lokal- und Mittelbankwesens

Collection:: Economics Books

8o MODERN MONETARY SYSTEMS the law foreign bills and foreign currencies were to be handed over to the Banking Office, which was thus likely to succeed in getting together a large portfolio of foreign bills. Thus, when M. Rasin after some months of hard work was about to leave the Finance Ministry, the currency reform which had been contemplated might have been said to be under way without having yet attained its object. The currency, although it had been only slightly reduced, was at all events regulated ; but no stable con- version rate had been contemplated, and there was neither a gold stock nor credit sufficient to cover any conceivable demand for foreign exchange. But some valuta had already been collected, and a small reserve of gold and foreign currencies had been constituted. The first effects of this policy showed themselves clearly in the exchange curve. As from October 28th, 1918, the Czech crown had been quoted at Zurich separately from the Austrian crown, considerably to its advantage (30 francs for 100 crowns as against 26 francs). Thereafter the confidence inspired by Rasin’s vigorous policy helped to increase the disparity between the two currencies, the Czech crown appreciating to 33°5 francs on May 17th, 1919, while the Austrian crown dropped to 21 francs on the same day. In April the Foreign Exchange Control Office had stepped in to break speculation,’ and it did so again in May to check a rise which was too sharp and to arrest it when a rate of 34 francs was reached. But from the moment of Rasin’s fall (July 191 9) to the middle of 1921, the Czech crown, while remaining at a higher level than the Austrian crown, described a curve nearly parallel to that of the mark, declining almost with- out interruption until February 1920; when it fell to 5-65 francs, recovering till May in the same year with the mark, which it then again followed in a decline. | This prolonged dependence of the Czech crown on the 1 Tt had suddenly caused the Czech crown, which had fallen to 21 centimes, to rise to 28 centimes, tO the confusion of those who were speculating on a fall. Rasin also prohibited the import of Austrian securities which would have weighed down the balance of payments. (See Piot, 0p. cit., p. 156.)

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