Money and Credit

Money and credit.


Federal bank
Loan institutions
Credit company
Distributing centre
Communal bank
Deutsche bank
Commerz bank
Foreign Exchange
Foreign
Investment Bank
Saving
Bank

The indebtedness to the other countries is not due to liability under the London agreement and in
Respect of postwar Industrial debt amounted to 5,700 million DM ($1,425million=$509) , It was
Possible considerably to reduce balance( 9,200 million= $782 million) by the payment in advance.
Of postwar industrial debts by Federal bank.

The indebtedness to other countries is due to liabilities incurred by the Federal Republic to
The overwhelming extent it consists of debts that had been owned by German Reich and liabilitues
arising out of the war. The Federal Republic is Legally entitled to claim to represent internationally
those part also of German Reich by 1994. These large payments can certainly only be made if there
is genuine surplus in foreign trade. For this reason the federal Republic is at pains to extend her
exports so far as possible, in interest too of her creditors in foreign countries. Possible , in the
interests too of her creditors in foreign countries. In 1962 for the first time , the trade surplus
went down to such extent that it could no longer cover the deficit of the services for which
payment is made.

Long- term Foreign investments in Federal Republic increased by 2,400 million DM( $600million=$214 million) German long term capital investment abroad of which private investments accounted for
1.500 million DM ($ 375million=$314million). Increased by the same amout. The total value of
Privately –owned German assets still either frozen abroad or sequestrated is estimated unofficially
To be something like 10,000 million DM ($2,500million=$893million).

The draft of a law for the discharge of reparations liabilities envisages the satisfaction of claim totaling
Approximately 16,000 million Reichsmark at an expenditure of 900 million DM ( $225million= $80 million) – with interest , 1,500 million DM ($37million=$134 million)

At present the number of banks, saving banks and other financial institutions in the federal republic
Is about 13,000. There are stock exchanges at Bremen, Dusseldorf, Frankfurt- on main , Hamburg,
Hanover , Munich and Stuttgart. At the end of November, 1962 , the nominal value of stocks and
Shares was 37.000 million( $ 9. 250 million= $3.304 million). For 1961, the total value of dividends
distributed by 1,71 joint stock companies with a share capital of 24,710 million DM($ 6,178million
= $2,206 million) , was about 2,500 million DM($625million=$223million). The average dividend paid
On the stocks and shares of the companies situated in the federal area amounted at the end of September
1962 to 13.5 percent, The net yield of shares prices taking the index dec-----------------.
was 822 on jan-----------------------------. At th end of Nov, 19----. The total assets of 22 German investment
companies amounted 2,600 million DM($665million=$238million).

Percentage Reduction in the internal purchasing power of various Currencies.

percentage
Reduction
In internal
purchasing
power

of various currencies



France
48
Denmark
39
United states - 22
Norway
44
Holland
36
Belgium--19
Sweden
42
Italy
31
Swizerland- 17
United kingdom
39
Canada
24
Federal Republic-16



The purchasing power on condition of 100 Italian corresponded to 0.70 DM 100 swedish krone
To 85.60DM and $ 1 sterling to 16.10 DM as against only 0.57 DM , 69.03 DM and 10.99 DM
Respectively at the end----
Compared with the swiss frank the purchasing relationship has remained practically unchanged
And vis the U.S dollar it has improved,

A coast is at least 1,238 to 2,757 DM ($ 310 to $ 689=$111TO $246) , Including between 430 and
1,300 DM ( $ 108 and $325=$38 and $116) for the 114 articles of linen between 374 and 562DM
( $ 94 and $141= $33 and $50) for the tableware, between 306 and 611 DM ( $77 and $ 55)
For the kitchen utensils and between 128 and 284 DM ( $ 32 and $&71= $!! and $25) for
General household equipment.

Percentage changes

Switzerland
120
Italy - 137
Food
212.8- 131.6
Swedan
191
building
drinks
228.8- 85.4
Norway
187
Ceramic tiles
Tobacco
156.8- 149.0
France
184
pipes
Rent
203.8-151.4
United kingdom
170
Raw material
Heating and lighting
191.5- 114.1
Austria
164

Household effect
205.0- 112.0
Holland
143

clothing
200.2- 124.7
Federal Republic
132

Cleaning and hygienic equipements
185.7- 138.7
Belgium
125

Education and entertainment fares
202.4- 138.8
United states
120




The Economy
There is quiet difference how the German Economy is judged at home and Abroad.
Business Failure increased to a frightening degree. Even worse than during the crises
Of 19--- 19----. Although the price index has climbed more slowly since19-----.
The rate of increase is nevertheless considered much too step by the Germans
Who are more sensitive than the population of other countries to inflationary
Trends. Add to this the constant worry about maintaining exports after comparative
Production coast changed very much in favour of competing countries. Partly
Because of increased domestic wages but even more so because of rises of value
D- Mark.

People abroad, on the other hand , that trade surplus remains very large and that the
Bundesbank possesses by far largest reserves of any Central Bank in the World.
Moreover , most foreigners consider the German Inflation rate relatively low compared
With that of their own countries. The same is true for unemployment which run a far
high Percentage of many countries, Nothing these differences in point of view it is
obvious that ideas about the correct economic policy national and international differ
as well.

Another contributing factor to the difference in judging the state of German economy
By the foreigners and by Germans are difference in statistical methods and above
all, The peculiarities of German foreign trade. The statistics on unemployment furnish
the clearest example of the distortion of comparision . In the United State people are included in
unemployment figures who would not be counted as unemployed by German labour offices,
Beside workmen and other employees change job more frequently in U.S ,

Than they do in Germany , and between jobs they appear on the rolls of the unemployed
Experts believe, that if the situation of the labourmarket believe, therefore that
If the situation of the labourmarket were exactly alike in the two countries, the unemployment
total in the United States would lie atleast three if not almost four percent higher than in Germany,

When talking about the high exports surplus in the Geman trade balance, most foreigners do not take
Into consideration that running balance of the payments of Germany contains negative balances unknown to that extent in other countries. The two most important of these are caused by tourism and by
the transfer of the funds by foreign workers.

Germans spend more money for Sunshine and abroad than for their most important imports. Travel abroad in 1971 repersented an expenditure of 25.1 billion D- Mark . At the same time, the import of crude oil came to 23 billion DM . keep in mind that these statistic cannot cover all the money spent by Germans
during their trips abroad .

Since Germany too, is popular country to visit , there also was income from foreign
Vistors. Though this has increased substantially during the past years, it far from equal expenditure of
Germans during their abroad.

Since Germany too,is a popular country to visit, there alone was income from foreign vistors. Though
This has increased substantially during the past years, it far from equals expenditures of German abroad.
Thus, there is a negative component which with 16.25 billion in1977, made up for
Almost half of the positive trade balance of 38.42 billion DM

Transfers of money by foreign workers to their native countries amounted to some 6.4 billion DM
In 1977 . That was one- sixth of the tradesurplus. With man re-emergence of unemployment ,
The number of
Foreign workers in Germany should decline further. In addition, foreign workers who have returned
home receive steadily which already run to eight_ digit Figures will soon reach nine- digit ones.

Transfer of money by the foreign workers to their native countries amounted to some 6.4 billion DM That was one- sixth of the trade surplus. With re-emergence of unemployment, the number of foreign workers in Germany has been reduced, which also diminish the transfer of funds. The reduction to the level of 1977 was not only due to reducenumber of foreigns workers but also to the fact that many of those remaining in Germany kept more money than previously in Germany because of the devaluation of the currencies of their own countries. Thus transfer abroad could again increase even if the number of foreign workers in
Germany should decline further. In addition , foreign workers who have receive steadily rising payment from the German social society system which already run to eight_digit figures and will soon reach nine
Digit ones.
A combination of the trade balance with the balance of services, the largest item of which is travel followed by transport and insuarance as well as the capital gains , with the balance of transactions which include private transfers as well as the many different international expenditure of the state, result in the balance of performance which is considerably lower and had been diminishing.

GERMAN AND INVEST ABROAD:_
To be sure , it still amounted to a considerable 8.72 billion . But the positive figure of balance of performance have since 19-----------. Been far lower than the capital investment s of the German economy abroad and probably will remain so in the forseable future. Unless unforeseen events bring profound changes in the world economic solution.

German businessman who twice in course of a few decades lost of all their investments abroad as a consequence of greatwars , hesitated a long time afterworld W.W 11.
Before deciding to again undertake foreign investments abroad as a consequences of greatwar hesitated



Money and credit.


Federal bank
Loan institutions
Credit company
Distributing centre
Communal bank
Deutsche bank
Commerz bank
Foreign Exchange
Foreign
Investment Bank
Saving
Bank

The indebtedness to the other countries is not due to liability under the London agreement and in
Respect of postwar Industrial debt amounted to 5,700 million DM ($1,425million=$509) , It was
Possible considerably to reduce balance( 9,200 million= $782 million) by the payment in advance.
Of postwar industrial debts by Federal bank.

The indebtedness to other countries is due to liabilities incurred by the Federal Republic to
The overwhelming extent it consists of debts that had been owned by German Reich and liabilitues
arising out of the war. The Federal Republic is Legally entitled to claim to represent internationally
those part also of German Reich by 1994. These large payments can certainly only be made if there
is genuine surplus in foreign trade. For this reason the federal Republic is at pains to extend her
exports so far as possible, in interest too of her creditors in foreign countries. Possible , in the
interests too of her creditors in foreign countries. In 1962 for the first time , the trade surplus
went down to such extent that it could no longer cover the deficit of the services for which
payment is made.

Long- term Foreign investments in Federal Republic increased by 2,400 million DM( $600million=$214 million) German long term capital investment abroad of which private investments accounted for
1.500 million DM ($ 375million=$314million). Increased by the same amout. The total value of
Privately –owned German assets still either frozen abroad or sequestrated is estimated unofficially
To be something like 10,000 million DM ($2,500million=$893million).

The draft of a law for the discharge of reparations liabilities envisages the satisfaction of claim totaling
Approximately 16,000 million Reichsmark at an expenditure of 900 million DM ( $225million= $80 million) – with interest , 1,500 million DM ($37million=$134 million)

At present the number of banks, saving banks and other financial institutions in the federal republic
Is about 13,000. There are stock exchanges at Bremen, Dusseldorf, Frankfurt- on main , Hamburg,
Hanover , Munich and Stuttgart. At the end of November, 1962 , the nominal value of stocks and
Shares was 37.000 million( $ 9. 250 million= $3.304 million). For 1961, the total value of dividends
distributed by 1,71 joint stock companies with a share capital of 24,710 million DM($ 6,178million
= $2,206 million) , was about 2,500 million DM($625million=$223million). The average dividend paid
On the stocks and shares of the companies situated in the federal area amounted at the end of September
1962 to 13.5 percent, The net yield of shares prices taking the index dec-----------------.
was 822 on jan-----------------------------. At th end of Nov, 19----. The total assets of 22 German investment
companies amounted 2,600 million DM($665million=$238million).

Percentage Reduction in the internal purchasing power of various Currencies.

percentage
Reduction
In internal
purchasing
power

of various currencies



France
48
Denmark
39
United states - 22
Norway
44
Holland
36
Belgium--19
Sweden
42
Italy
31
Swizerland- 17
United kingdom
39
Canada
24
Federal Republic-16



The purchasing power on condition of 100 Italian corresponded to 0.70 DM 100 swedish krone
To 85.60DM and $ 1 sterling to 16.10 DM as against only 0.57 DM , 69.03 DM and 10.99 DM
Respectively at the end----
Compared with the swiss frank the purchasing relationship has remained practically unchanged
And vis the U.S dollar it has improved,

A coast is at least 1,238 to 2,757 DM ($ 310 to $ 689=$111TO $246) , Including between 430 and
1,300 DM ( $ 108 and $325=$38 and $116) for the 114 articles of linen between 374 and 562DM
( $ 94 and $141= $33 and $50) for the tableware, between 306 and 611 DM ( $77 and $ 55)
For the kitchen utensils and between 128 and 284 DM ( $ 32 and $&71= $!! and $25) for
General household equipment.

Percentage changes

Switzerland
120
Italy - 137
Food
212.8- 131.6
Swedan
191
building
drinks
228.8- 85.4
Norway
187
Ceramic tiles
Tobacco
156.8- 149.0
France
184
pipes
Rent
203.8-151.4
United kingdom
170
Raw material
Heating and lighting
191.5- 114.1
Austria
164

Household effect
205.0- 112.0
Holland
143

clothing
200.2- 124.7
Federal Republic
132

Cleaning and hygienic equipements
185.7- 138.7
Belgium
125

Education and entertainment fares
202.4- 138.8
United states
120




The Economy
There is quiet difference how the German Economy is judged at home and Abroad.
Business Failure increased to a frightening degree. Even worse than during the crises
Of 19--- 19----. Although the price index has climbed more slowly since19-----.
The rate of increase is nevertheless considered much too step by the Germans
Who are more sensitive than the population of other countries to inflationary
Trends. Add to this the constant worry about maintaining exports after comparative
Production coast changed very much in favour of competing countries. Partly
Because of increased domestic wages but even more so because of rises of value
D- Mark.

People abroad, on the other hand , that trade surplus remains very large and that the
Bundesbank possesses by far largest reserves of any Central Bank in the World.
Moreover , most foreigners consider the German Inflation rate relatively low compared
With that of their own countries. The same is true for unemployment which run a far
high Percentage of many countries, Nothing these differences in point of view it is
obvious that ideas about the correct economic policy national and international differ
as well.

Another contributing factor to the difference in judging the state of German economy
By the foreigners and by Germans are difference in statistical methods and above
all, The peculiarities of German foreign trade. The statistics on unemployment furnish
the clearest example of the distortion of comparision . In the United State people are included in
unemployment figures who would not be counted as unemployed by German labour offices,
Beside workmen and other employees change job more frequently in U.S ,

Than they do in Germany , and between jobs they appear on the rolls of the unemployed
Experts believe, that if the situation of the labourmarket believe, therefore that
If the situation of the labourmarket were exactly alike in the two countries, the unemployment
total in the United States would lie atleast three if not almost four percent higher than in Germany,

When talking about the high exports surplus in the Geman trade balance, most foreigners do not take
Into consideration that running balance of the payments of Germany contains negative balances unknown to that extent in other countries. The two most important of these are caused by tourism and by
the transfer of the funds by foreign workers.

Germans spend more money for Sunshine and abroad than for their most important imports. Travel abroad in 1971 repersented an expenditure of 25.1 billion D- Mark . At the same time, the import of crude oil came to 23 billion DM . keep in mind that these statistic cannot cover all the money spent by Germans
during their trips abroad .

Since Germany too, is popular country to visit , there also was income from foreign
Vistors. Though this has increased substantially during the past years, it far from equal expenditure of
Germans during their abroad.

Since Germany too,is a popular country to visit, there alone was income from foreign vistors. Though
This has increased substantially during the past years, it far from equals expenditures of German abroad.
Thus, there is a negative component which with 16.25 billion in1977, made up for
Almost half of the positive trade balance of 38.42 billion DM

Transfers of money by foreign workers to their native countries amounted to some 6.4 billion DM
In 1977 . That was one- sixth of the tradesurplus. With man re-emergence of unemployment ,
The number of
Foreign workers in Germany should decline further. In addition, foreign workers who have returned
home receive steadily which already run to eight_ digit Figures will soon reach nine- digit ones.

Transfer of money by the foreign workers to their native countries amounted to some 6.4 billion DM That was one- sixth of the trade surplus. With re-emergence of unemployment, the number of foreign workers in Germany has been reduced, which also diminish the transfer of funds. The reduction to the level of 1977 was not only due to reducenumber of foreigns workers but also to the fact that many of those remaining in Germany kept more money than previously in Germany because of the devaluation of the currencies of their own countries. Thus transfer abroad could again increase even if the number of foreign workers in
Germany should decline further. In addition , foreign workers who have receive steadily rising payment from the German social society system which already run to eight_digit figures and will soon reach nine
Digit ones.
A combination of the trade balance with the balance of services, the largest item of which is travel followed by transport and insuarance as well as the capital gains , with the balance of transactions which include private transfers as well as the many different international expenditure of the state, result in the balance of performance which is considerably lower and had been diminishing.

GERMAN AND INVEST ABROAD:_
To be sure , it still amounted to a considerable 8.72 billion . But the positive figure of balance of performance have since 19-----------. Been far lower than the capital investment s of the German economy abroad and probably will remain so in the forseable future. Unless unforeseen events bring profound changes in the world economic solution.

German businessman who twice in course of a few decades lost of all their investments abroad as a consequence of greatwars , hesitated a long time afterworld W.W 11.
Before deciding to again undertake foreign investments abroad as a consequences of greatwar hesitated