ity
shares, fully paid up, of German railway companies in
actual operation; mortgage bonds of the provincial,
municipal, or other land credit institutions of Germany that
are subject to state control, including shares of German
mortgage banks to an amount never exceeding three-fourths of
their market value; interest-bearing non-transferable bonds
of foreign states, and foreign railway priority bonds,
covered by state security, in amounts not exceeding 50 per
cent of their market value; bills of exchange of recognized
soundness, after deducting at least 5 per cent of their
market value; and pledges of native merchandise, in amounts
within two-thirds of their value.

d. To negotiate collections for the account of individuals,
institutions, and governing boards; and upon security, as
before mentioned, to furnish payments, and make orders or
conveyances on the branch banks or on correspondents.

e. Upon prior security, to buy on behalf of outside parties,
effects of all kinds, including the precious metals; and
after delivery to sell the same.

f. To receive money for circulation or on deposit, with or
without interest, the sum of interest-bearing deposits not
to exceed that of the capital stock and reserve fund.

g. To accept the custody or other management of objects of
value.

Besides the Imperial Bank there are in Germany eight very large and
powerful banking institutions and a considerable number of smaller and
less powerful ones. The eight great ones have each its head office in
Berlin, and connections, through branches, agencies, and controlled
institutions, in other parts of the Empire, the German colonies, and
foreign countries. Together they control about eighty per cent of the
entire banking capital of the Empire. In reality they are federations
of banking institutions, many of which were once independent, and some
of which were promoted and established in the interests of the group.

While these eight institutions are primarily engaged in commercial
banking, they are also promoters on a large scale of German industry
and commerce, both at home and abroad. Through interlocking
directorates, stock ownership, and in other ways, they are closely
allied with the leading industrial and transportation interests of the
Empire, and they have been and are leaders in the promotion of these
intere