the world of private banking
the world of private banking
the world of private banking
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GERmAN PRIVAtE BANKS AND GERmAN INDUStRy, 1830–1938 169<br />
Warschauer & Co. to <strong>the</strong> Darmstädter Bank in 1904 31 – until <strong>the</strong> <strong>banking</strong> crisis<br />
<strong>of</strong> 1931 it was ra<strong>the</strong>r <strong>the</strong> provincial and smaller metropolitan bankers who fell<br />
victim to <strong>the</strong> concentration process. By <strong>the</strong> turn <strong>of</strong> <strong>the</strong> century <strong>the</strong> local joint-stock<br />
banks had begun to tap local middle-class savings by opening branches and using<br />
<strong>the</strong> backing <strong>of</strong> <strong>the</strong>se resources to compete for <strong>the</strong> financing <strong>of</strong> <strong>the</strong> ‘Mittelstand,’<br />
which had been <strong>the</strong> domain <strong>of</strong> local <strong>private</strong> bankers. In addition to <strong>the</strong>ir larger<br />
means, <strong>the</strong> provincial joint-stock banks began to supersede current-account credit<br />
by <strong>the</strong> cheaper acceptance credit, in which <strong>the</strong> local <strong>private</strong> banker with his limited<br />
credit standing was also unable to compete. This ‘evolutionary’ displacement <strong>of</strong><br />
<strong>the</strong> provincial banker was reinforced by stock-exchange legislation reforms during<br />
<strong>the</strong> 1880s and 1890s, which privileged Berlin and Frankfurt bankers, particularly<br />
<strong>the</strong> Berlin great banks, in <strong>the</strong> stockbroking business. 32 These most unfavourable<br />
circumstances forced many <strong>private</strong> bankers to sell <strong>the</strong>ir businesses to a provincial<br />
joint-stock bank, to convert <strong>the</strong> bank into a branch, and to become a director <strong>of</strong> <strong>the</strong><br />
bank (in <strong>the</strong> case <strong>of</strong> larger <strong>private</strong> banks) or at least to become <strong>the</strong> manager <strong>of</strong> <strong>the</strong><br />
branch (in <strong>the</strong> case <strong>of</strong> smaller houses). 33<br />
In order to keep up with <strong>the</strong> growth potential <strong>of</strong> <strong>the</strong> competing provincial jointstock<br />
companies, some <strong>of</strong> <strong>the</strong> larger provincial <strong>private</strong> banks reacted by adopting<br />
limited liability and becoming provincial joint-stock banks <strong>the</strong>mselves. The<br />
Meiningen <strong>private</strong> bank B.M Strupp was converted into Bank für Thüringen vorm.<br />
B.M. Strupp AG in 1905. In <strong>the</strong> same year, <strong>the</strong> Stuttgart <strong>private</strong> bank Stahl &<br />
Federer was converted into Stahl & Federer AG. Until 1919 this bank adopted an<br />
aggressive amalgamation policy by taking over thirteen provincial <strong>private</strong> <strong>banking</strong><br />
houses and thus building up a dense network <strong>of</strong> branches in Württemberg. 34 Also<br />
in 1905 <strong>the</strong> Mannheim <strong>private</strong> <strong>banking</strong> house W.H. Ladenburg & Söhne, which<br />
was for decades closely connected with one <strong>of</strong> <strong>the</strong> largest German chemical firms,<br />
<strong>the</strong> Badische Anilin und Soda Fabrik (BASF), was converted into Süddeutsche<br />
Discontogesellschaft, in order to keep up with <strong>the</strong> fast-growing demand from <strong>the</strong><br />
Mannheim and Ludwigshafen industry. Thanks to <strong>the</strong> participation <strong>of</strong> <strong>the</strong> (Berlin)<br />
Discontogesellschaft, <strong>the</strong> Ladenburg bank became one <strong>of</strong> <strong>the</strong> largest South German<br />
credit banks. However, despite <strong>the</strong> great bank’s interest <strong>the</strong> Ladenburg family kept<br />
control <strong>of</strong> ‘its’ bank. The Discontogesellschaft was only allowed to hold stock<br />
worth 8m. Marks, while <strong>the</strong> family kept <strong>the</strong> rest, 12m. Marks. 35<br />
31<br />
Pohl, Konzentration, p. 237; Ferguson, Geschichte, vol. 2, p. 294.<br />
32<br />
C. Meier, Die Entstehung des Börsengesetzes vom 22. Juni 1896 (St Katharinen,<br />
1993); C. Wetzel, Die Auswirkungen des Reichsbörsengesetzes von 1896 auf die<br />
Effektenbörsen im Deutschen Reich (Münster, 1996).<br />
33<br />
K. Donaubauer, Privatbankiers und Bankenkonzentration in Deutschland von der<br />
Mitte des 19. Jahrhunderts bis 1932 (Frankfurt/Main, 1988), p. 99.<br />
34<br />
M. Bergner, Das württembergische Bankwesen: Entstehung, Ausbau und<br />
struktureller Wandel des regionalen Bankwesens bis 1923 (St Katharinen, 1993), p. 333ff.<br />
35<br />
B. Kirchgässner, ‘Zur Geschichte der Deutschen Bank Mannheim und ihrer<br />
Vorgänger (1785–1929)’, in Beiträge zu Wirtschafts‐ und Währungsfragen und zur