The Reichsbank opens in Berlin

Background. Prior to unification, German monetary institutions were inadequate for economic development. In Prussia, the Bank of Prussia was established in 1847, but note-issuance privileges granted to five additional banks after 1848 remained insufficient. By 1851, nine banks in Germany were chartered to issue notes. The panic of 1873 stimulated discussions on centralization, pitting advocates like Ludwig Bamberger against defenders of state rights such as Ludolf Camphausen.

Establishment. The Reichsbank was established by legislation of the Reichstag on 14 March 1875. It assumed its new role on 1 January 1876, succeeding the Bank of Prussia. Between 1873 and 1875, the Bank of Prussia had assumed the assets and liabilities of the Hamburger Bank, a major monetary anchor in Northern Germany. The Reichsbank operated throughout the Reich's territory through a network of branches.

Operations. Shareholders were represented in a central committee of 15 members, which met at least monthly under the chairmanship of the Reichsbank's president. This committee could scrutinize management but not change it or influence policy decisions. At its inception in 1876, the bank had 206 branches. The structure designed by architect Friedrich Hitzig was completed in 1876 as the Reichsbank started activity.