Closely connected with the reform of the currency and the codification of the commercial law was the reform of the banking laws. Here the tendency to substitute uniform imperial laws for state laws is clearly seen. Before 1870 there had been over 100 banks with the right of issue, and the conditions on which the privilege was granted varied in each state. By the Bank Act of March 14, 1875, which is the foundation of the existing system, the right of granting the privilege is transferred from the governments of the states to the Bundesrat. The existing banks could not be deprived of the concessions they had received, but unless they submitted to the regulations of the new law their notes were not to be recognized outside the limits of the state by which the concession had been granted. All submitted to the conditions except the Brunswick Bank, which remained outside the banking system of the empire until the Bank Act of June 5, 1906, was passed, when it surrendered its right to issue notes. The experience of Germany in this matter has been different from that of England, for nearly all the private banks have now surrendered their privilege, and there remain only five banks, including the Reichsbank, which still issue bank notes. The other four are situated in Bavaria, Saxony, Württemberg and Baden. The total note-issue was fixed by the law of 1875, a proposal being assigned to each bank. Any part of this issue assigned to private banks which might be withdrawn from circulation, owing to a deficiency in the legal reserve funds, was to be transferred to the Reichsbank. The result has been the tendency of the latter gradually to absorb the whole note-issue. By the law of 1906 the Reichsbank was authorized to issue 20 M. and 50 M. notes. Treasury notes (_Reichs-Kassenscheine_) for these amounts were no longer to be issued; but the state reserved the right to circulate notes of the value of 5 M. and 10 M. The organization of the imperial post-office was carried out with great success by Herr von Stephan (q.v.), who remained at the head of this department from its creation till his death in 1897. Proposals were also made to Bavaria and Württemberg to surrender their special rights, but these were not accepted. Railways.