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To the Board of Supervisors of the
Coöperatieve Centrale Boerenleenbank
at
Eindhoven.
Gentlemen,
We herewith present the review of operations of the affiliated agricultural banks and the
Central Bank, together with the balance sheet of the Central Bank as at 31 st December 1951, and
the profit and loss account up to the same date. An explanatory note on the balance sheet giving
the yardsticks of valuation is attached, in addition to the customary statements. Wie have prefaced
the annual accounts with some general observations.
GENERAL OBSERVATIONS.
Both internationally and nationally the economie position in the year under review was charac-
terized by a number of divergent trends.
Internationally the continued effect of the Korean War and rearmament brought about a con-
dition of reticence and uncertainty. Whereas during the first half of the year the sterling coun-
tries continued to profit considerably by the war economy, when especially in the psychological
sense this had become blunted in the U.S., the weak economie position of the U.K. in particular
was clearly revealed. Towards the end of the year this country was compelled to impose drastic
import restrictions following initial liberalisation. In Germany a reverse movement took place; al-
ready in February the hopeful expectations aroused by the newly concluded trade agreement and
the liberalisation failed to materialise, owing to the deterioration in the balance of payments position.
However, the latter soon improved so that import restrictions could gradually be lifted and the pos-
sibility of importing to this country was one again enhanced.
At home an alarming recession, reflected particularly in dwindling foreign currency reserves
was followed by a remarkable recovery. Restrictions on consumption and capital investment were
resorted to in order to avert a threatened upheaval in the financial situation. In foreign trade this
country's import surplus during the first quarter of the year amounted to fl. 785 million (1950
fl. 602 million) and during the second quarter to fl. 945 million (1950 fl. 830 million) whereas
in the third quarter the import surplus feil to fl. 569 million (1950 fl. 567 million) changing
during the fourth quarter into the unexpected result of an export surplus of fl. 18 million (1950
import surplus fl. 481 million). In the financial sphere a drastic increase in the Bank rate in April,
the effect of which was accentuated by credit restrictions introduced at the beginning of the year,
disturbed the fairy-tale of the low rate of interest. Interest on capital, which at the beginning
of the year still fluctuated at around 3*4% for official securities, rose to close on 4 >4% in the second
half; slight relaxation being noted towards the end of the year. A relative abundance of capital
was followed by a shortage.
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