GERMANY’S CREDIT

Dominion, Volume 26, Issue 219, 12 June 1933, Page 9

GERMANY’S CREDIT

City Opinion Critical of

Moratorium DANGER OF DEFAULT official Wireless. London, June 9. City opinion is critical of Germany’s action regarding the moratorium, but it is regarded as inconceivable that Germany should really intend t.o default on her Young and Dawes pay ments as this would obviously strike a deadly blow at Germany’s credit at a time when she needs credit most. To-day’s recovery in German bonds from lower levels touched at the outset is based on hopes regarding the meeting in London of Germany’s longterm creditors and representatives of the Bank of International Settlement which has been called for June 13. The stock markets closed with tr regularity, due to some profit-taking. British funds are slightly easier wifh War Loan 31 per cent, at £9B/17/6. German bonds, after fluctuating freely throughout the day, closed somewhat steadier with the 5) per cents, at £44 and the 7 per cents, at £64. SWITZERLAND HIT Investments in Germany THREAT OF REFUSALS (Received June 11. 6.30 p.m.) London, June 10. The “Manchester Guardian’s" Geneva correspondent says that Germany’s moratorium has caused enormous discontent in Switzerland in view of the extremely large capital investments in German public and private loans, including the Dawes and Young loans. The Swiss Cabinet is asking Parlia ment for authorisation of economic reprisals against German imports. ECONOMIC TREASON To Check Capital Flight NEW GERMAN LAW (Received June 11, 6.30 p.m.) Berlin, June 10. The new economic' treason law, discouraging the .flight of capital and tax evasion, imposes sentences of from one to ten years for Germans evading the declaration of property and capital abroad or foreign currency exceeding 1000 marks. Foreigners also are liable.