Thank you for correcting the text in this article. Your corrections improve Papers Past searches for everyone. See the latest corrections.

This article contains searchable text which was automatically generated and may contain errors. Join the community and correct any errors you spot to help us improve Papers Past.

Article image
Article image
Article image
Article image
Article image
Article image
Article image
Article image

THE GERMAN LOAN.

DR. SCHACHT’S STATEMENT.

An extraordinary general meeting of the Reichsbank Directorate wa&;he'ld in Berlin for consideration of' the netv Bank Law, the new statutes of the Reichsbank, the settlement arranged with the German Reich, and the reduction and subsequent increase of assured capital. The president of the bank, Dr. Schacht, stated at the outset that the validity of any decisions which might be arrived at was dependent upon a successful issue or He negotiations proceeding in London for an international loan. Dr. Schacht;, who had returned from London, told the directorate that they might count upon an official signature of the lean agreement in London within the next few days. All who. had taken part in the negotiations had displayed a spirit of loyal co-operation. A number of difficulties had arisen out of the effort which was made to admit, not only Great Britain and the United States, bub with them the Central and Western European markets, to participate in the loan. The problems presented by the loan had been settled; only the formal signature remained to be given. In dealing with the new Bank Law and the new statutes, Dr. Schacht pointed out that the proposal adopted showed considerable differences when compared with the original plan, in which a strong foreign influence in the management of the bank was foreseen. In all internal affairs the bank would preserve complete liberty of action, since the foreign influence extended merely over the transfer of the reparations payments to foreign countries.

The principles of security, especially in the matter of covered capital for the note issue, were observed in the new law more thoroughly than in the old. Since the foundation of the Reiclisrath 50 years ago the directorate had been convened for no more important meeting than they were that day. The settlement with the German Reich provided for the taking over by the hank of the obligation to meet the total issue of dollar bills to' the amount of 252,000,000 gold marks in 1926. The. Reichsbank had also made itself responsible for the whole debt of the Reich, in amount 235,000,000 geld marks. Under the terms of the Organisation Committee’s Report, there had to i>e a contraction of capital m the proportion of two to one; and a subsequent increase of 210,000,000 gold marks t'o reach the prescribed total amount of 300,000,000 gold marks. New shares, payable only in gold or foreign currencies, would be issued, and the holders of shares in the Gold Discount Bank would have the right to exchange them for Reichsbank shares at par. Dr. Schacht also announced that tire old directorate had been reappointed in its entirety to serve for the new bank. The German members of the General Council had not yet been chosen, but the foreign members were as follow : Sir Charles Addis, chairman of the Hong-Kong and Shanghai Bank, London; Mr McGarrah, chairman of the Mechanics and Metals National Bank, New York; M. Sergeant, chairman of the Union Parisienne; Signor Carlo Feltrinefli, of the Banca- Commerciale, Milan; Dr. Bachmann, of the Swiss National Bank; and Professor Bruins, of the Commercial University, Rotterdam. The representative appointed for Belgium had withdrawn, and. a. substitute had not yet been appointed. At the conclusion of the meeting the necessary resolutions were carried unanimously. Dr. Schacht announced, first, that he proposed with the leave of the Directorate to postpone the election of the Central Committee until the final composition of the General Council became known, and, secondly, that the gold reserve of the Reichsbank had again risen from 442,000,000 to 578,000,000 marks.

Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/HAWST19241126.2.6

Bibliographic details

Hawera Star, Volume XLVIII, 26 November 1924, Page 3

Word Count
598

THE GERMAN LOAN. Hawera Star, Volume XLVIII, 26 November 1924, Page 3

THE GERMAN LOAN. Hawera Star, Volume XLVIII, 26 November 1924, Page 3

Help

Log in or create a Papers Past website account

Use your Papers Past website account to correct newspaper text.

By creating and using this account you agree to our terms of use.

Log in with RealMe®

If you’ve used a RealMe login somewhere else, you can use it here too. If you don’t already have a username and password, just click Log in and you can choose to create one.


Log in again to continue your work

Your session has expired.

Log in again with RealMe®


Alert