GERMAN CRISIS

Hokitika Guardian, 17 July 1931, Page 6

GERMAN CRISIS

CONFERENCE CALLED.

to avert Disaster,

[United Press Association.—By Electric Telegraph.—Copyright.]

BERLIN, July 15

There has been some alleviation of the situation in Germany' as the result of the decision of the Board of the Banks for International Settlements to extend re-discount credit of many million pounds to the Reich Bank and the measures taken by the German Government to allay restiveness.

Reports from Berlin states that outwardly there was little excitement yesterday. The urgency of the need for immediate assistance to Germany is fully recognised’here. The newspapers compare the festivities on France’s National Day (July 14) with the glum depression in Germany. The German authonitias are taking measures to deal with the banking situation. It is' stated that the arrival of the British Prime Minister and the Foreign Secretary on Friday, is awaited with the keenest expectation. ’ GERMAN DEGREES. RIGID RESTRICTIONS. . BERLIN, July 16. Five emergency decrees, covering eleven sheets of foolscap have been made. They give the Government full power over financial affairs. The banks of Germany, which are re-opening to-day will be permitted, until Saturday, to pay out money only for wages, pensions, unemployment taxes, and similar purposes, for which the-applicants for the money must provide proof. Debtors are embarrassed by the withholding of their accounts, in which case they will be granted a respite in any crisis. Foreign currencies may he bought and sold only through the Reichs Bank. Quotations of stocks and banks are forbidden except they are from official sourocs. The penalties for infringement will be severe.

CONFERENCE, SUMMONED

LONDON,. July 16

The British Government ha.s taken a dramatic decision to summon a conference of Ministers. '

This is regarded as an attempt to end the European crisis before it becomes disastrous. Possibly M. Laval < (French Premier), M. Briand (French Foreign Minister), Dr. Gurti.us (German Foreign Minister) and Dr. Brnening (Chancellor of Germany) will attend. Invitations have also been sent to Italy and to Belgium. The British Foreign Office has issued a statement, which says that the Government have decided to summon a Conference of Ministers in connection with the outstanding phases of the Hoover, plan. The Conference meetson MondayCnext, July 20. To attend the Conference’ Mr MacDonald and Mr Henderson, will return from Berlin. The experts will meet, as arranged, on Friday, 17th. July.

.KEEPING GERMANY SOLVENT

FOREIGN POWERS’ JOB

LONDON, July 16

“The Times,” in an editorial, insists that the restoration of confidence is the dominant need); but says that it Van be achieved only on the condition that France abandons any narrow political considerations, and co-operates with Great Britain and the United States in measures that are necessary to safeguard the German currency.

U.S.A. ATTITUDE. AGAINST POLITICAL ' GUARANTEES. WASHINGTON, July 15. The Acting-Secretary of State, Mr Castle said on Wednesday night, that the United States would not allow itself to become involved in any political situation in the extension of economic assistance to Germany. t, GERMAN COMMUNISTS’ PROPOSAL, 1 BERLIN, July 16. At Frankfurt, Communist agitators have been arrested for distributing pamphlets urging the people to storm the banks. The police there dispersed Communist meetings. Similar demonstrations also took place ht Darmstadt, Dussoldorf, Karlsruhe, and Leipzig. The disorders were not serious. AT LONDON. RUGBY, July 15. Arrangements for the financial experts’ conference in London to consider matters arising out of the Young Plan, in connection with the debt holiday, are proceeding. The conference will meet at the Treasury on Friday morning. .Stock markets continue dull and, hesitant, pending news from the Continent .on the progress of the German financial crisis. The mark was slightly weaker. ENGLISH PRESS COMMENT. RUGBY, July 15. “The Time’s” says: If France and Germany could once and for all regal'd the ojpharrassment of either as an op-

portunity for giving some help, rather than, for taking advantage, the gain to both of them and to others, would obviously be immense. The “Morning Post” says: The r s aco to avert disaster in Germany, which would have had! widespread repercussions is a race against time. The main obstacle has been the adamant refusal of the German Government to agree to the stipulations of France. There can be no loa.n or other concerted measured without. Franco-German understanding. The “Manchester Guardian” is severely critical of France, whose terms it says “are not financial considerations dictated by prudence, but political advantages prompted by selfishness.” The “Daily Herald” reports that the German Government is prepared to make concessions to France by slowing down work on the two pocket battleships under construction, hut complete abandonment will be insisted on by France. The “Daily Telegraph” says: Mr Henderson’s visits may prepare the way for co-operation by Governments, where the unsupported operation of the Central Banks may not suffice. GERMAN BANKS REOPEN. (Received this day at 9.25 a.in) BERLIN, July 16. The banks with the exception of the Darmstadter, reopened this morning. There was a strong police protection. The banks have sufficient cash to meet the demands for purposes of salaries and wages, but pressure in the early hours was not so strong as was anticipated. At present there is no question of a

DROP TN VALUES

LONDON, July 16

All countries are mobilising gold in view of the dangerous possibilities ol the German crisis. Consequently the •Exchanges collapsed on a scale unknown since Britain s return to the gold standard. Both, Paris and New York moved against sterling, foreign loans quoted in Ixindon tell heavily, many seven points, representing losses of several millions sterling.

CONFERENCE OF HEADS

BERLIN, July 16,

Messrs MacDonald and Henderson are not visiting Berlin. Herr Brnening and Curtins arc going to, Paris on Friday, Mr Henderson meeting them there as a preliminary to the London Conference on Monday.

CRITICAL DAY PASSES

NO RUNS ON BANKS

BERLIN, July 16

A critical day passed off quietly throughout Germany. The .banks closed at three in the afternoon. Business was normal all day, with no runs. the.--contrary-many firms- paid -in money. | It is believed that Government have ! received advices from Paris justifying j a hopeful view. - It is understood that as the result of Mr Henderson’s efforts, France is i willing to compromise over political guarantees enabling participation in financial relief to Germany. URGENT ACTION APPROVED. f PARIS, July 56. It is revealed that Mr Henderson and M. Laval last night agreed on the necessity of urgent action to save Germany from bankruptcy, with which "Mr Stimson agrees. Germany will lie urged to grasp the unique opportunity to save herself and ease Europe's heavily charged atmosphere. She will be asked to furnish financial and political guarantees, which will in no wise be humiliating but be patent aids to improving Franco-German relations.