FINANCIAL RELIEF

Manawatu Standard, Volume LI, Issue 197, 22 July 1931, Page 7

FINANCIAL RELIEF

UNITED STATES PROPOSAL. GERMANY’S NEEDS. BANKING OPERATIONS. (United Press Association—By Electric Telegraph.—Copyright.) Received July 22, 9.35 a.m. , . WASHINGTON, July 21. A proposal by the United States Government that'the bankers of the world maintain their present volume of credits to Germany has been laid before the interested Powers at London. The acting Secretary of State, Mr W. R. Castle, made known to-day the details of formal suggestions approved of by President Hoover for relieving Germany. At the outset, the United States proposals would be placed entirely in Europe’s hands as a solution of their political problems, the proposals confining themselves to banking operations. It was suggested that the maintenance of the present levels of credits be implemented with continued measure;? by Germany to stem the internal tide within that country.

The proposal recommended the establishment of a committee of the Bank of' International Settlements, or, through other means, to secure co-opera-tion in consulting world banking interests for a renewal of short-term credits, co-operation in an inquiry to determine Germany’s further economic needs, and study for the conversion, within six or eight months, of part of the short-term credits into long-term credits.

Mr Castle estimated tlie total of the short-term credits at 1,200,000 dollars, half of which is. held by the United States Bank.