CREDIT NEEDS

Manawatu Standard, Volume LI, Issue 199, 24 July 1931, Page 7

CREDIT NEEDS

GERMANY’S FINANCIAL POSITION. POWERS’ CONFERENCE AT END. BASIS FOR ACTION. (United Press Association.—By Electric Telegraph.—Copyright.) Received July 24, 9.30 a.m. LONDON, July 23. The Seven Power Conference has concluded. The conference recommends to the respective financial institutions that the Bank for International Settlements credit of 100,000,000 dollars to the Reichsbank bo renewed for three months, and that concerted international measures should be taken with a view to maintaining the credits already 1 extended to Germany'. It is recommended that the Bank for International Settlements establish a committee to inquire into Germany’s immediate further credit needs, and study the possibility' of converting portion of the short-term loans into longterm ones.

The conference considers that if these measures are effected they will provide a basis for more permanent action to follow.

A British Official Wireless message states:

At the conclusion of the conference M. Laval said that he wished to tell the United States representatives how much France appreciated the mixture of powerful idealism and practical, sense with which they had joined in the attempt to put an end to the instability and insecurity of the European economic system. “In the presence of representatives of the Governments,” added M. Laval, “1 wish to give expression to my hope that the initial conversation which has •just been held in Paris will be but a prelude to a series of similar aiectings which will lead to a policy of FrancoGerman co-operation, which is the surest guarantee of security for the world.”

Mr H. L. Stimson said that they felt that they had witnessed a great event and looked forward to its progress in effectiveness. Dr. Bruening. the German Chancellor wished to associate himself with M. Laval in hoping that the American delegates would take back with them from the conference recognition of the close inter relation of the old and. new worlds, and of Europe’s need for the moral support of the American people. BANKERS TO VISIT GERMANY. CHECKING FLIGHT OF CAPITAL. LONDON. July 23. An agreement in principle on two points lias been reached by the Seven Power Conference in London, according to the Dailv Telegraph. The points are as follow: The central banks' of the United States, Great Britain, and France, together with the International Bank at Basle, will renew the recent credit of £20,000.000 to the Reichsbank for three months instead of three weeks.

The foreign credits still extant in Germany will be maintained at the present level. The conference concurred in the suggestion that the International Bank be requested to discount the- commercial papers of the Reichsbank liberally for the purpose of encouraging in directlv the return to Germany of part of the vanished capital. It was also agreed that eminent foreign bankers should go to Germany to assist the German Government bankers with their advice as to the best measures to check the flight of capital and speed up the restoration of confidence. The German delegates stated that such a visit would be welcome.

It was further agreed that the conference should be regarded as being in permanent session ; therefore, it will be liable to be recalled if the measures decided on fail to secure their object. The German delegates will take lunch with the French delegation today. The diplomatic bankers going to Germany are Sir Robert Kindersley, Dr. O. M. W. Sprague, American economic adviser to the Bank of England, and Dr. Marcus Wallenberg, the Swedish expert. Sir Robert lvindersicy is chairman of Lizard Brothers and Co., Ltd., and the Whitehall Trust, Ltd., and is a director of the Bank of England. His close familiarity with Gorman financial conditions is revealed by the fact that ho was a member of the bankers’ committee on German finance in 1922. Further, ho was senior British representative on the Dawes Committee in 1924. Mr Oliver M. W. Sprague, economist, for some years was a professor at Harvard University, after which he became professor of economics at the Imperial University of ’lokio. Ho specialised in banking and finance, and ultimately became attached to the organisation of the Bank of England. Ho has written a number of notable books on banking and financial subjects. Dr Marcus Wallenberg, Swedish financier, began his career as a naval officer, then studied and practised law. Afterward he entered banking founded a number of industrial undertakings in Sweden, including hydro-electric works, and took part in various international trading conferences. In 1924 ho was a member of the Finance Committee of the League of Nations, and ho was chairman of the committee for arranging the tax on German industry under the Dawes Plan. SOUND FOUNDATIONS LAID. Received July 24, 9.30 a.m. WASHINGTON, July 23. President Hoover said to-day that th> London conference had laid sound foundations for the establishment of stability in Germany.

HOOVER PLAN. COMMITTEE OF EXPERTS IN LONDON. ' (British Official Wireless.) Received July 24, 10.0 a.m. RUGBY, July 23. The committee of experts which assembled in London last week have decided' to proceed with the elaboration of details for giving effect to the Hoover plan. They will meet tomorrow morning. PESSIMISM IN GERMANY. BERLIN, July 23. The people have relapsed into a state of pessimism, there being a feeling that the London results are inadequate. There is also serious alarm at the shortage of money. President Hindenburg has authorised a new issue of silver coins to the, value of £25,000,000, and copper to the value of £5,000.000, bringing the coinage circulation from £60,000,000 to £90,000,000.