GERMANY'S CURRENCY.

New Zealand Herald, Volume LXI, Issue 18763, 17 July 1924, Page 9

GERMANY'S CURRENCY.

STABILISATION EFFORT.

PROPOSED NEW BANK.

BILL BASED ON DAWES PLAN.

By Telegraph—Press Association—Copyright. A. and N.Z. BERLIN. July 15.

The German bill for the establishment of a, new gold and note bank, as provided for in the Dawes report, has bpen submitted to the Reparation Commission. The measure provides for the bank to be cor«ducted similarly to the Reichsbank, and the directorate would be exclusively German. It would, however, be supervised by a general council of 14 members, comprising seven Germans and seven appointed by Italy, America, Britain, France, Belgium, Switzerland and Holland as creditors of the new bank.

Dr. Hjalmar Schacht, president of the Reichsbank, is the president-designate of the general council.

The bank will, under the bill, be completely independent of the German Government, and will issue notes and coinage to the value of five milliards of gold marks, which must be covered to the extent of one-third by gold and foreign currencies. The bank's capital is set down, at 800,000,000 gold marks.

The Dawes committee proposed the establishment of a new bank of issue in Germany or the reorganisation of the Reichsbank as an essential agency for creating a stable currency. The German bill provides for a bank on the lines indicated by the committee. It will have a monopoly of the right to issue notes in Germany for half a century, the present paper money to be withdrawn and replaced by a single uniform currency, namely the new bank's banknotes. This currencv will be kept stable in relation to gold, but will not be convertible.

POWER OF THE EMPIRE. USE IN CASE OF NEED. SUGGESTED GUARANTEE. Times. LONDON. July 15. The Times draws attention ty the suggestion made by Mr. H. H. Asquith in the House of Commons that Britain, with the approval of the Dominions, should guarantee both to France and to Germany the use of all the British Empire's power against any State which should quarrel with the Allies without appealing to the League of Nations. The guarantee to be extended to all the members of the League. The Times says that it considers it unlikely that the Dominions will at present agree to the proposal.

EVACUATION OF RUHR. GERMANY'S INSISTENCE. IMPERATIVE FOR AGREEMENT. LONDON. July 7. Much space is Ibeing devoted by the German press to the inter-Allied Conference to be held in London on July 16. The Berlin correspondent of the Times says that it is presumed that the question of the evacuation of the Ruhr and other : "non-Treaty" areas will be discussed. The Zeit, which is the organ of Dr. Stresemann, Minister for Foreign Affairs, and must, therefore, be taken to reflect the views of the German Foreign Office, maintains that as the cities of Dusseldorf, Duisberg and Ruhrort were occupied on the pretext that Germany was nofe fulfilling her treaty obligations, it is obvious that their occupation becomes invalid, and their evacuation imperative, the moment a general agreement is reached regarding the fulfilment of the treaty provisions.