SUCCOUR FOR GERMANY.

New Zealand Herald, Volume LXVIII, Issue 20925, 15 July 1931, Page 10

SUCCOUR FOR GERMANY.

Into the midst of the financial trouble made acute by- the failure of the Darmstadt and National Bank, a leading financial institution of Germany, there has come a relieving announcement by the Bank for International Settlements. Its council has expressed its readiness to collaborate with the other banksin affording help, by placing at the disposal of the Reichsbailk its available resources, so that there may be a rediscount of credits previously accorded. This' means that all the central banks of the world are now behind the Reichsbank and ensures a renewal for three months of the expiring short-term credits, amounting to £20,000,000. With this very substantial aid, it shouldjie possible for the German Government to tide over the critical period. What it has done in temporarily closing all banks and credit institutions in Germany, except the Reichsbank, in order to snatch a brief breathing space, was drastic but insufficient, the outcome depending on foreign assistance. Had this not been forthcoming there would doubtless have been a desperate political situation, for the pressure of parties hostile to the Government and to the Young Plan would have made the Government's position untenable for more than a few days. This would have brought disaster on disaster, and rendered almost impossible the implementing of the war-debts suspension. Happily, the most serious phase of the crisis has been averted, and there will now be an opportunity for Germany's speedy financial recovery and an effectual application of the Hoover moratorium. This is a signal achievement of international co-operation in the sphere of finance, prompted by a world-wide solicitude, hot for Germany only, but for the removal of a burden shared by many peoples.