GERMANY'S DEBTS

Otago Daily Times, Issue 21984, 20 June 1933, Page 7

GERMANY'S DEBTS

DAWES AND YOUNG LOANS CONFERENCE IN LONDON. (British Official Wireless.) RUGBY, June 17. (Received June 19, at 5.5 p.m.) While uncertainty regarding international affairs is mainly responsible for keeping business on the Stock Exchange within moderate proportions, there was to-day a noteworthy recovery in German bonds. Yesterday 7 per cent. Dawes bonds fell to £74 10s and 5 i per cent. Young bonds to £SO. This morning they were strong at £BO and £56 respectively. The improvement follows yesterday’s meeting in London between Dr Schacht (president of the Reichsbank) and Germany’s long term creditors from Britain, Sweden, Holland, Switzerland, and the United States.

The meeting was not of such a character that a binding agreement could be reached, but Dr Schacht agreed to an important principle of priority for the Dawes 7 per cent. loan. He did not agree to similar treatment for the Young 5$ per cent, loan, but expressed a desire to have an opportunity of considering all the arguments submitted. A suggestion for postponing the sinking fund of the Young loan is being referred to the Bank of International Settlements, and it has also been agreed that, apart from consideration affecting the Dawes and Young loans, the transfer for interest payment should, both on the long and short term credits, have priority over the transfer for capital payment. Another meeting will be held shortly.