GERMANY’S DEBTS

Southland Times, Issue 22038, 10 June 1933, Page 5

GERMANY’S DEBTS

MORATORIUM DECLARED ARRANGEMENT ONLY TEMPORARY FINANCIAL CRISIS (United Press Assn.—Telegraph Copyright.) Berlin, June 8. The Government has declared a general moratorium for all credits granted in Germany prior to July 1, 1931, because the banking crisis that month caused Germany’s present financial position. Transfers will be made as far as possible on credits granted after that date. The existing standstill agreements at present are not affected, but Dr Schacht, President of the Reichsbank, hopes to obtain alleviation during the forthcoming negotiations in London. The Service, Dawes and Young plans are suspended. Private debtors must continue their payments into a special conservation fund which the Reichsbank promises to convert into foreign currencies whenever possible. Dr Schacht, in a letter to the Government, emphasizes that the moratorium is only temporary and that Germany intends to meet her obligations in future. The moratorium begins on July 1. , , , , Dr Schacht stated that the delay would enable modifications to be discussed with the creditors in London on June/13 and also the World Conference would be able to seek an amelioration of the effects of the stoppage. He hoped the world would receive the news without anger, and recognize that it was an international problem, remembering Germany had to earn sufficient in foreign currencies to enable her to pay her debts. t LONDON PREPARED PRIVATE BANKS PROTECTED. (United Press Assn— Telegraph Copyright.) (Rec. 8.20 p.m.) London, June 9. The City met the German moratorium without concern. All preparations had been made and there was no crisis. Those private banks heavily involved with large holdings of securities will be adequately protected The Financial News says that dealings in the Dawes-Young loan open today under the shadow of default. The interruption of the service leaves holders with a serious grievance.