CREDIT RENEWED

Taranaki Daily News, 24 July 1931, Page 7

CREDIT RENEWED

THREE MONTHS EXTENSION ASSISTANCE TO REICHSBANK FOREIGN CREDIT TO REMAIN DISCOUNTS TO BE LIBERAL CONFERENCE’S AGREEMENT By Telegraph—Press Assn.—Copyright. Rec. 7 p.m. London, July 23. The sevcn-Power. conference held to consider the financial crisis in Europe has reached an agreement in principle on two points, states the Daily Telegraph. 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 for three weeks. Secondly, 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 indirectly encouraging the return to Germany of part of her vanished capital.

It was also agreed that eminent foreign bankers should go to Germany to assist the German Government and bankers with their advice as to the best measures to check the flight of capital and to speed up the restoration of confidence.

The German delegates stated such a visit would be welcome. It was further agreed the conference should be regarded as in permanent session. Therefore it would be liable to be recalled if and when the measures decided on failed to secure their object The German delegation is due to lunch with the French delegation to-day, after which all delegates are going to the Royal garden party. The diplomatic bankers who are going to Germany are Sir Robert Kindersley, Mr. Sprague, American adviser to the Bank of England, and Dr. Wallenbeig, the Swedish expert. The German people, states a Berlin message, have relapsed into a state of pessimism, there being a feeling that the results in London are inadequate. Serious alarm is felt at the shortage of money. President Hindenburg has. authorised a new issue of silver coins to the value of £25,000,000, and of a copper to the value of £5,000,000, bringing the coinage circulation from £60,000,000 to £00,000,000. RESTORATION OF CONFIDENCE OPTIMISM OF MR. H. L. STIMSON. . London, July 22. A communique states that the plenary meeting further considered methods of restoring confidence in Germany by concerted international co-operation on the basis of the Finance Ministers’ statement. Progress' was made and certain technical questions were referred to the Finance Ministers, who will reconsider them, this afternoon and report to the main conference to-morrow. • It is semi-officially stated that the Ministers’ report was q..ite short and dealt entirely with the question.of supporting German credit and keeping foreign short term credits in Germany. The proceedings were intensive, friendly and co-operative. The most interesting discussion concerned the possibility of dealing with the fundamental causes of the crisis, but it was decided that it would occupy over long. Speed it was considered was the essence of the situation and all energies should be devoted to German credits. The discussions then dealt with the possibility of recommending the redistribution of credits among Germany’s creditors, but no decision was reached. Mr. H. L. Stimson, United .States Secretary of State, in a Press interview to-day, took an optimistic view of the proceedings of the conference. “We are making real progress,” he said, “and I am not at all hopeless. We may finish up to-morrow. The minds of delegates seem to be working on the successive suggestions of possible aid to Germany and there has been an entire absence of acrimonious issues between the countries. The feeling has been very good. The situation is difficult, but there are elements of hope in it, and I am very hopeful today.” r After a prolonged session, the committee of Finance Ministers issued a communique to-night which stated that they had reached an agreement on the terms, of the report to be submitted for the approval of the plenary conference to-morrow.

The conference is likely to conclude to-morrow by outlining the intended measures to relieve Germany’s plight and after.wards forming an international bankers’ committee to deal with technicalities.