TEMPORARY SUSPENSION

Taranaki Daily News, 14 September 1934, Page 5

TEMPORARY SUSPENSION

PAYMENTS BY REICHSBANK

BANK OF ENGLAND’S ACCOUNT

PROVISION IN AGREEMENT

DECISION ACCORDANCE

By Telegraph—Press Assn—Copyright, London, Sept. 12.

The British Treasury announces that the Reichsbank, in accordance with article 2 of the Anglo-German exchange agreement, has temporarily suspended payments into the special account opened by it in the name of the Bank of England. The agreement set up machinery to overcome difficulties experienced by German firms in obtaining sterling to pay their debts for imports from Britain. Article 2 of the agreement provides that the payment of marks into a special account may be suspended when the amount of reichsmarks in. that account exceeds 5,000,000, and it is in accordance with this provision that the payments into the account have now been temporarily suspended. It is stated that the Bank of England will continue to sell marks, and as soon as the balance of the special account' at the Reichsbank is reduced below 5,000,000 reichsmarks further payments into the account will be accepted by the German authorities.