APPEAL TO NATIONS

Star (Christchurch), Volume XLIV, Issue 197, 20 August 1931, Page 1

APPEAL TO NATIONS

Experts Urge Assistance for Germany. MIDNIGHT AGREEMENT. United Press Assn.—By Electric Tel egraph—Copy r i gh t. (Received August 20, 11.30 a.m.) BASLE, August 19. The report of the committee of experts was yesterday signed by all members. It says that Germany’s shortterm debt to-day is 7,400,000,000 marks and that short-term credits totalling 2,900.000,000 marks were withdrawn during the past seven months. It is evident that Germany’s economic position will remain under the heaviest pressure until the Reichsbank’s position has been relieved, and at least a portion of the withdrawn capital has been replaced.

The report appeals to all Governments for immediate measures to create a situation favourable to Germany and eventually to the whole world. Only the restoration of free exchange of money and products will dispel the partial paralysis from which the economic organism is suffering, it says. Germany’s lack of confidence is unjustified, but, unless restored, it will be impossible, in the future, to place long-term loans for Germany’s credit alone. The report urges an improvement of the currency by the compression of imports and the development of exports. An agreement was only reached after a prolonged session. The German delegates secured an adjournment, while they consulted Berlin, after which they asked for modification of the experts’ proposal. The experts refused, and announced that they would have to notify the Govvernments that an agreement was impossible. Finally, after midnight had struck, the Germans agreed. BANKERS CEASE PAYMENTS. (Received August 20, 11.30 a.m.) BERLIN, August 19. The Cassel bankers Damms and Streit have suspended payments.