GERMAN FINANCIAL CRISIS

Wanganui Chronicle, Volume 76, Issue 115, 18 May 1933, Page 7

GERMAN FINANCIAL CRISIS

INABILITY TO PAY DEBTS BANK OF ENGLAND NOTIFIED, LONDON, May 16. The Reichsbank has cabled the Bank of England regretting that the German, exchange position is so unfavourable that it serious affects the further transfer of-funds for debt service, necessitating a direct discussion with creditors. It requests the bank to invite English bank ’committees, issuing houses, and trustees of German issues to send representatives to a meeting in Berlin on the 26th. inst. WIDE FIELD COVERED. Received May 17, 11.55 u.m. LONDON, May 17. The Reichsbank’s intimation covers a wide field, notably the standstill agreements, which although materially reduced during the last 18 months are showing a discount on sterling believed to be between £30,000,000 and £25,000,000. The Tinies’ city editor says that the development is not unexpected in viefi of the recent decline in the German export surplus and the virtual cessation of foreign lending by creditor countries. Two important lessons are drawn from the development, firstly that Ger many should pursue a policy calculated to create and not destroy confidence, enabling a resumption of international trade and finance, and secondly, the stabilisation of currencies in terms of a common international monetary standard is daily more urgent.