GERMANY'S LOANS.

Dominion, Volume 5, Issue 1350, 30 January 1912, Page 10

GERMANY'S LOANS.

.£15,000,000 BORROWED DURING MOROCCAN CRISIS

Mr. J. Pierpont Morgan's recent decorr°?. by J" e Kal ser with the high Order 1 -(. r i C!ass of tho Ked Eaglo makes it timely, says the "Daily JlailV' Berlin correspondent to give publicity to the fact that Germany was financed to the extent of many millions of pounds by American bankers during the Aloroccau crisis, o

The money..was advanced both, to.- the Prussian, Government; : .and,-, to; German banks. - life Uoverifinont transaction- involved a sum of 000,000. There wero .Prussian Schatzanwcisungen (IVeasury notes) to that amount, redeemable in Berlin, but as it was not convenient for the Prussian Treasury to deplete .itself to the extent required, it' was decided to borrow tho amount in America, and frosh Treasury notes were issued and deposited' with Now York banks as collateral security. The uncertain state of the German money market and the delicate international situation combined to induce Germau authorities to cffect the operation with the assistance of foreign borrowed capital, rather than agitate further domestic monetary position. Tho Prussian Government's borrowings in the United States were the culmination of a long period of similar operations on the part of German banks. All the summer and late into the autumn German banks hypothecated vast sums of securities in Amcrica. Tho total of their borrowings' is conservatively placed at .£15,000,000. Their requirement* were so urgent that- they unhesitatingly paid 5 per cent.' interest for the "accommodation," which was : extended in tire form of call loan.?. The greatest banks in Germany figured "among, tlie borrow- : ers. v..: : -

It is evident that the German financial world, resorted to.. 'unprecedented extremes by way of preparation for any military and naval, emergencies tho Government's Moroccan policy, might have precipitated.