GRAVE SITUATION

Hokitika Guardian, 13 July 1931, Page 5

GRAVE SITUATION

OF GERMAN FINANCE

[United Press Association—By Electriv Telegraph—Copyright. ]

(Received this day at 8 a.m.) ■BERLIN, July 12

The situation is so grave that it is stated that unless international credit is available before Tuesday a doubt is entertained whether the national and private financial situation can lie com trolled.

The outcome of a meeting of Cabinet which adjourned on Sunday after eignt hours sitting, may be the declaration of a moratorium of German private debts and internal foreign. The discussion is resuming tri-dav.

it is' learned that the amount ot credit sought by Dr. Luther is sixty millions sterling. The Government have requested the American Ambassador to cable to Washington appealing for aid of the Federal Reserve Bank, stating a financial collapse ( is inevitable unless credits are granted with the utmost speed. The Bank has replied adhering to its decision to participate in a sixty million loan, if France takes a share. The credit of Germany cannot exceed . France’s demands for the- abandonment of Customs Union and suspension of the construction of a second packet battleship. , Therefore unless the Federal Reserve Bank changes its decision momentous events are inevitable. URGENCY OP CRISIS. BERLIN, July 13. The Government’s appeal to tne United States and other Powers, through diplomatic channels, pointed out the urgency of the crisis. ,