DEBT PAYMENTS

Hokitika Guardian, 14 July 1931, Page 5

DEBT PAYMENTS

GERMAN PRECAUTIONS.

AGAIST STOCK EXCKANCE. COLLAPSE.

L IJrnted Press Association—By Electric

Telegraph—Copy right. J

BERLIN, July 13

With a view to averting a Bourse collapse, tile Directors are closing the .Stock Exchange in Berlin and elsewhere on Monday.

Trading in stocks lias been forbidden for two days. Public opinion is unanimous that the Country cannot accept a political tiltimatani, because she has been driven into a financial corner. Instead, a scheme for declaring a moratorium on all private debts in Germany is being discussed by the Cabinet, though this is likely to be shelved as being virtually a declaration of national bankruptcy. Already the severest restrictions are being enforced on the discounting of bills.

The Reichsbank is submitting each bill to an individual scrutiny, as the gold and currency cover on Saturday sank to forty per cent., which is the bare limit permitted by the Bank Notes Act.

ADVICE TO GERMANY.

LONDON, July 13

The "Morning Post’s” diplomatic contributor says i— I The attitude in political circle in Lor.thn is thah, German being the sole beneficiary of the moratorium, she ought to be prepared to signalise her appreciation by offering concessions with a good grace. She would be well advised to postpone the construction of her “pocket” battle ship, as the moratorium will improve her economic position. Germany may well let the" Customs Union with Austria fall into abeyance, as this project has been in irritant to the rest of Europe since it was first mooted. Meanwhile, the London Stock Exchange is nervous. A further fall is likely on Monday. Fortunately, the Bank of England lias very strong gold reserves they being higher than at any time for three years past. Further gold shipments are now coining from Australia and elsewhere.”

U.S.A. BANKERS.

PROMISE ASSISTANCE TO GERMANY.

WASHINGTON, July 12. An assurance that United States bankers were prepared to assist in relieving the German economic situa tion was given on Sunday by ActingSecretary Castle, of the State'Department. He said that the leadership in the matter was left to the European Central Banks, GERMAN BANK SUSPENDS GOVERNMENT OFFERS GUARANTEE. BERLIN, July 13. The Darmasadter National Bank, one of the biggest banks in Germany, lias suspended payment. The German Government informed the Darmstadter Bank that it would guarantee all of the Bank’s deposits, and would superintend its orderly liquidation. The effect of the suspension of the Darmstadter Bank is likely to be devastating. Th 6 Government fear that a general run on all the banks will result in the biggest bank crash that Germany lias known for years. The Darmstadter Bank has been lieav i * ily involved in the recent collapse of the North German wool concern, but nobody had dreamed that this oldfashioned business, which last year pa'fi a dividend of eight per cent., and which employed seven thousand ser vants, would close.

Herr Jacob Goldschmidt is General Manager of the Bank. He is regarded as one of Germany’s financial geniuses.

FASCISTS READY.

BERLIN, July 13

The Hietlerites, who are now getting many recruits, are ready to jump at the opportunity presented by the threatend chaos to seize power. Tn receiving the Ambassadors of the United States, Britain, .France and

Ttaly, the Foreign Minister, Dr Curt ius, addressed another despairing appeal to the Powers to save Germany from ruin.