DEBT PROBLEM

Hokitika Guardian, 21 December 1931, Page 6

DEBT PROBLEM

GERMAN SITUATION. SERIOUSNESS EXAGGERATED. [United Press Association—By Elwtn Telegraph—Copyr-.ght. J WASHINGTON, December 18. Mr Lamonfc, testifying before the Senate Committee, said that the seriousness of the German situation hais been. exaggerated beyond the realm of common sense. Ninety per cent, of the American banks bad participated in financing Germany, and, though there was* tl'* cumbersome amount of short term'German credit in the United States, it really did not endanger the ■American banks. The largest holding wa:s four imillion sterling, and the Bank which holds that is so large that it does not*.constitute any menace. J. P. Morgan’s firm alone had floated loans for sixteen foreign Governments since the war totalling three hundred and forty million sterling. 01 this huge total, two hundred and seventyfive millions is still outstanding. France got sixty millions. She has repaid nearly half of it. Mr Mitchell,, the Bank President, in liis testimony, said the heavy, yoke of the war debts was causing increasing unrest in Germany, and to force as yet unbroken generations to bear a burden for which they were not responsible would bring rebellion. He declared he was not preaching the* doctrine of cancellation, hut; lie agreed that only a miracle couldLavert the necessity for a further moratorium at the end of the present one. Discussing foreign lo a n flotations, Mr Mitchell said his bank, Hie National City Bank, had handled 1,071,855,000 dollars in bonds since tlie war, and on these it had made a net profit amounting to 13,392,502 dollars. It had also participted in the syndication of 3,260,407,000 dollars in foreign securities, on which the net profits amounted to 11,463,501 dollars.