The Financial Crisis

Taranaki Daily News, Volume LVI, Issue 12, 14 June 1913, Page 5

The Financial Crisis

• GERMANY'S PARLOUS PLIGHT. THE DISASTER OF PEACE. CONTINENTAL LOANS FAIL IBy Cable—Press Association—Copyright. Received 13, 11 p.m. London, June 13. Mr. Oppenheimer, British Consul-Gen- < era! at Frankfurt, reports drawing attention to the ill-effects of a nervous ; public hoarding its savings. Since the Moroccan crisis started international troubles the hoardings have been so ext tensive as to endanger Germany's international boom. The banks have been forced to keep larger reserves. Various : means have been adopted to relieve the pressure. Large factories are paying weekly wages with small notes. Efforts : are; also being made to popularise the : post-office cheques. Probably the hoardings will be gradually restored, but the ; money market is unlikely to be eased, ■as industrial concerns will seize the opportunity for fresh issues. If the Reiehs- : bank is compelled to raise the already high rate of interest, the industrial boom will hardly survive. Paradoxical as it -sounds, many believe that the boom i which v two wars failed to kill will be 'kilted by peace. Others believe that the i liberation of fifty millions of dead capi- . vital: for military purposes will instil life / into,many t German industries. *■';*:' Berlin, June 13.' ">The two and a half millions sterling r Imperial, consols and the, eight and • three-quarter millions Prussian four per cent." loans were a failure. It is believed i that only half was subscribed. '.The Vossische Zeitung calculates that ■ eight million was subscribed. ' A BETTER FEELING. (CIDD GLASGOW FIRM FAILS. London, June 12. '•The-first stage of the settlement on ' the Stock Exchange has been success- : fully surmounted. Money is plentiful for firms in good credit, in some cases at • considerably below the bankers' charge. iThef JJaily Mail announces that James ">Watson arid Co., of the Glasgow Ex- > change,! ihave suspended payment. The -firm is' fifty years,, old, and at one time ■ practically • controlled the iron market . of; the world. Its.difficulties are due to •fluctuations in.the prices of Cleveland iiran. The" Victorian loan is at a discount of :2y g peri cent. ' A DEFAULTING STOCKBROKER. , London, June 12.' 'The case of'Fenner, the stockbroker, vwhich is before the Bankruptcy Court, •was adjourned pending the issue of a •warrant for his arrest. His liabilities 'total '£120,000, including £30,000 to Lord Hturray. "THE SLUMP IN AMERICA. 'New'York, June 12. 'Because of the existence of financial i '•■ stringency,'MT.McAdoo, Secretary of the "Treasury,'has offered to Issue emergency •currency to the limit.bf the Government's resources, consequently New York prices'have soared during the afternoon. TSankers are more confident and they are "hopeful that Mr. 'McAdoo's offer will Tiave the effect df releasing the money now withheld.