Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1915-09-23
INDUSTRIES
SLOWLY RECOVERING
FROM WARS BLIGHT
Financial System Of Country Is
Being Reconstructed and
Many of the Big Activities Are
ReSuming Operations.


Many of the Big Activities Are
ReSuming Operations.
BRUSSELS, Belgium, Sept 22-The
German administration in Belgium has
so far succeeded in reconstructing the
financial system of the country that
a number of the larger businesses, |
such as the big factories, coal mines
and banks, which practically came to
standstill a year ago, have been
able to resume operations.
The withdrawal of the directors of
the National Bank to London in Au-
gust, 1914. who took with them its
gold stock and the plates for printing
notes, left the country without solid
basis for its currency system Notes
were in circulation, but there was no
gold with which to redeem them; and
there was danger that the circulation
might be further expanded through
new issues of the Belgium Govern
ment in London, which could easily
be Struggled into the country. Soon
after the occupation of Belgium ter
ritory the German government depu-
tiled DR.. Won Lumm, one of the most
efficient directors of the Reichsbank,
to proceed to Belgium and take in
charge the rehabilitation of the cur
rency system As the OFFICIALS of the
National Bank had refused to return
to Brussels or restore its assets, it
became necessary to find a new way
. of securing the note circulation.
AT the same time the German au-
I thorities were levying war contribu-
tions upon various Belgian cities to
raise money for meeting the expenses
Of governing the occupied territory
/ contributions which could not easily
be raised in the form of cash. The
cities were therefore asked TO issue
their certificates of indebtedness pay
able at some future time, and it was
decided to use these as one form of
security for new notes, besides bank
balances abroad. German gold and
other currency. As the National Bank
has refused TO continue the further
discharge of its functions, the note
issuing power was conferred upon the
Societe General de Belgique, the old
est and largest banking company OF
the country.
This concern has now been serving
for some months as bank of issue, anC
it's notes have come into general cir
culatioH Especially its smaller note.
are in great demand. the silver cur
rency having long ago disappeared by
reason Of boarding
Two other important financial task
had to be taken in hand One was tn,
fixing of indemnities to be paid fol
supplies of staple goods-lik coal ant
other raw which had beer
taken over by the military author
tiles for the armies; the other wa
the abolition of the moratorium Whicl
had been in force since the war began
The settlement of the indemnities wal
complicated by the fact that the good
| in question were in many cases no
owned outright, but were still 10 b.
paid for by the persons from whom
they were seized. The commission
having this matter in hand was, how
ever, authorized to pay in advanc
half of the value Of such goods, pend
| ing the final adjustment, in order tina
manufacturing and other bushes
concerns might as soon as possibl
come into possession of money wit
| which to resume operations
The moratorium, on the other hanC
| presented difficulties which have no
1 yet been overcome After hearln
the representations of chambers @
| commerce, individual manufacturer
J and other business men, the ne'
/ banking department attached to tn
, civil government at Brussels saw tina
haaty action must be avoided; and u
to the present time the moratorium
continues in force.
Il Still another function of the hanl
ing department is to prevent the pa!
ment of money to citizens of hosul
| countries, in harmony with a measur
| decreed by the German Goyenmer
| for Germany in retaliation for simila
action already taken by England. TIL
/ department also superintends recei
erships for foreign concerns esta
lished in Belgium, especially brancl
es of French banks. For this cours
| it is claimed again, English action hs
give nthe precedent, all the branch'
of German banks al London hayin
been placed, quite early in the war
charge of government receivers.