The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-06-16
MAKE LOANS OUTSIDE
German Cities Cannot Compete IN
Empire With Imperial Treasury.

Although many big German cities
have been forced into financial straits
during the war and have had to raise
their local income tax rates TO dizzy
heights In order to come somewhere
near meeting the heavy expenses en-
tailed bv the tasks of aiding their citi-
zons in obtaining food and paying their
share of the allowances due TO sol
diers dependents, It now appears GER
tain that they are no longer permitted
/ by the German government to put out
loans in competition with the imperial
treasury Copies of German newspa-
pers recently received in New York
contain items bearing out this state
ment and also corroborating cahled
reports telling how German flnanciers
have been forcing German paper ohli-
cations upon Swiss, Duth and Scandl-
tnavians, whenever II was possible &c
do so.
The Munchener zeitung, IN an arti.
Gle entitled, THE Loans OF German
Cites I'm War Time hanks hack TO s
loan of 10000. 600 marks (s2,380,0
OF normal exchange). issued in Janu-
airy, 1914, at per cent, by the city
Of Munich and subscribed nine times
over by the public at an issue price
of "a ia, and then goes on:
How different Is the case OF the
! per cent Munich municipal loan Of
1915. All we learned about that out
Of the official papers was that on Feb
ruarv l. 1918, a ministerial order al
lowed the city of Munich to issue g
10. 000, 000-mark 5 per cent loan In
notes Of 5000. 2,000 and 1000 marks
No more details were made public, anc
1.-The press had the task of privately
learning something more about the
proceedings that certainly We're OF
near enough interest to our commu'
nifty
in this way tt was learned that the
! loan had been taken over by the
! Munich branch of the Bank of Com
merce and Industry (Darmstadter
bank). that ii was to run ten years
that 1t was only to be negotiated in
neutral foreign countries and at 80
with a commission of 1-2 of per cent
for the banks and bankers. The loan
was put out in marks and is TO be re-
deemable in marks, thus avoiding ex-
pense of exchange and losses to the
city by changes in standards.
THE placing of German municipal
loans in neutral foreign countries has
already been effected several times
Among others, there was report of q
Leipsic loan that had been f1oated In
that way. More detailed reports about
the extent OF such deals in raising
money for cities are not available to us
from unbiased sources. Information
printed In the Economist from Zurich
must be taken with caution. 1t told
about numerous German municipal
loans running from five to ten years,
but redeemable in Swiss money at nor
NAL rates. which, because of the al
Turing prospects for speculation were
easily disposed of.
The latest case OF German mu-
ntcipal loan destined exclusively for
neutral foreign countries concerns
Frankfort on-the- Main. We have Just
received a telegram saying that, ac-
cording to the Frankfurter Zeitung, a
Berlin combination. composed of the
banking house OF Mendelssohn s. Co,
and the Berlin Trading company and
the Frankfort banking houses OF Llaz-
ard Speyer- Ellissen and Jacob s. II.
Stern has taken over from that city
90, 600, 900 marks in S per cent ten
year obligations"
The Munich paper concludes by as
sorting that it would be a mistake to
suppose that German aifies could not
place their loans advantageousiy al
home during the war. but that in these
days II IL best to turn over the whole