The sun., 1919-05-02
U. PERMITS FUNDS
/ TO GO TO GERMANY
War Trade Boards General
License Lifts Restriction
of Two Years.
MUST BE USED FOR FOOD
Remittances Are Limited to
Transfer by American Re-
lief Association.

For the first time since April, 1917,
when the United States declared war, II
is possible to remit funds TO Germany
owing to a general license issued yester-
day by the War Trade Board. Remit
tances are limited to transfer through
the American Relief Administration and
to a provision that the proceeds be used
FOR the purchase OF food 10 be shipped to
Germany.
Some idea OF the extent Of such BUSH
ness under Federal control may be had
from the fact that more than 100000
Czecho-Slovakia, German-Austria, Jueo-
slavia, Serbia. Rumania. Bulgaria and
Turkey combined during the first week
OF permission to remit to Central
Europe. The new announcement adds
Germany to the list, and Herbert
Hoover. Director-General of the Ameri-
can Relief Administration, Is under
stood 10 have completed ARRANGEMENTS
with Germany on his trip to Berlin,
from which city he has Just returned to
Paris.
For the present there Is no fixed rate
for the transfers to Germany for the
purchase OF food and at the moment
Bulgaria, Turkey and Germany lack
food sales to Finland are made at a ten
tative rate Of about sh Finnish marks
to the dollar, to Czecho-Slovakia at a
tentative rate OF about Is kronen to a
dollar. to German-Austria at about 90
,kronen to a dollar, 90 JuEo-Slavia at
;about III kronen to a dollar. to Ser
.bia at about dinar to a dollar and to
iRumania at about 10 lei to a dollar.
Paris Rate II Rate Not Fixed.
Where there Is no fixed rate and no
idetinite tentative rate the transfers are
detected at the rate the dollar commands
in Paris on the date OF payment. The
only fixed rate at present is that for
Exchange on Poland, which commands
'1oig Polish marks TO a dollar.
The method Of controlling the remit
tances to Central Europe Is novel In
the hrst place all of the business is done
through Paris, from which couriers are
despatched by the American Relief Ad-
ministration to the capitals of the coun-
tries which are in the market for food
Food prices in Germany are so high
that bankers anticipate that a dollar
will buy a relatively large number Of
marks.
Prior to August, 1914, exchange deal
,ngs between the United States and
Germany were on huge scale. and
many foreign exchange officials in this
city we're citizens OF Germany or de-
scendants OF Germans. As the contest
wore on between England. France. Rus
STA and their enemies, 1t became In
cressingly difficult to conduct exchange
business between this country and Ger
many. The cables were Of little use and
the censorship and blockade got stricter
and stricter. The value OF the mark
Auctuated widely from the parity OF
about four marks to the dollar. When
mark exchange quotations we're discon-
tinued at the time of the entrance Of
the United States into the war the
value of the dollar was about equal to
six marks.
New Regulations.
The new regulations announced yes
tecdsy by the Federal Reserve Bank as
issued by the Division OF Foreign Ex-
change OF the Federal Reserve Board
were as follows:
The War Trade Board, at the request
II the Supreme Economic Council. has
issued a general license through the
Bureau Of Enemy Trade. which author
res the transfer OF funds to Germany,
provided the proceeds are used for the
purchase OF food 10 be shipped to Ger
.nany. and, until otherwise instructed.
dealers, as defined under the executive
.orde- OF the President Of January rs.
,lsls, are permitted to make transfers
'of funds 10 Germany through the Amer
lean Relief Administration In accord
lance with the regulations issued April
ga. 1919, covering tho making Of similar
,rerittances to various other Central
European countries.
Until otherwise instructed. tho re-
.qui-ement issued by the Division OF For
.egn Exchange on June II. 1913. prohio-
sting dealers as defined under the execu-
tive order OF the President OF January
as, 1913, from acting upon confirmation
'of csblegrar:s received by them where
the original cabiegram in part or In
whole has never boon delivered. and also
requiring that all combinations of ca
Diagrams be delivered to certain Fed
,eral Reserve banks dependent upon their
destination, Is revoked. with the excep-
ition OF combinations Roaring to any car
, Diagrams which might cover teansac-
'tions directly or Indirectly with territory
- a. nd fra