New-York tribune., 1919-07-15
Germany Seeks
Credits to Buy
American Goods
Inquiries for Loans Reach
Wall Street; Expect Gov
ernment Offering in This
Market in Near Future

Germany has already come into the
New York money market in quest of
funds to finance purchases of American
goods. Concrete inquiries for govern
mental and industrial loans have
reached the leading banks and banking
houses of Wall Street, it was authori-
tatively ascertained yesterday.
Bankers differed as to whether Amer
lean investors would be willing in the
near future to purchase German bonds,
although the prevailing view in finan-
cial circles is that Germany must have
credit in order to fulfil her obligations
under the treaty Of peace. Financiers
point out that the nation must have
funds to pay Tor raw material which
is needed to set her Industries in mo-
tion so that she can earn money to
llquldate her debts to foreign coun-
tries.
Banks Hesitate
One we'll informed banker said that
ne believed an Offering of between $25,-
100000 and $50,000,O 900 Of German gov
ernment bonds would be made in this
country comparatively soon, and that
the interest rate would be slightly un-
der per cent. AS far as could be
learned no plans to form syndicate
have yet been made, and banks hesitate
to take the initiative. Observers con-
tend, however, that the head of any
such group that may be organized is
not likely to be an institution that in
the past has been regarded as leader
in German financing.
An officer of bank that has received
written requests regarding credit to
Germany expressed the opinion that
Germany would take all the advances
she can get here, but that the bankers
are likely to limit the initial loan,
which would be looked upon as a test
Of public sentiment.
Bankers disagreed as to the response
German ericans would make to such
an issue. In some quarters the feeling
is that they would be willing to carry
the initial burden alone, but elsewhere
investment bankers insist that senti-
ment only affects financial operations
where two equally good propositions are
under consideration. Those who arc
.skcptical about the absorption of
Tcuton offering regard the interest rate
as an insoluble problem. If the return
is low, the suggested securities would
be in competition with other foreign
bonds, considered good investments,
which pay fairly high rate. On the
other hand, it is argued, if the inter
est rate is made inordinately large,
the investing public will regard it as u
danger sfgn and avoid the bonds.
Barriers Still Stand
The technical barriers that stand in
the way of loan to Germany are not
yet completely removed. The trading
with the enemy act is still in force.
Bankers, it is believed, would do moth
ing without the approval of the govern
ment. The whole question of extending
financial aid to Allied Europe, too, will
be referred to the Administration.
whose moral support is sought.
Meantime, the shipment Of commod-
tiles to Germany is being organized.
The International Mercantile Marine as
agents for the Shipping Board expects
to send two ships laden with refrg-
Grated foodstuffs from New York TO
Hamburg this month. The steamship
Neponset, which was built during the
war, will leave late this week, if The
marine strike does not interfere, and
will be the first ship that the company
has sent to that country since inter
course with Germany was cut off. The
steamship Oskawa will sail later in the
month.
The Kcer Steamship Company and
the Pacat Steamship Corporation have
also announced sailing dates for freight
vessels to Hamburg. Passenger service
is expected to start soon. The decision
will rest with the Shipping Board.