The Wilson times. [volume] (Wilson, N.C.) 1896-19??, 1921-06-03
GERMANY DEPOSITS
TREMENDOUS SUMS
IN NEW YORK BANK
Some of the Money Was
American Paper Money
Spent in. the Defeated Coun-
try by the Soldiers of the
Army of Occupation. Sew
eral Bales Arrived.

NGW VI N, uAO hS oO'SAAA
ment of Germany, through four New
York banking institutions, yesterday
afternoon completed the deposit of
s35,733,OOO in the Federal Reserve
Bank of New York. 1t was one of the
steps in the first phase Of her repara-
tion payment to the Allies under the
terms presented and agreed upon be-
tween Germany and the Allies.
The four banking institutions MAX
ing the payment were Hallgarten &
Co., the Equitable Trust Company,
Speyer & Co. and the Guaranty Trust
Company. These four firms have been
engaged very actively in the last
week in assembling a German credit
here. and in the assembling OF this
credit was explained the tremend-
GUS decline in the exc changes OF all
countries last week. Germany was
"buying dollars" by the sale OF ex-
change abroad and assembling this
dollar credit in New York to meet her
obligation to the Allies. The amount
thus assembled last week was stated
yesterday by one banker who figured
in the negotiations to have been be-
tween s10,OOO,000 and $13,0OO,O0O'
Another banker asserted that the
figure was closer to $2o,o0O,OO0 than
the other estimates.
The actual transfer was not in cash
or in gold, but the banking credits
of the four institutions. Against the
balances of the German Government
with them, the bankers sent to the
Federal Reserve Bank series Of
their own checks, each Of which was
cleared and on the following da!
the amount added to the total o.
ireparation payments. The first O.
these payments was made on Frida!
afternoon. 1t was comparatively small
one. The second was made on Satur
day morning. The final and larges
payment of the lot was lmade yester
day. The actual amount transferred
on the three days was s35.733,0O0
This now stands in the Federal Re
serve Bank of New York to TIN
lcredit of the Bank of England ant
the Bank of France.
The story of the assembling in New
York of a credit sufficient to pa!
|s35,733,O0O and to leave what i
described as good sized" balanc
to the credit of the Reichsbank, is
chapter in international financ
which has mystified Wall Stree
bankers. Many phases of it are no
entirely cleared up by statements o
the men who made the transfers yes
|terday. One thing is apparent, for
la long period, time which ha
stretched into the months, German,
has slowly improved her position Of
1.-The books of the four institution
which yesterday acted for her. "Bal
|andes," as one banker explained
"have been RENTED in all sorts o
ways"
i A peculiar factor in the settle
lment is this; some Of the money, a
|least, used to pay the German In
Idemnity here yesterday was Amer
can paper money spent in the dc
flated country by the soldiers OF tn
l Army of Occupation. Just how muc
came back to the United States I
!, this way the bankers could not sa!
However, it was learned that sewers
"bales" of such currency have al
! rived in the last few weeks from Hal
{ burg, and soldiers returning frol
Germany tell of how the America
t currency, sent over to pay the SO
. Idiers each month, disappeared con
pletely after having once been sper
al over Teutonic counter. The explan'