The Washington herald., 1921-10-19
RHCHBANK BEGINS
REPAYNGLOANSBY
FOREIGN BANKERS
Last Half of 100000 900
Advance Soon to Be
Liquidated.
REFLECTED IN MARK
Collapse of Exchange Due
Largely to This Cause,
Experts Say.

The German Reichsbank received
advances from bankers in London.
New York and Amsterdam OF APP
proximateIy 100000. 900 with which
to meet The reparation payment Of
1000 ,ooo, ooe gold marks which fell
due August 81. About s5o.OoO.oOo OF
these advances due September Is
have been paid on. The balance was
defsrred. by special arrangement
with the foreign bankers, until No
vember Is. The Reichsbank began
several days ago to pay on these
loais. and It is understood that be-
fore November is the entire amount
will have been paid on. These re-
payments are undoubtedly reflected
in the collapse Of the mark.
THIS is in all probability the
greatest gold mark payment that
Germany will make on reparation
account for some years. The next
payment due Is the first instalment
OF the Is per cent export tax, due
November Is, approximately $62.-
5O0saOO. This export tax will be
paid. in goods, labor and building
maesrials.
wiu Surrender Export Taxes
During the last three days OF
September German treasury officials
were In conference with the Inter
Allied Guaranty Commission, at
which time the commission audited
the German governments account
for the first quarter of the fiscal
year. beginning May l, upon which
period the export tax payment Is TO
be based. Shortly after these meet
ings and audit it was announced by
both the German treasury officials
and the Guaranty Commission that
Germany would pay the export tax
in full. 49,
The weisbaden reparation con-
vention which was drawn up by NJ.
Louoheur representing the French
government and Herr Rathenau, in
the name of Germany. providing for
the payment in kind of the next
7,000.O0O.OOO marks reparation has
been. approved by both govern
ments. This convention is looked
upon as long step forward.
The foreign bankers who were
instrumental IN nelplnB inc INClChS-
bank in making it practicable for
Germany to meet the recent pay
ments look upon the Weisbaden
agreement with great relief and be-
cause Of II they have made large
offers of credit to the German in
dustriaI and banking groups Sew
eral=New York banks and bankers
are at one with the London and
Amsterdam bankers in making
these. credit offers.
Look to Foreign Loans.
International bankers familiar
with the European credit problems
say the present offers Of credit to
the German Industrial leaders and
banks. which are being continuous
ly Contaminated for short periods
and small amounts. but which in
the aggregate mount up, are but
preliminary to further large fnanc-
ing operations which will be en-
bodied in a loan of many millions
at no distant date.
The necessity for making such a
large loan to Germany will be
taken up at the International None
tary Conference to be held in Lon
Gon early in December. The same
project is also under discussion. in
unofficial conversations at Wash
ington at present. The inter-
national bankers are endeayoring
to work out some plan whereby
Germany may have ample financial
assistance from United States with
guarantees from British bankers.
It is authoritatively stated that
German manufacturers are prepared
10 contract for reparation purposes
a Ipan of $500. 0OO.0 900, interest and
principal, TO be paid within ten