The New York herald., 1921-07-15
GERMANY is READY
FOR NEXT PAYMENT
Has Funds for 900, 100000 Of
Gold Marks Reparations
Bill Due Aug. 80.
BUDGET is COMPLETED
Plans Also Include More Than
SfO,OOO,O00 to Buy Cotton
and Grain Here.
BUDGET is COMPLETED

| The German Government and German
bankers have completed the budget and
the plans, not only for meeting the
| 500, ,0e0. 900 gold marks approximately
s1S5.000. .000) reparations payment due
on August 80 but also for supplying
funds to meet cotton and grain pur-
clases in the United States. represent
ing upwards from sac. 900 additional.
Progress has been made as TO assure
local bankers that the final reparations
payment for 1921. due at the END OF
next month, will be completed I'm due
course, and all that remains is for Ger
many to continue to proceed along the
lines of the budget and plans agreed TO
and completely mapped out.
To provide credits when, as and IL
needed. the present credit negotiations
in New York, London and Amsterdam
are being pushed to a successful con-
clusion The reparations, grain and
cotton needs ere Jumped together. and
every credit, as it is consummated. is a
stride toward the goal OF carrying out
the budget decided on. In all New YORK
bankers expect to extend credits OF be-
tween SIS, ,0OO,0OO and 500. 100000. the
minimum figure being just a third OF
the budget of $225. 100000 as pictured.
Thus far two credits. each Tor so'ooV,oVo'
have been signed up, one styled as
grain credit and the other as repara-
tions credit. but the two combined repre-
sent third of the amount to be ex-
tended between now and August 80.
Frequent cables are passing with ref
erence to the $25,000,000 credit now
being arranged by strong banking syn
dicate and Z member Of that group says
that II Is very near completion. "A hltch
has developed in connection with the
grain credit for S9,000,000, but 1t is
10 fad ".
The Joint credit of $10.000.000 each in
New York and London also Is under
active negotiation. The extension OF a
credit of 50,000,00o gold marks by Am
sterdam banks has been announced. All
of those negotiations and communications
thus far announced, however, are only
a portion of those to be consummated
before August 80, according to informa-
ton in the possession OF New York
bankers.
Foreign exchange experts declare that
a very large part if not almost all OF
the s225,0OO,000 assembled in the bud
get and plans for reparations, cotton and
grain payments will be settled for in
dollars, that Germany has here large
balances and is adding daily to their
total. Accumulation of funds to meet
those large totals, of necessity, must be
made as long in advance as possible.
and the debtor country plans to assem-
| BILE the funds where gold is easily and
freely obtained and where the exchange
rate suffers the least possibility of de-
probation or fiuctuation. The dollar
alone answers the requirement of a
debtor country and 1t is equally the
most satisfactory medium for receipt of
payment by a creditor. In consequence
every European eye is turned toward
the market for dollars and bankers say
that the payment in American funds OF
80 per cent. of the entire amount OF
reparations due on August 80 would
cause no surprise.
The credits to be extended and being
extended to the Reichsbank and other
agencies of the German Government are
short term ones up to six months. pro-
vding paper which can be rendered ELI
gble for purchase by reserve banks, or
they run for year with substantial
thirty, sixty and ninety day payments,
which render the paper acceptable for
loans by the War Finance Corporation.