The New York herald., 1921-10-31
BERLIN BANK SHARES.
RISE TO NEW LEVEL
Fall in Quotations on Mark
Fails to Have Effect on
Big Houses.
A MERGER is REPORTED
Considerable Opposition De-
yelops to Proposed Indus
trial Loan From U. s.

Special Cable to THE New York HEsnn.
Copyright, 1921, by THE New YORK HERALD.
New York Herald Bureau
Berlin. Oct. 30.
There was especial interest in bank
shares here last week in view of antici-
pated announcements of important com
binations. Darmstaedter was on the
point of being absorbed by the Com
merce and Credit Bank, according to
lively rumors that the latter was. there
by, finally about to realize it's old desire
OF entering the ring of big banks In
Berlin. Reports of the fusion were
promptly denied, but the market still
believes there is something behind the
reports. Another rumor had Darn
staedter entering combination with the
National Bank.
Bank shares were not affected by the
fall In quotations on the mark. as Were
industrials, but made high records, as
follows: Darmstaedter, 246 per cent !;
Deutsche. 24S per cent. Kommandit, 24O
per cent; Middeldeutsche, 237 per cent !:
National. 22S per cent. Kommerz, 206
per cent, and Dresdener. 206 per cent.
The increases were somewhat slow start
ing but finally forced their way through
in anticipation of new issues The Mid
deldeutsche Credit Bank announced an
increase in its capital stock from
4o.000.000 to 140, 600, 900 marks.
1t was frequently commented that the
Handelsgeseleschaft rather small
bank working with foreign capital man
ages to obtain as much for its s!-ares as
do Gernany's wealthiest financial insti-
tutions.
Stock Market Indications.
A record turnover of shares and fur
ther rise in quotations is expected this
week on the stock market, brokers and
banks having buying orders far beyond
the exchange capacity and beyond the
offers to sell. The business on the Ex-
change is inspired by the fall in quota
tions on the mark as much as by the
industrial activity now apparent. AS a
result of the low price of the mark the
par values of many stocks are now reck-
oned in thousands of marks where for
merly they were at hundreds.
Saturdays quotations at which lead
ing stocks were sold from office to Of
nee in lieu of an open Boerse follow
Becker, 800; Hansa L'avd. $40; Nord
German Lloyd, 730; German Auto
Truck, $40; Petroleum 2.100; Wolff
1880; Benz, 1,025: /. =. ", 5000; Itch
graeber. 1875; Burger. 500: Dynamite
Nobel. 1920; Chemical Rhenania, 1900
Daimler, $50; Hamburg America, 750
karstadt, 440 Meyer Liquer 1850;
Schuitheiss Patzenhofer. 1.S40; A. E. G.,
LOO; Union Steel. 1850; German At
lantic Telegraph, 1900 Kommerz pri-
vate bank. 620: Gelsenkirchen, 1000
Phoenix. 1.525, and Manesmann, 1900.
After series of Kaleidoscope huctua-
tons Friday the mark steadied some-
what on what purported to be a reliable
despatch from Hamburg that America
had signed billion dollar reparation
credit for Ger~aEy. Before this report
wn- circulated the mark had declined
In rapid series OF tumbles, to 1S9 to
dollar. On the strength of the report
II reacted 10 175. Efforts to trace the
origin OF the Hamburg despatch con-
taining the rumor failed.
Another despatch which helped put
the brakes on the falling mark came
from Paris and was to the effect that
the Germans intended announcing on
January 10 that they were unable to
meet their reparatlon payment of $780,
100000. Later both the Hamburg and
denied. 1t was stated that credit for
$1,o00,000,000 in America was not being
sought save on the basis of an industrial
loan. and this was the basis discussed
during Baron Rothschilds visit to Ber-
lin recently.
But as German Industrial leaders have
not yet adopted the loan programme
and will not meet for final review OF
the preparatory proceedings until No
vember 5. the Hamburg message re-
mains a mystery.
Denounced by Westarp.
Meanwhile considerable opposition to
the proposed Industrial loan is being
expressed here. Count westarp, a
leader OF the Conservatives, in a cam
paign speech. has denounced the plan for
placing Germany's most valuable pos
sessions in the Entente's control. VIII lie
other critics doubt whether the entire
German production can successfully be
brought into compulsory organization.
Although the petroleum business Is
said to have been operating at loss,
the German-American Petroleum Com
pany OF Hamburg has announced n 2T
per cent. dividend. The previous divi-
dend was 9ia per cent
One OF the first results of the defeat
OF the Socialists in the municipal cleo
tion Is the announcement that the city
OF Berlin VIII issue a loan Of $50, 000, 900
marks to cover the debts of suburbs
which have now become a part Of the
city. The loan will be guaranteed by
the gas. water and electric works and
other communal property. II will replace
the floating debt now outstanding. While
the Socialists were in power the bank
ing world refused to admit that Berlin's
credit was sound. Such a fotation as
the $50. 900 credit, which the
late Matthias Erzberger. formerly Fl
nance Minister. called one of his best
achievements, was unpopular with Ger.
man industrialists and the Dutch banks
Active propaganda was directed against
It,
It has just been announced that lest
than si0,0O0,00 OF the s35, 1000. 00t
which was to be available for indus.
try for the purchase OF raw material.
have been taken up. The Germans fount
the euhandgessellschaft. through which
they had to operate TO obtain credit, too
cumbersome. and although the terms O
the loan were favorable. they preferred
te 1rel through their own banks. whicl
hrs r:cnty of foreign exchange.
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BIG u. S. BANK TO OPEN
IN MANCHURIA, REPORT
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