New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-25
Foreign Credits
Fail to Solve
Berlin Problem
Uncertainties Are Increased
by Receipt of Foreign
Financial Aid; Public
Shows Some Uneasiness
Change Instability Factor
Progress Toward CONNER
cial Recovery Being Made
by Big Combinations

Copyright. 1921. New York Tribune INC.
BERLIN, July 24---Judging by hnan-
cial development of the last few DAYS,
1t is more difficult to forecast immedi-
ate developments than appeared to be
in the days when the course of. dollar
exchange maintained an unbroken up
ward trend and when the tendency of
securities was determined by the CON
slant drop in the value of the mark.
In the mean time dollars have shown
downward inclination, which, it is be-
lieved in financial circles, is likely TO
continue in view of the credit obtained
by Germany in Holland and the pros
poets of obtaining further SIMILAR
credits in America. This situation,
however, does not fill German fnan-
cicrs with an oversupply of optimism
On the contrary, it is maintained that
the Boerse by no means has passed the
days of uncertainty and weakness
Nor is it possible to maintain that the
decline in value of the dollar in foreign
exchange will have a beneficial effect
on securities.
The German authorities believe that,
while there unquestionably is a GER
tain connection between fluctuations
in foreign exchange and securities, the
indications are that the Boerse will
succeed in emancipating itself from
fluctuations of exchange, provided no
unusually heavy fall in exchange de-
veiops. This, however, need not be
feared. German fnanciers assert, for
while credits obtained by Germany
abroad will help her in covering rep
arations payments due August 81, at
the same time they will rebound TO
Germany's disadvantage because the
interest on these credits must be paid
in high foreign exchange and the
credits them selves must some day be
paid back similarly.
The weak spell just experienced on
the Boerse has been quickly overcome.
First reports OF credits being obtained
in Holland, accompanied by decline
vousness and uneasiness, which, how
ever, proved only temporary. The
Roerse itself displayed less nervous
ness than the public.
1t is now realized here that the sit
uation is based not SO much on the
course of exchange rates as on q series
of other factors, especially upon the
present satisfactory development OF
the industrial situation, marked by an
increase in foreign orders from Ru-
mania and Italy as we'll as by other big
transactions. Among these is the in
terest obtained by the General Elec-
Krupps and Otto Wolf concerns in the
Rhine Metals Association. Another is
the absorption by the National Film
Stock Company Of the Declabiscoop
Company.
Similar fusions among other large
enterprises are expected, particularly
in transportation and rolling stock as
we'll as in mining industries The
creation Of such new industrial COM
binations by some of Germany's largest
commercial interests, although tending
temporarily to increase the measure
of uncertainty, is in the long run ex-
pected to contribute toward stabiliza-
tion and confidence.
Until the combinations already eff
fected show progress or until those
contemplated are completed, however,
the present uncertainty is likely to
continue. Much, of course, depends
upon economic arrangements reached
between Germany and the United
States in the present peace negotiations,
the final disposition of the Silesian
question as we'll as the problems of
Rhine sanctions