Evening star., 1921-09-18
SEEKING SOLUTION
IN Berlin FINANCES
Experts Confer With Bank.
ers, But Fail to Get Gold
for Reparations.
BY the Associated Press.

BERLIN, September l7.-Government
hnanc1al experts today conferred with
private bankers on the question of rails
ing gold credits to meet reparationS OBJ
legations. but failed to make any definite
arrangements for the payments. the
Associated Press correspondent was in
formed in official quarters.
Dlfficulties are being raised by GER
tam industrial groups, particularly in
the Rhineland. which ASK how they are
10 pay for raw materials purchased
abroad If they surrender their foreign
credits to the state. Director General
Nledfeldt OF the krupp works recently
Declared at a meeting of the Rhennish
Westphalan Chamber of Commerce
that such d surrender meant the sac
rlfce of the nations life blood and
even this measure would give satisfac-
tory results.
L. :. Offers Reported,
Another point o. controversy is that
The rlshtiSt !'art1es. which largely
represent lnd,at:ial and landed inter-
: estS, would have an important part
IN any credit arrangement. and. in
return. might demand proportion
ately large representation in the gov
ernment
Newspapers hint that offers of credit
nave been received from American.
Dutch and other European financial
institutions. but bankers have made
no announcements of this kind. Eor-
waertS doubts the ability of German
1inanclerS t. raise sufficient funds TO
meet the Teparations payments by
voluntary means. The newspaper de-
ciareS that appropriations through
state Legislation alone Will prove eff
fectiVe.
The gravity of the financial Situa-
tion has been more generally recos-
nlzed among financieis and politicians
since the exchanges between bankers
he. 1. bar
also has been attracted by the con-
tInUcd depreciation OF the value of
thu mark, the iHcrea sed output OF
paper money and the tendency among
Spectators to purchase large guam
titles of foreign currency, especially
the dollar.
Efforts to Continue.
There is apparently no tendency to
declare the condition of the currency
hopeless or To abandon efforts toward
raising the next rep2ratiOnS install
ment. despite the fact that the reichs-
banks gold. amounting to little more
than 100000. .Ue0 marks, covers the
paper money in circulation at the rate
OF LAB pfennings to the mark
The situation is serious and the
food Of paper money must be
stopped, an industrial leader told
the correspondent. but the difficulty
of finding a way is the cruX of the
matter. The exchange value of the
mark, however. miSrepreSentS it's pur-
chasing power. and some hope is seen
in the fact that German exporters are
doing the biggest business in their
history and are making profits. Mer-
chants are unable to buy raw ma
terials in foreign markets to any ex-
tent. but are utilizing home products
to the limit.
Fear that failure to meet our OBJ
: legations would result in further oc-
cupatiOn of territory, upon which
France is insisting" continued the in
dustrialist. has united all parties in
the belief that nothing should be left
undone to raise the necessary funds
DIR. Pinkerneil, leader in the Ger
man peoples party. asserted that the
attitude taken by a number of poll
ticians and fnanciers was that the
conviction that the allied ultimatum
cannot be filled shall not prevent our
using every available asset in an ef-
fort to fulfill it,