The daily times. [volume] (Wilson, N.C.) 1902-1936, 1921-06-02
GERMANY DEPOSITS
TREMENDOUS SUMS
IN NEW YORK BANK
FIRST REPARATION STEPS
Some of the Money Was
American Paper Money
Spent i'm the Defeated CouIl-
try by the Soldiers Of the
Army of Occupation. Sew
eral Bales Arrived.

New York, June 2.-The Govern
ment of Germany, through four New
York banking institutions, yesterday
afternoon completed the deposit of
$35,733,OOO in the Federal Reserve
Bank of New York 1t was one of the
steps in the first phase of her repara-
tion payment to the Allies under the
terms presented and agreed upon be-
tween Germany and the Allies.
The four banking institutions max
ing the payment were Hallgarten &
Co., the Equitable Trust Company,
Speyer & Co and the Guaranty Trust
Company. These four firms have been
engaged very actively in the last
week in assembling a German credit
here, and in the assembling of this
credit was explained the tremend-
Gus decline in the exchanges of all
countries last week. Germany was
buying dollars by the sale of ex-
change abroad and assembling this
dollar credit in New York to meet her
obligation to the Allies. The amount
thus assembled last week was stated
yesterday by one banker who figured
in the negotiations to have been be-
tween $4,000, zoe and $13,O0O,OOO.
Another banker asserted that the
figure was closer to $2O,OOO,OO0 than
the other estimates
The actual transfer was not in cash
of the four institutions Against the
balances of the German Government
with them, the bankers sent to the
Federal Reserve Bank a series of
their own checks, each of which was
cleared and on the followieg day
the amount added to the total of
reparation payments. The first of
these payments was made on Friday
AFTERNOON. 1t was comparatively small
one. The second was made on Satur-
day morning. The final and largest
payment of the lot was made yester-
day. The actual amount transferred
on the three days was $35, 200.
This now stands in the Federal Re-
serve Bank of New York to the
credit of the Bank of England and
the Bank of France.
The story of the assembling in New
York of a credit sufficient to pay
$35, ,733,OOO and to leave what isl
described as a good sized'' balance
to the credit of the Reichsbank, is a !
chapter in International finance
which has mystified Wall Street |
bankers. Many phases of it are not |
entirely cleared up by statements of |
the men who made the transfers yes
terday. One thing is apparent, for a |
a long period, a time which has
stretched into the months, Germany
has slowly improved her position on
the books of the four institutions /
ances,'' as one banker explained,
have been rem1tted in all sorts of
ways
A peculiar factor in the settle!
ment is this; some of the money, at
least, used to pay the German in
demnity here yesterday was Ameri-
can paper money spent in the de-
flated country by the soldiers Of the
Army of Occupation. Just how much
came back to the United States in
this way the bankers could not say. I
However, it was learned that several
bales" of such currency have ar
rived in the last few weeks from Ham
burg, and soldiers returning from
Germany tell of how the American
sent over to pay the sol
diers each month, disappeared com
pletely after having once been spent
over Teutonic counter. The explana-
ton was found in yesterdays pay-i1
ment. f