The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1922-03-31
BANKERS TO OPPOSE SETTLE.
MENT OF CLAIMS IN DEPRE-
GATED MONEY.
Interesting Sideligbt on American
Valuation Phase of Tariff
Legislation.


Legislation.
An interesting sidelight on the Am
erican valuation phase of the pro
posed tariff is furnished by the actor
of the American Bankers Association
Notice is being sent through tn,
March number of the Journal of tn,
American Bankers Association to tn,
member banks of the association ad
vising them to resist all effort on tn,
part of German business interests tt
settle any balances due American
banks and American interests on thu
basis of the greatly deprecated Ger
man mark. Some of these balances
date from the pre-war period anc
are in effect a lien upon German
property now in the hands of the
United States Custodian of Alter
Property.
The action of the American Bank
ers Association is taken because q
great many German interests have
offered to settle in full all these
claims by the shipment to the
American claimants of German cur
rency
A committee Of the American
Bankers Association has taken the
matter up and announces that the as
ISOLATION will resist the payments of
such balances in deprecated German
money and will insist upon all claims
being paid on the basis of the pre-
war valuation of the German mark
The claims of Americans against
Germany amount to over 100000. 900
expressed in terms of American
money and in terms of the German
mark when it was at par.
When at par the German
mark is equivalent to % 1-3 cents
American money. 1t is now worth
about y cent American money, or l.
46 of its par value. To accept Ger
man marks at their present value in
settlement of the claims would be
equivalent to settling the S60000.-
900 claims for about 81 100000.
1t is understood that bankers and
other interests in the United States
have taken the matter up with high
government officials and have been
assured that they will be protected
in every particular and they need
not and should not accept depreciat-
ed German money in settlement of
any claims they have against the
German government, or German in
terests A prominent official is
quoted as saying: mo wise creditor
will accept any German offer to pay
in deprecated marks. American
citizens can not be forced to accept
r ayment in deprecated exchange.
They can refuse such payment and
their interests will be taken care of
by the American government"
The Justice Of this position is ap-
parent to everyone 1t is also equal
" clear that what is just and fair
FOR the American banker Is also Just
and fair for the American manufac-
turer. The American banker is pro-
testing against having to accept de-
German currency in pay
nent of Just claims. The American
manufacturer is protesting against
laving to compete with German goods
which are shipped into this country
,alued in terms of the deprecated
German currency. which the Ameri-
an banker refuses to accept. The
German manufacturer pays his work
nen End most of his other produc-
ion costs in deprecated currency. |
lie then ships his products to this |
.cuntrv and under the present sys-
EN- of valuation. is permitted to |
,alue them on the basis of German
currency which is 1-46 of its par
,alue. Upon this valuation he pays
whatever rate of tariff our laws pro-
tide. If the rate of tariff were fair
n pre-war days when the goods were
'alUed in pre-war currency then the |
ate should be increased 46 times in
rider to afford the same protection
q American industries now that it |
lid then.
In other words, If rate of 20 per
.ent on German goods was considered |
lust protection to American in !
lustries in pre-war times. to afford
exactly the same protection now the !
ate would have to be 920 per cent. |
or the valuation basis is Just LAC Of |
Vhat it was in pre-war days.
The American manufacturer and !
economist says the valuation of the |
mark f1uctuates so that it is not only
but impossible to fix a
,ariff rate that will be just and equi
table for any length of time. The |
ate would remain stationary but the
oasis of valuation upon which it is !
would vary so that at times
he rate would be prohibitive and at |
,ther times it would be sufficient.
The On1y other Dractical waV to |
,ffset the depreciation of any foreign !
is to have all imports valued |
lnder the American valuation ygys-
,em.
American manufacturers should /
not be compelled to compete with
goods valued in terms of deprecated |
'oreign currency any more than
American bankers should be compel |
ed to accept such currency in pay
nent of debts