The New York herald., 1922-12-19
GERMANS OPTIMISTIC
| OVER LOAN REPORTS
Believe America Will Help
as P0incare MOdifies
Ruhr Attitude.
FEAR HEAVY INTEREST
Report That Washington
May Call Conference on
Economic Ills.
MARK DECLINES TO 6.45O
Fears Of Repetition of Black
Monday of Last December
Prove GrOundless.
MARK DECLINES TO 6,450

BERLIN, Dec. lS ASSOCIATED Press).
mors that the United States contem-
plated takingAan active hand in Euro
can settlements il is regarded here
as certain that negotiations, at least
for a German loan, have been under
way. Moreover a change In the
American attitude is considered likely
in view of the apparent abandonment
by NJ. Poincare. the French Premier,
of the plan to occupy the Ruhr.
The more skeptieai circles of Ber-
lin, however, attribute the abrupt
rise over the week end in the value
of the mark TO speculation abroad,
and the Boersen Courier predicted 1t
will mean heavy losses on raw ma
terials In process Of manufacture. 1t
says there is a great section of the
Germans who place much confidence
in the benefits Of an American loan.
but such aid cannot be obtained with
out far reaching guarantees.
The Boersen zeitung emphasizes thst
the rise in the mark does not necessarily
mean stabiization OF the mark, II
any one thinks they are making the
German people Christmas present In
the fall of the dollar from 5000 20 5000
marks, II Is not only a naive but dan
gerous conception. unless protection 10
at hand to keep the exchange rate on q
steady basis says this newspaper.
Speaks Of Conferences.
The dllepemciae Zeitun0 warns the
Germans that they always have been
too easily optimistic. 1t sees hopes III
such an economic conference as Wash
ington is reported to be contemplating.
but adds. however. that the regulation
OF Germany's economic end financial
problems would be a decisive factor in
the stabilization OF the mark. Il,
The Vossische Zeitxag says that IL is
q most urgent. necessity for the respon-
sib' e. individuals. in Germany 10 decide
on, the point at which the mark should
: be stabilized. The Td0eblatt expresses
confidence that late developments throw
out a large ray OF hope, especially for
American assistance. The LokaE AaseI-
ger notes that even II a loan Is granted
the interest would mean an extraordi-
nary heavy burden for Germany in her
present condition.
II" Mark Drops Again.
,Berlin's financial foreca sters went far
astray when they declared that the
Bourse v as bound to see a black Mon
day" following Saturdays sensational
squirt by the mark In New York In
stead of the predicted panic In exchange
dealings. steadiness was tho rue
New York advices that the dollar had
touched 5000 marks caused o crowdlng
OF the Bourse chamber at its opening
today and pess'm mists were routed when
the first rate was announced at $3.50.
As the day proceeded the. mark gradu-
ally lost much Of the ground gained and
the close saw the dollar back to $3.50.
Holders of stocks and foreign money s
showed no haste tn dispose Of them and
there was q general tendency to exercise
reserve. It is expected that on Wednes-
there will be Bourse trading, Will reveal
whether Sundays forebodings were jus
tilted In holding up the specter that there
would be a repetition Of December OF
last year. when the Bourse became
panicstricken over the talk of a morato-
rum. NH.
Attention was called to-day, however,
to the fact that on Dece ember /. 1891,
banks were advancing credits which is
not the case now, and that the new
development put business credits even
farther out Of sight since the fnancers
are not inclined to back enterprises
heavily stocked up with high priced
goods,