The New York herald., 1922-03-13

HDCNft4 1dUkt 20 ihE -NEN 4thh AiiiANL4h
Copyright, fgs2. ~ run NEW YORK HERALD.
New York Herald Bureau.
Berlin, March ~.
Anxiety was caused in the Boerse
this week by the new credit policy
adopted by the big banks. Credits ox-t
tended by those institutions to in
dustries have been very largely cut To-
the bone, while to many clients no more
credit Is being granted. The reconstruc-
tion situation has not weakened the sol
vency of firms. On the contrary, the
Leipzig fair has just furnished evidence
that most branches of German industry
actually are overburdened with orders.
The ever growing imitation will even fa-
cihtato the increased extension Of credits.
IT, nevertheless, contrary policy is
adopted by the banks 1t IS to be ex-
planned by almost purely technical rea-
sons.
The banks arc rather pess imistie about
the outcome Of the Genoa conference, and
the possibility OF a severe shock to Ger
many's economic life induces them to do
everything to stabilize their business and
increase operating capital.
Furthermore, frequent and considera-
bic fluctuations in the money market.
great variations in the dollar rate ana
the resulting fluctuations in the prices
or raw mat erials which industries must
buy abroad, make the banks regard
credits as uncertain business. The min
ing industry is comparatively inde-
pencent Of bank credits because it is in
| position to calculate its expenses re-
| sultirg from new investments and ap-
port ION them in the prices on its prod
| uciF. This policy, however, cannot be
adopted by other lines OF industry, which
therefore depend more upon credit OPP
crations.
I German financial experts admit the
Justification of the new credit policy on
the part of the banks. They demand.
however, that it be adjusted to the mimi
mum needs OF Industry. They suggest,
as q practical solution OF the problem,
that the banks should not enforce the
new policy as n general rule. but should
carefully consider the needs of each
| client and determine the credit and it's
amount In accordance with the merits or
the case.
The sharp rise in the dollar rate, which
is typical of last weeks money market,
was ascribed by well informed circles to
the sudden and considerable purchase OF
foreign currencies by German industry
a decline in the dollar rate is pre-
dicted. however. because the rise was
! held TO be Of a transitory character.
The Boerse considers the rate of 200
marks to the dollar a normal expression
of Gerinany's present economic situa-
ton While the dollar ranged about
200 industry held back from buying
| foreiSn moneys, hoping to see the mark
rise. When that failed 10 happen. in
dustry had to meet its obligations
abroad and a buying panic ensued. For
this reason further rise IN the dollar
Is feared
With these transactions concluded
the Boerse looks forward to the rise
OF the mark to the approximate level OF
half cent.
The anomalous situation in the money
| market accounts FOR the fact that the
stock market remained rather unin-
auenced By events in the former Stock
quotations did not keep pace with the
rise or the dollar. But a general rise
in the stock market Is expected. and
many patrons OF the Boerse have with
drawn their selling orders.
Tie German American Economic AS
sociation Of Berlin will hold general
assembly here this week, at which Gus
tav Stresemann. the leader OF the In
dustrial party, will lecture on Ger
many and the United States in the
Worlds Economics"
Or. II. Isay viii speak on German
patent rights in the United States and
American rights in Germany.