Evening star., 1922-07-15
LOW MONEY RATES RENEW
INTEREST IN INVESTMENTS
High Records Made on Many Bonds Slack
Demand for Rediscounts7Stri
Troubles Only Menace.

| Of two lines-either an international
loan or the sort of moratorium which
Germany has applied for during
which reparations claims will be met
in kind instead of money. That Ger
many sincerely wishes to meet her
obligations cannot be doubted when
there is considered the great political
risk the Berlin government is rum
ming in trying 10 put through the
huge forced loan.
This loan project calls for 60.000,-
100000 levy of paper marks, to be
assessed upon German industry, and
upon which no interest will be paid
before November. 1925. This is
more desperate measure than any
which even the government of the
French revolution attempted when
the assignat had become practically
worthless. gold had disappeared from
circulation and forced loan was
the only way out. Even the compui-
must forego interest payments for
three years.
France Mny Modify Attitude.
There is reason to believe that the
French will agree to modified
reparations program. under which the
| form of payment would be goods ana
| labor instead of cash. Already the
French minister of public works has
proposed that Germany be allowed to
construct public works in France to
the extent of $4,000. .000, 900 francs. in
part payment of the war indemnity.
This scheme may be defeated through
the opposition of French labor. But
even SO. France is not Interested for
the next two years in the question OF
cash, as compared with goods pay
ments, because for that time the Bel
gian priority claim would allow Bel
gium to get most of the German gold.
England 10 Send Gold Here.
Gold transfers from London to New.
York, in preparation for meeting The
interest on England's war debt to th'.
United States government. are likely
to be feature for the next month
or more. The aggregate is not, how
ever, expected to be large, for Great
Britain will undoubtedly provide the
necessary funds. as she did in the
case of the Anglo-French bond re-
demption, through accumulation OF
dollar credits in the exchange market.
In the meantime the British treasury
has been pressing France for the IN
terest on war advances made by the
British to the French, and selling or
francs to meet these claims has been
one of the causes for the decline In
French exchange.
Labor Troubles Serious.
Labor troubles are the one deep
shadow at the moment on the bust
ness situation at home. The threat
OF fuel scarcity Increased Oy the RAN
way shopmens strike has at length
begun to affect the steel mills. Con-
tinued for another month or SO there
is no doubt that not only in steel
trade, but in many other lines. pro-
duction would have to be seriously
curtailed.
The stock market had not allowed
itself to be worked up over the labor
difficulty because il still believes that
the shopmens strike will soon fzZle
out and that the administration at
Washington will force settlement
in the coal business before any vital
injury is done But the fact remains
that until these strikes are disposed
Of the business situation will be un
certain and this uncertainty will have
its reflection in Wall street opera
tions.