San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-10-13
GERMANS BUY
GOODS DESPITE
FALL Of MARK
Purchases of Cotton and
Copper From U. S.
Heavier
OBTAIN BEST STAPLE
American Sellers Get Paid
in Dollars and
Pounds.
OBTAIN BEST STAPLE
Ry j. G.. ROYLE.

mated Germany as prime laclor III
the purchase of American raw mater
ials. nor is it likely TO do so.
Germany is continuing TO buy cot
ton and copper at advantageous prices
and the supply of dollars and pounds
sterling for payment of these pur-
chases gives no indica ton of exhaus-
ton.
1t is we'll established in the South
that German spinncrs contracted for
large amounts OF cotton in Texas last
July and August when the price was
around ~ and 23 cents.
Apparently they got the cream OF
the Texas crop at prices well under
present levels for the iirst pickings
from Texas fields were of fine quality
and grade while recent pickings have
been impaired in quality and grade by
late rains.
Cotton exports to Germany are run
ming today 30 per cent ahead of those
of last year, and all available cargo
room from Houston and Galveston has
been engaged for the remainder of the
month.
Exports TO Germany from HoustoG
alone since August l total 6S,94G
bales.
Indications are that the exports OF
cotton to Germany this year will run
far over the 945 900 bales of 1922 and
the million bales of 1921.
Heavy Copper Shipments.
In the first eight months OF this
year. 101 $4,000 pounds of copper
were sent to Germany as compared
with 144,01S,000 for the correspond
ing period Of 1922.
In August exports commenced 10
fall off reaching only 9,5S0.000 pounds
and September exports it is estimated
were but little higher.
This later decline followed the drop
in marks. but that fall is not regard
ed as the fundamental cause Of tho
decrease.
The exports to Great Britain have
been heavy and much Of this copper
is believed to have been reshipped 10
Germany.
German buyers are not asking for
credit.
They are paying in dollars and
pounds and American producers Meth
cr know definitely nor care how tine
purchases are being financed.
1--WE get our pay in good American
dollars and ask no question:" was the
way one Texas cotton exporter out
lined the situation today.
Copper purchases are made through
the copper export association to
which all the leading producers belong
and all selling and collecting is done
by this organization without individ-
ual producers knowing whence comes
the money they receive.
IT is known that some of these pur'
chases have been financed through
sales of manufactured goods.
1t is also known that Germany has
resold some American materials ad-
vantageously in Europe and in the
Argentine thus building up reserves ~
dollars and pounds.
But these factors alone would not
account for the continued outpour of
dollars in exchange for Americah
products.
The sources Of that supply lie in
the tremendous German cash reserves.
built up in foreign countries since the
armistice.
An American investment banker.
who has made close personal study
of German conditions, both abroad
and in this country, declared today
that immense foreign bank balances
have been built up by German firms
for nearly four years.
After the signing of the peace
treaty, he explained, an embargo was
placed by Germany on the exporta-
ton of money.
All goods exported had 10 be Ii
censed and all foreign exchange re-
ceived in payment was supposed TO be-
turned over to the Reichsbank which
allowed the exporter only n sufficient
amount in foreign money to pay for
raw materials, paying him the re-
mainder in marks.
This rule was constantly and sys-
tcmatically evaded, the banker de-
clared. either through bribery or SYM
pathetic connivance of officials.
Large Amounts Deposited.
As result large amounts were de-
posted TO the credit of German ex-
porters, manufacturers and bankers IN
Switzerland. Holland, Scandinavia.
The greatest amounts. however
were placed in London and New York
1t is impossible TO ascertain their
total with accuracy but one London
banker estimated the amount on de-
post in London Mt S100.000,000 some
months ago and declared. in his opin-
ion the New York balances far ex-
ceeded that sum.
Various subterfuges have been used
to build up these balances but one
common method has been to have two
sets of invoices.
The first submitted TO German au-
thorities for obtaining export hcens'
ing.
On this set the German officials
would retain the designated amount in
foreign exchange, paying the exporter
the remainder in marks.
The second set, kept secret. would
show the actual amount for which the
goods were sold in this or other coun-
tries.
Through a side agreement the pur'
chasers would pay the difference be-
tween the false and actual invoice
prices TO the credit of the exporter IN
a London or New York bank.
By this method German Industrial
lists got actual cash outside Germany
as fast as possible and were able to
keep it where it would escape German
taxation.
1t is believed by bankers here that
these balances still are sufficient 20
finance large material purchases for
\