New Britain herald., 1924-01-01
GERMAN CAPITAL
 WELL CONCEALED
Money Invested Abroad Will Be
 Hard to Locate

{ bS lAS @ASSocldleu fTtsS-
 1 New York. Jan. 1.--Leading Wall.
 street bankers express the opinioT l that the amount of German capita l exported abroad since the armistict which is to be the subject of an in
 vestigation by an international com.
 mittee appointed by the reparations commission, wll never be accurately
 ascertained. Estimates of this sum
 which range all the way from s10,- 100000 to $2.0O0, ,000,00O are general
 ly regarded as mere guesses.
 A rigid investigation by the German government under penalty is consid- cred as the most effective way of get ting the information, which is desired primarily by the French government. However, bankers who visited Ger many last summer and fall express grave doubts that such an investiga- ton will ever be successfully con- ducted.
 No Compulsion on Banks.
 Heads of large international bank ing firms here frankly stated that they knew no law by which they could be compelled to reveal the pri- vate business of their clients. While declining to be quoted some of then frankly stated that they would de- cline To give details of transactions believed to involve capital of Ger man origin unless they were forced to do so by law. Some of these same banks. however, have kept the gov. t,,r g German gold without going into the tions details of each transaction.
 In order to get the information sought, bankers pointed out that the separations commission committee would have to get the cooperation, not only of the German and allied governments, but Of those of neutral countries as well, particularly Swift zerland, Holland, Sweden. Norway, Denmark and Spain where the bulk of migrated German capital is be- lioNcd to have gone.
 German capital has migrated from Germany in various ways. inelud- ing
 Rckhsbank iiol,lings sold Out
 l. The transfer of gold. Holdings or the German Reichsbank declined from 1.005,Oon, 900 gold marks on January to aG7000. .000 on November 80, the decrease representing amounts pledged or sold either to meet foreign obligations or to buy for- eign, currency. Al least i4S,00o,000 gold marks, equivalent to about s35,- eo0,o are reported to have been sold To New York.
 2, Purchase or American securities. While no accurate compilation Of such foreign purchasers is obtaihablc it has been estimated that stocks and bonds bought through foreign sources
 is year totaled about s250, 1000 900.
 2. Retention Of German credits in ais country through the sale here Of commodities and securities. 1t is tnown that Germany has been a heavy buyer Of cotton. wheat, copper and food in this country. The record 3f trade between the United states 1 and Germany, as shown by the statis- | ics of the treasury department. does 1 not however. bear out either inc | HtblN tnHl 'fiHlbN fADtilH ihNP bitH l. greatly stimulated by the depreciated . xchanRe or that German capitalists . have been accommodating large bal. ! lnccs abroad.
 Capital Held Under Disguises
 Considerable capital Of German ori- ! gin is known to be hidden in this and | other countries under various dis suises. In many eases, it is held in he names Of relatives or friends Of Germans who are citizens Of the
 nitcJ States. Switzerland. Holland. spain or the Scandinavian countries.
 Among the methods said by thr French bureau Of information to nave been used To get capital ont of Germany. in addition to those numer- ltrd. werc.--
 Payment" Of fictitious debts in for ign countries. Organization Of hoid- md other companies outside Of Ger many with German capital Estab- ishment Of agoncios ia cities like Zurich and Amsterdam, which rccciv- .d the orders of German manufactur- ITS. sent the bills and cashed them. while in" manufacturer sent inc goods lircct to the customer. the prices Iuoted to the agency being much low TT than tho actual selling price. there y enabling inc manufactured to ,uild up capital in neutral coun- ry without th" interference Of his ,wn government.