The Denver Jewish news., 1924-01-03
THE FOREIGN REVIEW RE-
GARDING GERMAN
SECURITY
by ABELSON

hA
Lewis A. McGowan of Washington.
ID. C., counsel for the Association of
American Holders of Foreign Securi- |
ties. Inc. in letter 10 Abelscn X Co.
specialists in foreign bonds and eN-
change. with Offices in the California
building. states that he will he in Den
yer some time next month To confer !
with clients in regard to the recovery
of losses caused by the debasement. of
the German mark. Hope is held out
for the possibility and as some regard
ii. the very great probability. of re-
covering value upon the municipal
bonds of German cities. irrespective
of the absence of value In the nations :
currency Judge j. II. Richards of
Denver. formerly of Iowa District
court. is locally interested in the work
Of Mr.. McGowan.
Abclson < Co. themselves feel that
the outlook for this is favorable, and
say that the widespread extent Of this
confidence is shown 10y the recent large
advance in the quotations IN some of
these municipal issues. Following are
II few examples of the favorable
change in prices, the quotations i'll
i United States money heing the price
| bid on the face value of the municipal
/ bonds per million iEirks IL
Issue Dec. 10 Nov. ~. oct IL.
Bremen Is, pcr-war-.-..-... $1,000 10000
Bremen Is. pre-wsir---.---. 1000. Jh.O
| Hamburg I1.s..-2 $500 IL 12.5o
! Berlin Is 1890 II 200
Much Colorado Money Involved.
| 1t is estimated that in Colorado
million dollars in the municipal bonds
OF German cities. partly dating back
before the war and partly bought since
| the war Some Of the latter were very
soon after the arlnisticc, when the dis
! integrating of the German financial
structure was not dreamed of. and
much WAS bought ut Inter times for
! speculative purposes ,is the prices re-
coded.
While the mark has practically dis
! appeared in valuc. the bonds have gone
lrp and many issues are mnCl,tainahle
in the market Mr.. Abelson says.
There is good demand for city and
| industrial bonds of the countries that
are making progress in self-detcrmin-
alton and the nations directly affected
| hy the reparations
In spite of IL few countries that
sought to restore their traditional
'pomp and splcndor regime under the
suise of patriotism, whose motives arc
| generally regarded with suspicion. the
common people are rcasscrtine them
selves. throwing in discard the so
called leaders. and yielding to the
economic adjustments of the world
standards, namely. statistical SIR
veys. trade aggrcssivcness and sound
money principles.
"A good illustration of the come
back of Austria in adhcring to the ad
vice of the allies, with the inYncial
+ aid extended. is evident in the rapid
strides She is making After being
deprived of coal and territorial ad-
| iuStmcutS. that country has turned to
water power for Il substitute. and has
more than 3o0.ooo hydro-clcctr'ic in
stHllmcntS under construction. linanc-
| ed thru cooperative societies, thereby
rcaping the benefits of rural lighting
and driving machinery. The demand
| for Austrian securities is constantly
| increasing in all parts of the world.
/ Iionds Are Direct Obligation.
| The principle upon which hope is
I based for the recovery of value on
these bonds is that they represent
/ direct obligation against the munich
pality. Independent of the government.
| and that this obligation. which was in
Cured for necessities of life must he
/ liquidated in recognized values. and not
| in The currecy Of the nation if the
latter is drbasCd.
Hope for recovery of value also is
predicHtcd ON II provision made by CON
grcss for compcnsuting American ci;i-
zcns who suffer loss thru damage TO