Evening star., 1925-11-11
SCHACHT NOT IN US.
FOR NEW FINANCING
German Banker Denies Mis-
sion Here Was to Arrange
World Compact.
By the Associated Press

By the Associated Press.
NEW YORK. November II. - DIR.
Hjalmar SchaCht, president of the
German Reichshank, on the eve of his
departure for Germany. after a three
week visit here, last night denied en-
phaticalIy that h had come TO the
United States 10 arrange new tinan-
cling. to suggest notifications of the
Dawes plan or to negotiate a world
financial compact.
In conference with American bank
ers. Dr Schacht admitted he had eX-
changed views regarding the world
credit situation, giving them Informal
tion about German conditions and Sc
curing from them information about
conditions here. Rumors that he had
participated with American and Eng
lish financiers in framing world
pact to CentraliZe control of the
world money markets in New York,
he declared. We're pure nonsense
Lauds Dawes Plan.
Denying that he had given any
thought to revision of the Dawes
plan the head Of the Reichsbank said
hat he wished only to express his APP
preciation of the work which is being
done in connection with its admins
tration by the American representa-
Il.
s. Parker Gilbert. Their business. he
explained had been conducted tact
fully and wisely concerning general
conditions in Germany" we have
many difficult problems 70 face" said
DIR. SChact. "and much hard work 10
do before we shall recover to our old
time prosperity. but we now have n
working basis. Our greatest need is
working capital. Our liquid assets
were dissipated. Fortunately, the cur
rency has now become re-established
on sound basis and we no longer
fear any recurrence of imitation. The
ReiChSbank is in a strong position.
This furnishes a basis for a wise use
of credit, but we recognize that such
credit must he discriminating. and we
recognize our own responsibility in
that regard.
Discourage Borrowing by States.
1T IS for this reason that the gov
ernment and the ReiChsbank have
discouraged borrowing by states and
municipalities for any but productive
and essential purposes. An advisory
board has been created by the gov
ernment with the minister of finance
as chairman, which exercises rigid
control over applications of states
and municipalities to float loans
which promise to assist commerce
and trade.
BESIDES the lack OF liquid funds,
there are other problems Germany
generally is facing. one is the diff
Guilty of finding markets for our prod
ucts. With the erection of many new
states in Europe, customs barriers
have been set up and it will take
some time either to find new markets
20 y1l I-1-l- ~
isfactory commercial treaties.
We are not discouraged by these
problems. German industrial plants
are in good shape and scientific in
Nention is increasing their efficiency.
Farming prospects are promising, with
the aid of a wider use of fertilizers
and machinery than before the war.
Enterprise Still Prevails.
German commercial enterprise still
prevails as before the war. Although
we have lost money, we have not lost
our courage. Our banks are handled
along the old, sound financial lines,
and we believe perhaps the greatest
security which those who deal with
Germany have is the continuance of
complete responsibility in meeting
our commercial a%ements."
DR.. SChacht said that he had no
secret motives in coming to the
United States. In addition to exchang-
ing views on international financial
conditions he added that he vel
coined the opportunity to pay his re-
spectS 10 the governor of the Federal
Reserve Bank of New York, with
which the Reichsbank has important
business relations. and in his visit
to Washington to the German Am
bassadCr, members of the Federal Re
serve Board, Secretary Mellon and
Secretary Kellogg.