The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1926-03-31
WARN AGAIN ON
GERMAN BONDS
b. RIoHARD HATTON

:
Renewed warnings against con
tinued fraudulent NEUTRALITY-SUSPICIOUS.
regarding various German bond
issues by certain dealers u the
United states have been received
by the Commerce and Marine Com
mission of thes American Bankers
Association from Hans Kruger. spe-
cial commissioner in this country
for German government loans.
Elis complaint refers TO : epre-
sentation regarding application Ct
the German revalllation law to
paper-mark bonds by which these
are being sold to American burPrs
at far beyond their actual value.
Mr. Kruger says:
Certain dealers are Offering seyt
eral kinds of German paper-mark
bonds TO the investing public.
saTheir circulars contain misrepre-
sensations as to the value of the
bonds. giving the absolutely wrong
impression that they offer a fair
chance, if not the certainty OF huge
profits.
Dealers issuing these circulars
use the trick Of publishing excerpts
from utterances of well.knoWn men
recommending investments in Ger
man bonds, emitting to state that
these speeches apply 10 the new
German bonds issued after the
sterilization OF the mark either IN
the new German currency or in the
currency OF the United states.
"A further means. of creating
public misunderstanding regarding
the true value of the initiation bonds
Mo i7tA
wealth and: commercial activities OF
= CITY or its inhabitants as guaraIl-
teeing those bonds, while. of course.
ali this has nothing to do with the
case since the revaluation Of these
inf1ation-bonds is proceeding on
legally drawn lines which are Vel
defined
It is particularly to be regrelted
that utterances intended to promote
investment In desirable new bonds.
issued in stable gold currency and
offered by legitimate brokerage
firms. should be used for boosting
4 type Of bond they were never
meant for
.eThe value of either preswaf or
postwar papermark bonds is to be
calculated only on the basis or the
revaluation provided for in the
German laws of July is, 1920.
AS to city and mortgage bank
bonds. these laws prescribe that the
percentage of revaluation Is to pc
figured on the face value OF the
bonds only in 50 tar as these pon -
were issued before January I, 1913.
Concerning all later issues the
percentage is to be inquired on the
actual gold value. which Is q very
different matter. since al the emu
of the initiation period IN Novein-
Der, 1928. not less than one trliilon
papermarks represented the eaulVa-
LAM of one single gold mark.
Fraudulent circulars lead the
nnblfc to believe that all these
bonds. irrespective Of the time they
were issued. will be revalued at q
percentage OF face value.
as a matter OF fact all the large
paper mark amounts printed on the
bonds referred 10 must be reuuceu
10 the actual gold value of the
paper mark at the official date on
which the community or corpora
ton issuing tie bonds received the
money for them.
1--WE have on hand at the Ger
man consulate general in New.
York a list of prices paid in Ger
many for some of those issues on
For instance. Munich Loan Of
1928 sold at the equivalent of -
cents per 900 600 900 marks, while
IN one Of these dealers circulars
500 900 marks worth are offered at
$40.
ain the same circulars there are
offered LOCO, 100000 marks Frank
fuft 1925 at $45. while in Ger
many they were dealt in at the
equivalent of II cents for 100000.
600 marks.
"As to the so-called forced loan
which is Offered jim lots with other
bonds, it is to be said that this
loan. having been excluded from
the revaluation. has no value at
all"
f. J. McQuade, chairman of the
entertainment committee OF the an
nual convention of the District Of
Columbia Bankers Association
which will be held at Hot Springs,
Va. in June. will give lrncheon
TO his committee at the Racquet
Club on Saturday
The affair viii be in the nature
of an organization meeting of the
committee which will discuss pre-
liminary plans and outline a ten
tative program for its pre-conven-
ton activities In addition 10
Chairman McQuade the members
OF the entertainment committee are
Vice Chairman, Fernand Petit: NJ.
y. Calnan. Thomas W. Brahany,
ceorge o. Xass, Fred w. McKen-
1ie and James c. Doolin. jr. .
Vice President Frank w. Stone.
or the National Savings and Trust
Company who has been i'll at his
home for some days. is back at his
desk.
The next financial talk 10 be
broadcast for the benefit Of Wash
ington radio fans will be an H.
Illuminating dialogue between Wee
President e. j. McQuade, Of the
Liberty National Bank. and John
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