Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-29
WORLD BANK PLAN
FACILITY WEIGHED
Germany's Responsibility Is
Increased. in Opinion of
Midland Head.
By JOHN r. SINCLAIR.

NEW YORK, July % (N.A.N.A).-
Reginald McKenna, head of England's
greatest bank, the Midland is not yet
sure that the proposed Bank of Inter-
national Settlements will facilitate
PREPARATIONS payments by Germany to
the allied governments.
The Young plan differs from. the
Dawes plan in that 1t places upon Ger
many the burden Of making transfers.
so that in case of default the problem
might become a rather serious irterna-
tional one. Under the Dawes plan, no
transfers could be made, which might
bring about a serious international
credit situation.
The Midland Bank believes that the
elimination of the transfer clause OF
the Dawes plan increases the respon-
sihility Of Germany. but that it does not
in any way help her to increase her
capacity to pay.
Simply Change Credits.
Should Germany mobilize" her
debts the effect would be merely to
change her credits from governments
TO private investors. In view of COM
ments in financial and technical jour-
nails in England since the plan was
agreed to in Paris, one gains the i'm
preston that the English banking and
business interests are not at all sure
the situation between debtor and cred
itor has been cleared up to any marked
extent by swapping plans. They rather
fear Germanys inability to meet the
conditions laid down.
And if she does there is more chance
for trouble and embarrassment under
the Young plan than under the Dawes
plan. o
II is significant that the United States
Secretary of State has SAID that while
the International Bank. IN be formed,
is to have close association with the
central banks of the world. the Federal
Reserve Bank is not tn be off1ctally tleo
I'm with it.. nor 10 contribute financially
TO It's capital.
Tho United States Government, per
So. is taking no chances.
Americans Hold Alaska.
Alaska used to be n land of Wild
Indians. rough traders. eX-crirninals
and Eskimos Today fewer than nan
of the SIS 900 population are OF the
aboriginal Eskimo and Indian STOCKS,
while more than half are OF the white
race. .
A colony of transplanted Americans
is holding this section. Think OF It!
Alaska is actually Inhabited by Alas
kansi This revelation is given to us
nv Mary Lee Davis. herself an ALASKAN.
Three-fifths of the unaborlglnal STOCK
are American born. large percentage
being men whose fathers followed the
Oregon and Santa Fe trans pach IA
the DAYS of '49. OF the Alaskans VINO
are foreign born. Al per cent are Scan
dinavian. q per cent British and 10
per cent German. Nearly all OF the
remaining foreign-born inhabitants are
French Canadians.
Most of the Scandinavians are en-
gagged in fisheries along the coast. WINE
the French-Canadian clement taxes 10
prospecting and trapping. The Teutonlc
element is evenly spread out. While the
Danes. the Irish and the scotch seem
to prefer the interior.
Here. in truth. are the elements OF
empire. made I'D of divers peoples. IN
6ividIlalty has a chance for expression,
and men are not the machines they be.
come under our fast-moving mdustrlai
civilization.
u. S. Sets the Pace.
The leader sets the pace. not only
in sports, but in finance. And so the
United States, as the leader OF the
money market. almost automatically m
creased the discount rates OF all the
central banks of the world when the
Federal Reserve rates in the United
States were increased to per cent.
Now it is expected that the Bank OF
England rate may be raised shortly to
check the outflow of gold from her
country to- the United States and other
countries.
OF course a higher rate there VIII not
help business. Quite the reverse. Eng
lish industry needs encouragement-nof
any new sales resistance" Sterling
has begun to show strength, above the
gold point in the market. and the
French debt situation is clearing up.
There is still good reason to hope that
there will be no change in the English
discount rate for three or four weeks
yet.
Europe these last few months has
been watching the tightening mora
conditions in the United States with
anxious eyes.
Perhaps the Federal Reserve will
lower its rates soon.' sigh the European
bankers and business men in unison.
But there is no immediate prospect.
Blame for Tight Money.
Is the stock market to blame for