Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-14
NEW GERMAN LOAN
WINS FAVOR IN u. S.
DISSATISFACTION of Treasury
Bills Predicted-ISsue May
Run Two Years.
BY JOHN F. SINCLAIR.
Special Dispatch to The Star.

BY JOHN F. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, october 14.-An I'M
pressive list of banking houses in the
United States, Canada, Sweden, Hol-
land and Germany, headed by Lee,
Higginson & Co. of New York, have
made arrangements to loan Germany
SIPS, 900 for two years. No French
or British bankers are among the I'M
derwriters.
The proceeds of this loan will be
used to cover, partially, the deficit in
the German budget, which is expected
to reach at least twice the amount of
the loan by March /, the close OF the
fiscal year.
The loan will take the form of six
month German treasury bills, which
will be purchased at a discount by the
bankers, with the option of renewing
three times. The issue thus becomes
two-year loan.
Oversubscription Seen.
Leading bankers in New York, Chi
cago, Buffalo, Boston, San Francisco,
Cleveland and st. Louis are among the
underwriters in the United States.
The issue probably will be oversub-
oNAASS0 IA cp1CC VI Lkl6 4hCt tkldI LIS
German government 512 per cent
bonds Of 1865 (the Young plan bonds
have in the last week sold as low as
"a, compared with 80, the Offering
price last June.
1t is expected that this new issue
will be taken largely by banks which
badly need short-term investments for
their portfolios, the theory apparently
being that'the 100000 German peo-
pie are good credit and will everltu-
ally work out all Of their financial diff
culties.
Better Auto Figures.
The automobile figures for the first
eight months show a total of 1885,
600 cars produced this year, as against
LAS, 900 last year.
But the sales tell q much better
storyl This year, for the first eight
months, 2,950,000 cars were disposed Of
by the car manufacturers, as against
4,240, 900 last year. Thus the manufac-
turers sold during this period $4,000
more cars than they produced, as
against last year, when they sold $780,
600 cars less than they produced.
This does not show up badly at all
for the present condition of the in
dustry; and while the upturn has not
come, the different manufacturing units
are getting their houses in order, pre-
pairing for some good times ahead.
Growth Of Utilities.
Samuel insults statement that his
companies will spend more than $780,
10000 in 1880 and the same amount
for next year shows the enormous ex-
tent to which the public utilities under
his direction have grown.
Samuel insult, II, born in London,
ENGLAND hanan d..
the public utility field first by getting
interested in electricity in 1881 as pri-
vate secretary to Thomas A. Edison.
1t was while he represented Mr.. Edi-
son in the organization and manage
ment of the Electric Tube Co., the
Electric Machine Works, the Edison
Lamp Co. and other Edison companies
that Mr.. insult began to see the vast
possibilities in the public utility field.
He resigned the vice presidency Of the
General Electric Co. in 1892 to become
president of the Chicago Edison Co,
which, in 1907, was merged with the
Commonwealth Edison Co. In recent
years Mr.. insult has been the outstand-
ing figure in public utilities In the Mid
die West.
Now when other industries are cur
falling, Mr.. insult announces that his
companies will keep all of their operat-
WHO dJIcI1Q 10 IIlelT OuSl~
ness, and will spend for construction
betterments 80 per cent more this year
than In 1929 and as much again in
1881.
while we will try to keep all Of ort
people employed, the disposition -
curtail what might be lied the frillS
of the business and see that we get
full days work for full days pay Is
inevitable" says Mr.. insult.
Preparations Payments.
DR.. Hjalmar Schacht's statement be-
fore the New York Bond Club that the
time has come for reconsidering Ger
many's reparation payments has re-
ceived very little attention from the al
lied governments or from the American
press.
Even the German press has been dis
posed to let the matter ride upon the
theory that the next step in the re-
vision should come from the allies, who
are now suffering as great business de-
preston as Germany.
But the reparation question is not yet
settled. Germany's 100000 unem-
ployed and Britain's 2,161 900 unem-
ployed, the highest since 1921, show
that the overloaded debt condition of
Europe Is holding back business re-
covery.
German financiers think the world
will be forced to recognize this before
many more months pass.
Government Expenses.
The National Association of Manu-
facturers has taken crack at the in
cressing costs of Government activities
in the United States. The association
points sout that in the last Is years
Government expenses have risen from
about one-fifteenth to about one-sev-
enth of the total national income, with
no halt in the growing expenses in
sight.
Government expenses are not all bad.
They can be made very profitable to
the people, who pay the taxes. Because
of inefficiency and lack of vision, they.
often become merely an added burden
to the tax-paying citizen.
This coming year the Federal Gov
eminent probably will be forced to tap