Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-08
SCHACHT PENSION
TOTALS 100000
Retiring President of ReichS-
bank to Receive Eight
Years Salary.
BY JOHN F. SINCLAIR.
,istpatch to The Star

Special Dispatch to The Star.
NEW YORK. March 8.--Dr. Hjalmar
Schacht's resignation yesterday as
president Of the Reichsbank at the end
of very stormy session Of the directo-
rate indicates the intense feeling In
Germany against putting into effect the
Young plan for collecting reparations.
This German banker has been the
outstanding leader in German finance
since 1928. when he became president
of the Reichsbank. He took the job at
a time when 1873 printing offices with
1888 presses were turning out money
by the bale-when the mark was nose
diving to its lowest He brought order
out Of chaos. He was known as a man
of iron"
So DR.. Schacht, now So, leaves the
highest paid position in the German
public life-a salary of $4,000 year
plus additional royalties The total OF
these royalties never has been made
Realizing the uncertainties of public
life, Or. Schacht had clause inserted
in his contract which provided that IN
the event of his severing relations with
the Reichsbank for any reason whatso-
of eight years salary. So he leaves
with more than 100000 bullying his
Sometimes there are compensations,
even after hectic public career.
With 8 per cent of all the banks in
the United States possessing "a per cent
of all the deposits, the present trend
toward bank consolidation is not new.
Should the Chase National Bank and
the Equitable Trust Co. of New York
merge, a bank with resources in excess
of So, 700 ,000. 900 and deposits of more
than $4,000, 900, oo0-easily the largest
commercial bank in the wordsworth
viii Charles z. Mitchell and the Ma
tional City group start negotiations once
more looking to the merger Of the Corn
Exchange with theirs?
The worlds 10 largest banks from the
standpoint of resources then would be:
Chase Equitable, more than $2,700,-
100000; National City, $2,206, 600, 900;
Midland of London, $2,169, 000, 900;
Lloyds' of London, S2,098, 600, 600: Guar
anty Trust of New York, $2,017, 000, 900;
Barclays of London, s1,876, o00, 900;
National Providence of London, 81 1872
600 ,O00 Deutsche-D isconto of Berlin,
Sl,326, 000, 900, and the Continental-Illi-
nois of Chicago, 81, JIG, 100000.
Massachusetts born Albert H Wiggin,
81, who became president of the Chase
10 years ago, one of the best-known
bankers in America, at present chair
man of the board of the Chase, and
Winthrop W. Aldrich, A, Harvard grad
uate. son of Senator Nelson w. Aldrich,
and brotfer-in-law of John D. Rookie
teller, ir., and president of the Equitable,
are two personalities to reckon with.
So far the big merger is merely IN
the talk stage. 1t may not materialize at
ell. But whether it does or not, the
growing power of the Rockefeller inter-
ests in American banking is very sig
aihrort
DR.. Benjamin NJ Anderson, jr., Chase
National Bank economist, told the In
ternational Foreign Trade Convention at
when the United States must buy more
Of foreign goods. if we expect to con-
ttnue TO expand our exports.
From 1914 to 1929 the United States
sold to the world about $25. 600, 00O, 900
more in goods than she bought. How did
the outside countries pay for 1t? DR..
Anderson says that We gave the outside
world more than $4,000, 000, 600 when
we combined our purchases of foreign
securities, our repurchaSes of American
securities held abroad before the war
ana the loans made by the United States
Government during the war to our al-
Hes"
This banker-economis uses a graphic
illustration to show the relationship be-
tween Americas debtors and herself.
THE debts of the outside world to us
are ropes about their necks. by means
Of which we pull them toward us. Our
trade restrictions are pitchforks pressed
against their bodies. by means Of which
we hold them of. But from the period
from the middle nf 1914 IN the middle
Of 1928 we steadily eased the strain by
feeding out more rope. In 1929 we
ceased to feed out more rope"
But DR.. Anderson warned the Ameri-
can public that as Gresham'S law no
longer operates to send gold here, max
ing 1t impossible to expect that the
United States will be able to absorb for
eign securities at anything like the rate
OF recent years, the United States must
face the alternative of lowering import
restrictions and buying more goods from
Europe If it expects to continue to sell
q considerable volume of goods abroad
What is Gresham's law?
This name was suggested in 1857 by
II. D. Macleod for the principle of cur
Tency which says that bad money drives
out good money from the country.
Mr.. Macleod thought that Sir
Thomas Gresham. London merchant and
tI1E AOuLluCI UL Tie royal Exchange, UTSL
explained this law in 1858, but in real
ity the law was set forth by earlier
writers-Copernicus for instance.
Mr.. Macleod explains the law in this
way:
1.-THE worst form Of currency in cir
culation regulates the value of the
whole currency and drives all other
forms of currency out of circulation.
Greshan's law applies where there is
underweight or debased coin in circlila-
ton with fullweight coin of the same
metal; where there are two metals in
circulation and one is undervalued as
compared with the other, and where
1nconvertible paper money Is put into
circulation side by side with metallic
currency"
Many of the countries Of the world
today are faced with some, if not all, of
these conditions, to which Greshams
law applies.
Copyright, 1880. by North American News
paper AlliAnceD