Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-10
GERMAN PAYMENT
HINGES ON TRADE
Ability to Meet Preparations
Depends on Export
Business.
BY JOHN F. SINCLAIR
match to The Star

nnestion-how large sum Tor repaFs
tion can Germany pay?
Eirst she was asked for the impoS
sible amount of $32,0OO,O0V ,OOo. 6u
this was merely political amount.
fantastic. impossible sum 700 Dig ~
Tas ushered in on September /, l9Z'
For the first time Germany's "aolllt
IN nav" was recognized as the pas
for future payments. 1t was the mrs
sensible. sane, financial plan agreed u
Aeain in February, 1929, when tn
Young committee met In ParS' IN
German delegation insisted that 1'oSu,
0oo 600 marks annually was al oreI
many could pay-that IS, anouI SZou,
600. 1000. The allies insisted GerHi an;
amount owen D. Young, the CHAIR
man finally got both sides to agree o.
Anal figure of 1850, 100000 marx
&C the average annual payment, StarC
ING 1881 at i,674,00 900 marks (aoou
$425 900 ,000). .,o an
,,,.itv for AZ wears, the sum amounts
about $9,OOO,oOO,ooo Can German!
pay it? , no,r Ger
many will pay her foreign oeot, iiH'
every other nation, by Ihe e~oTsS
ber exports over her imports. II SIl'
t,,,,s sim OOo. 900 worth of goods yea,
ond sells the same amount, she VII
not he able to pay any reparatlon' uil
less she borrowS the money OUTSIDE.
She buvs 500. 900 900 a year OF gooo!
ond sells 5000. 900 900 outside, she VII
have $500 .OOO, 900 to pay debts.
This roughly is the situation.
Nov in the three years, l921-ZS, Ger
MANY bought more goods OUTSIDE Cilal
she sold. Hence she could not pa!
reparations, unless she borrowed S Snt
money. That's exactly what Sne gu
NJ nation can beat the CUNT can
mt overcome economic law. Germany
condition will remain financially healthy
onIv when she is allowed to pay IN
Generations the excess OF her foreign
sales over her foreign purchases.
"we're tired of having the cow fed in
Minnesota and MIXED in New foIk,
said E. w. Decker, presloent Oh Si1s
Northwest Incorporation OF mime
aooIis in a recent article on banking
nolicy' I'VE have paid tribute to tne
East from time inmemorial. You Wouio
he amazed if you knew the percentage
of our wealth that goes out OF our
state every day into other hands 1oI
financing. insurance, interest ana In AZ
other wavs. We do not want 10 De
dominated by New York or chicago
1t is not good for New YORK or chi
caeo-and it is not good for US.
The unmistakable opposlCon on IN! &c
country TO New York's domination Is
evervwhere evident. This objection does
not seem to be a fear of competition
from New Yor.-, but from the present
eet-IIn in finance and business, wnlch
SLOWS the New York banks to dominate
The two large banking groups in the
Northwest-the Northwest Bancorpora-
tion and the First Bank Stock Co
were formed to counterfeit just sucn
tendency, say their spokesman.
No franker statement has been mace
bv any Western banker as a basic rea-
son for making change In the NorIn-
western banking set-up, than that mace
BY Mr.. Decker.
2 M. Anderson, the Chase National
y3ank economist, believes that SmaL
hank consolidation movement Is So
luton for the increasing NUMBER OF
hank failures in many rural sections;
Advocating such plan before the
House of Representatives committee on
banking and currency, Mr.. ANDERSON
conceded that State laws permitting eX-
tension of branch banking pronaDly
would help the situation in several
states, but added that II sucn Jaws
we're passed, then the national bank
ing act should be amended to allow
rational banks to do what the different
state banks are allowed to DO.
On general principles, however, MI:
Anderson opposed the extension OF
"branch banks for trade areas.
Correct the conditions governing the
small country banks, and the problem
Is solved to a very large extent, is the
opinion of this New York banker.
But Controller of the Currency J. w.
Pole. defending the extension OF branch
banking within trade areas, maintains
that instead of centralizing the bank
ing resources of the Nation, his trade
area branch banking" plan would work
the very opposite. He says:
THE establishment OF original
branch banking in the United States
within trade areas would bring pank
MANAGEMENT closer to the communities
with which they do business. II
branch banking in certain trace areas
Is allowed, instead OF there oelng Two
or three great branch banking 1nstitu-
fions throughout the country, there
would be many strong and great bank
ing institutions developing in nearly
every State in the Union"
Concentration? Yes it would produce
Shis. Not the concentration OF credit,
however, but of management and a
more effective, sound, efficient and pros
porous management would result.
The controller. knowing the temper
of the people, admits that the time
hasn't yet arrived for any legislation
on the subject.
8 Lower costs of raw materials and
improved manufacturing methods are
responsible for another per cent cut
in tire prices. announces P. w. Itch
field, president of the Goodyear COM
pany.
The talk in Wall Street continues
that the four largest rubber companies
IN the United States-the B. F. Good
Yich Co., the Goodyear Tire g. Rubber
Co, the United States Rubber Co. and
khe Firestone Tire & Rubber Co.-will
5oin with the Dunlop Co, England's
biggest company, and the Michelin Co.
the largest in France, to bring about
more stabilized conditions in the rubber
industry.
Last year the rubber produced prod
bcts in the United States were valued
Rt little more than 81 1000 100000 OIL
10 times as much as the annual pro-
auction 80 years ago.
The crude rubber prices have reached
Che lowest point in many years. This
latest cut in the retail prices will doubt.
less have some effect in speeding uI
any world cooperative urge that's II
the air.
RCopyright, 1890, by North American News.
paper Alliance)
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