Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-20
CUT IN BANK RATES
!. CONTINUED ABROAD
World Wide Easing of Credit
Is Reflected by Further
SIaSheS.
BY CHARLES r. sPEARE.

Special Dispatch to The Star.
NEW YORK, May 2o.-Coincident
with the closing out of the account OF
the agent general for reparations under
the Dawes plan and the transfer by
S. Parker Gilbert of $36,000,000 to the
Bank for International Settlements,
which opens for business this week,
was the announcement that the bank
of Germany had reduced its rate OF
discount to Az per cent from per
cent.
This had been pending for several
weeks, as private discounts in Berlin
have been down to 37s per cent, or
lower than at any time since 1914. In
man financial center that there was
serious discussion of fixing the Reichs-
bank rate at 4 per cent instead of AZ
per cent. 1t may 60 to the lower level
shortly
II was also announced that the Bank
OF Italy had reduced its rate of 6 per
cent to SO per cent, where 1t is at q
parity with the rate prevailing in Spain,
and leaves Austria with per cent
rate. the highest in Europe. England,
Holland, Belgium and Switzerland now
have off1cial rates of 8 per cent. while
that of the Bank of France is down
to 215 per cent. These rates compare
with the rediscount rate of the Federal
Reserve Bank of New York Of per
cent.
Bank Share Sales.
With the transfer of the reparations
funds to the Bank for International Set
i Elements, this institution now takes the
second step in providing capital with
which to function in the sale of its low
shares. This will occur in New York,
London, Paris, Berlin, Brussels, Rome,
Toxic, Amsterdam, Stockholm and
zurich: The first seven financial CEN
tiers will each have 10000 shares for
distribution. The other three cities
have been allotted 1000 shares each.
Only Is per cent of the value of each
share Is to be paid for at present. There
has been very heavy advance inquiry
for the stock of this new bank, which
is expected to play very important
part In the future, both financially and
politically. The centers from which the
heaviest s oversubscription Is reported are
/ New York, Paris and London. t.
| Just as soon as the Bank for Inter-
national Settlements receives the cash
I, proceeds of the sale of its stock and
| the institution and the governments
| which participate in its affairs have
! signed the necessary agreement, 1t Is
| expected that some definite announce
| uiCut WILL NC ulduc COScIulS LIlC Tdtc Oh
interest and the price at which the
new reparations loan Is to be offered
| simultaneously in this country and in
Europe. Much perssure, political and
| financial, Is being exerted in different
directions to effect terms that will salts
| fy all Of the European lenders and their
investment clientele; also to provide a
| basis insuring the smooth going over of
the loan in the United States, where
| f1n &c
| of the total issue Of $500, 900. IN
vestment houses in New York and the
| interior have been sounding their Gus
| toners and have reached the conclusion
| that at least 6 per cent return win be
| necessary to produce an active interest
| in the issue by American investors.
Gilbert Completes Task.
There Is much interest now in the
| future plans Of S. Parker Gilbert, who
| since 1924 has carried out the repairs.
lions portion of the Dawes plan and
| who. with the transfer of funds that
has just been made to the Bank for
International Settlements, has completed
one of the hardest tasks given in inter-
national affairs to any American since
| the ending of the war. Whether he Will
return to his profession as lawyer or
| accept one of the numerous partner
| ships that have been offered him in
| leading American banking houses is
not known today by his most intimate
| friends here. Many people feel that
eventually he will be asked to join the
| firm of J. P. Morgan g. Co. and to take
charge of the foreign affairs OF the
house that has headed all Of the I'M
| portant European government issues
made in this country since the Anglo
| French loan was effected during the
war period.
(Cnnxriphk 1aanl