The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-07-02
BY FREDERICK KUN
United Press staff Correspondent
fCopYriRht. 1881. BY United Pressl


BERLIN, July Three billion
American dollars were estimated
today to be in peril in Germany If
this nation fails to get the debt
breathing spell" envisaged by
President Herbert Hoover's rescue
mission.
This staggering sum represents
investments America has made here
since the war. These have been
largely in the last six or seven
years or following the dizzy spell
of imitation when printing presses
could not keep pace with the drop
in the mark.
1t went from AZ to the dollar to
20 billion marks to the dollar be-
fore this slide ceased, and many a
German shudders at the thought
Of any return to such devastating
situation.
Has Proper Cover
At present, the Reichsbank has a
proper gold cover" for its marks.
But the bank has been under ire
mendous pressure lately, while the
drain of domestic demands and
reparations has made such inroads
on the financial structure of the
Reich that Hoover's call is regarded
here as an S. o. S. just ahead Of
the ship sinking.
Hoover is given credit for a deal
OF altruism in this effort, yet hard
headed men in the counting rooms
Of the Reichsbank and the big %"
banks know that the United States
stands to suffer along with Ger
many If his present mission does
not succeed.
Germany has been accused in the
past by S. Parker Gilbert, former
reparations agent general, of fail
ing to put its house In order. He
was here in the days when the in
fiation wiped out most of the in
ternal debt-taking its toll of hold
ers Of state bonds and similar in
vestments.
Drain Is Too Great
He saw money poured out by the
government to aid the big indus
trialists. But since his day, there
apparently has been a whole
hearted effort to get the house in
order, including curtailment of i'm
ports and an increase in exports.
Nevertheless, the drain has ben
too great so that Germany today
finds that domestic demands,
chiefly, are sapping her financial
strength.
From the Prussian landowners in
the east, from the shipping men of
the Elbe and the WeSer, and from
the industriaists in the drab
Westphalian region comes the same
cry-hard times, poverty. And this
cry has an answering echo in the
workers tenements Of Berlin,
5axony and the Ruhr.
Tax Revenues Decline
American investments in Ger
many are estimated to include:
100000 900 in short term credits;
ST $1,000 900 in German bonds, and
another $1,000, 100000 in stocks, in
dustries, advances on merchandise
and other forms
An unending stream of doles and
other allowances are being paid by
the reich. Unemployment, mainte-
nance Of a large federal employe
list. social aid and pensions make
huge demands. 1t is estimated that
the state, in one way or another,
cares for more than 100000 citi-
Zens, that is, one of every five citi-
zens dips into the public treasury.
Tax revenues have steadily de-
clined while loan markets frightened,
thus making it difficult for Ger
many to obtain new credits.
Hoovers action was taken Just
in time to help the Reichsbank
weather a terrific storm. The bank
has kept it's gold reserve at so per
cent, but due to a run" in June on
its foreign currency and 1.-The with
drawal of foreign credit, the cover
the day before Hoover acted was