Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-15
GERN|ANS.PREPARE
!. TO !:
Central Powers Heed Advice
Of Bankers to Put Own
:. House in Order. r.
ni,n.,oh no rha Star.

Special Dispatch to The Star. .s. =. "a,
NEW YORK, July 15:-Germany
apparently has decided to follow the
advice of information bankers IN
putting her own: house In order before
asking further outside financial help.
Prom all accounts received yesterday
the German government ana German
bankers are now ready to meet what
ever comes when the banks In Ger
many reopen Thursday after the
forced two dayss holiday. Severe and
drastic regulations win be put into
force that will call for still greater
sacrifices on the part OF the German
people. All export Of money from Ger
many has been stopped and even the
German post once viii refuse to SEND
money by postal order. -"
The world IL q little anxious over
what will happen on Thursday, but the
Germans are preparing to face the con-
sequences with spartan-like courage.
The German banks will have to reopen
on that day to meet pay rolls and PEN
sions. The repercussion of events In
Germany then may, be felt around the
world.
II Is expected that Germany in her
hour of need will appeal to DR.. HJalmar
Schacht the man, who pulled the coun-
try out OF the hole seven or eight years
ship. DR.. Sehacht Is strong man who
has the confidence Of German and for
eign bankers. He is particularly well
liked In this country. He may be given
the post Of financial dictator OF Ger
many. ~
v LOSSES In Bonds.
American investors who buy bonds In
small amounts are taking In the aggre-
gate sttlpendous losses in the German
disaster. For instance. in June, 1880.
bankers in the United States offered
500, $50. 900 In bonds representing the
American participation in the Young
plan. The bonds were sold to the pub
lie at $50. Yesterday the same bonds
sGad Ga the New York Stock Exchange
At $50. A loss to investors is shown
here al approximately $4,000. 900.
Similar Issues Of Young plan bonds
that the loss to investors in other parts
of the world has been just as great.
In 1924 American investors were
asked to buy $11O. 900 900 Of 2 per cent
bonds issued under the Dawes plan.
These bonds were sold to the public ut
%. Yesterday they sold ct 80. showing
q loss to the public of about $1,000, 900.
These two issues form only q small
part of the investment Of American
money III NJcTIudH HI
to the half dozen issues listed on the
New York Stock Exchange there is q
long list Of securities not listed ON any
Of the exchanges. German municipal
and industrial bonds on the New York
Stock Exchange yesterday declined
from 81 to SIS bond.
Bank Interest.
A majority of banks are paying more
for deposits than prevailing money
rates Justify, says the bank manage
ment commission Of the American
Bankers Association. This gives de-
positors the benefit Of an interest rate
that Is higher than the returns OBJ
tatnable from safely invested funds.
While rates paid on deposits should not
be wholly contingent on fluctuations
in the money market yet the present
wide discrepancy between the price
which bankers pay for funds and the
price they receive for them serves to
emphasize the need for remedial action
the report says.
On the basis Of replies to ques-
ticnnaire from over l 400 banks In all
sections of the country, in addition 10
reports from clearing houses, state
bankers associations, the controller Of
the currency and State bank commits
sioners. the commission finds a decided
trend toward the reduction Of interest
rates, which It says, when handled in
the proper manner, will cause no ma
terial decrease in the volume Of de-
posts The proper method, or pre-
ferred method, Is concerted action
coupled with both corrective and con-
structive education Of the banking
public.
tCopyright. 1881. BY the North American
go Newspaper Alliance, Incl