Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-26

NOOAAeNAANNSs = eNtAe . 800 : 49,
but was confident his luck would hold
again.
The Reich's economic situation i'm
mediately claimed the cabinets at
tsntion and Ire chancellor was pres
ent this afternoon at q meeting OF
the cabinets commission on financial
affairs, which DR.. Hans Luther, presi-
dent of the Reichsbank, also attended
with the principal object of getting the
clogged German financial machinery
back to work.
Reichsbank circles intimated this
process must be slow and gradual so
as not to encourage bank runs by re-
moving all restrictions at once. In the
course of the next week some of these
restrictions will be taken off and nor
NAL banking business will be resumed,
1t is hoped. in the early days of Au-
gust, now that the Reichsbank will be
relieved of the end-of-t the month pres
sure by the BoerSe Committees de-
cision to postpone settling day from
July 81 to August 81.
May Raise Rediscount Rate.
Reports were current this afternoon
that the Reichsbank had decided to
raise the discount rate from 10 per
cent to 40 per cent, but no official con-
firmation was forthcoming and 1t gen.
orally was agreed that such a measure,
il taken, would have to coincide with
the removal of restrictions and not be-
fore.
Banking statistics available today
showed that six leading Berlin banks in
June alone were called upon to repay
lib 1000, 0O0 marks (about $278,000,-
000) to creditors, which was materially
increased by July Withdrawals.
Next Monday the Reichbank's board
will take important decisions on the
measures to be adopted as the next
step toward restoring normal condi-
lions In the banking world as much as
possible.
1t was understood that arrangements
were well under way to form German
syndicate cooperating with a London
Withdrawals of credits from Germany
freezing commission" whereby further
will be effectively halted.
Secretary Stimson took pains to
point out to American correspondents
scarcely an hour before joining the
German cabinet ministers, foreign office
representatives and the acting chiefs
of the German Army and Navy at Am
bassador Sackett's dinner table that his
visit was purely for the purpose of &C
quaintance and re-acquaintance with
Berlin which he has not seen since
German nation.
To avoid any misunderstanding the
Secretary of State put it in writing as
follows:
IT have come to Berlin in pursuance
of my plan, announced before l left
America, of visiting the capitals of
Italy, France, Germany and England
and becoming acquainted with the
gentlemen representing the foreign Of
fees of those countries.
The unexpected call to the recent
London conferences DETECTED me there
when 1 was intending to come to Berlin
and has necessarily shortened my visit
here
I'm very glad to come and see Berlin,
however as I have not visited it since
was a child, and the pleasant acquaint-
ance, which have formed with
Chancellor Bruening and DR.. Curtius N
London makes the visit still more at
tractive. am looking forward with
great interest to my call on President
Won Hindenburg, which honor 1 am to
have Monday morning. l am very sorry
that, owing to the shortneSs of my visit,
Mrs. StimSon was unable to come with
me. shall have to leave for my re-
turn on Monday afternoon"
The Secretary parted all questions as
to hle possibility Of his discussing fur
tn credits during his week end in
Berlin with:
II certainly do not anticipate that
any such matters will be brought up.
Those subjects were fully discussed at
the London conference and by the
action of that conference agencies were
provided for in the shape of committees
and bankers, by which any remaining
questions will be dealt with on a bank
ing basis
The Secretary also refused to discuss
disarmament or to say whether that
subject would be brought up here.
To the general question Are you more
optimistic or less optimistic as a result
of your experiences in Europe?" he an
sWered that that question should be
saved until he sails.
Bank Looks TO Relief.
The formation of the new bank, with
a capital of 200,000,000 marks tabout
$50 600 ,000), was announced as the
first concrete action toward bringing
about removal of the present bank
ing restrictions in the country.
Besides restoring unhampered cur
rency circulation, the purpose of the
new institution Was said to be the rein
statement of the Darmstaedter und Ma
tional Bank as properly functioning
institution.
The banks which were announced as
furnishing the necessary credits include
DeutsChe Bank and Disconto Gesell-
schaft, the Gold Discount Bank, the
Dresdner Bank, Mendelssohn l. Co., the
PruSsian State Bank, the Reichs Kredit
Gesellschaft, the Berlin Handles Gesell-
schaft and others.