Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-05
SCH|FF WAS POWER
in BANKING WORLD
New York Financier Also
Highly Regarded for Phi
i lanthropic Activities.
BY JOHN F. SINCLAIR,

Special Dispa1ch to The Star. Is.
NEW YORK, june Sew American
bankers were so we'll regarded, not only
in banking but in philanthFopic endea-
vor. as Mortimer L. Schiff Of New York,
partner of Kuhn, Loeb q Co. LOT So
years, who died yesterday.
Not only was he lcaoing New YORK
and world banker for many years, out
as president of the National Council OF
the Boy Scout movement, he was inter-
ested in its activities for more than ~
years. In 1929, he gave $4,000 10 IL.
Born in New York City, Mr.. ScnH
was educated at Amherst College, grad
uating with honors. Entering business
with his father, Jacob H. Schif, he spe-
cialized in banking and railroads.
New United States Bond Issue.
No one dreamed that the $500 .0OO,-
600, l8-year, 31s per cent United states
Government bond issue offered by Sec
retary Mellon last week would be seven
times oyersubscribed. But 1t was. The
Secretary has announced that the TO-
tai subscriptions when the books were
CLOSED exceeded $4,000, 100000.
This shows as nothing else can that
there is plenty of money In the banks
fer attractive investments.
In regard to the amount OF credit
available, the present depr, ssion cannot
be compared with that of 1874-79, nor
to any other, except possibly that OF
1921.
In those carrier times, the recovery
was generally slow, because there was
a lack of gold and credit for business
expansion.
This available superabundance Of
gold and credit is one OF the most Ia
Vorable factors at the present time.
Wages and Prices.
Lewis f. Pierson Of New York. chair
man of the Irving Trust Co., believes
that the National Foreign Trade Con-
vention hit the nail on the head when
it declared that the. preservation OF
present wage standards are contingent
on a sterilization of prices at level
which gives a fair margin Of profit.
mo fact in business is more clearly
established than that rising prices
tend to stimulate activity" says this
New York banker. When prices are
falling buyers of basic commodities ana
manufacture are inclined to delay pur-
chases in hope of still lower prices.
The upward turn is the signal for re-
newed buying and an increase in busi-
ness and manufacturing"
But both the Dun and Bradstreet
agencies show that commodity prices
receded still further in May. Dun's
index is of 2.3 per cent, while Brad
streets is of 3 per cent, the lowest IN
Bradstreet takes its index from 100
particular articles. OF these, during
the month of May, IL advanced In
price, Al declined and So remained
unchanged.
Chequers Meeting.
What will Chancellor Breuning OF
Germany and his associate, Foreign
Premier
Donald and Foreign Secretary Hender-
son when they meet today at ChequerS,
the country residence OF the BRUSH
prime minister?
There's plenty for these statesmen to
talk about. German bankers have
been saying for months that Germany
is about ready to throw her hanos IN
the air, with regard to further pay
ments of reparations. Many conserva-
tive observers believe that the Germans
cannot continue to pay PREPARATIONS
much longer
Shortly after the war Germany had
good international credit. She could
borrow money, both on long term and
short term obligations. And she Dor
rowed a great deal.
But that day is over. she can Dor
row no more money for the present.
She must pay reparationS out OF the
excess of her exports over her imports.
In word, if Germany sells $500. ooo,-
600 in goods to foreigners ana ouys
from foreigners $500, 100000. she can
pay no outside debts. But II she nuys
goods worth $500, 1000 900 outside and
sells $500, 900 900 worth, she can pay
the difference-or 5000 900, ooo-on her
debts, Only the excess of her exports
over her imports can she pay. Right
now there is no excess.
(copyrieht, 1881. by North American News
paper Alliance, 1ne)