The Washington times., 1931-07-23
HOOVER IDEAS
EMBODIED
IN ACCORD
Basis for Future Aid Sought
In Inquiry World Bank Is
Asked to Make in Reich

CONTINUED From Page -
economic conditions of the rest
Of the world.
.Mr. Hoover's effort relieved
Germany of the burden of pay
ments amounting to S4OO, 900, 600
this year, which will enable
her to set her budget in order.
Despite that, however, dis
trust remained and cSeSitOrs
continued to withdraw money
from German banks. This
threatened to cripple German
industry. Their action vas the
result of fear over unsettled
political and economic cOndi-
tiOnS.
"This course t'freeZing' Of
existing shOrt-term credits to
Germany, as provided in the
conferences recommendations
I II successfully carried out will
leave Germany in possession of
the capital on which her fac
tories and industries depend.
I'M, t of this money comes
from America. Our banks.
under leadership of the Federal
Reserve System, already are
organizing to reaSSure creditors
against withdrawal Of these
funds. The Bank Og England
Is taking similar steps.
"Tn any event. we have pro-
vided the machinery to meet
the situation however 1t may
develop"
Results Summarized
TIL. conference achievements
were summarized in formal dec
Haration, as follows:
"Tn order to insure mainte-
nance Of the financial stability
of Germany, which is essential
10 the interest of the whole
world, the governments repre-
eented at the conference are
ready to cooperate so far as
lies in their power to restore
confidence.
"The governments are ready
to recommend for consideration
of the financial institutions Of
their respective countries the
following proposals relieving
the immediate situation:
"1-That the Central Bank
credit of S100,OOO,OOO recently
granted to the ReichSbank un-
der auspices of the Bank for
international Settlements he
renewed at its maturity for
three months.
"2-That concerted measures
be taken by the financial inSti-
tutiOns of the different cOun-
tries with view to maintain
ing the volume of credits they
already have extended to Ger
many.
"The conference recommends
that the Bank for International
Settlements should be invited to
set up without delay commit
tee of representatives nominated
by the governors of the central
banks interested to enquire into
the immediate further credit
needs of Germany and to study
the possibilities of converting
o portion of ShOrt-term credits
into lOng-term credits.
Later Action Seen
~. The conference noted with
interest the communication
from Chancellor Bruening rela-
tive to a joint guarantee re-
Gently placed by German indus
try at the disposal Of the Gold
Discounts Bank. The confer
ence is of the opinion that a
guarantee of this description
should make 1t possible to pro-
vide q sound basis for resump-
tiOn of normal operation of in
ternatiOnal credit. =
"The conference considers
4 th:t if these measures are car
ried through they will form the
basis for more permanent &C.
tion to follow"
London Times SkepticaI
Considerable doubt was ex-
pressed here as to whether the
4 conference would achieve its pur-
pose. Under the heading, "A
Lost Opportunity" the London
Times declared the results we're
scarcely worthy of an impressive
international conference, however
hastily convoked." 1t continued:
''It would be idle to discuss
the disappointment which will
be felt generally in this country
ct the meager achievements of
8 gathering which might have
done SO much to set the world
back on the path of prosperity.
"The reasons for the failure
are not far to seek. From the
very outset, the conference was
preCluded from graphing, With
the fundamental factors reSpOn-
sible for the present crisis in
Germany. So long as the
United States Government de-
clined to discuss war debts
and the French government de-
clined to discuss reparatiOns,
it was clear that no real prog
ress could be made towards a
permanent settlement of the
economic problem in Germany"
The newspaper pointed out that
so far as new money was con-
cefned, the Germans were return
ing empty-handed to Berlin.
The German and French dele
gates met at the German EN-:
bassy for luncheon. All delegates
were to visit Buckingham Palace