Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-19
Summary of Revision Plan
Wiggin Committee Report Deals With Immediate
Credit Needs of Germany and Possibility of Convert
ing Short-T Term Credits Into Long Term Loans.

1t is necessary | nthe general interest
as well as in that of Germany that the
existing volume Of Ciermany's foreign
credit be maintained. and that part, at
all events. of the capital which has been
withdrawn should be replaced from for
eign sources, though not in the form of
short-term credits, but in form of long
term loans.
THE second part of the committees
report deals with the possibility of con-
verting a portion OF short-term credits
into long-term credits. The committee
arrives at the conclusion that the Ger
man economic position does not appear
unfavorable for such a DEVELOPMENT
There has been rapid recovery of Ger
many'S export trade in recent years
While her public finances have been
subject to criticism, the present gov
eminent has given proof of its determi-
nation to put Germany's finances on a
sound basis. Nevertheless the prices of
German securities on foreign stock ex-
changes are such as to make the is
sue of a iong-term loan under the
present circumstances impossible.
Mutual Confidence Necessary.
1.-TWO fundamental difficulties remain
to be overcome until the relations be-
tween Germany and other European
powers are established on a basis of
mutual confidence there can be no as
surance of continued economic progress.
The second condition relates to the ex-
ternal obligations of Germany. So long
as these obligations, both private and
public, are such as to involve either
continuous increase in snow ball
fashion of the foreign debt of Ger
many, or alternatiyely, a disprcportion
between her exports and imports on
such a scale as to threaten economic
prosperity of other countries prospec-
tive investors are not likely TO regard
the situation as stable.
THE committee believes it to be
essential that before the period Of
prolongation of credits recommended
by the London Conference comes to an
end the powers represented at the Lon
don Conference should give assurance
that international payments to be made
by Germany will not be such as to
imperil the maintenance of her flnan-
cial stability.
The committee recalled that the
German problem is also part of the
larger issue which affects the whole
world. In order to revive demand and
thus check the fall in prices it is
essential that the process of investment
of fresh capital should be resumed
Secondly, Germany has provided a
forcible illustration of the fact that
the world has been endeavoring to
pursue contradictory policies in de-
Veloping situation where annual pay
ments Of large sums have to be made
by debtor to creditor countries. while
at the same time putting obstacles
in the way of the movement of goods
with which to make such payments.
Financial remedies are powerless to
restore economic prosperity unless there
is a radical change in this policy.
THE report terminates with the
sentence we therefore conclude by
urging most earnestly upon all the
governments concerned that they lose
no time in taking the necessary meas
ures for bringing about such condi-
tions as will allow financial operations
to bring to Germany-and thereby to
the world-sorely needed assistance.
Annexed to the report are tables
81 1g some Of the data upon which the
CONF, -ttee based its conclusions and
which have a bearing upon the situa-
ton in Germany as described in the
report"