Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-20
GERMAN BUSINESS
IS REPORTED SOUND
Proposed Moratorium Applies
Only to Preparations, Says
New York Banker.
BY JOHN F. SINCLAIR.

Special Dispatch to the Star.
NEW YORK, March 20.-"When you
talk about a moratorium in Germany,
said George Davidson, president of the
Central Hanover Bank & Trust Co. OF
New York, make it clear that you
mean a moratorium only on repara-
lions account. 1 have just returned
from there Business conditions are
sound in spite of what has been said
to the contrary Now when one talks
of a moratorium for Germany, one
does not refer in any way to mora
forum on private debts or public obi
cations outside of reparations. But
tie American people have got that i'm
preston. That's the basic reason why
high grade German bands and securities
have so greatly deprecated in market
value"
This is a good point. To use the
word moratorium in the correct
sense, it should be applied very care
fully No responsible writer in recent
months has spoken OF a moratorium
for Germany in any other connection
than that of reparations Right now,
Germany is paying her reparation OBJ
legations promptly. SO the problem OF
q moratorium is not at the moment
q problem at all.
Problem Persists.
debts persistsl Only last week men,
Der of the British Parliament asked
Premier Macdonald if he intended
shortly to ask for conference aiming
at a reduction Of Britain'S debt to the
United States.
Albert H. Wiggin, chairman of the
Chase National Bank of New York,
the largest commercial bank in the
world, started the discussion anew
when he told his shareholders in jan
uary that he was convinced 'it would
be a good business for our govern
ment to initiate a reduction in these
debts at this time"
James Truslow Adams, historian and
fnancier, replies to Mr.. Wiggin in the
current Forum, opposing the principles
Of cancellation.
Only three arguments have ever been
advanced in the campaign to scale
down war debts, Mr.. Adams says. One
argument is good will: the second,
moral obligation, and the third, good
business policy.
Mr.. Adams disrnisses the first and
second arguments with a wave of the
hand, and concentrates his big guns o.!
the. third argument-good business
policy.
He shows that Great Britain today
IS collecting from her allies mere than
she pays to the United States. Under
a cancellation policy. Great Britain
would be worse of by at least 81, 100000
a year. France, second largest debtor to
the United States, is the worlds most
prosperous nation at this hour. Italy is
not flush, but she is carrying on huge
internal developments, which do not
indicate any acute financial stringency
within the land of Mussolini.
Then why do American bankers and
manufacturers suggest cancellation?
Largely because the bankers and man
ufacturers, who specialize in foreign
trade, know that Europe cannot con-
tinue to carry huge debts to the United
States yearly, and, at the same time,
huv more goods. observes Mr.. Adams.
So many other factors are present
such as tariff walls, military rivalry. in
ternational jealousies, disputes under
the treaty of Versailles, etc, Mr.. Adams
thinks it would be a colossal mistake
to modify any war debt settlement be-
fore the American people are told who
Is benefited by such move.
How? Why? And how much?
With no red herrings of sentimentality
dragged across the trail by European
statesmen or American export manu-
facturers," is the way Mr.. Adams sets
IL down
The article is well worth reading.
Silver Price Gain.
What's putting up the price of silver?
No one seems to know, except that the
silver countries have witnessed an
astonishing recovery in this metal dur
ing the last 30 days. On February Is
silver was selling at 1884 cents an
ounce. Everybody was gloomy. No one
saw any future to it, Silver countries
were scraping the bottom of the bin,
financially speaking.
But since that time silver has had
an increase of 20 per cent. rising on
Monday to new high mark Of 1881
of 3ias cents an ounce.
Some say it's the changed position in
India that has caused the rise. Others
say it is due to pure speculation. for
many, believing silver would strike Is
cents an ounce. sold it short, hoping to
buy it back at the lower figure. When
the price started to rise, the short in
terests found silver difficult to secure in
the market. Hence the risel
This latter reason is understood to be
the basic cause Of the rise.
John Foster Dulles, ~, international