Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-06
REPORT PROGRESS
|. ON GERMAN LOANS
New York Bankers Agree on
Notifications to Plan OF.
fered by Dr.. Luther.
~ the Associated Press.

~ the Associated Press.
NEW york, August 6.-Wall Street
bankers made substantial progress yes
terday toward evolving practical means
for maintaining the volume Of Ameri-
can elort-term credits in Germany,
now estimated at arOun $500, 00o, 600.
r. Abbott 0o0dhtIe, cliairman OF @
committee Of bankers chosen to study
the recommendation Of DR.. Hans
Luther, president Of the German Reichs-
bank, for making effective the plan Of
maintaining credits to Germany, an
n0unced late today that o general tin-
derstAndingD upon the problem had
been reached at q general meeting at
the Federal Reserve Bank; ct which all
OF the leading new York banks were
represented.
Certain suggested notifications Of
the German proposals, which seemed
desirable 10 the New York bankers
were Aereed upon. ana are 70 g ceei isS
VINO Il president Of the international
Acceptance DAfk. ION the whole, these
amendments are on the same lines as
those suggested by British bankers ana,
Ii ADDITION, safeguard certain teohnical
questions which are peculiar to this
market.
Real Progress Made.
'eWhile it will certainly take some
time 70 iron out these technicAlities be-
tween Berlin and the several markets
involved. and to bring about . complete
uffAnifnity Of views, it may be said that
the meeting was most satisfactory and
the general impression was that real
progress had been made
The general plan, as Is well under
stood, IS along the lines Of President
Hoover's suggestions, adopted by the
recent London Conference, Of maintain
ing on q practicable and reasonable
basis the short4teffn credit facilities
granted by foreign countries to Ger
many, so that she may be able to
finance her impcftations and exporta-
tiuns with the facilities which she now
enjoys. -,
leading banks Of the other Federal
Reserve districts and has received from
most Of these assurances Of cooperation
along the lines Of the proposed plan"
Mr.. Go0dhue declined TO discuss In
/ detail the notifications suggested to Or
Luthef's original proposals, but It is
understood that they deal with self
lfuuidating credits made to finance ship
merlts or goods. These credits, in the
form Of bankers acceptances or bills,
automatically mature at the end OF q
specifled length Of time, theoretically
sufAcieft to complete the transaction
involved. and are paid Of.
Bankers Favor New Credits.
It Is understood that Or. Luther sug-
gested extension of all such credits for
six months. New York bankers are be-
| iieped 10 favor the payment OF accept
ance credits &C maturity, and their re-
placement with new credits, to meet
| various technical and legal require
ments II acceptafiees are not paid at
maturity, question arises as to whether
| they would etill be eligible for redis-
count at the Federal Reserve OF the
| $500. 900. 600 Of American short-tefm
credit IN Germany, 1t Is believed in Wall
| street that more than half Il In the
| form Of acceptance. It y also reported
! that New York bankers favor e0-day
extensions, rather than sik-iiaonth.
| Wall Street, on the whole, was dis
| tinctly encouraged with the course OF
events In general, particularly today's
orderly reopening of the German banks
| for full payment Of deposits. The fact
that John Cannon. European repre-
sentative OF the Chase National Bank
who has been representing New York
/ bankers IN several discussions abroad
| has turned his attention 70 Hungary
was interpreted as indicating that the
German arrangements had reached ar
advanced stage.