Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-08
Purchase Terms Considered
Unsatisfactory, Due to Re-
cent Drop in Market.
TREASURY TO EXPEDITE
WAR CLAIM PAYMENTS
Settlement Would Open Way for
Purchase From Trade and
Quiet South.
BY the Associated Press.

BY the Associated Press
Germany's offer to buy part of the
Farm Boards 100000 bales OF price
sterilization cotton has been rejected
because the purchase terms offered were
held unsatisfactory.
The action was announced last night
simultaneously with a suggestion by the
board of an arrangement by which
Germany may make cotton purchases
direct from the trade in this country.
The board called attention to the eff
forts of the Treasury to provide Ger
many with dollar credit here by ex-
pediting payment of war claims OF Ger
man nationals. Credit in excess of the
proposed cotton purchase. it said, would
be provided and would permit direct
buying of the commodity.
Claims of German nationals. the
board noted, far exceeded the possible
purchase of between $4,000, 900 and
100000 under the long-term credit
plan. II these claims we're settled
promptly, it added, satisfactory ar
rangements would be made for the pur-
chase Of cotton from the trade and
protests from the South over the stabili-
cation sale plan would cease.
Sought Higher Price.
The proposition for selling the boards
surplus first was suggested to the Ger
man government by American Ambas-
sador Sackett at Berlin. with the ap-
prevail of President Hoover Germany
offered to buy about 600 900 bales on
a Swear credit instead OF ID months
as originally suggested. In addition,
Germany wanted the market price,
while the Farm Board hoped to obtain
long-term credit.
In rejecting the proposition, the beard
said:
The Farm Board has given careful
consideration to the German offer to
purchase cotton. The board is DESTROYS
CT facilitating assistance TO Germany
and to the American cotton producer by
expanding his immediate markets.
Many conditions of the German Of
fer are beyond the ability of the board
to comply with. 1t is therefore unable
to accept the offer under the proposed
terms.
In addition to other difficulties the
original suggestion of Ambassador Sack
EFT five weeks ago provided for a mini
mum price, which would have con-
tributed materially to sCablizing the
price of cotton and would have made it
possible for the board to offer participa-
ton to the holders OF new crop cotton.
The fall in price since that time, due in
part to the situation in Central Europe,
has necessarily led to the elimination
by the German government Ct that fea-
ture of its offer.
Treasury Plans Aid.
However. new possibility has
arisen in this whole question, which Of
fers an alternative course The purpose
of the discussion has been. in effect, to
assist the Germans in securing the for
eign exchange necessary to provide i'm
mediate supplies.
THE effort now being made by the
Treasury Department to expedite pay
ment to German nationals under
awards of the arbiter of certain Ger
man claims, If successful would place
the German bank in possession of an
even larger amount of dollar exchange
than the volume of this proposed trans
action in cotton and would enable Ger
man business to make its purchases d.
rectly from the producers and the trade
in the normal way"