Evening star., 1931-11-30
DIR. HANS LUTHER,
President of tHe Reichsbank.)

| "le IolloWlnB Statement.D
DIR. HANS LUTHER,
President Of tAe Reichsbank)
copyright 1881, by the Associated Press)
BERLIN, November 30-The Reichs-
banks sale OF gold and foreign bills
during recent weeks has attracted un-
usual attention both in Germany and
abroad ~
The opinion is widespread that Ger
many, under the stand-still agreement
ana IN view Of her active trade balance.
ought even to be able to replenish her
supply ot gold and foreign exchange
however, this so-called Stand-stiI
agreement contains so many exceptions
ana gaps that the unfavorable Develop
menu OF gold and foreign exchange re-
serves Of the ReichSbank is in the
largest measure explained by it.
Repayments Traced.
Figures published some time ago bv
Inc RelchSbank show repayments of
credits exercise determining influence
upon the foreign exchange balance.
IneSe repaymenCs have amounted from
July 5l-tne day when the stand-still
agreement became efiective-until the
middle of November to more than
1000 100000 reichsmarks.
or the Reichsbank sale of foreign
6llls during the period from September
70 november ID, totaling 1920, ,000, 900
relchsmarkS Gin round Iigures), only
commodities, while 100000, 900 went
INTO the movement of capital OF these
2O,OOO,O00 reichSmarks, 720, ,OO0, 900
constitute repayment of credit.
WLhout these repayments of credit
tne RelchSbank would have been able
10 snow, instead of loss of foreign ex-
cnange amounting to $40, 900 900 reichs-
marks, an increase of 210, 900 ,0O0 Tn $
demonstrates clearly that Germany at
present is going beyond her strength n
her endeavor to do the utmot to fulfill
her obligations in the way of debts and
especially the obligations assumed IN
the stand-still agreement.
Can't Solve Problem Alone.
Germanys good will alone cannot
solve the problem.
AS there figures hitherto for the most
part have been unknown to the PUBIC,
The false assumption has been maoe in
some quarters the unsatisfactory posi-
ton or Germany's supply of foreign
exchange is essentially influenced by a
hight OF capital ana failure to sur
render foreign exchange.
In opposing this view, I do not de-
sire to place decisive weight upon the
Iact that government-controlled econ
omy measures can never be 100 per cent
successful. For such control must
never advance to a point where it will
hamper normal and healthy operations
OF trade In an unbearable manner.
approximately the following can be
SAID as to the efficacy of control of for
eign exchange in Germany.
1I-Wnlc4I lii iISsI. - cutie impo1-
s1ble-the excess of exports over I'M
ports during the period from Septen-
per to Nov ember Is hal in It's e.Al...c.y
become converted into foreign exchan2:,
even then such receipt of foreign ex-
change would not have been su.u..clt
TO cover payments on movements of
capital totaling 1,02O, ,0OO, 900 reichs-
marks.
Shortage Shown.
For the excess of exports over i'm
ports would, in that hypothetical case,
nave amounted to about 20.O0o,000
reichsmarks September and October
together, 50,0oo,0 900, plus an estimated
170,000,000 for half of November).
Hence, even then the sum would svill
have fallen short by 1O0, ,0O0, 900 marks.
No influx of foreign exchange, no
matter now favorable, could, therefore.
In the long run, have made repayment
OF credits possible at the present pace,
The assumption that an excess of
exports over imports becomes converted
az once into an increase of foreign
exchange Is, Of course, entirely mad
L1SSAOiS' Between the time the goods
cross the border and the amount real
lied from the exports reaches the
country several, let US say three,
months on the average elapse.
Imports Excess Falls.
Germany's excess of imports during
the earlier months was 23O. 900. 900
MARKS In July, as compared with $780,
100000 marks in October On the
oCner han4 the governments demand
1or surrender OF foreign exchange al
ready within the country-eSsentially a
non-recurrent demand-had produced,
August.
If under these circumstances about
510,000,000 marks in foreign exchange.
according to estimates of the Reichs-
bank, have been delivered from the be-
ginning OF September until the middle
OF November from the excess Of exports
over imports, then this shows that Ger
many has come quite close to realizing
It's aims OF complete seizure of foreign
exchange.
Nevertheless, the Reich's government
at the request Of the ReichSbank, re-
Gently put added teeth into the decree
governing foreign exchange inasmuch
as the Re1chiS government and the
RelchSbank want to do everything DOS.
s1ble on their part to maintain Ger,
manyS position with reference to for
elgn exchange.
Solution Indicated.
That is not, however, where the solu-
tion Of the problem is to be found. It
is reflected, rather. in very high repay
mentS of credit which are the cause Of
continuous losses of foreign exchange
and in the general political develop
ment and the worlds economic situa-
tion, which still-although now only to
a limited extent-permits the run by
creditors upon Germany that started at
the beginning of last June to continue
To find solution that will prove a
real help should be the more easily
possible since Germany since last Au-
tumn has already repaid to foreign
considerably more than $1,000, 900 ,000
CURLEY CLUB H0NORS