Evening star., 1932-03-26
GERMANY'S CREDIT
POSITION WATCHED
Interest of $22, 200, 900 on
70 Bond Issues Is
Due Soon.
BY CHARLES F. SPEARE.

special Dispatch to The Star.
NEW YORK, March 26.-The latest
outbreak of liquidation In German dol
lar bonds Is regarded as a sequel of
the Kreuger episode and the unsettle-
ment which this caused in financial
circles here and abroad. At the same
time, 1T reflects the delicate credit posi-
ton of Germany and the increasing dif-
ficulties Of the Reich in securing ex-
change with which to make transfers
and the lack of any substantial i'm
provement in the condition of the Bank
Of Germany.
There have been rumors this week
OF possible partial moratorium in
connection with sinking fund payments
on German loans held abroad. As
stated in these dispatches a week ago,
the critical time in German financial
matters will come in the next three
months. In this period there are semi
annual interest payments due on 10
different issues, involving $22,000,OO0 in
interest charges.
Among the important loans on which
interest is due between the 1st of April
and the 1st of July are the following:
German z per cent external loan, Ger
man 512 per cent international loan,
loans TO the State of Hamburg, Free
State OF Prussia, the City of Berlin, the
City OF Frankfort, Central Bank for
Agriculture, Central Bank of German
State and provincial banks, consoli-
dated agricultural loan of German
provincial and communal banks Ger
man consolidated municipal loan.
Saxon State Mortgage Institution,
Protestant Church in Germany, Roman
Catholic welfare institutions in Ger
many, Berlin City Electric, Berlin Elec-
trio Elevated, East Prussian Power,
Electric Power Corporation, General
Electric of Germany. Goodhope Steel &
Iron, Hamburg American Line. Ham
burg Elevated, Rhine Westphalia Elec-
trio Power, Ruhr Chemical Corporation,
Ruhr Gas Corporation, Sic g. Halske,
Hugo SHINES Industry, United Indus
trial Corporation, United Steel Works
Corporation and the Unterlebe Power
& Light Co.
Funds already have been received for
most of the April / interest payments.
This fact has been announced by va
rlous paying agents for these loans.
The largest remittance each half year
is that covering semi-annual interest
IN the German external per cent loan.
This falls due ON April 10. 1t is un-
derstood that transfers have been made
in behalf of this loan and will be COM
pleted before the payment date. The
cent so-called Young" loan, which is
due to be made on June /. If there is
to be moratorium it is likely to affect
first the maturities that must be ac-
commodated in the next so days.
American bankers who are closely
identified with German financial con-
ditions, admitted that the situation
was critical, but said they still had
hope that Germany would be able to
meet her obligations during the next
few months, or until the June con-
ference developed a program which
would show her the way out of her
difficulties.
There is a definite change noted IN
the attitude of France toward the Ger
man problem, with French business
men and bankers now realizing that
their prospects are closely tied in with
what happens in Germany. The IN
crease in unemployment in France and
the growing government deficit have
tended to modify the intense nation
alism of France and to develop a spirit
OF concession. This was not evident a
few months ago when the French peo-
pie were inclined to believe that they
might be the only nation that would
escape the severe effects of the depres-
sion.
1t also is the feeling of bankers here
that If political conditions in Germany
were to be improved after a satisfac-
tory agreement on reparations, much
German capital that has been expa-
triated would be brought home and
there would be quite a rapid come
back" in German economic conditions.
Therefore, should it be found necessary
to defer payments Of interest or sink
ing funds at some time within this half
year, it is believed that a resumption
of payments would be possible within
a comparatively short period.
Copyright, 1892