Evening star., 1933-05-14
|SCHACHT TO CALL
FOREIGN CREDITORS
Reichsbank Chief Prepares
for ParIey to Steady Ex-
change TangIe. +
BY the Associated Press.


NEW YORK, May 13.-Dr. .Hjalmar
Schacht, head Of the Reictsbank. in
q farewell statement tonight, announced
his intention of asking representatives
of holders Of Germany's private obli-
cations in foreign countries to gather
in Berlin Immediately for consideration
of Whist would be the bast means of
nesting the present situation"
DR.. Schacht, who took passage aboard
a liner sailing at midnight, disclosed
that IN his capacity as head Of the
Reichsbank, he had held q series Of
discussions in New York about bank
and currency subjects" since the con-
clusion yesterday in Washington of
his international conversations with
President Roosevelt as an envoy Of the
German government.
He did not make known the names
Of those with whom he talked here,
but said that on invitation of the gov
ernor Of the Federal Reserve Bank
here, he had made his headquarters
at that institution.
Praises Reception.
The text Of DR.. Schacht's statement
follows:
Il have Just come back from WASH
lngton, where I have been as special
envoy of the German government on
the invitation of the President in order
to confer with the respective authori-
ties about the agenda for the World
Economic Conference to be held at Lon
don June IL.
Il have been received In the kindest
manner, and opportunities were given
to me to talk over various problems
which have arisen from the depressed
state Of world economic life. I have
told my impressions about my WASH
ington conversations already to the rep
resentatives Of the press in Washing
ton before leaving. So have nothing
to add on that subject.
On my return to Europe, for which
I am leaving today by North German
Lloyd steamer Europea, I have had time
for only one days stop in New York ]
have come to New York not in the
capacity of a government envoy, but In
my capacity as head of the Reichsbank
On the invitation of the governor OF
the Federal Reserve Bark Of New York
I have made my headquarters In New
York at that bank. where I had passed
many instructive days in the past.
i have taken the opportunity today
Of talking about bank and currency
subjects which, because they concern
private creditors. could not be the SUBJ
ject OF discussion between governments
Cites Exchange Problem.
THE problem of meeting our foreign
private debts does not lie in the possible
dlmculty OF having payments made by
the individual debtor, but in the diff
Guilty of procuring the foreign exchange
which Is needed for making the trans
fer into foreign currency.
"As all foreign exchange flowing into
the country has to be delivered under
the present law to the Reichsbank. the
debtor can obtain foreign exchange
only from the Reichsbank. Two years
and a half ago, the Reichsbank had
some 750,000,000 dollars of gold and
foreign exchange derived partly from
trade and partly from other sources.
Since then German debtors have
paid back $500 000, 900 dollars in gold
and foreign exchange on foreign debts,
which has brought the gold and foreign
exchange reserve of the Reichsbank
down to an exceedingly low figure.
From the Reichsbank's status 1t is
to be seen that this figure Is decreas-
ing every week.
I'm view of this situation intend to
ask representatives of holders of Ger
man obligations in the various foreign
countries to convene in Berlin at once
and 20 into the situation with us and
have them consider, what would be the
best means of meeting the present situa-
tion."