Show B 3 Billion Dollars of r U. U S. S Money Imperiled By y German Situation 4 Success of Hoovers Hoover's Debt Deb r Holiday Held to Be Only Solution J By nr FREDERICK Run United rr Tress Press 5 Staff Correspondent Copyright 1931 by United Press BERLIN July 3 3 Three Three billIon American dollars were estimated to toda today today to- to da day to be in peril in Germany If this thi nation falls to get the debt breathing breathing breathing breath ing spell envisaged by President Hoovers Hoover's latest rescue mission This staggering sum represents In in- in vestments Am America crl ca has made since sine the war These have been largel largely In the last six or seven years or following following fol fol- fol lowing the inflation when printing presses could not keep pace with th the drop In the mark It went from 4 42 marks to the dollar to 42 billion marks to the dollar before this slide slid Ude ceased ceases and many a German shudders shudders shudders ders at the thought of any return to cuch a devastating situation I DANK BANK UNDER PRESSURE I At i At present the has a proper roper gold cover for its marks but the bank has been under tremendous tremendous tremendous tre tre- tre- tre pressure latel lately while the drain of domestic demands and reparations reparations reparations repa repa- rations has made such Inroads onon on onon onon on the financial structure o of the reich Teich that President Hoovers Hoover's call is regarded as an S 0 O S ahead of the ship sinking The president is given credit for a adeal adeal adeal deal of In this effort to succor succor succor suc suc- cor yet ret headed hard 1 men in the thc and the big D D banks know that his nation stands to suffer suffer suf suf- fer ter along with Germany if his present mission docs does not succeed Germany has been accused In the past by S. S Parker Gilbert former reparations reparations reparations rep rep- agent general of failing falling to put its house In order He was hereIn here hereIn herein in the days when inflation wiped out outmost outmost outmost most of the internal debt taking debt taking its toll of or holders of ot state bonds and similar Investments in He saw money poured out b by the government to aid the big industrialists But since his day there has been apparently a he whole hearted effort to pet ct the house houseIn In order including curtailment of imports imports im inn- ports and increases In exports Nevertheless the drain has bas been too great so that Germany today finds that domestic demands chiefly arc are sapping her financial strength I I NS PRUSSIANS SUFFER I From the Prussian landowners inthe In Inthe inthe the east from the shipping men of the Elbe and the Weser and from the industrialists In the drab West West- ph allan region comes the same cry cry cry- hard liard times poverty And this cry has hasan hasan hasan an answering echo In the workers' workers tenements of Berlin Saxony and the Ruhr American Investments in Germany are estimated to Include in term short-term credits in German bonds and another in stocks Industries ad advances advances ad- ad vances on merchandise and other forms An unending stream of doles and other allowances arc are being paid by bythe bythe bythe the reich reach Unemployment maIntenance maintenance maintenance nance of or a a. lan large c federal list social aid and pensions make huge demands It Is estimated the state in one way or another cares for more than citizens Tax revenues rc have steadily declIned declined declined de de- while loan markets tightened making it difficult for Germany to obtain new nev credits In line with setting Its house in hi order the government budget for 1931 was marks marys below the 1930 budget President Hindenburg by b his June 6 decree slashed outlays SI another marks and md imposed im posed marks In the new j im-j taxes axes This drastic move was de deigned designed designed de- de signed to avoid a breakdown of or the budget which In n April seemed to balance bal bal- ance nee STORM I IS WEATHERED President Hoovers Hoover's action was taken taken tak tak- en n just In time to help the bank ank weather weather-a a terrific storm The I bank ank has kept its gold reserve at 60 per pcr cr cent but due to a run run in June Junc Junen on n its foreign currency and the withdrawal withdrawal with- with o of foreign credit the cover I the ic day before Mr Hoover acl acted d was down own to 40 per cent the legal mini mini- mum There was during June a erl veritable lIght flight of capital capital- such uch as Germany German knew In the days of f the mark inflation Short term credits were called and it is estimated ed d marks were pulled ou out of f Germany German within a few days largely large large- ly r by British h and American bankers The he American presidents president's call for a debt holiday halted this run There has been since January a marked drop in n banks' banks holdings of term short credits for industrial finance and a considerable drop Inthe in inthe inthe the market value of shares but an upturn was noted after the U. U S. S action Meantime from the the the landlords of Prussia Prussia arises arises a awall awall wall wail that even with abnormally high tariffs they are suffering an unprecedented dented depression A similar cr cry comes from the ports o of Bremen and Hamburg where r IT proud fleet has been rebuilt almost from nothing since the war The romance of Germanys Germany's reconstruction o of a merchant marine to carry the banner of or the red gold republic lic to the far ports of the earth is almost incomparable in business busIne history history history his his- tory but tOda today the flag droops at atlman man many an Idle masthead The plight of agriculture and of shipping only darkens the general economic picture TARIFF AIDS IDS LA LANDOWNERS nERS DO A record-breaking record agrarian tariff has been erect erected d to aid the German landowners Wheat bears a duty o of marks a ton tOll around 60 or several times the world market price for this grain Home grown wheat sells at marks a ton and foreign wheat at but even cven at these high levels the farmer is at a disadvantage antage since his taxes arc are vastly higher than before the war with high interest ra rates s and mortgage money scarce The government has a farm relief pro program am which Involves expenditure of about marks In three years This sum will go chiefly to cast German landlords at a low rate of Interest but it Is doubtful If it the loans are ever eyer repaid In fact it is whispered that the advances are tantamount to a subsidy to the Prussian Prussian Prussian sian owners to keep them friendly to the republic Grain Grahl Imports have been materially material materIal- ly curtailed but the farmers failed to benefit by the thc last big tariff in increase increase increase in- in crease In March 1931 because their crops were already sold They hope however to reap a profit henceforth as the tariff will benefit them the crops of or grain vegetable fruit are arc large and the needs for foreign grain will be small Meanwhile 1 the shipping situation is In a distressed state FLEET REBUILT Germanys Germany's prewar fleet was gross tons Wartime and surrenders under the peace treaty brought this to tons Since that time the shipyards along the northern coast have been so that today the German marine with 4 tons is close to its prewar status These ships are arc the last word In economical operation But the earnings the fleet was making two years ears ago are arc now markedly markedly markedly mark mark- edly curtailed for practically one- one sixth of oC the ships are idle due to the general slump in world trade These things give the German a sense of despair and futility utilIty but the nation now is hailing President Ho Hoover ver v- v er as a saviour as It 13 years ears ago sang the praises of the peacemaker Woodrow Woodrow Woodrow Wood- Wood row Wilson |