Show BOND TWISTING HELPS GERMANS Manipulation M Makes kes Possible Sale of f Merchandise Below Cost By Dy CLAUDE A. A JAGGER Associated Associated Press Pres Financial Editor Edior NEW YORK Dec 22 The 22 The sharp shar discounts at which German dollar dolar bonds have been selling In New York have permitted German industrial concerns upon occasion to work an involved transaction permitting them then tc to undersell competitors in foreign markets market by offering their goods good at prices actually under cost This has been possible because of the fact that German bonds in New NewYork NewYork NewYork York have been selling sharply below prices for equivalent bonds in Berlin as a a result of the severe restrictions which the has hns placed on foreign exchange transactions Ordinarily a German Investor who has funds fund in Germany is not permitted to t transfer his money to t buy securities I abroad The has upon occasion however permitted German industrial indus indus- trial rial concerns to use funds received in n payments payment for exports export to t purchase the te German bonds in New York ad adother and other foreign markets market They may then transfer the bonds to Berlin and sell sel them at a much higher price According to Wall Wal street bankers German industrial concerns may therefore contract to sell sel limited amounts amount of goods abroad at substantially taly less than cost and make up the difference through the bond trans trans- actions acton While information Is i lacking InWall in inWall Wall Wal street as to t how much business busies had iad been done on that basis bais it was understood to have been small smal for forthe he the is i exerting every efort efort ef- ef ort torl to t get foreign exchange to t meet he the charges on the reich's external debt debt Only when a concern can convince convince con con- vince ince the German banking authorities author author- ties les it is understood in Wall WaI street that It must resort to the bond tras- tras trans trans- a action acton tion in order to place a price low enough to get a contract will it i be permitted Even then the authorities authorities te ties are likely to permit only a part of the proceeds of the transaction to tobe tobe be jc used to t buy bonds in foreign in-foreign mar- mar ket German dollar dolar bonds bond have had a sweeping recovery since sice the Lausanne agreement last June which virtually ended reparations Several have more than doubled doubted in price A number number num- num ber jer have been making n new W highs for 1932 in the past few days Evidently the French default deault on her debt payment payment payment pay pay- ment to the United States on Decem- Decem December ber jer 15 t was regarded as indicating that the he French would not nol seek to revive the he Young plan of reparation pay pay- ments ment |