Salt Lake Telegram | 1934-04-03 | Page 1 | German Bond Action Nears

GERMAN BOND 1 A ATIo NEA hARS hAR'S RS Negotiations to Be St Started by Council J. J Reuben ReubenI I Clark k Reports I Negotiations to aid United States investors who hold German bonds will be started within th the next few days das b by the Foreign Bondholders Bondholders' Protective Council and will follow negotiations already started in behalf be be- half haIr of holders of Brazilian bonds This announcement was made b by J. J Reuben Cla Clark k Jr second counse counse- Ion lor in the first presidency of the L. L D. D S. S church and acting president o of the counci during the illness pf of Ra Raymond Ray Ray- mond B. B Stevens who arrived Tuesday Tues Tues- day from New Ne York o participate Inthe in the thc annual general conference of cf the church Anxious to dIscuss activities of the council Mr Clark w willingly an an- a number of f questions concerning con con- financial relations between n the United States Slates and foreign gov gov- cats uSo So far the council has undertaken en Pue Two GERMAN BOND ACTION NEARS Negotiations to Be Started by Council J. J Reuben Clark Reports Continued from Page Pue One negotiations with only Brazil and that country initiated itself Itsell the plan pian looking look look- ing to a resumption ot of service on onva- onva various va- va rious Brazilian bond issues not only federal but state and municipal bonds he said in answer to the question ques- ques tion of how South American countries coun coun- tries regard their obligations issued durIng the boom period None ot of the other countries In in- eluding Chile Peru Colombia and Uruguay approached by the council he said When asked In what South Amer lean ican countries a c ange ot of administration adminis adminis- would most seriously affect United States creditors Mr Clark had bad no comment to make The depreciation of the dollar he said has not yet had the effect ot of materially exports from debtor countries Speaking In general general gen gen- eral terms it is only from the pro of their exports that foreign governments can secure the funds necessary ry for the servicing ot of their loan Ioan Sees Some Som Benefits Benefit Countries exporting coffee to the United States may may have received some benefit because or of an increase in the price of coffee since the dollar depreciated although certain Brazilian Bra Bra- statesmen have looked with disfavor on the increase of the price ot of coffee In this country alleging as their reason that they would be bene benefited filed more by cheaper coffee coHee and greater consumption The point to this can be understood understood under under- stood If it Is recalled that Brazil Is Isnow isnow now destroying large quantities ot of the coffee she produces in order to Increase the price Have bondholders who are not iq in sympathy wIth the recent settlement any alternative but to accept the par payment plan he was asked Plan Is Unilateral The present plan is unilateral he replied It is a decree issued by the Brazilian government on its own responsibility It merely provIdes for tor tora fora a temporary allocation ot of Brazilian exchange to the service or of the bonds bends specified in the plan Any bondholder who prefers may retaIn his coupons and await some further and other arrangements with the Brazilian government Shortly after the L L. D S. S confer conre ence Mr Clark accompanied by bv his Camil family will return to New York where he will guide cuide the activities or of orthe the bond council until nt at least Au Au- gust