Evening Star Newspaper, July 17, 1924, Page 13

" CERMAN CREDIT DEVIAND IS KEEN Rentenmark, Stabilizing In- fluence, Increases Produc- tion and Confidence. BY DR. OTTO VON GLASENAPP, Correspondence of The Star and the Chicago haily News. BERLIN. Germany, July 17.—As al- most every one is aware, the want of credit in Germany is extraordinarily great. The demand for credit at the Reichsbank, for instance, increased the account for discounts and ad- vances from the first of the vear to the beginning of May by 1,429,000,000 gold marks (a gold mark is equiva- lent to 23.8 cents), r from 591,000,000 to 2,020,000,000. The intensity of the demand may be judged also from the rates that have to be paid for credits in the 4pen market. Thus latterly the price for monthly call money has been from 2 to 5 per cent per month, i e.. up to 60 per cent per annuum for the unusual increase and for credit consist chief- ly extended dissipation of liquid reserve and working capital, due to the depreciation of the mark to one-trillionth of its original valu. This hit not only the b deposits sustained a s but all_departments of general busi- ne; Even businesses tha position to maintain, or even to crease their holdings of securitie saw their current trading capital melting away. To keep their con- cerns going they are compelled in consequence to apply for advances and mostly advances at any pric More Goods Manufactured. Another influence that bears Aemand for credit is the revi business that has been motice since the stabilization of the mark began. As the value of the mark has maintained itself more or less at the same level since the introduction of the renten-mark, there can be doubt that labor has been more in- tense and the production of manu- factured goods has been increased. The increased demand for credit thus oc- casioned is consequently thoroughly sound. At the same time there is no denying the fact that there have been unsound demands from some cus- tomer: Tho satisfaction of the desire for eredit is accomplished from various sources. In the strict economic sense, credits should be procured only from accumulated surplus profits at home, or from credit accounts opened in for- eign countries. When fresh values in goods have been built up by increased production, it is up to the bank of emission to finance and facilitate the disposal of such goods by the dis- counting of bills. As far as credits abroad are con- cerned, a distinction must be made between credits given by the foreign lender to the home borrower, whom he knows in the ordinary course of business and credits supplied by mid- ing the account | 3 holding in which | no | e ————————————— e e e e Y lized once more on the population, re- ceiving a fresh stimulus from ' the altered condition of things to make provision for old age out of current Income by taking out life policies and 50 on. Reservoirs of this sort are thus once more feeding the steam of credit. A further source of money avail- able for credits is to hand in the in- creased cash surpluses which In many places have accompanied the stabil- ization, and which are loaned out on the money market for the time they are not needed. The public money held by the post, railway and finance departments, etc.. may be mentioned by way of example. Compared in importance with the Reichsbank and the Rentenbank these domestic sources of credit occupy a subordinate position. The home sup- ply of credit has been set upon an entirely new basis, and facilitated to quite an important degree, by the formation of the Rentenbank Fundx of the Rentenbank. The Rentenbank is set up as a vol. untarily assumed liability of the money-making classes, such as agri- culturists, manufacturers, traders and o on, and on the basis of this liability rentenbriefe (warrants of trading revenue) have been made out by the Rentenbank. These revenue warrants are mobilized in uid cf the currency by giving the Rentenbank authority to print renten (revenue) bank nojes up to the amount of its in revenue warrants and to sue them as legal tender. The total pital of the revenue bank (Renten- ank) amounts to 3.200,000,000 renten marks, of which $00.000,000 form the reserve, while 2,400,000,000 are devoted to government credits, by which the Reichsbank has been relieved of the vole it has hitherto played in supply- Ing credit to the reich. The balance £1,200.000,000 is loaned out. half to iculture’ and half to the other alth-producing industries and trades. These loans and advances are made almost exclusively through the me. dium of the Reichsbank, which co trols the credit po in its capacity < the central mote issuing institu- tion now as it did formerly. There Is no legally fixed standard of value between the renten mark and the paper mark, but it has been found possible by the aid of this institu- tion of the renten mark to maintain an actual parity of 1,000,000.000 paper marks to one renten mark or one gold mark for the past six months. Value Behind All Loans In addition to that the Reichsbank naturally retains its privilege in the matter of note issue and also carries on its paper mark credit business as it formerly did. But In view of the consideration that any excess in the granting of credit can conjure up the greatest dangers to the stability of the German currency the Reich bank is persistent in its resolution, in_spite of the undeniable need for capital, to restrict to the narrowest limit both its renten mark and its paper mark credits. The Reichsbank is absolutely clear upon the point that no supply of credit by the bank of emission can keep pace with the monstrous depreciation of property values in Germany. Such supply of credit can be based, precisely as in normal times, only on one necessary condition of production, and that is that every grant of credit must have for its counterpart a corresponding creation of real values in new goods. If we find the view put forward occasionally both at home and abroad that on the basis of the principles just sketched the Reichsbank has already gone too far with its credit the fact is overlooked that such widely extended tranquilization has been ‘effected in the interchange of circulating medium by the introduc- tion of .the renten mark that once THE EVENING STAR, WASHINGTON, D. C., THURSDAY, JULY 17, 1924 more considerably larger cash re- serves are held by individuals and can be held by them. -Now, so long as the money tokens issued by the bank of emission subserve an in- crease in cash reserves there can be no question of any inflational effects. Discount Rate and Prices. In conclusion, a word in reply to the demand made from many qua ters that the Reichsbank raise its di count rate considerably. It stands to reason that the directors of the Reichsbank have attentively followed the course of the Interest rates in the open market, which, as 1 have pointed out, have here and there reached fantastic heights. What we have taken into consideration com to this, that the Reichsbank, as a matter of principle, gives credit only in life or death business, and that consequently any raising of its inter- est rate would undoubtedly, in many departments, make the sustenance of the German 'people—a difficult matter already—subject to still higher prices. Think, for instance, of the large sums we have given out by way of credit for the furtherance of agricultural production. Besides that, we shall scarcely be able, in my opinion, to restrict our other credits even by considerable increase in our dis ing is less frequently decided by the rate of interest than by the necessity for keeping the business going and preventing unemployment. Unfortu- nately, we have in Germany today not such normal conditions that we can count with certainty on reducing the general level of prices by an in- crease in the discount rate. Most observers will allow, after what I have set forth, that in our present situation we are on the right way if, so far as may be, we endeavor to attract foreign capital for the recon- struction of our economic life. I hope that we shall be further facili- tated in this action by the formation of the German currency bank, pro- posed in the experts' report, in the establishment of which all conceiv- able securities are given for the for- eign investor. Princess Sells Art Work. LONDON, July 17.—The princess royal, mother of Princess Arthur of Connaught, has joined those people who have been turning their treasures into hard cash. The princess has or- dered about 40 pictures, including some old masters, to be offered at auction next month. N DD D NN ) 1) [ XD I S X AN ESTATE OF P. J. RAINEY, NOTED HUNTER, AT ISSUE Mississippi Seeks to Collect Tax on $42,000,000—Compromise Offered. By the Associated Press. JACKSON, Mis: July 17.—After listening to arguments on & compro- mise settlement of the inheritance tax from the estate of the late Paul J. Rainey, wealthy big game hunter, who died last October while en route to Africa, the Mississippi Tax Com- mission yesterday ~adjourned the hearing and asked Attorney General Knox to make a further investiga- tion of claims presented by counsel for the estate. Under a will made shortly before his death Rainey established his legal residence in this state and spent much of his time on his large game preserve at Cotton Plant, in Tippah County. The State contends that inheritance tax should be pald on the aggregate value of the estate, which it places at $42,000,000, including large holdings in New York and South Africa. Counsel for the estate dispute. the figures, asserting that they are ex- aggerated, and that a large portion of the holdings was a trust estate of Rainey's father and not subject to taxation. A sister of Mr. Rainey has paid the State $15,348, which is offer- ed as a compromise. —_— SHIP’S OFFICERS FREED. Released in Charge of Smuggling Drugs Into United States. NEW YORK, July 17.—A com- plaint against the officers of the Italian steamship Duillo, charged with conspiracy to smuggle drugs into the United States, was dismissed today by United States Commissioner Boyle. The commissioner held Arturo Gaeta, ship's plumber, under $15,000 bail. The charge against Gaeta followed the finding of 2.50% ounces of nar- cotics aboard the ship, Commissioner Boyic held there was no evidence to show the officers had any knowledge of the presence of drugs on board or had conspired with Gaeta to smugsgle. Misses’ Rebuilding Clearaway— Silk Dresses! Drastic, DETERMINED, repricings—in your favor—on all sides! Ad- justment to Rebuilding conditions allows us no ALTERNATIVE! Go into any department tomorrow, and you’ll find opportunities relatively comparable —but we have chosen to feature THIS SWEEPING CLEARAWAY of Misses’ Silk Dresses as an outstanding instance of the tremendous Value- laden opportunities THROUGHOUT the store. The items listed below speak for themselves! Now, you can buy many a lovely Summer Dress you have seen, admired and longed for here—at a saving of AS MUCH AS 50%. £25.00 Evening Dresses; lace and ribbon trimmed; powder blue, maize and .00 Sport Dresses; stra! £16.50. 5.00 Afternoon green, powder blue, navy tan-and-green Misses' models; tan, Minnes’ blue and tan. $16.50. Misses’ S26.00 Georgette Frocks; in draped, basque and tiered models; embroidery, lace and ribbon trimmed. Misxes’ $29.50 Printed green-and-white and black-and-white. Misses’ $25.00 Roshanara Dresses; straightline and two-piece models; green, tan and navy. Misnes’ $20.50 Aftesnoon and Dance Frocks; beaded and embroidered; tan, white, coral and maize. $16.50. Mixves’ $39.50 Dance Frocks, powder blue and maize. %2 Misxes' £39.50 Printed Rebuilding Clearance, $28.7% Minues’ $49.50 Alpac building Cle 2875, Dresse: $20.50 Flannel Sport Dresse: s: beltless, Dresses; straightline and tiered models. htline and two-plece models. flat crepe; hasque, nd black. $16.50. draped and tiered and basque models; $1630. Crepe Dresses; lovely straightline models; tan and green. straightline becoming straightline models; white, powder blue-and-tan, Black only Biack-and-white, $13.50 to $25 Dresses $39.50 to $49.50 of chiffon and georgette; lace and ribbon trimmed; Re- DECLINES TO HIT HYLAN. New York District Attorney Calls Sinking Fund Policy Legal. NEW YORK, July 17.—District At- torney Banton today wrote City Comptroller Craig that he could not place before the grand jury com- plaints that the city sinking fund commission was violating the law be- cause of its failure to invest $35,- 000,000 of municipal sinking funds now on deposit in various banks. Craig complained that Mayor Hy- land and other members of the com- mission had refused to take th funds from the banks, where they are drawing 2 per cent interest and invest them in securities which would return 4% per cent or more. The District attorney wrote that Mr. Craig’s letter did not disclose any evidence which would infer members of the commission had act- ed “partially, oppressively, malicious- 1y or corruptly.” The Metropolitan Museum of Art e e s LABOR PREMIER DUE. Government of Victoria Forced Oul by Vote. MELBOURNE, Australia, July 17.— The government of Sir Alexande: Peacock, premier of Victoria, re: signed “today as the outcome of the want of confidence motion tha! was carried in the Victoria legislative assembly yesterday by a vote o 43 to 16. It is expected that G. M. Prender gast, leader of the Labor party, whe moved want of confidence, will bt asked to form a government. i s R Mrs. J. J. Sheppard of Kansas City 1s said to be the only Democratic alder- woman in_the United States. STUDEBAKER in New York has one of the best col- lections of jade In the world. Just Drive It; That's All DD DI D S N i) 1) N Present View of Our Store From the Rear. SRy P R, oo Nl T =gy e o Dresses 323.75 $55 to $65 Rebuilding Clearaway---3 Groups Women’s and Misses’ Fine Coats A general clearance of our finer Coats—reduced far below value to close out! Coats for _Women—Coats for Misses. Beautiful Charmeens, Juina Cloths, Twills, Satins, Faille, Satin Crepes and Cote de Cheval. Some straightline models, some tiered or pleated; others with circular backs—plain or fur trimmed and collared. $110.00 to $55.00 to $75.00 to $79.50 Coats $125.00 Coats $159.00 Coats 3450 $69.50 $95.00 Women’s Coats, Second Floor—Misses’ Coats, Third Floor. White Skirts-A Sale $11.75 to $19.50 Regularly— $ l 0.75 Rebuilding clearaway of White Skirts—at the very height of the season! Just the Skirts to wear with the many ultra-smart blouses—and you have a Summer costume unsurpassed for cool comfort and good taste. In the lot are: White Flannel Skirts, wrap-around, side and com- bination nleated models. White Washable Rhapsody Skirts, in wrap-around styles. Novelty Striped Skirts, box, side and combination pleated styles. White Radium Silk Skirts, envelope wrap styles. White Canton Crepe Skirts, In side pleated and Minsen® Kt atin Canton and Flat Crepe Dresses, for afternoon wear. tan, powder blue, coral and maiz: $23.75. Missew’ 39.50 Sport Dresses, in flat crepe; shrimp pink and tan. $23.7 Mimes’ $30.50 Beautiful Lace Dresses; becoming basque models. Rebuilding Clearance, $2.75. Missen’ $48.50 Afternoon Frocks; chemise and draped models; sleeves or sleeve- less; tan, powder blue, maize and black. $23.75. Mismes’ 84500 Dresses in Crepe Satin, Georgette, Printed and Flat Crepe; powder blue, tan, coral, maize and black. 75, dlemen of industrial finance. In the S latter category are chiefly included Navy, the banks, and above all, at the pres- [ ent time, the German Gold Discount if Bank (Deutsche Golddiskont Bank). i Germany’s Losses of Gold. The existence of the latter is due to the economic necessity of attract- ing foreign capital for the further de- velopment of German trade, as Ger- many's losses in capital have been losses in gold, and cannot be made good straightway by the supply of home credit for payments which have unavoidably to be made abroad. The difficulty of Germany's position in this respect is shown by the course of the balance of trade, which for the first quarter of the current year shows a debit of cver 600,000,000 gold marks. The Golddiskont Bank has a trading capital of £10,000,000; it has a limited power to issue notes up to a total of £5.000,000, and has obtained important rediscounting facilities in England and the United States. Credits are put through by giving the home ex- porter in exchange for his English or American sterling or -dollar ac- ceptances the necessary credit on for- eign bill security which he requires for such export business as produces short-term payments in gold. Re- payment of the credits must be se cured absolutely by receipt of pay- ment up to value on exchange. So far credits have been given in this way to a total in round numbers of | i I two-piece models; pleated skirts; Your Furs and Fur-Trimmed Coats— —need the protection of our Cold Storage Vaults during hot weather. Phone Main 725. Friday Featuring White Silk BLOUSES s4.95 An important event —this specially planned offering!— and the Blouses were all carefully selected. Values extraordinary at this price! Black and tan. COLGATE'S RIBBON DENTAL CREAM Misses’ $55.00 Crepe Satin Dresses; and tan. #33.75. Misnes’ $65.00 Afternoon Dresses; crepe Roma; tiered models; all-over embroidery; green, tan and blue. RIS, - Miswes’ 830.30 Afternoon Dresses, in georgette; basque and draped models; lace ribbon trimmed. Tan, green and rose. $33.75 Mixses' $35.00 Evening Dresses; basque and straightl - bon trimmed. $33.75. = X pemocels Misxes’ $40.50 Crepe Satin, Flat Crepe and Georgette Dresses; lace, embroldery ribbon trimmed. $33.75. Minves’ £59.50 Evening Dresses, in rich taffeta silk; graceful tiered skirts. $33.75. Mismew’ $85.00 Dresses, in crepe satin, Y e; coc oo inew? $25.00 Dres In crep georgette and flat crepe; cocoa, tan, maize, Miuen’ $65.00 Sport Dresses. in flat crepe, embroldered models; maize and tan. pleated panels; lace trimmed. Black, gray Recommended by more Dentists than any other dentifrice and lace and rib- and Made of heavy quality Crepe de Chine, many al white, others Maize, Powder Blue, Tan or Shrimp Pink. Beaded Blouses, hand embroidered or blouses trimmed with real Irish and filet laces. Round neck, Peter Pan or V.neck styles; long, three-quarter, cap or no sleeves. Misses’ Dress Shop, Third Floer. 3 Large Tubes —Jellefr's, Street Floor 100,000,000 gold marks, and the re- sult has been seen already in a marked relief to the foreign exchange situation in Germany Building Reserves of Cash. In the supply of credits at home the busine: has run its course as fol- Jows: As an actual fact, a revival of thrift at home, with a corresponding increase of deposits in the banks and savings banks, is on record since the stabilization of the mark Mention <hould be made also of the insurance premiums, whose total had been Breatly reduced in consequence of the Zeneral diminuution of capital prop- Sfty, but which is now being mobi- The Williard Shop | People Came From All Over Town TO SECURE VALUES EXTRAORDINARY IN OUR BIG REBUILDING SALE YES, WE ARE BUSY AS BEES waiting on the public; they know good merchan- dise, and they know our prices are sensationally low. You will need new things for vacation and summer wear, SO BUY NOW. i ¢ : ] ALL CLOTHING AND HABERDASHERY A e e S AT DRASTIC REDUCTIONS g : PAJAMAS e . 31.85 Seependers., 99€ GOLF SHIRTS Ffl?..""‘%l 95 duced to Shirts ... o Shirts 99 $12.85&$16.85 Every article offered in this sale is of our high-grade quality stock; the kind of clothing and haberdashery that well dressed men like to V" “WHERE QUALITY REIGNS” he Williard Shop 511 14th St. NW é| . I i > S, $6.95 to $8.95 Bathing Suits 4" . All-Wool or Wool an 1 ‘Wool and s 4.95 Glos (Fiber Silk) combined. At the low price of— Their quality and styling make them par- ticularly good values—and the selection leaves nothing to be desired. Sizes 34 to 46. Some are attractively plain with V or rounc neck, and only a canvas belt for trimming; others a_r]i finished with colorful bands of artificial silk. Colors are Scarlet, Kelly, Tan, Blue, Black and combination colors. —JellefPs, Street Floor | TEETH . |\THE RIGHT/ N - WAY /] Out-of-the-Ordinary! Tweed Knickers Made to sell at $5.00 but because of this exceptional s ,95 “buy” we place them on sale - at . . fashioned Knickers to add that much- desired “joy of abandon” while on your Outing, Hiking Trip, at Tennis, or on the links. Made 0% splendid quality tweed—and tailored to fit per- " fectly; buttoned knee-band, Tan, Gray or Brown Mixtures. It was the manufacturer’s inventory- taking time, so he sacrificed—but your time for, wearing them is just beginning! Special, $2.95. Women’s $45 to $55 Suits Special Rebuilding Sale Reduction—Smartly tailored Suits—ideal for vacation travel. Navy or Navy, French Smartly Summ, Tropical Worst- eds, mohair and sdlk striped 'Zephyr” now re- B T by one's stockings. Just when [ouTe planned to den your prettisst oot an_exaspe er. Foined {he stockinga of Silk, they wear, and wear, and WEAR! Prices Now Reduced $2 and $225 Numbers. sl .85 Regular and sheer weights. Now. 82.75 Numbers. Sheer weight. All.silk garter hem. . 3275 Numbers. Regular $250 weight. All-silk garter hem... CHILDREN’S $4.00 and $450 Dress Pumps, Patent Leather, Brown Calf and White or Gray Kid. 33‘45 Setting the Pace in Slip Values! o $7.50 Costume Slips s Of Fine Crepe de Chine, . Costume Slips that can be relied upon to meet vour expecta- tions—slender lines, splendid to wear with sheer Summer Frocks. Finished with 20-inch double hem; hemstitched top and self straps: flesh color or white. Regularly $7.50. Now $5.00. pleated styles. White Flannel Skirts, pin and side s Better Grade Slips EXTRA! Tiuetsirte—a Regularly $12 to $13.50 hExtrg ‘};ea‘:ry lquali_tly cx;lepeh_de 85 chine, in flesh color, nile and white. e S One style tailored with double hem- s9' stitlchfii]ng: danotherdwith 1%-inch —Jell real filet edging, and one with narrow beading et Skirts, Second Fleor GE seall filet fand! donble-faced! satin’ ribbor: Choice, $9.85. Slips—81.95 Lace-trimmed Nainsook —Jellefl’s, Street Floor Several Hundred Pairs $9 to $10 Sorosis Pumps . $7.50 Silk Gowns, $ 85 Envelope Chemise . Brown Suede Cut-Outs and Step-ins, Lovely Silk Undergarments of Radium and crepe-back satin, beautifully trimmed with filet, French val and Irish crochet laces. Colors are - flesh, orchid, peach, nile and plain white. Regu- lines; reglar and $10 Pumps— |'a.rx $7.50 gowns, chemise and step-ins. Choice, 4.85. pumps with Spanish dress heels—Dark Brown Suede Pumps. with: full round. toes and. Caban Novelty Underwear For Warm Weather Comfort CHILDREN’S $3.50 > . Chi $5 to $9 White Pumps and Oxfords Gazna ot "cool piain-ant checked §4 Q5 Noatly Anished throvghout White ¥ Calf. Sizes vas' Oxfords, with welt soles, Cuban heels b oLl aat wila gabes Every garment an exceptional value at $1.95. o Voile Kimonos, Val Lace Trimmed. Special, $5.90 ° Underwear Shop Temporarily on Fourth wrap styles. ‘White Wool Crepe Skirts, wrap-around and side tucked styles and White Brocaded Crepe in wrap- Pleated Skirts—A ing! Made of knife pleated. Waistbands up to 34. Wonderful values at. . R.egroupmg—and Repricing—Brings Sensational o e . . Saving Opportunities in Sorosis Shoes! Black Suede One-Strap Patent Leather Two-Strap 34.85 A sweeping out-go of broken all are good seasonable styles and embody dependable materials and finished workmanship. Black Suede Strap Pumps, Cuban_ heels, welt soles; kid trimming—patent leather ankle s!ral:) heels—and distirictively styled Patent Leather Strap Pumps, with graceful Cuban heels and hand- turned soles. Choice, $4.85. to 34 Play Shoes, i White and Brown | full round e'.?'.'fi'i’.n.'fi"‘w:'ni.':v.’&"-‘.:’e'.' o sl 95 . o to 2§ and medium round $1.95 | toes. all sizes, ‘Two pairs, 33.50_ S Shoe Department Temporarily Located on FOURTH Fleor Special ...