Evening Star Newspaper, March 20, 1931, Page 12

GERMAN BUSINESS IS REPORTED SOUND Proposed Moratorium Applies Only to Reparations, Says New York Banker. BY JOHN F. SINCLAIR. Special Dispatch to the Star. NEW YORK, March 20.—“When you talk about a moratorium in Germany,” | said George Davidson, president of the Central Hanover Bank & Trust Co. of | New York, “make it clear that you mean a moratorium only on repara- tions account. I have just returned from there. Business conditions are sound, in spite of what has been said | to the contrary. Now when one talks of a moratorium for Germany, one does not refer in any way to a mora- | torium on private debts or public obli- | gations outside of reparations. But the American people have got that im- ression. -That's the basic reason wh igh grade German b>nds and securities | have so greatly depicciated in market value.” - This is a good point. word “moratorium” in the correct | sense, it shoud be applied very care- fully. No responsible writer in recent months has spoken of & moratorium | for Germany in any other connection than that of reparations. Germany is paying her reparation ob- ligations promptly. So the problem of | & moratorium is not at the moment | & problem at all Problem Persisis, i But the problem of modifying war | debts persists! Only last week a mem- | ber of the British Parligment asked Premier MacDonald if h*. intended| ghortly to ask for a conference aiming at a reduction of Britain's debt to the United States. Albert H. Wiggin, chairman of the Chase National Bank of New York, the largest commercial bank in the world, started the discussion anew when he told his shareholders in Jan- uary that he was convinced “it would be a good business for our govern- ment to initiate a reduction in these debts at this time.” James Truslow Adams, historian and ‘To use the| financier, replies to Mr. Wiggin in the current Forum, opposing the principles of cancellation. Only three arguments have ever been advanced in the campaign to scale down war debts, Mr. Adams says. One argument is good will; the second, | moral obligation, and the third, good | business policy. H Mr, Adams dismisses the first and second arguments with a wave of the hand, and concentrates his big guns o:: | the. third argument—good business policy. He shows that Great Britain todey is collecting from her allies mcre than } she pays to the United States. Under | a cancellation policy, Great Britain would be worse off by at least $7,500,000 a year. France, second largest debtor to the United States, is the world's most prosperous nation at this hour. Italy is not flush, but she is carrying on hugs internal develcpments, which do not Indicate any acute financial stringency within the land of Mussolini. Then why do American banksfs and manufacturers suggest cancellation? Largely because the bankers and man- ufacturers, who specialize in foreign trade, know that Europe cannot con- tinue to carry huge debits to the United States yearly, and, at the same time, buv more goods. observes Mr. Adams. So many other factors are present, such as tariff walls, military rivalry, in- ternational jealousies, disputes under the treaty of Versailles, etc., Mr. Adams thinks it would be a colossal mistake to modify any war debt settlement be- fore the American people are told who is bepefited by such a move. “How? Why? And how much? ‘With no red herrings of sentimentality dragged across the trail by European statesmen or American export manu- facturers,” is the way Mr. Adams sets it down ‘The article is well worth reading. Silver Price Gain. ‘What's putting up the price of silver? No one seems to know, except that the silver countries have witnessed an} astonishing recovery in this metal dur- | ing the last 30 days. On February 16 silver wes selling at 253, cents an ounce, Everybody was gloomy. No one saw any future to it. Silver countries were scraping the bottom of the bin, financially speaking. But since that time silver has had an increase of 20 per cent. rising on Monday to a new high mark of 1931 of 31% cents an ounce. Some say it's the changed position in India that has caused the rise. Others say it is due to pure speculation. for many, believing silver would strike 15 cents an ounce. sold it short, hoping to buy it back at the lower figure. When the price started to rise, the short in-; terests found silver difficult to secure in the market. Hence the rise! I ‘This latter reason is understood to be | the basic cause of the rise. Foster lles, 42, i FURNITURE RENTING _BA OFFICE FURNITURE EISEMAN’S SEVENTH & F STS. SPECIAL TROUSERS to Match Odd Coats $ Light and medium weight trousers in every wanted pattern and shade. Bring in your odd coat or vest, we'll match it. N S S O HISIRE] lawyer and economist, just back from Europe, is heartened by recent develop- ments over there. Fear has greatly subsided. In the naval accord between France and Italy and in the greater co- og:rnunn between France and Germany shown by a recent loan to Germany from France, this New York lawyer sees new hope and the gradual restoring of normal conditions abroad. ‘With greater political tranquility over there, the time should not be far distant when our investors will again recognize the attraction of many for- eign bonds and financial operations which will make funds available here, and which will, directly or indirectly, be used by foreigners to purchase American goods and thus stimulate our exports.” Mr, Dulles has spent much time abroad since the war. He was counsel to the American commission to neg: tiate peace in 1918. He was a member of the Reparations Commission and Supreme Economic Council in 1919. He was legal adviser to the Polish plan of financial stabilization in 1927, Gasoline Taxes. The various States have found a life saver in the gasoline tax, which one of the 48 States now imposes on gasoline users, First a few States started the ball rolling by adding a tax of 1 cent a gallon. The money came easy. It was raised to 1!z cents, then 2 cents. For several years it remained there, but some States, being hard pressed for funds, put the tax up to 3 cents, then 4 cents. Now some charge 5 cents. So gasoline users are paying im over §. 0,- 00? a day to the various State as- uries. A resident of the State of. New Mex- | Right now, |ico decided to test out the constitution- | rp:se | al'ty of the State law for the pi of learning if that State could put a 5 cent tax on gasoline. The case went to | the New Mexico Supreme Court and it sustained the law. It was sppealed to the United States Suvreme Court, and last Monday the Supreme Court of the United States sustained the act. Will this mean a new flood of tax bills this Winter in the various Legislatures to increase their rates to 5 cents a gal- Jon? The average rate today is between 2 and 3 cents. (Copyright, 1931. by North American News- paper Alliance.) SILVER QUOTATIONS. NEW YORK, .erch 20 (#).— Bar silver, 205. Pennsylvania Avenue THE EVENING STAR. WASHINGTON. D, C. FRIDAY. MARCH 20, 1931. CHICAGO AD. EXPERT TO HEAD CONVENTION | Special Dispatch to The Sta) | _BOSTON, March 20.—Herbert V. Prochnow of the advertising department |of the Pirst National Bank of Chicago |has been appointed general program chairman for the Financial Advertisers' Association Convention in Boston Sep- | tember 14-17. Mr. Prochnow will * have general iBu rt- Black or tan calf or grain. A shoes for com- fort and service. $7.50 Burt’s charge of making arrangeménts for the various departmentals, such as trust development, business development, in- vestment and savings. His plans are to ‘lnvlu ‘many prominent speakers whose | authegity on these various subjects is | recor’@ ved. The"- Pinancial Advertisers’ Associa- tion has chosen for its theme at the | Boston convention “The Creative Force in Finance.” Invites the particular attention of part;c- ular men to two grades of shoes to be - tured this season on the new price basis. Both are of the Burt standard of qual- ity—htted with Burt care for comfort. . Wing or straight tip, in black or tan cali or Scotch grain. ’10 Caring for Feet Is Better Than Curing Them 1343 F Street Park you car in the Capital Garage at Our Expense Eighth and D Streets For 3 Days Only! A Remarkable Offer to Motorists! 5-Gal. Sealed Cans 100% Pennsylvania ~ TennRad MOTOR or1r GUARANTEE —If after running 1, miles you are not con- vinced that PENN-RAD is the BEST Motor Oil you . have ever used, ret it. We will refund purchase price! Limit—10 Cans —to dealers, garages, fleet owners, bus operators. On Sale—Tire Dept. Fourth Floor 100 PURE PENNSYLVANTA Made From the Highest Grade Crude 0il in the World! $295 Per Can! 20 Quarts! Usually Sold for $6.00 HEAVY, SPECIAL $3.25”CAN-’ e Lol ~—This quality oil usually sells at 30c a quart in service stations. There is no finer motor oil to be had—it meets the most exacting specifications—for gravity, firing, cold test, 000 in lubricating value. opportunity to put in urn the maximum viscosity. Pure paraffine base—rich Take advantage of this a supply! Phone Your Order—Dist. 7200 MAIL ORDER BLANK S. Kann Sons Please send Co., Washington, D. C. Five Gallon (20 qts.) Cans Penn- Rad 100% Pure Pennsylvania Motor Oil at $2.95 the can. 100 Auto Seat Cover Sets Complete Sets for 1929, 1930 and 1931 Ford and Chevrolet Coaches and Sedans $4.95 Set —TIt will be an inexpensive matter to equip your car with new covers if you choose them in this special bffering. 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