Grow Rich Together

Banker Albert Henry Wiggin last week made an announcement the world has been expecting for a month: the "Stillstand Agreement" concluded in Basle last August, by which repayment of $1,500,000,000 of German private short-term loans was frozen for six months, will be prolonged for another year. Points: P: The agreement will expire automatically should Germany declare a moratorium.

P: An oblique slap at Reparations was taken in the agreement by the statement: "Strengthening of the German situation makes it necessary that German resources should not be dissipated to meet other claims outside this Stillstand Agreement.''

P: Since the first Stillstand Agreement was reached in August, Germany has voluntarily paid 10% of her outstanding short term debts. Some creditors received more than 10%. Future cash payments will be made first to those countries which have received the least. P: Still to be settled is the interest rate on these frozen loans. Foreign banks protest that they cannot charge less than they must pay their own domestic borrowers. All these interest rates vary. P: Banker Wiggin's international committee was most anxious to persuade creditors to convert cash advances to German banks into ten-year 6%, notes. As bait, German banks have agreed to deposit special security with a trustee to protect these notes.

P: The committee added last week a few polite words: "The short term creditors have done all that is possible to insure that the next twelve months will afford Germany a period of recuperation. . . . The present extreme crisis must bring home to all peoples of the world the fact that all the countries grow poor together. The inverse is just as true; all countries grow rich together. A lightening of burdens and a greater freedom of trade enriching one country will enrich all."

This file is automatically generated by a robot program, so reader's discretion is required.