Messersmith, G.S., Berlin. Despatch No. 1232 to Secretary of State [Cordell Hull], Washington.
Date
1933-04-11
Journal Title
Journal ISSN
Volume Title
Publisher
University of Delaware Library, Museums and Press
Abstract
Description
Reports on probable policy of Reichsbank; Dr. [Hjalmar] Schacht re-emphasizes his intention of maintaining mark at parity; 70 million dollar rediscount credit of Reichsbank being repaid for ostensible reason that relieving bank of interest charge also relieves its foreign exchange situation; Schacht insists Germany must pay all her private obligations, but implies he doesn't consider loans under Dawes and Young Plan as private loans; probably first step will be to secure reduction of interest charges on short and long term foreign loans and credits and eventually a reduction in the capital sum of the loans and credits; basic attitude of German government unfavorable to foreign capital and business; moratorium will probably be declared on payment of interest on foreign debt; gold cover of mark only 11 percent; real gold cover has been Germany's export surplus, but export surplus steadily decreasing; [Hans] Luther chosen Ambassador to U.S. as best person to negotiate for interest and loan reduction; Luther respected in U.S. and known to be a man of high principles; German government income decreasing while expenditures increase; long promised measures involving large expenditures cannot be much longer delayed; Schacht hopes by decreasing foreign payments, by accumulating marks in Germany, and expanding credit structure to provide necessary money without issuing currency which might endanger the Mark.
Keywords
Messersmith, George S. (George Strausser), 1883-1960.