862.51/2143: Telegram

The Secretary of State to the Ambassador in Germany ( Schurman )


6. Reference your reports on German borrowings in this country.

Letter dated January 4 from Dr. Schacht, President of the Reichsbank, to Governor Strong of the Federal Reserve Bank at New York states that Council for Foreign Credits examines requests with greatest care, that material restriction has been made in amount requested, and that only $161,000,000 had been authorized of the $218,000,000 [Page 202] requested. Of the amount authorized only $19,000,000 had not yet been floated.
According to information received by the Department the amount of German loans floated in this country in 1924 was $15,000,000 and the amount in 1925 was $226,000,000, of which about $131,000,000 was to states and municipalities. Practically all, if not all, of the latter loans were apparently submitted to the German Council.
Department wishes you to telegraph your comments on any matters pertinent to these loans, particularly with reference to extent of control which you think is being exercised and will probably be exercised.