862.51/2145
The Ambassador in Germany (Schurman) to the Secretary of State
[Received December 7.]
Sir: Referring to previous correspondence on the subject of German public loans, and with special reference to my telegram No. 196, dated November 14, 1 p.m., I have the honor to report that, according to a statement of the Beratungsstelle (Advisory Committee) of the Finance Ministry, the following public loans have been authorized since November 14:
- The City of Duisburg, 3 million dollars.
- The City of Dresden, 5 million dollars.
- The Central Bank of Baden, 15.7 million marks.
- The Landesbank of Hessen in Darmstadt, 4 million dollars.
- The City of Berlin, 30 million Swiss francs.
In this connection it is interesting to note that the Government circles have finally come to realize that they must at least make a show of instituting some effective control of public loans. Reports from Dr. Schacht, which they have received recently, have convinced them that, in view of the attitude of the Department of State in Washington, it has become urgently necessary for the Finance Ministry here to endeavor to persuade the American Government that the German Government is prepared to take appropriate measures to put in a system of effective control of public borrowing. Therefore, I assume that when Dr. Schacht returns, a good deal of play will be made of carrying this out. As I have often intimated before, however, in view of the continuing scramble for Municipal loans, and in view of domestic constitutional difficulties, I am not very sanguine as to the ultimate success of these endeavors.
I have [etc.]