1931-07-15 — Page 9

FEDERAL BANK REFUSES TO RENEW GERMAN CREDIT:

STOCK EXCHANGES REMAIN CLOSED: BANKS CONTINUE RESTRICTION OF PAYMENTS.

ALL AUSTRIAN BANKS ORDERED TO CLOSE.

[REUTER'S AGENCY AND BRITISH WIRELESS,]

The

Now York, July 14. Journal of Commerce learns that the Federal ReserVO. Bank has declined to agree to the proposed renewal of the exist- ing credit of $25,000,000, to' Germany.

#

Budapest, July 14.

After a night long sesalon the Cabinet has decided to close all banks until July 17, foaring ill-effects from the German troubles.

Vienna, July 14. The Markar Bank, which paid out 10,000,000 Schillings 765- terday did not open to-day. It controlled by a German, Herr Danat.

Stockholm, July 14..

All banks refuse to cash German cheques.

HARDSHIP INFLICTED ON BUSINESS MEN.

BERLIN, July 14.

Whether the decree of closing banks will not defeat its own purpose by emphasising, instead of minimising, the seriousness of the crisis is at present conjectural, but immediate hardship is inflicted upon business men who are unable to obtain funds for business and wages.

A RUMOUR DENIED.

RUGBY, July 14. The Manchester. Guardian denies the report, said to be current in Germany, that the British Government has joined with the French in an attempt to impose political conditions upon Germany. It adds: "The Government accepted the Hoover plan immediately, without reservations and at the present moment is the only one of the creditor Powers that has taken the neces- sary steps to declare that it wishes the moratorium to come into operation at once-by informing the Bank of International Settle- ments that it does not expect to be paid this week's instalment of reparations.

[+

"It is, however, true the British Government is of the opinion. that it would be a useful gesture on the part of Germany if she were to give up battleship construction as an earnest both of her desire for utmost international economy, of her sincerity, in the cause of disarmament and of conciliation toward France.

"Mr. Henderson, will have an opportunity of making the British Government's attitude clearer when he reaches Berlin or Friday.""

The Foreign Exchange market opened quietly with rates well maintained, German Reichemarks were steady and, unchanged at 21.50, while on the Stock Exchange business was held severely in check awaiting further news from Paris, Basle and Berlin,

י

11

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HONG KONG DAILY PRESS, WEDNESDAY, JULY 15, 1931.

RELIEF OF INDIAN DEBT DEMANDED.

14

REPORT. DESCRIBED AS "SUPREME INSOLENCE.”

[BRITISH WIRELESS SERVICE)

"RUGT, July 14.

BANDIT OUTRAGE IN KUTIEN,

AMERICAN MISSIONARY

CAPTURED.

THROUGH REUTER'S AGENCY.)

Peirina, July 14 An American missionary, Mr. Lacey Sites, of the Methodist Episcopal Mission, was captured by bandits on July 9 in the Kutien district, north: Fukion..

The report of the committee ap- pointed by the Karachi Session of the Indian Congress on financial obligations between Britain and India examines the whole period fa of British rule and claim” tô- in- clude items in respect of the first Afghan and other wars, which oc curred during the time of the Enst India Company, prior to 1888. In the aggregate they total 546 million pounds. In addition, relief in. respect of the Indian public debt, which is put at 825 millions, is demanded.

Newspapers here treat the fan- tastic report with ridicule. The Timce reproduces it under the heading, A Comic Congress Re- port,"

COMMISSIONER OF

PALESTINE.

MAJOR-GEN. WAUCHOPE TO SUCCEED SIE J. CHANCELLOR

{TUROVOH AKQTER'S AGENOT,{}]}"

LONDON, July 13

Arthur Major General

G. Wauchope, G.B., C.M.G., C.LE, D.9.0., has been appointed to succeed Lieut. Col. Sir John Chan- cellor, G.C.M.G., G.O.VO., D.§.0, The Morning Post, in satirical on November 1, 28 High Comais note, says: "Mister Gandhi or the sioner of Palestine, who is resign preciab genius who revised this billing, on the termination of the

period of his appointment. of costa might have done mach better. He duca not seem to have

charged us anything for irrigation

works for which we have been re-

sponsible in India. By a ludicrous

(The now High Commissioner, who has been General Officer Commanding the Northern Ireland District since 1928, is: 57 years of age and has had a distinguished career in the army since he joined" in 1883, three years later joining the Black Watch. He was severe-

error he has omitted to, mulet us in damages for famine relief., Ho must have overlooked the nefarious and expensive trouble to which we have put ourselves in fightingly wounded in the South Africa pestilence in India. Gandhi had better revise his estimates."

The Daily Mail describes it as supreme insolence.

sented a weak appearance at the close.

4

War, and in the European War commanded the 2nd Batt. Black Watch in France and Mesopotamia. Ho was again severely wounded and mentioned in Despatches, He

WIS

WEATHER REPORT.

a military member of the Overseas Settlement Delegation which went to Australia and New Zealand in 1993, was a member of the Inter-Allied Commission of Now was awaited anxiously Control in Berlin, 1923,27, and was throughout the day of the results G.O.C. of the 44th Home Counties of the Conference of Governors of

Division Territorial Army "from" the Bank of International Settle-

1027 to 1929 His many decorations mente, at Basie. Following his re-include the Legion of Ronour.] turn to Berlin, from Paris, Doctor Luther, President of the Reichs- bank, was in consultation with the | German Cabinet throughout yester- day, and this morning, before lear ing by aeroplane for Buale, he is reported to have discussed the clas- ing to-day of the Darmstadter and National Bank, which is the leader in foreign currency and credit operations. The announce- ment that the bank had closed was accompanied by an official state-. ment that the Germuir Government, on the basis of an emergency, de- ereo to be issued to-day by the President, will provide by means of

the orderly settlement of the affairs of the bank.

BRITISH MINISTERS TO VISIT GERMANY, full guarantee of all deposits for

DURING WEEK-END. `

BERLIN, July 13.

Stock Exchanges Closed. Stock Exchanges throughout Ger- many were closed and will remain closed to-morrow. Another emer- gency measure taken to-day in Ber- withdrawals from banks, lin, placed a temporary limit on

A communiqué, which was issued Confident that she has weather at the close of the meeting, stated: ed wore storms and will safely"The Council has examined the ride out the present crisis-this statement of Dr. Luther as regards sums up the prevailing attitude of the situation in Germany and the Germany to-night after the past satisfactory nature of its com few panicky days...

omical and budgetary position des The Government's assumption of pite the crisis due to the withdrawal responsibility for the Darmstadt of short-term credits placed in by experts. It is suggested that

Germany. “

Bank's abilities has had a most reassuring effect.

Special police who had been post- "ed in the neighbourhood of the

"The Council is convinend of the need of present financial assistance of Germany, and declares itself

Yesterday's weather report, forecast and remartes, issued by the Royal Observatory at. 5.20- p.m., stated

Pressure is high to the north and east of Japan's The north em depression me filled rp. The depression over Tongking has decreased slightly in inten- sity.

Local Forecast:-B.W. .or. variable winds, moderate ; cloudy; occasional rain.

DRUG LIMITATION.

28 COUNTRIES SIGN

A Basle message states that Dr. Luther has put before the Board

(THROUGH REUTER'S AGENÓT.] of the International Bank a plan

GENEVA, July 13, for the re-establishment of German finances which is being examined signed the Convention limiting the Twenty-eight. countries have now political negotiations between Bri- manufacture of narcotics to scien- dish, French, American and Ger- tific and medical needs. man Governments will follow. In London the importance of the pro-

SERIOUS COMMUNAL PROPOSED BOYCOTT RIOTS AT SRINAGAR. OF JAPANESE GOODS

NINE MOSLEMS KILLED: SCORES INJURED.

(THROJON BEUTER'S AGENCY.]

SRINAGAR, July 13... · Nigo Moslems were killed and or injured, several mortally injured, during communal rioting

when Moslems attempted to storm a prison in which a Moslem was awaiting sentence for incitement against Hindus, who are alleged to have desecrated the Koran,

The city is panic stricken, Mos lems to day wrecked Hindu shops and throw burning mattresses en

to the roofs of houses.

Troops are patrolling the city.

P

SAFEGUARDS IN INDIA.

QUESTION OF RELIGIOUS

MINORITIES,

It is a mistake to underestimate the difficulties of the communal question, writes the Manchester Guardian, special correspondent in India. The younger generation undoubtedly take differences of caste and religion less seriously than do their elders, and there is some talk of intermarrying, though actually this very seldom occurs.. The main, fact still remains un altered. The position has been made worse during the last ten years, because ever since the first tentative offorts to "introduce de- mocracy parties have tended to form along religious and casto lines. The Nationalist, or Swaraj, move- inent has, to some extent, cut aurous these divisions, but the average voter still thinks primarily of his religion or his caste. Un- fortunately in India a man's name as well as his speech and appear ance usually proclaim his religion

SEQUEL TO ANTI-CHINESE

RIOTS IN KOREA.,

(From Our Own Correspondent.)

CANTON, July 14.

CANTON FORGERY

SENSATION.

$2,000,000 OF SUPRIOUS BONDS PLACED ON MARKET

(Wal Tie Tat Pao.)

CANTON, July 14.

A sensational discovery has been -

made by the Canton inancial authorities that a number of forged treasury bonds, with a total value of about $2,000,000 have been. secretly put to the market.

In retaliation to the atrocities in Korea and certains parts of Japan against the Chinese there, the ous overseas Chinese organisations in Canton decided to-day to launch Japanese goods. The boycott was avigorous campaign of boycotting

A number of suspects have been decided upon after a joint meet-detained for close examination. ing of different overseas Chinead organizations Here. In addition to the proposed boycott an extensive publicity campaign will be conduct. ed with a view to rousing Chinese literature will be printed and dis against the Japanese. Propaganda tributed free of charge.

Demonstration at Tientsin.

TIENTSIN, July: 14.9 well over 4,000 Chinese was held A mass meeting attended. by

here, yesterday in demonstration against Japad.

A resolution that a committee be formed for the relief of the Chi- in Korea was passed.. Relief Grant of $100,000.

(Wah Tse Tat Pao.)

A committee representing all oversens Chinese organisations in Canton is being formed to carry out the decision of the joint meet-nese ing above mentioned. A net of regulations governing, the proposed. economic action against Japan is alto being drafted." When these regulations are sanctioned, the anti-Japanese boycott will

*mence,"

com.

How the proposed anti-Japanese boycott will be carried out and the extent of public support behind it ernment in Canton is reticent over the proposed economic action against Japan, and is looking upon expression of the matter as an patriotism on the part of the over- sens Chinese organisations.

is not known. The National Gov-

Meanwhile dealers in Japanese goods in Canton are anxious, as their business will be seriously affected should the boycott ho carried out.

MOVEMENT IN SHANGHAL.

(Chun Wan Yat Pao.)

SHANGHAI, Puly 14. An anti-Japanese Loycott move ment of a nation-wide nature is in prospect in connection with the "Koren and Wanpaoshan affairs" An organisation for starting the movement has been brought into being, and an' appeal is being made to Chinese at home and abroad. urging the immediate severance of

or caste, so that even if the leaders toonomic relations with Japan. had grouped themselves inespec(Continued on next Column.) tive of creed they would have had difficulty in keeping communalism out of the constituencies. The politicians, however, have encour aged rather than discouraged this tendency, especially as between Moslema and Hindus, and also in the South hetween non-Brahming and Brahmins.

Nepotism Feared.

There seem to be two main rea- sons which have "driven Moham medan lenders to emphasise the communal issue in politics. The first is a feature of future oppres sion, and the second is, the ques tion of appointments, It is lamentable that this second factor should loom, so large in Indian politics, but there is no doubt that the apportionment of jobs amongst the different communities is the one subject continually uppermost take any part in public life. Do- in the minds of most Indiane who employment is so appalling amonget the Indian middle classes that one mus visualise every politician ap surrounded by an enormous borde of third and fourth cousins all look-

a Hindu Government is also due to certain flamboyant Congress lead ers, who have certainly given their followers the impression that Swaraj meant Ramraj, or the rule, of Hindus. It must be remember ed that though Mr. Gandhi is him- self quite free froth communal feel ing many prominent, Congress lead- ers in the past, such as Tilak, bave been frankly anti-Moslem, and the tradition, still survives.

banks had an idle day. The Darm. ready to collaborate therein and to coodings at Baklo is fully" recog-closed on Tuesday and Wednesdaying for jobs, The Moslem fear of

H

stadt Bank was the busiest, but there were no signs of a run.'

Other large banks met all claims, but they refused to sell foreign

currencies.

The Government-has-not-consider- ed it necessary to issue an Emer gency Deoree regulating traffic in foreign currencies, though the Reichsbank in only issuing foreign money against marks actually de- posited.

The mark remains steady at 20.20 to the £.

Meanwhile, the Governinent is. marking time, confident that help will be forthcoming from Basle

BABLE, July 13,

The Council of the Bank of Inter national Settlements has decided to help the Reichsbank in every pos sible way in its power; a

Ho Guarantee,

PARIS, July 13.

A message from Basle states that

reinforce it by all the means at tho disposal of the central banks,"

Veto on Paris Visit?

BERLIN, July 13,

nised.

The Prime Minister, answering a question in Parliament regarding the meeting of Treasury experte to consider measures necessary to give The banks have decided to con-effoot to President Hoover's pro- tinue tomorrow the policy of posal, said, in reply to a supple restricting payments,

montary question, that it was in possible, without notice, to give any inter news as to week-end happen ings regnading credit to Germany.

Government Guarantee Not Required.

The Hamburg Savings Bank has been closed for two days owing to a heavy run thereon as a result of the Radicals urging the people to withdraw their savings..

The Nazis and Communists have written to Herr Loeb, the Prosi dent of the Reichstag, demanding ita immediate convocation.

while the Government; and · repre- sentatives of the banks arrange to find the money required to carry on business and to pay salaries and wages.

The Stock Exchanges will prob ably remain closed till the end of the week.

The second decree authorises the Government to declare bank holi- days for banks and credit institu- tions whenever it considers advis able.

1.

Anglo-German Parley...

Berlin, Prem tolegraing to-night

Buogy, July 11, state that all the other big banks, The Foreign Secretary, Mr. Ar apart from the Darmstadter, are thur Henderson, will leave London The Nazis demand discussion of in a perfectly sound position and to-morrow morning for Paris, when "three questions of supreme im require no Government guarantee. he will pay a visit to the French

The Government has issued an Colonia Exhibition, nortance, namely, the sabotage of President Hoover's plan by France, appeal to the Nation, not to lose During his stay he will have con- the Anglo-French attempt to rob its nerve nor increase the Govern-versations with the French Foreign Germany of the semnants of her went's difficulties by lack of con. Minister, M. Briand. He is due to sovereignty, and emergency fideora.......: decree in favour of Capitžil.”

απ

crisis

leave for Berlin on Thursday after -On Friday morning he will be joined by the Prime Minister, with whom he is returning the recent visit to England of Dr. Bruening ̈andˇDr.” CuïtiusTM

A"Hostage" Theory.

The Mosleme see that the new Federal Government, if and when it comes into existence, will have a large Hindu majority. The on- trance of the States has increased the majority, for the States are chiefly Hindu. There is a strong tendency to counteract this permat. ent majority by trying to form large northern block of provinces. which will be Moslem, and in which A message from Amsterdam 20n. The Nazis add that the Reich-states that the market is from

the Hindus will be, as it were, stag must also decisively veto the from panic, on the belief that the

hostages for the good behaviour of their co-religionists in the centre of Dr. Bruening and Dr. conference at Buele will result in Curtius to Paria

and South; The writer found this |_the_support_of_Germany over the.

hostage theory to be very London Anxious,

Wave or Optimilem.

widely held. Many, Moslems, do not. RUGBY, July 10:

believe in the permanence of a The grave financial crisis which

BERLIN, July 13,

Federal India, and they foresee n has developed in Germany is being News that Dr. Luther's negotia

Moslem.State in the North, stretch- followed with deep concern here, tions at Basle had been successful

Mr. Henderson will return vio ing from Karachi to Northern and to day's events in Berlin has and that a rediscount of a credit Paris, where he will resume his Bengal, and with Afghanistan and caused an inevitable repercussion of one hundred million dollars conversations with M Briand, Moslem Asia as a hinterland. This BABLE, July 18. on the London Foreign Exchango which was due to lapse on Thurs

Ruany, July 14. idea may help to explain their ex- The decision of the Council of the market. A

day will be renewed, was received The Foreign Secretary, Mr. A. nistenco on three points. The first -Bank-ed-Interactional-Bettlements There was severe-depreciation-by-the-Gabinet av eidnight and Henderson soccompanied by Bis is the vertration Blix el to help the Reichsbank was arrived of the German Mark, which, after resulted in a wave of optimism that Walford Selby, privato accretary, would then become z Moslem pro- at after an all-day sitting, which slumping from 20.65 to 27 to the Germany's troubles, will be over în left for Paris to-day, Meda vince. The second is that the was “marked by, koen "French" oriti"| pound, recovered, in the afternoon, a few days. A

On Thursday they will proceed to Moslem North-west Frontier Fro cism of German financial methods The Gorman crisis also hindi,a Two more Emergency Dorees Berlin, where they will be joined vince should broome an ordinary during the past, ten years and an weakening effect on the stock ex-were issued to-night. The first by the Prime Minister Mr. Ramsay province. Thirdly, they are anxious insistenco on substantial political change gaterally, and prices, after stipulates that all barka, sayings || MacDonald, accompanied by his to secure a permanent, majority in and ownomio guarantees as the recovering from an early drop, pre- and oredit institutions will remain private secretary, Mr. Neville the Panjab, and if possible in prico of assistance!

(Denbased on näxt Velumni.); (Continued on nezi Column) Butler.

Bengal

the Bank-of-International--Settle- ments has agreed not to demand the French guarantee of £25,000,000 in the event of Germany seeking a Moratorium after the Hoover plan ends.

French Views Over-Euled.

The Prime Minister proposes to fly to Berlin and, according to pro- cent arrangements; he will return by air on Monday.

NANKING, July 14. The Nanking Financial Ministry

•has allocated a sum of $100,000 for: the relief of Chinese sufferers in Korea; this fund will be remitted to Mr. Chang Wei Ching, Chinese the Foreign Ministry. Consul-General at Seoul, through

JAPAN'S REPLY.

(Wah The Yat Pac.),

NANKING, July 14 The reply of the Japanese Gov. ernment to China's protest against. the anti-Chinese riots in Korea has been addressed to the Nanking Foreign Office through diplomatic channels...

While regretting the incident, the reply states that the Japanese Government has instructed the Governor-General of Korea to make compensation to the Chinese suffer. ers. It must be recognised, how ever, that the Wangaoshan affair was the real cause of the wide- spread anti-Chinese icts in Korea

Nanting diplomatic circles regard Japan's reply as very unsatisfac tory, and a second protest is being contemplated.

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