Capital Comment

Secrecy surrounds the activities of certain groups interested in the expansion of trade between Germany and the United States. While no official overtures have been made to the united states government by the German government, it has become apparent that the movement to increase trade between the two nations is being furthered by American business interests, Reports indicate that the approaches evidently originate with German interests.

It appears as if both the United states and Germany Could agree to a trade pact, But, there are certain facts which stand in the way of immediate negotiations, These facts are generally recognized by officials and business interests of both nations.

In the first place, there is strong public disapproval at this time against any trade arrangements with the German government as long as that government insists on its highly nationalistic attitude which includes the persecution of Jews and other groups branded as not conforming to Nazi “ideals.”

Another fact in the picture is a fear that Germany will partially or completely default on debts due to private individuals in this country. So far as the United States government is concerned, Germany was unable to pay $50,000.000 of principal and interest due March 31, on mixed claims and Army of Occupation costs. The German government however was willing to make a “token” Payment of $1,250,000

Holders of German securities may be placed in a position where they will press for a trade understanding between the United States and the ## government. The German government is understood to be considering a scheme for “stimulating German exports and using part of the increased foreign exchange thus made available to meet interest payments in other currencies.” The rest of the money, it is understood, might be used for the purchase of needed goods from other countries. The fact that part of the increased foreign exchange resulting from trade stimulation would be used in payment of interest charges on debts, may encourage holders of German securities to “lobby” for a trade agreement with that country.

Representative McCormack’s Nazi propaganda investigating committee means business. At least that is the impression gleaned from the few guarded statements made by those engaged in the committee’s work.

Executive sessions are being held quite frequently by the committee, At present the probers are busy laying lines of strategy along which the investigation will be conducted, In the next few days an announcement may be expected as to who will be the committee’s head counsel. Then, after a few executive sessions at which the committee members and counsel will put their heads together the propaganda inquiry will get in to its stride. The first hearing may be held early in May.

Representative William I Sirovich of New York played the rote of a New Deal champion when in an hour’s address in the House he defended the principles under which the Roosevelt administration is operating and lashed into charges that this country is drifting towards a dictatorship or to wards Communism.

The New Yorker’s address was a scholarly piece of work and was highly praised by his colleagues.

In the course of his speech Representative Sirovich made reference to Germany and the Hitler government which proved quite pertinent to his remarks and drew applause from fellow House members.