The Reichsbank On Thursday, April 25th, the Reichsbank raised its
iiscount rate from 64 to 74 per cent., a move which was foreshadowed in its statement last January, and was thought by many of us highly probable in view of the high rates ruling ,in America and the steady drain of gold and foreignexchange. How particularly easy it is in these days for economic processes to become charged with political electricity, for common sense to be submerged in 'emotion, was well illustrated on this occasion. Certain foreign newspapers made out that the Bank's action was a gesture of annoyance on the part of Herr Schacht, timed to shatter the frayed- nerves of the Experts in Paris. At once cry about Germany's deliberate infla- tion was raised, aided not a little, of course, by the wild talk of gerr Higeriberg and some of his. Nationalist friends. In tTermany itself _there was a certain amount of scare inthe provinces. Business men and financiers generally; and Have taken the trouble to study the piisition of, the Reichsbank vis-a-vis the Government's , obligationiiind the Transfer .Committee, recognize that dtllation, and a- tightening of money, are more likely, developments from the faihire of the Paris Conference.
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