Oracles, Trade Fair

Ever since he resigned as President of the Reichsbank, stiff-starched Dr. Hjalmar ("Iron Man") Schacht has been posturing and talking as though he were still Germany's "financial spokesman." Throughout the world last week, holders of the so-called ''Young Plan Bonds" (German Government 5 1/2s) winced when Dr. Schacht answered in Stockholm a smart Swedish reporter's question:

"What would you do about German Reparations, Dr. Schacht, if you were Dictator of Germany?"

"Tomorrow morning at 8 o'clock," snapped Dr. Schacht, "I should refuse to pay even one pfennig more!"

In rushing to Sweden for a lecture engagement, Dr. Schacht had cancelled a previous engagement to speak last week at the opening of Leipzig's famed spring Trade Fair. His place was taken by a less intense but much more potent man, Dr. Hans Luther, today President of the Reichsbank.

Up went great sighs of bondholders' relief as Dr. Luther observed at Leipzig in his sober, careful way:

"With all possible clearness and emphasis, I wish to say that Germany, in no way whatsoever and in no circumstances, thinks of stopping her payments to private individuals, payments based on civil law. Among the payments so assured in any case belong those for service of interest and capital of the Young Plan loan, as well as the Dawes Plan loan.

"It cannot be often enough stated that the word 'moratorium,' which unfortunately has been employed so much to indicate an exercise of the limited right of Germany to postponement of payments under the Young Plan, has led to the wrong and misleading notion that Germany is striving for cessation of payments."

Price War. Gloom stalked through Leipzig as exhibitors at the Fair cut prices (and each others' throats) without stimulating any impressive volume of sales. Canny foreign buyers, interviewed by the Leipzig press, admitted grudgingly, "Prices are a little lower," held back their orders with evident intent to jump in when prices touched bottom.

For the first time the Soviet Union offered razor blades. In the Soviet pavilion nonchalant Reds said: "We will meet any price cut, any cut whatsoever in raw products and canned goods."

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