Bondholders Challenge Schacht Debt Statement

The American Council of Foreign Bondholders, with headquarters at 49 Wall Street, has issued a statement challenging an assertion made by Dr. Hjalmar Schacht, president of the Reichsbank, to the effect that the anti-German boycott puts foreign investors in danger of losing dividend payments, as well as payment on principal.

The statement, bearing the signature of Dr. Max Winkler, consulting economist, declares that on June 9, previous to the support pledged to the boycott by large American organizations, including the American Federation of Labor, Dr. Schacht himself announced that foreign investments had been defaulted by the German government.

"An analysis of German foreign trade," continued the statement, "as officially reported by the various German governmental agencies, suggests either that Germany is wilfully withholding what is rightfully due the American investing public, or that statistics regarding the Reich's economic conditions are inaccurate, or that they are prepared for domestic consumption."