USA Financial Markets Collapse: Impact on Europe Uncertain

Following a short lived rally after the disastrous 11% market decline of October 24th, the American financial markets collapsed on the 29th. Lead downward by the stock exchange in New York, which lost another 13% of its market value on the 28th followed by a further 11% decline the next day, American investors went on a panicked selling spree that evaporated over $30B(US) of market value in less than two days. American financiers, among them the Rockefellers and the Durants, were said to be purchasing vast amounts of equities in an effort to stabilize the markets, but stock prices continued to decline at a record pace on record volumes.

The scene on New York's Wall Street as the US stock
markets collapsed on October 29th.
(AP Photo)

Internationally the price of gold soared to $120 (US) per ounce from its pre-crash price of $80 (US) and European bourses fell slightly as investors, banks and governments began to assess the damage. In London, noted economist John Maynard Keynes issued a statement saying that, "The extraordinary speculation on Wall Street in past months has driven up the rate of interest to an unprecedented level." He went on to suggest that the crash was only a severe correction to these speculative excesses and that once the speculators had been "driven out" prices would quickly stabilize at a sustainable level.

In Germany, reaction was muted but concern over the value of investments in American stocks and the effect on American imports of German products was beginning to take hold. Economics Minister Robert Schmidt released a statement yesterday urging calm and echoing Keynes earlier statement that the precipitous decline was merely a correction and that princes would soon stabilize.

Economics Minster Robert Schmidt
arrives for a Cabinet meeting on
October 29
(AP Photo)

Meanwhile in Washington, US President Herbert Hoover reiterated his strong support for the pending Hawley-Smoot Tariff Bill, which is expected to raise US import duties on over 20,000 agricultural and industrial products, including many from Germany, to near record levels. Canada, Britain, France and Germany have been strongly urging the measure not be adopted, but it is poised for final passage by the US Senate in the next few weeks. Hoover's statement that the market downturn would not change his support for the bill is said to have depressed prices further on the 29th, with investors concerned about Canadian and European retaliation. German President Paul von Hindenberg had made a personal appeal to Hoover to reconsider his support for the legislation but to no apparent effect.

With one more trading day before the markets close for the weekend, the eyes of the world are on Wall Street and the American President. As calls for calm seemingly fall on deaf ears, investors have moved from nervousness to a full scale panic, suggesting that the "hands off" approach favored by most governments and economists is not having a salutary effect.

German markets have declined an average of 6% over the past 2 days.

Business Group Calls Organizational Meeting

A group of local business owners and shopkeepers are organizing to form The Greater Berlin Chamber of Commerce. The purpose of the new organization will be to promote and encourage the establishment and growth of businesses in the City of Berlin and its environs. "Working together," says multiple-business owner Morganic Clarrington, " through positive actions, we can generate more income for all of the shops in Berlin." The group plans to participate in civic activities, sponsor events, promote the local business climate through advertising and outreach campaigns, form alliances with businesses in other cities and work to encourage tourism.
 
"This is not a political group," Clarrington added. "Rather it will be an opportunity for the hard-working men and women of Berlin to come together for their mutual benefit. Please come and get involved."

An organizational meeting will be held on Sunday, May 22nd, at 3 pm SLT at the Municipal Courthouse on Unter Den Linden. Snacks will be served.

Local Business Owners Explore Forming Berlin Chamber

Several local business owners have been discussing the formation of a Greater Berlin Chamber of Commerce. The proposed organization would be comprised of Berlin businesses and would promote mutual prosperity through advertising, events, sponsorships and representation of business interests to city government. The group's members would also subscribe to a "Code of Ethics" that binds them to selling quality products at fair prices, and to dealing with customer issues promptly and fairly. The formation of the organization is only in the initial discussion stage, but interested business are encouraged to get involved.

For further information, contact either the BAZ, at Unter den Linden #16, S2, or Morganic Clarrington, at Mittelstrasse #5.

US Auto Giant Buys Stake in Adam-Opel

- BAZ Staff

By many measure, Adam-Opel, AG is Germany's most successful automobile manufacturer. Forced by the hyperinflation of 1920 - 1923 to close its Rüsselsheim factory, the Opel brothers spent the next year in the United States studying state-of-the-art heavy manufacturing methods. Since reopening their factory in 1924, Opel has sold over 100,000 of its popular Tree Frog automobiles. Utilizing a brand new and thoroughly modern 45-meter long "moving assembly line" manufacturing system, Adam-Opel has steadily reduced the price of its automobiles from an average of DM225,000 in 1922 to less than DM2,000 today.

Last year the successful family firm, founded in 1862 to produce sewing machines, became a public stock corporation. On Friday last, it was announced at company headquarters in Rüsselsheim that Adam-Opel had formalized its contacts with the U.S. automobile industry and that American automobile giant General Motors had agreed to purchase 80 percent of the German company's stock for $26 million (DM160 million). This gives the American company effective control of Adam-Opel, although the joint announcement stated that no changes are planned in either management or production plans.

Morales Unveils New Spring Line

- Katyana Jaidov

The Berlin fashion community gathered in the rose garden atop Sonatta Morales' too long empty landmark store to view her much anticipated spring clothing line. Any concern that Sra. Morales did not intend to remain aggressively atop the European fashion industry vanished faster than the free champagne. The afternoon was chilly but the show was hot and the reaction from the well appointed audience was enthusiastic. In the end the event was everything that one might have expected from Berlin's Headmistress of Fashion.

La Morales models one of her designs
(Photo by Shasha Stransky)

In her brief address opening the show, Sra Morales said: "It is a great pleasure to present the Spione collection to such a fine crowd. This exclusive preview for Berliners inaugurates this shop. I have the pleasure and honour to to show you a collection inspired by .....a spy.... Spione. No men can keep secrets from a woman dressed like this." She then proceed to dazzle the social glitterati of Berlin with a spring line that left them tugging at the buds of the boulevard's linden trees to try to hurry the spring season along.

As the models took the stage, the audience expressed its approval in a most vocal manner, and the excitement endured throughout the show. As was to be expected these were not designs for the common woman, but rather designs to which she might aspire. No doubt many of them will be seen in the salons of the city and the lobby of the Adlon Hotel as they become available at La Morales' signature store on the Unter den Linden. It would not be possible to do justice to the entire event, but here are some highlights.

The Darien
(Photo by Patrice Cournoyer)

The first to take the stage, the Darien pink ensemble combines the prim and the provocative in a single outfit, seemingly creating the illusion of nothing at all when seen from just the right angle. This is a tease of an outfit that would suit - literally in this case -  any modern woman.


The Thames, an English name, seems to hint strongly at the fiery South American sensibilities of its designer, presenting an understated sensuous elegance and a practical versatility. This is an outfit that we will soon see everywhere. The Montenegro seems a bit overstated for the conservative tastes of Prussian Berlin, with is large feather fan, naughty lace collar and twinkling sequins, while the Boulevard, with its bright reds and golds, presents clean, simple lines that will never-the-less turn heads.

The show was themed after stealth and spying, and the Black Orchid is the outfit a spy might wear. Who could withhold a secret from a woman wearing this clinging black temptation with see through sleeves and shoulders? I was ready to confess anything to the lovely model.

The 21 Dress
(Photo by Patrice Cournoyer)

Fashion is a personal thing , of course, but the 21 Dress was my clear favorite from this show. Black, with jacket and hat and accents of white and purple, this was a stunning design. A thoroughly versatile outfit that will be comfortable out on the Berlin Boulevards, at home in the Adlon or admired in the finest shops.

The Olympique, principally an evening dress, is delightfully complex in its simplicity. Black with gold and violet accents, and sleeveless, it presents one with the delicious illusion of a plunging bodice where no such thing exists. A more modern and American look emerges with the ChatNoir. A black and clingy dress with orange feathered turban and a plunging front that is certain to attract the interest of the Berlin Police if worn outside. Not for the shy, the calf length design is an ensemble to be seen in, with nuances of foreign intrigue. Chat Noir is plumage for Berlin's peahens.

No one scores a goal on every kick, and a very few of the designs seemed to fall short. In particular, the Sands, with its fur collar and cuffs and flowing lines reminiscent of desert sands might have been better left for the Arabs. And the Sungold seemed an ambitious attempt that was not quite successful. The strappy, low cut  design is so heavily textured with color as to distract, and it almost made the model appear to be pregnant. Not the best item in the show. Save this one for New Year's Eve at the Adlon.

If you missed this show, shame on you. It was a sensuous treat and a real honor for the city. But the good news is that we will all be treated to another look at this designers latest creations when they are made available at her store. Make sure you take a look.

American Eyes Germany for Business Expansion

As Germany has struggled up out of the economic conditions of the last decade, America has been booming. Now American businessmen are turning an eye to Germany as an attractive opportunity to expand their various commercial activities. American businessman Jeremi Fedici spoke with the BAZ last week in the sumptuous lobby of the newly completed Adlon Hotel.

BAZ: What brings you to Berlin, Herr Fedici?
JDF: A bit of business and a bit of vacation time.

BAZ: What is your business in America?
JDF: I do business with banks, provide third-party protection to local citizens, and I also do shipping and receiving at ports along the East and West coast of the United States.

BAZ: We have quite a large American community here in Berlin. I think many Germans take their understanding of America from them: that all Americans are rich, violent, uneducated and arrogant. How would you like Germans to think of Americans?
JDF: Well that not all Americans are rich.

BAZ:  Is this your first trip abroad?
JDF: Not at all. I have visited many places around the world.

BAZ: What would make this a successful trip for you?
JDF: If I leave with a franchise, and more money than I arrived with.

BAZ: The German economy has been struggling through most of the last decade. The American economy has boomed over that same period. Do you see continued strength in the American markets? And if so, what opportunities should German firms be looking to exploit?
JDF: Markets in America are set to soar, and mostly I would say that German firms should exploit anything they can get their hands on exploiting. Autos, watches, precision manufacturing, etc.

BAZ: Germany was, unfairly many think, hamstrung by the conditions of the Versailles Treaty. Our manufacturing sector is only now beginning to recover, ten years later. The NSDAP is gaining politically by proposing to unilaterally abrogate the treaty. What is your opinion?
JDF: As long as another huge war is avoided, Germany can do anything it wants in my eyes.

BAZ: The sense among many Germans is that Americans do not consider European affairs as being of much importance to them. Would you say this is true?
JDF: Well being on another continent helps to stay away from having to deal with any of that.

BAZ: On a more personal level, what do you hope to see and do while you are in Germany?
JDF: I would like to see Berlin, and maybe Frankfurt. Perhaps catch up on movies and women. And of course, set up a business franchise here.

BAZ: Are German women different from American women?
JDF: Well fashion in America is of utmost importance to women there, and they are constantly coming out with more and more fashion lines and "latest and greatest" colors, etc.
BAZ: Are you saying German women are dowdy and not fashion conscious?
JDF: Absolutely not!

BAZ: You are traveling with your brother? So a family business?
JDF: Indeed it is.
BAZ: How is it you speak German so well? That is unusual for an American.
JDF: My Father taught me. He was an Italian-German-American.


BAZ: Thank you for spending some time with us. I wish you much success on your visit.
JDF: Thank you.

BAZ Seeking Section Editors

Die Berlin Anzeiger Zeitung (BAZ) announced that it has has immediate openings for Section Editors. Section Editors are responsible for the day-to-day management of the content of their assigned section of the paper. This includes creating content, soliciting and obtaining content from others, editing content prior to publication, selling advertising in their section and ensuring that all posted content complies with BAZ editorial standards and policies. Editors will have significant responsibility and authority to guide the content of their section.

The Section Editor positions currently available include the Berlin City News, Business News, and Arts and Entertainment Sections. National/International News Editor and Photography Editor positions will be available in the near future.

"Please be aware," said BAZ Publisher Katyana Jaidov, "that while these positions do provide a good income opportunity, they will require actual work and effort. Experience is not required, but good writing skills and a strong motivation to succeed are."

Interested and qualified persons should apply directly to:

Katyana Jaidov
J&C Werbeagentur
Die Berlin Projekt Zeitung
Unter den Linden #16, S-2