Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-18
.BRUEN|NG'S STAND
seen AID TO CREDIT
e.
German ChanceIIor'S DiCta-
torship Held Determination
to Balance Budget.
BY IoHN T. SINCLAIR.


When 1 wrote in this column three
weeks ago that a dictatorship In Ger
many was near possibility. was sur
prised at the number of usually we'll
Informed men who thought such a die
tatoTship was an absurdity.
q But yesterday the dictatorship OF
Chancellor Bruening became a reality
with the publication of series OF tax
DEGREES to cover the national budget
deficit. The Reichstag, refusing to pass
the fiscal measures, was oVerruled.
The cry of unconstitutionality of the
act has been raised. but the quiet aris-
tocratic Bruening is unmoved.
}. The next step? Probably the Reichs-
tag will decide to reconsider and pass
the measures which the chancellor has
asked. If so, the dictatorship vanishes.
Should this happen, the quiet-sreaking
scholar, Bruening, almost unknt ! in
Germany a year ago, will emerge as
the strong man of German public life,
next to their 81-year-old President
Won Hindenburg.
Germany is determined to balance its
budget and pay its way. 1t will mean
pulling in its belt still further and saw
ing every mark 1t can.
From the financial standpoint, die
tatorship might help. But from a po-
htical standpoint it's always dangerous
Money rates throughout the world
continue to sag. The National Bank
Of Switzerland has reduced its discount
rate from 8 per cent to 212 per cent.
The Imperial Bank of India last week
reduced its rate from per cent to 5
per cent.
Austria, Hungary Italy and Spain to-
day are the highest rate countries-512
per cent. Norway's rate is 412 per cent.
Germany, Denmark and Ireland are on
a de-
cent; England, Holland, Belgium and
Switzerland are on 8 per cent basis,
and France and the United States New
York; are at az per cent.
But what is worrying international
bankers is the way France is attracting
new gold, which his coming into the
market. Yesterday she took 655,000
pounds of the 1885, 900 pounds of the
South African gold, which was offered
in the London market, paying the rec
ord price of IS shillingS and liz pence
approximately $20.75) per fine ounce.
The Bank of England also released to
the Bank of France 423 900 pounds.
The gold flow to FTance-already heavy
with the yellow metal-continues. TINS
week the United States sent $4,O0O,0OO
to France on the Bremen.
France says nothing. In her dark
vaults she has accumulated $4,000, 900
francs worth of gold-neXt to the United
States, the largest holder IN the world.
The United States and France to-
gether possess more gold than has been
mined since the beginning OF the World
war. France has boarded up more
than has been produced In the last nVe
Down deep, it's causing plenty of dis
eussion in the important counting rooms
Of the world.
The announcement that the 1929-30
Canadian wheat pool would advance put
10 cents pllshel tor wneat 20 us H YEN
bars for deliveries, based on Fort VIII
liam and No. i northern grade, against
Al bushel last year, has caused wave
If nessimism to sweep over the great
western Provinces of Manitoba, SaS-
katchewan and Alberta:
This new price really means tnaI
advance payments for wneaC AZ tnS
so cents a bushel for top grade, ana
81 cents for top grades further west
IN Saskatchewan and Alberta-the low
est in Is years.
The wheat pool, which controls about
half of Canada's output, continued 70
advance 81 bushel for last year
wheat up to June rs. Then II cut 10
Is cents, where it remained until July
Is. when 10 cents was announced Do
the price for the 1880 crop.
The 70-cent figure has the support
of all the big Canadian banks, Wmcn
had been loaning a dollar before-se-
cured, in addition to the wheat, by the
guaranty Of the three Western Prov
inces.
The Canadian wheat pool today has
approximately 100,000,000 bushels OF
their last years crop on hand, with the
new crop estimated at 400, 000, 600 BUSH
eiS-almoSt ready to cut.
So the American Farm Board is not
likely to add to its troubles by adding
any new wheat to its 10000, 600 bushels
already on hand, which is costing the
board 100000 month 70 carry.
Alexander Legge of the United States
Farm Board, wants 1t distinctly under.
stood that neither he nor Secretary OF
Agriculture Hyde have ever ADVISED
farmers ito quit raising wneat' e. do &c
20 raise little less of it and give the
consumers a chance to eaten up WIN
the producers. ..;o
that it would be better Tor the farmer
TO put 100 acres into wheat and re.
ceive 81 bushel, than to plant lou
acres of wheat and receive 90 cents.
Smaller acreage oftentimeS means more
money to the farmer;
The Farm Boards advice to the West
ern wheat farmer apparently Is this;
Stay on your farm, cultivate less
wheat, and make more money.
1t will surprise many people to learn
that Florida has increased over so pei
cent in population since 1920. Ter
wears ago her population was 966, 41O
with two of her 81 counties still to be
heard from, Florida shows population
OF l,447,645.
Thousands of people, who lost then
entire fortunes in Florida four years
ago, left the State, busted and heart
sore But other thousands remained II
work 1t out.
Since that time, banks have failed
the Mediterranean fly has wrought un'
told damage to the citrus country. anc
two storms have swept the State, result.
ing in a loss of hundreds OF lives ano
millions Of dollars.
But today Florida stands out as
bargain counter. Property can be pur'
chased there at a small fraction OF wha'
II sold for in the boom 1925 days.
Florida remains the peer of the Stat
Winter resorts, only California seriousl,
competing. It has a marvellous climate
fertile soil, plenty Of rainfall, and abun
dant crops.
But it looks bad on paper. Already 4
municipalities have defsulted on thei
bonds[perhaps $3.50. 900 900 worth.
bond committee is busy now workin
1t out. This will take time.
The closing of the Bank of Bay Bis
cayne of Miami. one of the larges
banks in the State, month ago, didn'
help the situation.
But the so per cent gain in popula
ton over the last 10 years is remark
able (the census figures were taken nv
years after the BOOM. Hundreds G
Florida citizens, pinched closer finan