Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-02
APPROVES GERMAN
FINANCE REPORTS
State Secretary Says Period
of Rebuilding Industry
Is Over.

By Radio to The Star
BERLIN, Germany, October 1--WE
have given the country an absolutely
honest statement about its financial
position" Hans Sehaeffer, secretary of
state In the finance ministry, said in a
special interview today, discussing the
Bruening cabinet financial reforms just
announced.
II should like to see any other coun-
try which would show itself in It's COM
plete nakedneSs as we have done The
German people and the rest of the
world can see for themselves how things
stand and what has TO be done to i'm
prove the situation"
Sterilization Yet Difficult,
Replying to a question as to whether
the Bruening government is agitated
over strong attacks on reforms launched
by the Socialist and Hugenberg press,
the latter calling the Bruening cabinet
the Young cabinet" Herr Schaeffer
declared: Real sterilization of finances
IN Germany is impossible as long as
billions in tributes must be paid and
streams OF blood are running from Ger
manys open wound.
The press echo Is exactly what we
expected. We knew the Hugenbergers
would talk like that. But you will
notice by carefully examining the So
| cialist criticism that they did not slam
the door,"
Berlin and all Germany today arc
immersed in discussion of these re-
forms, which are already recognized as
the King pin-perhaps the crucial turn
ing point-of both state and individual
prosperity. Not only politicians, but
the man In the street, are deeply con-
cerned and the parliamentary war
which viii rage around these bills is
| already forecast in conversations-some
very hot-in beer halls, rathskellers,
buses and cafes.
Welcome Wage Cut.
In industrial and banking circles the
reforms have found a favorable recen-
ton. The Deutsche Allgemeine zeitung
sees In them the Initiation of a great
wage and price reduction" and states
That such reduction is vital question
for the people, the state and the eco
nomic life of Germany.
wage reduction means reduction OF
the cost OF production" the paper says.
That means an increase In the COM
petitive capacity of Germany in world
markets. 1t also means a reduction of
Unemployment and consequently grad
ual hftlng OF the feeling of despair
which prevails among the great masses
OF the German people"
LaDOr class suffers.
The cuts in the ministers salaries are
not important economically, but are
probably wise demonstration TO the
German people and will take some of
| the wind out of Adolf Hitlers sails.
whose placards plastered in Berlin have
been vociferously demanding Just this
lining. But there Is no doubt that the
labor class and lower officials will have
| to bear the greater bulk of the burden
of these reforms.
The only alienation in this sacrifice
VIII be an efficient and appreciate re-
duction of retail prices, which would
lower the cost of living. The govern
ment Is expressing definite hope that
this can be achieved.
Limit National Expenditure.
| One of the most significant aims Of
these reforms Is strictly limiting ma
tional expenditure during the next three
years-a cut OF nearly $200,000,000
yearly. s. Parker Gilberts argument
that sterilization in the long run could
be effected only by drastic cuts in ex-
! pendlture-not by new taxes-is now
accepted by the German government.
The period of rebuilding and nation
allzing German industry is now recog-
nized to be over. This means that the
stream of foreign capital into Germany
VIII be reduced and finally stopped, so
that Germany's foreign payments will
have to be accomplished on the surplus
of its own economic apparatus. In
other words, instead of paying repara-
tions by borrowing, Germany Is now
facing the fact that this must be done
entirely by manufactured goods. On the
basis of the present wage and price level.
Germany has been working under
handicap, but the proposed reduction
In both wages and prices is now a def
| mite part of the government program Tor
Germany to intensity her exports.
DOWNRIGHT loan