Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-19
Socialists Cunning for
Reichsbank President
BY DIR. GUSTAV STOLPER,
Noted German Editor and Ecenonist. !,

Hoteo 0erman Eoltor ana Economlst.'
Special Radio Dispatch.
BERLIN, January 1S.-The Hague
Conference ends with new crisis re-
volving around DR.. Hjalmar Schacht
president of the Reichsbank. At The
Hague the new conflict between the
Reichsbank president and the German
government was outwardly quickly ad-
justed, but only outwardly. The battle
around him still RACES and the Social
lists have taken the lead In this battle
The Berlin Vorwaerts, the Socialists
main organ, has daily for o week pro-
claimed, Away with Schacht" and the
leaders Of the party in the Reichstag
have demanded that the government
endeavor to change the Reichsbank's
of DR.. Schacht.
It is impossible at the moment to say
what the outcome of this campaign will
be. but it is certain that DR.. Schacht
did not strengthen his position by the
role he played at The Hague.
It will be remembered that the
Reichsbank published at the beginning
of December q memorandum protesting
against the Justification" of the Young
plan through the German concessions
made since the Paris conference and at
the same time aSsailing most sharply
the financial inactivity Of the German
government. The government and the
Reichstag later capitulated to him as
to his financial criticism and the Reich
gave up the attempt to get credits from
the New York banking firm of Dillon,
Read IL Co., creating an amortization
fund demanded by DR.. Schacht, which
made it possible for the government to
secure the needed credit itself at the
end Of December.
But this did not dispose Of the criti-
cism Of the governments reparations
policies. After the governments sur
render, peace appeared to have been
established between it and the Reichs-
bank president, especially since Finance
Minister Hilferding and his state sec
rotary were sacrificed to Dr. Schacht.
The government invited DR.. Schacht
to join the German delegation to the
second Hague Conference on Repara-
tions, but he refused, saying that he
imposed conditions which could not be
accepted-the disavowal Of concessions
made at the first Hague Conference.
This attitude created dissatisfaction,
for it was felt that since he had been
so critical 1t was now up to him to
show how affairs could be better man
aged.
+ X 4
1t was expected at least that Dr.
Schacht would be neutral. Then came
a surprise. DIR. Schacht had written on
December 80 to jackson Z. Reynolds,
chairman of the organizations commit
tee of the international bank, that the
ReichSbank could not participate in
that bank until the Anal result of The
Hague Conference showed whether q
moral basis for IL existed n plain al
fusion to England's attitude regarding
the liquidation of German property.
The German government knew of the
existence of this letter, but the public
did not. Hence, the public was vastly
aStonished when the letter caused q
conflict in the first session of the in
ternational banks organization COM
mittee at The Hague. since DR.. Schacht
still refused to participate In the inter-
national bank.
The conflict was adjusted in q few
hours, for the new finance minister. DR..
Moldenhauer. q friend of the late For
eign Minister Stresemann, is an ener-
getic man. The German delegation de-
cided to compel the Reichsbank by law
to participate In the international bank.
obey the law. To this extent the af-
fair is now settled, but the Reichsbank
presidents authority, which was at its
zenith at the end OF December, has
been severely shaken, for nobody under
stands his latest step.
Nevertheless, IL can be greatly doubt
ed whether the Socialists battle against
him can succeed, for the Socialists are
not fighting his reparations policy but
his credit policy, which Is uncomfort-
able for them, land for this very reason