Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-14
HINDENBURG GOES
TO REICH CAPITAL
President and Dr.. Luther
Plan Action in Financial
Emergency.
CONTINUED From First Page.)

The government seems to fear Com
munlSt agitation more than National
Socialist propaganda. Hitler's follow
ers have no clear program beyond an
often-repeated threat to seize the gov
eminent.
One of the ironies of the situation
seems to be that one Of the chief back
ers of the Rightist Radical movement
was hard hit by the collapse of the
Darmstaedter Und National Bank and
no longer is in position to help finance
the HitleriteS.
II things should get out of hand and
the Bruening government should fall,
political observers believe there would
be only brief period of national So
cialist government before the Com
munists would take it over.
In accordance with a decree by Presi-
dent Won Hindenburg, all banks through
out the Reich, with the exception of
the ReichSbank, were c1osed-nominally
until Thursday, but actually as long
as officials deem advisable to restore
confidence
The ReichSbank is the central bank
Of Germany, corresponding to the Bank
OF England. There is no institution In
the United States whose functions CORE
spond exactly with those of the Reichs-
bank
Both banks and post Offices were
prohibited from handling payments or
transfers either in Germany or to for
eign countries. Stock exchanges were
ordered to suspend operations for the
remainder of the week. Any one insist
ing on buying foreign currencies had
to pay cash over the counter. Checks
were not accepted.
The government promised that ar
rangementS would be made to facilitate
the continuance of ordinary business,
including the meeting of mid-month
pay rolls of civil service employees.
Savings Bank Guarded.
The vital question remaining to be
answered was how would millions OF
Germans-particular the Left and
Right Radical elements-react to the
Presidents drastic step to halt the
threatened nationwide run on the
banks. started by the failure OF the
Darmstaedter und National Bank.
President Won Hindenburg did not
take advantage of his dictatorial pow
ers until dispatches from the provinces,
especially from the Rhineland. indi-
Gated that civic authorities already had
been forced by heavy runs to close
municipal savings banks temporarily.
Berlin was quieter but hundred police
Tile SCIOId al NHuLlASAPdA savings
Bank as it paid out heavy deposits to
thousands.
Riots of jobless in Essen and Duis-
burg against the reduction in the I'M
employment dole. which unluckily went
into effect on the day of the Danat
Banks suspension, were not reassurlng.
Nor was the news from Frankfort-au-
Main that the latest attempt to show
IAN Quiet on the Western Front had
been marked by the hurting OF hand
grenade in an empty rneater lobby.
Berlin today seemed outwardly 10
have accepted her financial situation
philosophically.
MANY bank depositors who do not
read newspapers until later in the day
and therefore failed to see the govern
ment decree closing the banks In TINS
mornings editions. gathered at bank
doors. where they exchanged angry
words with officers on duty, but went
home without further demonstration:
The loquacious groups seen yesterday
at street corners had vanished
Public Urged to Keep Nerve.
Radio broadcasters worked overtime
in urging the public to keep its nerve.
not to surrender to panic and to re-
member that Germany was baSlcally
sound There was no inclination in
government circles to eXaggerate the
peril of panicky people, yet the caol-
net in a nightlong meeting was con-
cerned as much with the internal stu
alton as with the possibility OF help
from abroad.
Nevertheless. the news from Basel
that the directors of the Bank Tor
International Settlements had urged
assistance for Germany brought a ray
of optimism which was not magnlneo
in press comment, most OF which re-
f1ected a widespread feeling that IL
was too late to get excited over the
promise of future relief.
Yet. several papers viewed what was
generally regarded as the blacklist
financial situation in years, with almost
philosophical detachment.
The Democratic Vossiche Zeitung, Tor
instance, predicted the result would be
the export of Germany's surplus prod
ucts at almost any price and that II
the government remained strong ana
acted vigorously the crisis would be
overcome and in the long run would
turn out to have been all in all tar
the best.
The democratic Morgen Post sardon:-
cally observed that Germany now was
paying for the millions of votes cast
for Adolf Hitler, Fascist Eader, last
September. THE German voter lost
his head then" the paper said. Gould
we really expect in other countries that
they should keep theirS-that means OF
course, first of all, France?"
Blessing in Disguise Seen.
The Nationalist Lokalanzeiger pointed
out that sudden Withdrawals from saw
ings banks might be blessing in dis
guise. saying for the money soon VIII
find its way back to the banks via the
shopkeepers, meanwhile enliVsning
trade"