Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-12
SPARTAN MOVES"
WEIGHED TO AVERT
! GERMAN COLLAPSE
Bruening and Cabinet Men,
bers Hold Albright Meeting.
Reach No Decision.
BANKERS ARE SUMMONED;
U. S. MESSAGE DISCUSSED
Bitter Attitude Toward France Is
Shown as Luther's Loan Mis-
sion in Paris Fails.
BY the Associated Press.

BY the Associated PRESS.
BERLIN, July 11.-Chancellor Breun-
ing and members of the German cab
met adjourned this morning at 2 am,
tired and haggard after an all-night
meeting spent in discussing what were
called Spartan moves" to avert a
financial crash in Germany.
They decided to meet again at IL
am. and announced no definite deci-
sions as the result of the conferences.
A semi-oficial communique issued
after the adjournment stated the en-
tire cabinet might be called together
this afternoon.
Bankers Summoned.
At am a number of leading Ger
man bankers were called to the chan
cellory to participate in the confer
ence. No official explanation for the
calling of the bankers was given, but
it was understood that message from
Washington was being discussed. Am
bassador Sackett remained at the
american embassy throughout the night
to await further news from Wash
ington.
The cabinet session began after the
arrival of Reichsbank President Luther
by airplane from Paris. President
Luther came home without having OBJ
tanned French assistance for German
loan and with no hope of obtaining
it without what were considered i'm
possible" political concessions.
Among the moves to forestall f1nan-
cial crash in Germany considered by
the cabinet was the appointment of a
special "commisar Of devisen" foreign
exchange) with authority to seize
foreign currencies and other media of
payment, including precious metals, in
1.-The interest of national safety
The ACCESSIBILITY Of abandoning the
gold standard and of placing all Ger
man exports under government mon
opoly also was discussed.
Stampede From Mark Feared.
The most pressing problem before the
government, however, was what to do
tomorrow to safeguard the Reichsbank.
Cabinet members feared the public re-
action to yesterdays phenomenal out
flow of deviSen. which amounted to
approximately SIS 1000 900, might take
the form of stampede away from the
mark.
Hope that international banks would
come to the rescue with short-term re-
discount credit sufficient to carry the
dwindled as the members of the Bruen-
ang government met.
The acceptance of international bank
! Ing support at the price of what were
termed political concessions to France,
: however, was vigorously opposed by
both Chancellor Bruening and Foreign
minister Curtius. Whatever other diff
E;aerenceS of opinion may exist, the chan
9cellor and his colleagues are determined
\ that Germany will not open the door
to what they term political dictation."
The governments feeling is that the
acceptance of foreign credit under the
conditions. suggested by France would
Jbe such blow to national pride, par
ticularly at the present moment, that
. the cabinet responsible for it would no
longer remain in power.
The government 1t was said, Is not
opposed to discussing such matters as
the suspension of ''vest-pocket'' cruiser
construction If they are brought up at
the proper time and in the spirit of
International equality. The cabinet
feels, however, that what 1t terms the
pinning of disarmament demand upon
q purely financial transaction would be
deeply resented in Germany, the more
deeply because it is felt that President
Luther's hasty trip to London and Paris
in search of credit would not have been
necessary If the Hoover plan had met
speedy acceptance in Paris.
Soviet Basis Considered.
The question of placing all German
exports under a government monopoly
was also said to be one of the measures
the cabinet met to consider. Such step
would be sensational. 1t would amount
TO putting German currency and ex-
ports on what might be termed a So
Wet basis. The reason the cabinet felt
compelled to consider it, it was said, is
that the Reichsbank's gold reserve Is
now so low as to cause fear that to-
morrow's demand for foreign cur
rencies would sweep the few remaining
gold millions out of the banks reserves
In a few hours.
On Tuesday the Reichsbank's gold
coverage for currency still amounted to
,421 ,000, 900 marks, of which 100000
consisted OF borrowed money-the gold
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