The Bismarck tribune., 1931-07-13
Leaders Hope to
Avert Financial
Ruin of Country

central banks in relieving the situa-
ton.
The administration, however, be-
lieves plans for preventing collapse G.
the German government should orr
ginate with European banks.
James w. Gerard, former American
ambassador to Germany, said if the
crisis remained much longer NAL
leviated, communism might sweep
Europe.
The Communists and National So
cialist parties Monday served a de-
mand for early convocation of the
reichstag in view of the political sit
uation abroad and the economic sit
uation at home.
Reports were persistent in London
financial circles that credit of $780,
0O0, 900 (about $300000 00O) has been
arranged for Germany by a combina-
ton of banks including American and
British. The reports could not be
confirmed in London or Wall Street.
Speedy financial relief for Ger
many was declared essential in a re-
port to the u. S. state department
from Ambassador Sackett at Berlin.
Several German banks decided to
pay only a percentage of cash with
drawals. To allay alarm among de-
positors, the. association of German
savings banks issued a Statment say
ing their members would meet all
withdrawal demands up to the legal
maximum.
The .Darmstaedter and National
bank, with capital and reserves OF
about $4,000 900, hung notices on its
doors it had been. compelled to sus-
pend payment.
Government Assumes Debts
The notice carried assurance the
government would guarantee all de-
posits and that orderly liquidation"
of the banks business would be car
ried out
To protect other banks, the govern
ment decided to issue an emergency
decree binding all important banks
into a credit block through which
any weak unit would be protected by
the assets of all, and creating spe-
cial commissioner with extraordinary
powers to combat the alarming run
on foreign currencleS.
The Prussian minister of trade or
dered stock exchanges in the Province
to remain closed Monday and Tues
day and at the request of the central
government all other bourses did like
wise In order to forestall a possible
panic.
Bruening and his cabinet worn out
by 10 hours Of almost continuous ef-
forts to save credit and industry,
broke up their conference with lead
ing bankers early Monday morning
and snatched few hours sleep in
preparation for resuming the struggle
later in the day.
A decree embodying substantially
the same measures as are con-
templated now would have been pro-
mulgated Sunday night-it was al
ready in type-but the bankers de-
veloped unexpectedly stubborn op-
position, fighting against making
themselves liable for the huge losses
Of the Darmstaedter and National.
When the bank finally was thrown
overheard, financial leaders seemed
more inclined to enter a national
credit block whereby they would stand
or fall together.
Urges General Moratorium
Jacob Goldschmidt, head of the
Darmstaedter, said general mora
torium by all the banks in Germany
should be declared Immediately. He
said such a move should have been
taken weeks ago.
The storm of short term credit
Withdrawals from abroad in recent
weeks, concentrating on his bank and
eliminating in its collapse, he char
acterized as the result of mad, un.
reasoning panic among foreign lend
ers."
The disaster which befell his bank
had threshold origin, he said
first, q political campaign Of rumors
against the bank (The National So
cialist Press has been active in this
respect recently; second, world
Wide psychological crisis, particularly
In connection with Germany; and
third, collapse Of the Nordwolle al
Bremen. Germany's largest wool
combing firm. In which the bank lost
heavily.
Bruening appealed to the German
people to keep their heads and not to
make things worse by losing conf
, dence In the fatherland.
4