Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-07

Continued From First Page)
becoming more dependent upon foreign
assistance to keep its paper circula'
ton adequately covered.
Fear Disastrous Effect.
Every effort is being made to avoic
imposing too drastic restrictions or
credits at home, for this would have
a disastrous effect on domestic trade
and industry.
1t is considered here that there Is
not likely to be any serious difficulty
in obtaining ali extension of the AGO.
100000 marks credit from the 1nterna'
tional banks of issue when it natures
on July 16, for that loan yields gooc
interest. But this is hardly enough tx
meet the country's needs. and 1t is un'
derstood that efforts are afoot to in
crease the credit by at least another
200,000,000 marks, and preferably BY
twice that amount.
What Germany really needs, compe-
tent authorities agree, is a long-term
loan. which would enable it to turn
around without the worry of meeting
Short-term credits when they fall due.
The extreme scarcity Of money-yes-
tcrday day-to-day money commanded
tainable at all. relaxing somewhat this
morning-hit the market just at time
when the financing of German harvestS
usually takes place, and the effect was
embarrassing.
May Export Wheat.
In pursuance of the government pol
ICY, German farmers for the past yeal
CT 50 have been planting more land tc
wheat in preference to rye, to avoid
mourning liabilities abroad by import
ing foreign wheat.
The government now finds it neces-
sary to readiust its agrarian policy &c
the needs Ct the moment. and since
bumper crops are expected, Germany
may become for time a wheat export
ing country.
In the proclamation issued today
President Hoover's initiative is described
once mere as far seeing and states
manlike"
The Presidents initiative has been
crowned with success" the proclama-
ton says. The spiritual relief anc
the hope for improvement of economic
life which this result brings with il
releases friendly and happy feelings on
all sides.
The decision to act quickly and de-
for the recovery of the world.
The German people are fully con-
scious of the fact shat the final opera
ton of the Hoover plan will bring tC
them. as the nation most heavily
weighed down, the greatest relative
relief.
Express Gratitude.
THE agreement concerning the yeal
of - hn
through the sympathetic cooperation
of all concerned.
Some states were compelled to take
unto themselves an increase of theil
own difficulties and considerable in
convenience. The high-minded re-
nunciation of the American people
however, called forth praisewcrthy
echo.
I'VE gratefully acknowledge that ir
her hour of most serious economic
danger Germany was accorded this un'
derstanding of her position.
Even after the beginning CT the
year of respite. Germany is not re-
lieved of her economic and fnancia
difficulties.
She cannot use the means now re
naming for her to lessen the sacrifice
which the government had to demant
from the people, but some seventies vii
| be reduced.
The German people may not Stacker
their extreme efforts at economy.
All the alterations which the Hoove
plan will bring will. without exception
be needed and used for consolidation o
our public finances.
Cooperation Essential
Whatever alienation may come t.
the credit and money market must re
bound to the aid of Germanys econom,
and business.
During the year of respite it will b.
impossible to increase the expenditure
of any government department in an.
way.
The chancellor has given the Ameri
can Government unmistakable declara
tons in this connection.
The Hoover year is to serve for tn
restoration of Germanys economy. ant
beyond that, for the economic recover.
Of the world.
IF this goal is to be reached within
the time set, close cooperation by al
the peoeles of the world is essential"
In line with its policy of economy
the government today notified tn,
ministry of defense that no militar,
maneuvers will be permitted this yea
because of the expense involved.