Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-24
GERMAN LEADERS
NOW LOOK TO u. S.
Count on Stimson's Influence
With Financiers in Quest
for Further Aid.
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(Continued From First Page)
don with a couple OF billion marks In
his grip.
The Nationalist Boersen zeitung, for
instance, saws the chancellor undoubt-
edly did what he could in his position
as supplicant The tottering German
house is for the present underpinned,
the paper says-and adds that the con-
ference amounted to small creditors
meeting and that the leaders Of the
participating nations still seem unable
to grasp the gravity of the world sit
uation.
The Boersen Zeitung expresses hope
that realization is dawning that rep
atoms payments are the root OF the
worlds evils.
The Lokalanzeiger remarks that Herr
Bruening's expression OF satisfaction
with the conference must have come
from wry mouth.
Even the Nationalist Deutsche
Tageszeitung, which considers the con-
ference disappointing, sees clearance
OF the world situation which must be
beneficial to Germany.
The IndustrialiSt Deutsche Allge-
meme finds its chief satisfaction in
Herr Bruenings side-stepping of French
political demands. The paper says
catastrophe still may be avoided, but
every hour is precious.
Credit Crisis Acute.
The Social Democratic Vorwaerts AND
the Democratic MorgenpoSt plead fol
the cultivation Of better understand
ing with France.
Meanwhile the credit crisis has be-
come so acute that some bankers are
measuring the remaining margin OF
safety in hours. Reports that the
Reichbank would boost its discount rate
to Is per cent have been denied. but
those in a position to know regarded II
as certain that the present 10 per cent
rate will be increased to IS per cent
which would be the highest in the
Reichbanks history.
The theory is that such a high rate
would force the money back into the
Reichbank and at the same time a
further reduction Of the gold coverage
to 80 per cent would permit issuance
of additional Reichbank notes to fill
the gap created by boarding of cur
rency to meet obligations at the end
OF the month.
In some quarters it is insisted that
limited measures will not be enough
and that the Reichsbank must issue
enough currency to tide the banks over,
ItRdI VI WIldb 4ldpPCLlS W Vic 6Olu
coverage.
Favor Gold Standard.
The government and Reichsbank Of
ficials view with the greatest reluctance
any measures which would involve de-
parture from the gold standard, and
it is asserted the crisis now is not mere
~ one of currency, but one of capital.
Initiation would provide money for
internal needs. but Germany must have
gold or its equivalent for import pay
ments and other foreign obligations,
and as one cabinet spokesman said,
only France has the gold which can
be brought quickly enough to save us"
There Is a general agreement that
for the next few weeks Germany must
clear away the obstacles in the way of
an understa nding with France, and the
hope has been expressed that during
the next six weeks the financial struc-
ture can be held together so the Aus
TRAN Customs Union might be dropped,
quietly and further financing of the new
vest-pocket battleship could be quietly
discontinued on the ground Of economy.
If that should be done, by the time
the next Franco-German loan parley
begins the outstanding points of fric-
ton would have disappeared.