Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-13
Now and 1914.

On July 49, 1914-seventeen years ago
today-Austria. under German tutelage
was putting the finishing touches to the
ultimatum to Serbia, which was de-
livered ten days later. Then ensued
that immemorial week of tension, and
the World War was alight. Diplomacy
had broken down. Long pent-up pas
sions, the ripened fruit of hatreds. rival
ries and suspicious, vented themselves
in a clash of arms which was doomed
to embroil not only all Europe. but the
globe Even remote America was to be
drawn into the vortex of blood and
tears before Mars lust for battle was
gratif1ed.
In that same core of Europe whence
Armageddon sprang in the red Summer
of 1914. turmoil and travail again bow
the hearts of men and overshadow the
political horizon. This time it is the
specter of bankruptcy which stalks
through the Teuton land rather than
GRIM visaged war. Germany. despite the
S425,000, 900 one-year moratorium in
stigated by President Hoover and eff
fective this week. is still financially
paralyZed. A great national bank has
shut its doors. The government DEGREES
the closing of stock exchanges until the
weeks Developments are clearer. A
financial dictatorship looms as fran
tic cabinet considers measures of sal
walton. feverish quest for 100000
more or less, of fresh foreign credits Is
on, in order to save the ReichSbank
from ruin and the whole German eco
nomic structure from collapse.
Happily for the German people and
the rest of the world-for other coun-
tries could not possibly escape the rami-
flying effects of a crash in the Reich
the 1881 spirit is not the spirit of 1914.
Then statesmen could think of nothing
better to compose international differ
ences than to wipe them out in rudy
gore Now the statecraft of Europe and
America is bending every effort remain
ing at its command to ward off a crisis.
The Bank for International Settlements,
created under the Young plan, is today
the scene of earnest discussion of reme-
dial action. Before its governors, rep
resentirg the principal European powers
and including an unoff1cial American
chief executive, end their deliberations
hope must endure that a way can be
found. The will to discover 1t is omni-
present. 1t is in that all-essential re-
spect that the crisis of 1881 differs from
the crisis of 1914.
The United States is not tagging be-
hind in the eleventh-hour international
plan to rescue Germany. From the
State Department assurances are forth
coming that the Federal Reserve is pre-
pared to join the central banks of
Europe in any effective plan of relief
evolved by the Bank of International
Settlements at Basic. Acting Secretary
Of the Treasury Mills points out that
the United States. as Government
has done all it can: that it has neither
the opportunity ncr the authority to go
beyond the Presidents moratorium pro-
gram Events henceforward. Mr.. Mills
emphasizes, are concerned with "a
Fundamentally European pTCDieIN.
Washington, in pursuance of "a sound
and we'll established policy" keeps its
hanes off the foreign credits policy of
the Federal Reserve System.
Having set the German economic
relief ball to rolling, the Hoover admin
istration is altogether unlikely to do
anything designed to impede its further
progress. If the Federal Reserve,
actuated by its own conception CT its
duties and international obligations
under existing circumstances. moves to
join the European rescue brigade, the
Government at Washington will throw
up no barriers.
A competent aviator can cover so