The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-07-21
BY ROBERT ]. BENDER

kclg AANA ~ NA~HbAS AAADN NAAN% ADAS
most, Finance Minister Herman
Dietrich said today.
Dietrich acting chancellor in the
absence of DR.. Heinrich Bruening,
outlined frankly in an interview
Germaiy's plans for utilizing cred
its which may be granted by the
powers. Such credits, he said,
would not be used to cover short
term foreign loans, which would not
afford Germany any immediate
benefit.
He made it clear that Germany is
not drifting aimlessly, but is deter
mined to steer a planned course by
means of the Paris and London
conferences. He also revealed Ger
many's attitude toward several Of
the reported political demands Of
the French.
Germany's plan, he explained, is
to use credits from abroad for in
ternal debts and eventually for the
benefit industry, so that Ger
many may rehabilitate herself and
place the country on a sound basis
from within.
Needed for Breather
THE rediscount credit we are dis
cussing at London" he said, lis
needed for a breathing space to
bring our banking and credit sys-
tenn into shape. Our aim is to re-
place the discount credit by long
term loan of the same amount, but
1t would be childish to assume it
can be accomplished in two days
at London. We plan that the re-
discount credit will not be used
merely to serve to cover Che normal
note circulation.
Employment of the loan to pay
the short-term foreign debt would
afford no relief to Germany and
bring no new capital to the country,
so we are determined to use it for
internal debts, notably those Of the
states and communes and event.
ually of industry procedure that
would liberate a corresponding sun
at home, which would replenish the
depleted monetary credit, supply
private banks and savings banks and
place fresh credit at the disposal
of business.
simultaneously, a long term
foreign loan, because it would be
paid to the Reichsbank in the form
of foreign currency. would give the
ReichSbank an opportunity to in
crease the banlnote circulation"
The vice-chancellor told how he
had not slept over four hours a
night since the outbreak of the
crisis with the exception of only
one or two nights. He referred to
what he believed to have been re-
mark by the famous English states
man, DisraeH, to the effect that
there are two things that drive
men mad-love and worry about
money.
Suffers From DefiatiOn
Contrasting the present crisis
with that Of 1923 in Germany,
Dietrich emphasized that Germany
now is suffering from def1ation, not
from imitation. He added that the
defiation was due to the loss of
gold cover for German banknote
circulation. France, he pointed out,
with only two-thirds of the Ger
man population and one-half the
German industry, has over twice
Germany's note circulation.
He was asked:
What do you think about
Frances attempt to get Germany's
official pledge that the Young plan
payments will be fully resumed on
expiration of the Hoover holiday
year?"
Carefully considering his words
as he slipped liqueur, Dietrich re-
piled.
Germany now is in a position
where private debts largely have
been called. 1t is a point for us
to pay those debts. Whether and
to what extent payment of our po-
litical debts is possible in addition
to payment of our private debts can
not be discussed now. AS an indus
trial. country, we must undertake
every effort in our own interest to
pay private debts, because other
wise we would be unable to main
tain our foreign trade"
Answers DiplomaticaIly
He replied automatically to a
question the German attitude to-
wards Germany's suspending build
ing of her second pocket battle
ship"
In order to avoid becoming COM
pletely defenseless," he said, Ger
many is obliged to take advantage
OF the opportunities which the YER
sailles treaty offerS-opportunities
which are most limited and which
left Germany very little power"
In conclusion, he was asked how
the German government reacted to
the French proposal for a ten-year
Franco-German political truce.
during which Germany presumably
would be bound not to seek revision
OF the Versailles treaty. He replic5:
Germany is determined to pursue
its objective only by peaceful
means. Consequently, I can not
state our attitude towards the pro-
posals for truce, the contents of
which do not know"
Resident IS Years Dies
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