Evening star., 1931-06-20

arranged In the form Of credit with
the assistance Of the Federal Reserve
Bank thus pegging the gold situation
in Germany. The move would enhance
Germapy's internal and external credit.
Third, an international conference
with American participation TO re-ex-
anime the whole debt question and
scale down oermany's obligations.
BrueninK Hard Pressed
Undoubtedly the situation inside
Germany has developed TO such point
that the FaScistS are as dangerous to
German stability as are the Commu-
nists and both sides are crushing the
government of Chancellor Bruening so
that If he II to keep Germany from
falling into the hands Of either ex-
treme faction he must have help. In
other words, he wants to be able TO
show the German people that by stand
ing Squarely behind him relief can be
obtained and that the overthrow Of his
government would only bring chaos.
Germany'S debt to the allies are two
fold-conditiona and unconditional. If
moratorium can be declared. only on
the conditional debts so that the
sums that have to be paid by the al
lies to the United States, it would still
leave Germany with an Unconditional
debt from which she could get no relief
through q moratorium. Under the
circumstances the opponents of the
Bruening government are not going to
be satisfied with O moratorium. 1t
would appear therefore that in addi-
ton some kind Of international loan
to stabilize Germany's gold situation Is
absolutely essential.
ned - AA ~
formula, the biggest thing that has hap
pened Is the change in American for
eign policy, which has come with such
q suddennesS that 1t can be accounted
for only by the grave emergency threat
ening the European continent. There
Is also the fact that American econom-
ists have been insisting that the busi-
ness situation In the United States
cannot get better until assistance has
been rendered by the United States to
Europe. Recognition Of this fact by
President Hoover has led to the sum-
moning of the leaders of all political
groups here with the idea that party
strife may be put aside so that the
President. without calling special
session Of Congress, can proceed to take
the necessary steps in international CO.
operation which may be dictated by the
DEVELOPMENTS of the moment.
The largest obstacle to cooperation
between the United States and Europe
has been the fear Of political entangle-
ments in the internal affairs Of other
countries. The League Of Nations Is
sue left its residue in American poll
tics so that any treaty with European
countries involving obligations on the
part of the United States to protect
Europes peace would never be ratif1ed.
Susceptible 10 Attack.
But economic cooperation is some
thing else. 1t is susceptible to attack
by the politicians, OF course, but on
the other hand none Of them would
take the risk Of opposing course Of
action that looked toward improvement
of the business situation in the United
States through the help extended
abroad. Mr., Hoover could, II he liked
charge his opponents with delaying the
economic recovery of the United States
should any obstructive tactics be pur-
sued by politicians.
Such assurance as the PRESIDENT Is
getting from political leaders here are
Of the most general character ana re-
late solely TO the present emergency In
Europe. Unuuestionably he has been
STRENGTHENED in his determination to
60 ahead by O feeling that what the
leaders of the opposite party and MS
own party have told him mSureS
united public opinion.
The country will not know for some
time exactly how effective the proposed
measures will be, but the crisis calls
for action Of some kind and brief
statement from the White House to the
effect that measures were being consid-
cred ."to strengthen the German situa-
ton" carries with 1t moral power OF
far-reaching proportions.
It will hearten Europe IN . moment
Of great distress and cannot but help
to promote friendliness toward the
United States, thus tending to soften
the antagonistic spirit that has devel-
oped with respect to American products
and American tariff.
If the United States has to help
Europe with loans, the investors OF
America must be able to see o world Of
friendlinesS instead of hostility world
In which goods will be interchanged on
O. mutually satisfactory basis, meaning
gradual absorption by American fac
What President Hoover has said, in
effect, is that the world has become q
single economic unit and that the
financial and economic resources of the
United States which were mobilized In
1917 to save democracy from autocratic
groups may be marshaled once more
to preserve the German democracy from
the autocratic and destructive policies
Of Fascism and Communism.