The Waterbury Democrat., 1931-07-14
BY FRERERICK KUH United Press Staff COrresDenden

Berlin, July 14.-(UP)-All
 banking activities were practical ly at a standstill to-day and the
 nation waited in sullen discontent
 while the government and fi- nancial leaders continued to strug- gle toward a solution of the
 present financial crisis.
 An emergency decree issued by President Paul Won Hindenburg caused banks throughout the coun- try to be closed to-day and to-mor- row. Runs which had become worse as the crisis developed had been anticipated and the decree was issued to prevent a panic.
 The directors of stock exchang- es in Berlin and elsewhere planned to order the Bourses closed to all trading until next | Monday as a. parallel move to pre- vent a worse crash.
 The cabinet headed by Chancel- Tor Heinrich Bruening, sitting al- most continuously for the past sev- midnight, intending to meet again to-day for further action.
 A ray of hope was seen in the | action of the Bank for Internation- al Settlements at Basle, Switzer- land, which voted to extend the | $100,000,000 credits advanced Ger many last month.
 While 1t generally was felt too early for optimism, the action of the World bank nevertheless caused brighter attitude among cabinet members, who indicated they felt negotiations for large international credit of some $300,- 000.000 soon would be successful.
 Dr Hans Luther, head of the Reichsbank, who attended the world bank meeting in Basic yes- terday, was expected in Frankfort, Germany, for conferences with bankers there this morning prior to returning by airplane to Berlin later in the day.
 The Reichsbank branches were not closed under the emergency decree, but the shuttered windows of other financial houses stared ominousIy at worried knots of de- positors whose growing discontent and uneasiness formed an increas- ingly dangerous factor In the diff ficult situation faced by the gov ernment leaders.
 The government intends to call conference of bankers to consid- CT measures assuring payment of wages and salaries. It was hoped that by the time the banks re- open on Thursday, the needed foreign credit will have been ob- tained and the panicky situation considerably relieved.
 Incidents in the crisis included the resignation of Julius Schwartz, vice president of the Berlin Bourse as a consequence of the failure of the Bank of Goldschmidt, Schwartz & Co. The banks fail ure was said to have been among the immediate causes of the clos ing of the Darmstaedter Und Ma tional (DanaD Bank yesterday. Dr Hjalmar Schacht, former head of the Reichsbank, was said to have refused the trusteeship of the Danat bank. The name of Karl Bergman was mentioned for the post, but the cabinet took no action at last nights session. The Hindenburg decree closing the banks for two days impowers the government to declare bank holidays whenever necessary. The presidents dictatorial action-tak- en under article AS in the consti- tution-empowers the government also to assume guarantees of the Danat bank, threatened by the crisis. It was insisted that none would lose by the banks closure.
 The stern old president in a sup plementary statement to the Ger man people urged them 10 Keep their heads" in this crisis.
 The advice was easier to give than to follow, 1t appeared. par ticularly among the poorer classes. Piteous scenes were witnessed out side closed bank doors. where roughly clad men and women sought to get their savings. They were assured their money was safe but the bank was closed, and they were dubious. Too many had gone through the imitation.
 Those who got their money, or part of 1.-the banks earlier had reduced payments to depositors, to conserve resources against runs immediately hurried to a shop or store and converted 1t into goods. MefHOTIeS OI tHe IulIdtiou dSoiH were behind these acts. and they wanted food and clothing white their marks were still worth al- most par value.
 The financial crisis which the nation faces is due, experts ex- plained to declining confidence in Germany's economic stability. both abroad and at home. Foreign in- terests in recent weeks began to withdraw huge sums from German banks. and this reduced the gold reserve to the danger point. German interests, noting the trend and recalling the imitation, likewise converted marks into foreign currency and in many in- stances sent their cash outside the country, chiefly to Swiss and Dutch banks for safe keeping.
 The lack of confidence in the first place was due in the main to the fact that government had to meet heavy short term credits and this caused q strain on the national treasury. The govern ment leaders sought renewed cred