Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-16
Now Up to Germany.


from the German financial situation,
but conditions are far easier than
week ago and permit the conclusion
that sooner or later. they will cross the
border line Of normally. The German
government, talking to the whole
Reich over the radio last night, urged
the people Ito use common sense,
stand behind the country's leaders and
bear personal Inconvenience with pa
triotic patience
The period of panic which menaced
Germany at the beginning Of the week
following the closing OF great ma
tionaI bank has subsidized although
there were Communist outbreaks at
isolated points yesterday which the po-
lice had to quell with clubs and a few
pistol shots. 1t Is the German govern
ment itself which has pulled itself TO
sether and by doing SO has restored pub
lie morale. Berlin did not resort to
wholesome measures of lf-preservation
until stern reminders came from abroad
that before Germany could expect out
side assistance there would have to be
demonstrate indications Of inside as
distance.
President Hindenburg Chancellor
Bruening end Reichsbank President
Luther took the hint, and not a mo-
ment too soon. They suppressed stock
exchange operations on Monday and
Tuesday, and permitted their resumption
only under highly restricted conditions.
The banks were closed until this morn
ing and then reopened merely for CASH
ing of pay roll checks, diSbursal of
money needed for taxes, honoring Of dole
vouchers and other necessary activi-
ties. The Reichsbank has lowered the
coyerage on currency required by law,
thereby releasing millions Of marks to
ease the credit situation made perilouS
by heavy withdrawal OF foreign credits.
Finally the Reichsbank raised its dis
count rate from seven to ten per cent
ard hoisted the rate of interest on col
lateral loans from eight to fifteen per
cent. Both these measures are designed
to keep the expanded currency down to
actual needs and to forestall imitation.
There is rs yet no confirmation of
another impressive step said to be pro-
jected-the appointment OF DR.. HAL
mar Schacht, former Reichsbank pres
1dent and arch-critic OF the Young
plan, to be dictator Of currency" De-
spite his onslaught on the existing rep
arationS system, DR.. Schacht's reputa-
ton a. . banker and economist is so
high at home and abroad that his ele-
vation TO autocratic power over Reich
finances is welcomed, even as a pros
pect.
Today the Hoover mora torium plan
10 in operation. More than $425, 00o, 900
Of German reparation annuities, other
wise payable during the coming year,
are suspended. The equivalent amount
Is at Germany's disposal for recuper-
alive processes. The Reich has not
yet succeeded in inducing the central
banks Of Europe and the Federal Re-
serve in the United States to advance
another 5000, 900, 900 or $500, 900, 900 in
long-term credits. Berlin is on notice
that such transaction will not enter
into the realm OF the debatable until
Germany has made further advances
along the path of self-help and effect
TALLY put her house in order. For the
moment, the Reich must be satisfied
with the ninety-day extension Of the
500, 900, 900 credit received on June Is.
The Federal Reserve 10 quarter part
ner in that loan.
The best news out Of Europe today is
that France Is less determined than
she was couple Of days ago TO i'm
pose stir political demands upon the
Germans as the condition for further
financial aid. To what extent the Hoo
yer Administrators announcement
that America will not associate itself
with such demands-may have softened
French purposes Is not In evidence.
But Paris new attitude is = welcome
development. 1t should spur the Ger
mans on to intensified effort to work out
their own salvation. The Hoover plan
has given them an invaluable start.
The rest Is up to them.