Evening star., 1931-06-21
BY PAUL SCOTT MowREA.

i by Cable to The star.
| PARIS, France, June 20.-The poliu-
cal and financial crisis which Is now
MANY and Austria, has for the time be.
ing eclipsed Gil other international
problems. The widest rt1nAors are
Afioat. There Is talk OF everything
from bolshevism and civil war 70 plain
Experienced observers, however, re-
marx that it Is usually when things
seem to be at their worst that they be.
gin to get better. Only when al con:
tcerned begin to realize the gravity OF
| the situation does the taking Of Salu-
tary measures become possible.
| Chancellefies everywhere are deeply
! concerned, but for the moment 1t Is the
bankers and ministers OF flnatlce Who
are playing the leading roles. Diplos
mats say little and bankers less, yet the
spectacle of the multiple conferences
now being conducted In various cApi-
| opinion. -.
In London Secretary Of the Treasury
Andrew W. Mellon Is seeing MontAgu
Norman, governor Of the Bank of Eng
land; Chancellor Of the Exchequer
Philip Snowder. Prime Minister RAM
say Macdonald and French Financial
Counsellor LaCour Gayet.
! In Berlin the German Ambassadors
from washington, Paris, Rome and
the government.
Survey Committee Organizing.
In Paris a special committee Of bank
ers and manufacturers to study the
Central European situation, which the
government appointed few days ago,
is rapidly organising.
In Vienna representatives OF foreign
creditors are waiting to see who Will
replace the brusquely overturned Ender
government.
Tf1e League OF Nations has sent its
assistant secretary-general. j. A. M. 9.
Avenol, to London to converse with
Mr.. Mellon and others. Secretary OF
State Henry L. StimSon's forthcoming
visit TO Europe is eagerly awaited and
Messrs. Henderson and Macdonald an
nounce that they will return the recent
visit of the German leaders BY going TO
Berlin July II.
For the moment all eyes are turned
toward France and the United States,
the two countries with the greatest
financial reserves. Will France consent
to aid Austria and Germany, fnd If
SO, on what terms? Will the United
States consent to a reopening OF the
war debts question in connection with
the reopening of the reparationS, ques-
ton? This is what every one is asking.
Causes Of Crisis Analysed.
The crisis Undoubtedly is due in large
part to the world economic depression,
which, however, the Germans and Aus
trians tend to attribute mainly to the
unfavorable peace treaties. Hence their
demand for a revision of these treaties
and hence the injection of disturbing
political element into the tense psyche
logical situation.
This political uncertainty blocks the
normal How of credit. Both the United
States and France have money to lend.
The bank rate in the United States is
IL per cent: in France, per cent
and in Germany and Austria. per
cent. French and American money
would automatically flow into Germany
and Austria, If 1t felt secure. But IL
; does not.
On the contrary, political agitation
with its concomitant financial disorders
seems in the last few weeks to have
scared no less than 1000, 600, 900 marks
(abcut $3.50, ,000) in foreign credits
away from the Reichsballk. 1t Is this
flight of foreign capital from Central
Europe which constitutes the greatest
immediate danger.
At bottom, the crisis appears to be
due in large part to the bitter Franco
German misunderstanding which began
after the death Of Gustav StfeSemann
! and has been developing steadily during
the past year. Germany seems to have
felt the futility Of trying to cooperate
with france and France has hardened
toward Germany in consequences.