Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-12
Germany's Desperate Plight.

To a world which gave vent last week
to justifiable enthusiasm over the &C
ceptance of President Hoover'S debt
plan, it probably comes as a shock to
learn that Gcrmany's financial plight
nevertheless is more desperate than
ever, and that that country is lowering
on the brink of catastrophe. DR..
Luther, president Of the Reichsbank, is
back in Berlin from London and Paris,
where he went in quest of one-year and
two-year credits to Germany. aggregate
ing between $500, 1000, 900 and $780, 00,-
600. Some half of these loans, 1t was
planned, should be forthcoming from
central banks of issue abroad, including
the Federal Reserve Bank Of New York,
and the rest from private banking con-
sortiums In the leading credit centers.
It was in Paris that the Germans en-
countered snags. France acquiesces in
the reasonableness Of the Reich's right
10 ask for help and recognizes that its
tottering financial structure is a mat
ter for general rather than purely Ger
man concern. But France sets condi-
tions. They spring from her ancient
and iniexible demands for "guaran-
tees" Security-that is, against the
peril Of a restrengthened Germany
that might succumb to her anxiety for
revenge-remains the angle from which
the French cannot be weaned, as they
envision even the suppliant traditional
foe"
What France specifically requires as
the price Of participation in the finan-
cial rescue Of the Reich is % cessation
of the construction of the powerful
pocket battleship" Deutschland, re-
Gently launched; CD dissolution Of
politico- military organizations like the
Steel Helmets, which stage periodical
warlike demonstrations, and go aban-
donment Of further efforts to bring
about a customs union with Austria.
Evidently events are crowding to crisis
and to point where the Germans must
choose between governmental bank
ruptcy and acceptance of Frances
terms.
The choice is a difficult one for
proud people like the Germans to make,
especially in a situation in which France
dictates the terms. Rather than yield
to them, President Won Hindenburg is
said to be ready TO resign. His attitude
betokens that Germany's national honor
is engaged. No government likes acting
under even the semblance of duress.
Yet If ever country and government
we're confronted by what Grover Cleve-
land called "a condition and not a
theory" that country and government
is the German Republic.
The German people are about to be-
come the beneficiaries of an historic
vote of international CONFIDENCE
years respite for payment of the huge
reparations that would otherwise fall
due this week. 1t would be fitting
display of their appreciation, as well as
of enlightened self-interest, If they come
to the conclusion that, high as they may
find the cost, 1t Is not too heavy a one
to bear for the greater things at stake.
To keep the Reichsbank intact is
vital necessity. Neither the 10,000-ton
Deutschland nor immediate tariff An
schluss with Austria, by any stretch of
the Imagination, can be so described.
Nor is the Germans present frenzied
expectation of their own capital, through
investment in foreign currency, reas-
surfing sign to the rest of the world that
they cherish confidence in their own
strength and their ability to weather the
storm through which the Reich Is now
passing.