Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-14
CAPITAL EMBARGO
HELD REICH NEED
First Step in Financial Trou-
BILE Solution Seen Up to
German Government.
BY MARK SULLIVAN.

The financial situation in Germany
has been closely watched for several
weeks by the administration at WASH
ington by heads of the financial de-
partments of the Government ana by
the important bankers of New York. 1t
ss easy to observe that, while they re-
uard the financial crisis in Germany
3ravelv. they have nothing like the
concern of a few weeks ago until the
success of the proposal Tor dept posi-
ponement was assured:
They are confident that the adoption
Of the debt suspension cures LOT the
nresent the fundamental and menac1ng
part of Germany's difhculties. Inc
present financial troubles lend tnem-
selves to cure, and 1t VIII De IoItnC 1n1,
ing. So far as it requires flnanclal nelp
from the great banks of Great Britain,
France and the United States, IL can
be confidently expected.
Germans Step First.
It is clearly and strongly held, now
ever, that the first step, or certainty
a simultaneous step, IN SOWING he
manv's financial troubles, must DC
taken bv the German government IL
will consist of actions to prevent Ger
wan citizens and corporations from
shinnine gold and other forms of capl-
+ai out Of the country This kind OF en-
harpo on the export of capital or golo'
~. both is familiar and simple. II was
nut into effect by the French govern
Inent with respect to gold as recentty
as five years ago. 1t mas peen pu' nioo
effect by the German government '"i'e
within the past 10 years.
unnecessary emphasis upon Ger
manv's present financial troubles y
caused by its nearneSS IN Time 10 1lle
action about potponement OF oepts.
cause of the recent tenSeneSS ABOUT ueoI
postponnement, newspaper heaoilnes; %
we'll as the minds of readers, teno 10 oeal
with the present financial oeVelopnissn nIst
-, on eyaprerated way. The two, DEBT
nostponement and the financial Crisis
are. of course, associated. The aSsocla-
flor, however, is different from Wnat Is
commonly supposed In debt postpone
ynent the primary intention was TO avert
political revolution in Germany.
The cause of the danger OF revolution
was a widespread feeling among the
German masses that the entlre Wes 800
world regarded Germany with hate. Inls
trnnression was stirred up and advan-
tage was taken of its radical leaders. rms
desperate feeling on the part of the Ger
man masses, however. has been aoated
nv the spectacle of the United StaUs
taking the lead in the postponement OF
reparations and by the Willingness OF
other nations to unite in postponemcnt.
germany today has happier stanolng
in its international relations than at
anv time since the war. With the dan
ger of political revolution averted, tne
financial difficulties of Germany. while
grave, need not cause excessive alarm.
French Stories Repeated.
It is only five years since the same
headlines now being used about Ger
many we're being used about France.
In 1925 there was a flight of gold from
France lust as there is now flight OF
capital from Germany. The French
government acted to stop the export OF
gold lust as Germany must now take
stems to stop the export of capital. AT
that time there was the same alarm
about France that there is now about
Germany. 1t was in August, 1926, that
American newspapers and periodicals
spoke of THE most desperate situation
for France since the battle of the
Marine" and said that "in the darkest
days Of the World War the outlook for
France was never gloomier."
Scores of such phrases and headlines
about France appeared in American
newspapers of July and August, 1926.
The uneasiness about the financial fu-
ture of France and the franc were as
great as the present uneasiness about
Germany and the mark. Because of
the strong steps taken by the French
government four French cabinets in
succession became unpopular and went
out of Office. No doubt the German
guvernment in the present crisis will be
obliged to show the same strength and
courage and run the same risk OF po-
ltical unpopularity.