The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-07-14

formed Ialrly c0nfldenC the
government would find a way
out and a big international
loan would come to prevent a
crash.
The feverish excitement of
the last few days bad abated
somewhat into a sort of dull
apathy.
Nevertheless the cries of women
before the locked bank doors, clam
oring for money to buy bread and
the exhortations Of Communist agi-
tators in the Ruhr. Germany's
Pittsburgh area" gave to the scene
still a touch of desperation.
Closed Under Decree
Banks we're closed under presi-
Dental decree for today and
Wednesday, but it was hoped they
could reopen Thursday, in time to
distribute funds to meet wage and
salary payments.
The Bourse was closed for the
week, and commodity exchanges
followed suit, in a strenuous effort
TO prevent panic runs on banks,
and particularly a drain on the big
banks through Withdrawals of for
eign currencies from Germany.
Germany, Tong schooled in the
hard discipline of years of the
"verboten' era, responded stolidly
to the emergency measures.
Even the news that the bank of
international settlements at Basic
had agreed to a renewal of credits
to the Reich-With prospect of in
ternational loans to tide over the
present stringency-did not alto
gether allay nervousness of the
past fortnight.
Gather Before Banks
Housewives gathered before many
municipal savings banks, calling
for their deposits.
'Wir muessen Gelt haben; Wir
brauchen Brot," they called.
I'VE must have money; we need
bread"
The United Press correspondent,
witness of a scene like this before
one of the banks, saw a bank Of
fetal come out of the barred doors.
He almost was mobbed.
The women besieged him with
frantic appeals to get money out OF
the "sparkasse" (savings depart
ment). He Gained them, telling
them that even the officials we're in
a similar predicament.
MY wife is in the same fix as
you" he said. She's almost des-
perate because she can't buy food
and groceries"
Meantime, the cabinet considered
a proposal for introduction of
purely domestic currency, like clear
ing house certificates, supplanting
the mark for internal use. 1t was
believed designed to prevent marks
from going abroad and to prevent
imitation such as marked the violent
collapse of currency after the World
war.
Situation Is Aggravated
The situation here was aggra-
vated by news from central Europe,
showing that the financial strin-
gency was spreading eastward. In
Hungary all banks were closed, and
there we're isolated cloSings in Aus
tria, Rumania and Switzerland.
Communist agitatorS found the
situation ripe for their work. Ruhr
miners and SteelworkerS were har-
angued by agitators, and the Com
muniSt newspapers published scare
heads, warning laborers that Your
wages are endangered
Revolutionary trade unions in the
region summoned special meetings
of the so-called Kampf eight or
battle) committees for Wednesday
to declare that the time is ripen-
ing for a revolution.
There appeared little real fear of
a cessation of wage payments. how
ever. An executive of the German
trade union federation told the
United Press that the danger that
wages will be withheld is not acute,
Reichsbank having assured that
precautions we're taken to meet
wage payments Friday and Saturday
promptly.
May Be Complete Freezing
Our greater fear" he added, lis
that there may be complete freez-
ing of all credit sources which would
result in a new and immense stop
page of industry. throwing out of
work hundreds of thousands and
perhaps even millions of additional
workers. Already there are 4,000,-
coo unemployed, and such a devel-
opment would bring a terrible ca
tasprohe.
A spokesman for the government
gave a note of optimism when he
told the United Press that the cab
met is confident the banks can re-
open Thursday, though he admitted
it depended largely on the success
of President Hans Luther of the
Reichsbank in negotiating a foreign
credit of at least 100000 900 in the
mean time.
American banking sources reacted
pessimistically, and some sources
believed Germany would be obliged
to proclaim national moratorium
on private debts.
The representative of one United
States bank told the United Press
that such a moratorium might
force quick foreign action for Ger
many's benefit" or it might cause
foreign financiers to conclude that,
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