Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-11
GERMAN PEOPLE
IN FINANCE PANIC
Fear Crash win Come Before
Preventive Steps Can
Be Taken.
By the Associated Press.

By the Associated Press.
BERLIN, July 1.-THE tension with
which Germany awaits the outcome Of
the credit-seeking race against time Of
Hans Luther, president of the Reichs-
bank, today took on in wide sections Of
the Reich the semblance OF hysteria.
People with small savings are buying
American dollars the families and
wealth of many of the well-to-do are
heading toward Switzerland.
Many Of the German buyers Of for
eign currency are collecting dollars.
pounds or francs because they are wor-
ried about the possible actions Of Adolf
Hitler and Alfred Hugenberg. leaders of
the oppositionlst parties. Others have
apparently resigned TO the despairing
belief that financial and industrial
crash will come before preventive meas
ures can be agreed upon.
Either way, their purchases of foreign
currency are helping TO stimulate the
perilouS, persistent drain on the Reichs-
banks gold reserve, already suffering
enough from the withdrawal Of short
term credits abroad. indicative of the
extent to which some have surrendered
to the panic pSychoSlS is the fact that
there are many applications at banks
for gold dollars, paper currency even OF
the American issue having lest its ap-
peal.
Bankers have pointed out that there
is no danger of another inf1ation-the
real danger being credit crash-out
their argument goes over the heads OF
the little people, who lost their life saw
ings in the postwar imitation, and they
go to the bank with what they can
scrape together TO ask for its equivalent
in foreign money
The gloom in government circles
over Frances disposition to make credit
assistance TO Germany contingent on
political concessions hasn't been light
ened any by the merging of the Hitler
and Hugenberg forces into united
Nationalist opposition" nor by the
subsequent declaration OF the Steel Hell
met organization that the Hoover debt
suspension plan is doomed to failure
because with its present government
Germany is lat the mercy of the French
policy of might" Chancellor Bruenin1.
caught between the French demands
and the new aggressiveness of the Ma
tionaliSt opposition, is said to wonder
him to make room for a Hitler Hugen-
berg government or whether those fire.
brands are deliberately trying to ruin
all chances of forestalling a credit
crash.
Press Is Indignant.
The press is practically unanimous
in indignation over the French atti-
tude. The Rightist papers call 1t
French blackmail" and the Socialist
Vorwaert sees it as Paris pressure on
Berlin" The pro-republican press con-
dennis the Nationalist action as "a stab
in the back" at the most delicate stage
Of the Luther mission, while the
Vossiche Zeitung SCOTS at threats of
putSch with the question: Are Hitler
and Hugenberg trying to- scare us?'
The Nationalist press bureau replies
with the statement that the opposition
would glady get behind the Bruening
government If there was confidence
that it was capable of leading the ma
ton in struggle to revise the YER
SailleS treaty. I'VE know that those
responsible for Germanys present plight
haven't the strength to oppose Frances
will TO destroy" the paper says. The
way they're losing their heads now,
trying one desperate move after an
other, is the proof thereof"
The Nationalist opposition is ready
to take over the responsibility of the
government at the proper time. it IN
said. and hopes that will come before
Germany has entirely collapsed and be-
fore the political and economic nego-
tiations as to Germanys future have
begun"