The Waterbury Democrat., 1932-07-27
this problem simply doesn't arise

AlOWs ss4 5s
 The chancellor stated that the country will be in g position to deal with the communist menace and that his governments present fight against communism is aimed at spiritual and cultural bolsheyism. He added that the German com munist party would not be sup pressed or outlawed after Sundays election.
 Before further discussion of in- ternatiopal measures needed for improvement of German and world conditions, the chancellor declar- ed Germany would do it's share at home not only by drastically re- ducing public expenditure by "scal- ing down the apparatus to the na- tion's poverty"
 One of the chief reasons for pres ent world distress is the unequal distribution of gold, in Van Pa pens opinion.
 We need an arrangement for redistribution of the worlds gold supply" he continued. Germany and other nations are crippled and prevented from placing their part of the worlds business by currency troubles"
 Making the interesting pro- nouncement that Germany does not intend to abandon the gold and foreign currency behind Germany's monetary system is small, and as- serted that steps must be taken to halt drainage of the German gold supply.
 While American and other for eign bankers are seeking light on Germany's intentions regarding her vast private debts abroad, he spoke reassuringly on this subject, reiter- ating that Germany made every ef- fort to fulfil financial obligations and wants to pay her debts.
 He said that if the question of cutting interest rates on Germany's private foreign indebtedness arises, Germany will certainly not make any such move onesidedly, but will seek an agreement with her cred- itors. He finally explained that. he confidently hoped agreement with Germanys private creditors would obviate the necessity of transfer to a moratorium, (under which service on foreign debts would be paid in marks rather than transfer red into foreign currency, and the marks payments would be geinvest- ed in Germany). ~
 He left no doubt concerning "the disappointment Germany exper- fenced when the success of the Lausanne conference was unexpect- edly cut short by the way the four power gentleman's agreement be. tween Britain, France, Italy and Belgium and the Franco British consultative pact, were published and misunderstood"
 In conclusion, he observed, in commenting on the prospect of the Lausanne treaty being ratified: Germany does not feel pressed to ratify the treaty and will wait to see what other powers. do." Reconstruct Army Berlin, July 27-(U. P.) - Re- construction of her army is the only way for Germany to attain se- curity among nations which will not disarm according to General Kurt Won; Schleicher, minister o1 defense and dominant figure in the Von Papen government.
 Schleicher, in an address last night, declared himself an opponent of military dictatorship. The. Ger man government more than any other needs the support of the mass of the people, he said, and would soon fall If based solely on bay onets." .
 SchIeicher, said there were only two ways to give Germany secur- ity. First, other nations must dis. arm to Germany's level. or, second Germany must reconstruct heI l army.
 The defense minister causticall, ridiculed the possibility of othel nations disarming to the limits i'm posed on Germany by the Versail les treaty.
 In a rising voice, schieicher tolt his hearers, thence the second wa, is the only one open to Germany and we shall travel it."
 Schleicher called charges tha the junkers and militarists over
 t..rewi the cabinet of Heinricl
 Bruening through their infiuenc'
 over President Won Hindenburg q
 bare faced l:e."
 | Financial Reform
 Berlin, July 27-tu. P.)--Re-ad
 justmsnt of Germany's foreign pri
 vate debts was foreshadowed to
 day in a letter from Chanccllo
 Franz Won Papen to Nationals
 Leader Alfred, Hugenberg.
 Hugenberg had urged the chan
 ceilor to institute financial reforms . It was believed that Won Pape would seek agreement with Ger
 many's creditors rather than seek . ing adjustment through c mora , torium on private debt payments Q sIashing interest rates.
 W..H. Heath aged 63. rscentI % won: :o, ior the =. sixth t!n.s e.. n . fs.. !.