Evening star., 1934-06-29
Plain Speaking to Germany.

AIneTlCA ) cOilSlStcIlt pOllCy Ol iloiu-
ing nations to strict accountability for
their lust debts receives fresh ex-
emplification in the uncommonly
stern note just addressed by the
United States to the German govern
ment. Intended as a response to the
Reich's recent proclamation of
moratorium on its external debt pay
ments, Secretary Hulls communica-
ton is notable for its sharp rebuke OF
the political policies which have
brought about Germanys financial
plight. In tone the American note
harks back to some of the admoni-
tions and remonstrances the Wash
ington Government addressed to Ber-
lin on the eve of our entry into the
World War.
Germany's principal contentious in
extenuation of her inability to con-
tinue debt payment transfers are re-
jected by Secretary Hull at every
point. He places responsibility for
the Reich's troubles squarely upon its
own shoulders. He does not spe-
cifically mention Nazi policies with
reference to liberals, Jews and organ
lied labor, but plainly hints that these
lie at the root of foreign distrust of
the present German government and
have caused the diSlOcation of Ger
many's export trade and resultant in
ternal monetary distress. For SIM
liar reasons, Judge Hull points out,
foreign creditors have Systematically
withdrawn their credits from Ger
many. thus aggravating a situation
for which Germany's own policies are
principally to blame.
The American Government levels
two serious charges at the Reich
which 1t holds also to be explanatory
Of Germany's financial vicissitudes.
Berlin is informed that "a general be-
lief exists" that instead of devoting
funds to foreign debt service obliga-
tions, the Reich has been repur-
chasing German bonds abroad at de-
preciated prices while striving to
maintain the conditions which caused
the low quotations.
The second American indictment,
which is probably the accusation that
Berlin. is the statement that 1T is
widely believed that during recent
months German foreign purchases of
material susceptible of military use
have been extensive and financed out
of available exchange resources. To
the extent that this may have taken
place the ability to meet external
obligations would thereby have been
reduced"
Throughout the Hull note is an
expression of firm American insistence
that German debts owed to our cit
izens be considered purely ON their
merits and particularly as loans made
to aid Germany's economic recovery.
regardless of the Reich's contention
that funds thus derived were used to
pay German reparations. With rep
arations, Berlin is firmly reminded.
America has no concern. And there
is equally forceful objection to any
discrimination against American hold
ers of German securities in favor Of
other nationals. Such action, Judge
Hull pointedly says, "augments dis
pute and ill-will between countries"
America now unequivocally i'm
pugns the good faith of Germanys
financial conduct. THE asserted
anxiety of the Reich government to
make every effort to meet its obliga-
tions," Secretary Hull declares, can
not be proven by mere display OF
its depleted balances, but must be
evident from an examination Of the
whole trend and operation of German
policy"
1t would be difficult to conceive Of
a more direct challenge to the under
lying philosophy of the Nazi regime
than this implied demand for sweep
ing changes in German policy if the
Reichs rulers expect to obtain for its
financial plight that consideration
and compassion that are now sought.
Coinciding with current indications Of
political ferment within Germany, the
Hull note may well be destined to ex-
ercise wide influence in persuading
Hitlerism to mend its reactionary and
provocative ways.