The Waterbury Democrat., 1935-08-01

HE pTlCCS, TGQuCClOu HI Qudllty OL goods, and shortage of raw ma terials were bringing discontent more and more into the open.
 To add power to written laws for the drive, now a matter for the state itself and not for Nazi radi- calls, authorities were proceeding to prosecute an increasing number of persons for "offenses not in keeping with national socialist (Nazi) conceptions"
 Race Pollution Prosecuted
 It is under this unwritten law that cases of race pollution" are being prosecuted, and in an im- portant extension revealed today the provincial government of Vest falia in a circular - announced in reply to questions from many mu- nicipalities in the state = that it had no objection against re- questing civil servants to resign membership in confessional-RoS man Catholic--organizations.
 Refusal to resign, it was said, would not constitute "malfeasance in office" but nevertheless would afford authorities an opportunity to "withhold. well meant consid- eration" to civil servants who re- fused as refards vacations and promotions.
 Keep Minds Elsewhere
 All this is calculated to remove attention from the rise of prices. the shortage of materials, the de- creasing trade. Though the new crop is relieving a shortage, pota- toes are still 8 cents a pound. Other food prices are rising. For eign dealers are asking a 25 per cent premium over domestic prices for goods sent to Germany, either because of the close government control on foreign exchange move. ment or because of general uncer- tainty regarding German transac- tions.
 Shortage of Many Things
 There is shortage of varnish, yarn, cotton, wool, and German substitutes for them are costly and unsatisfactory. Synthetic rubber Is not giving satisfaction in automo- bile and bicycle tires. Instructions to have old metal appear regularly in newspapers. The latest an- nouncement is that housewives and children can add to their pin money by collecting used tin cans. Copper has become one of the most profit able items for junk dealers. Must Proceed with Care pr. Hjalmar Schacht, president of the Reichsbank, economic dic- tator as economies minister, warns repeatedly that the government must proceed with care.
 His ministry has decreed that no imported goods shall pass the customs unless the importers have sufficient authorized foreign ex- change to pay for them.
 An article attributed to his in- spiration yarned last week that there muset be wage reductions ii necessary to keep the public debt from rising.
 The government is making heroic efforts to meet the situation. Dole receivers must work, people whc have jobs must not leave them frivolously, gigantic state planning projects are being worked out to redistribute the population on eco- nomically sound lines.
 Reply to Germany Ready Washington, Aug. 1--UP)- The United States answer to Ger many's protest against the attack on the Maxi flag in New York har- bor may be delivered today, 1t was indicated at the state department Drafting of the brief reply. | was learned, virtually is completed It is expected to be handed to Dr. Rudolph Leitner, charge d'affaires of the German embassy, later in the day.
 Contents of the note were closely guarded, but it was believed it would follow fairly closely Ger many's protest Tuesday. which said the attack on the flag was an tn- suit of Germany and that those in- yolved should be prosecuted.
 The reply, 1t is expected, will rec late briefly the efforts of New York police to guard the German liner Bremen against the mob. described as communists. which staged the anti -Nazi demonstration as q pro- test against Hitler treatment of Jews and Catholics.
 It may contend New York police exercised reasonable" care In protecting the ship and that those accused of tearing the flag down and throwing 1t into the harbor havebeen arrested and VIII Dc prosecuted promptly.
 It was not expected the note would contain a formal apology fol the attack, inasmuch as the Ger man protest did not ask for one ] The reply. it was believed. would