Evening Star Newspaper, July 21, 1931, Page 3

REGENT VISI HERE | AIDS FINANCE CZAR Herman Schmitz, German; Crisis Dictator, Knows Hoover’s Views. BY FREDERIC WILLIAM WILE. At a moment when statesTen of Eu- yope and America are pooling their counsel and respective national interests in an endeavor to save Germany, it comes to light that the man just ap- pointed finance dictator of Germany was in Washington a few months ago and conferred with President Hoover. He is Hermann Schmitz, head of the great German chemical and dye trust and director of nearly a hundred allied industrial undertakings in the Reich. Herr Schmitz has been drafted from private life by President Hindenburg and Chancellor Bruening to take su- preme charge of German banking op- erations during the economic crisis, es- pecially currency and exchange transac- tions. His particular job is to stop the flight of capital from Germany, under the drastic restrictions and penalties the government has just imposed, in- cluding fines and jail for violators. Speaks Fluent English. Herr Schmitz was taken to the White House on February 25 by Dr. von Pritt- witz, the German Ambassador in Wash- ington. The nature of his conversa- tions with the President was, of course not disclosed at the time, nor has it become known since then. It was at all events not long after Herr Schmitz presence here that Mr. Hoover began to concentrate on Germany’s economic plight. Ambassador Sackett was sum- moned to Washington a few weeks later. Naturally Herr Schmitz, though then a private business man, did not neglect the opportunity to lay bare for the infcrmation of the American Presi- dent the conditions under which the Reich was laboring. Speaking fluent English and having both European and American business conditions at his tongue's tip, Herr Schmitz is certain to have painted a vivid picture of pend- ing and impending events at Mr. Hoo- ver's desk. Recognized as Leader. After conferring at the White Hous Herr Schmitz was taken to the Depart- ment of Commerce, where he had a protracted conversation with Dr. Julius Klein, assistant secretary of commerce and the department’s authority on for- eign affairs. Herr Schmitz explained to Dr. Klein the arrangements the Ger- man chemical and dye trust has made with Standard Oil interests in this country. These relate principally to the Germans' important patented proc- ess for coal distillation, whereby it is claimed that gasoline can be won from both bituminous and anthracite. It is understood that the Standard is now assured of exclusive rights in this pos- sibly revolutionary development, so far as the United States is concerned. Herr Schmitz is one of Germany's “key” captains of industry, if not at the top of the list. He is a native of Essen, historic city of iron and steel, and only 50 years old. A lawyer by profession, his active occupation until a few days ago was that of chairman of the board of the ‘“Interessen-Gemeinschaft Far- ben Industrie,” which means, freely translated, the German dye trust. Has Wide Interests. ‘The organization's ramifications ex- tend into every field of German indus- try, because chemical processes bulk so largely in the country's manufacturing lines. The list of boards of directors to which Herr Schmitz belongs is corre- spondingly long. They embrace com- panies engaged in coal and iron mining, celluloid, steel, explosives, rayon, tex- tiles, hydro-electric power production and a variety of affiliated industries. Herr Schmitz is also a member of the Reichsbank Executive Committee and a director in other banking concerns. His office and suburban residence are in Berlin, and he has country homes at Heidelberg and at Ludwigshafen-on-the- Rhine. The German “finance czar” has made frequent visits to the United States. Government officials and business men who have had contact with him say the Reich government made a sound choice in intrusting Herr Schmitz with the task of stopping the exodus of the elusive mark. (Copyright. CLAIMS SHORTEST NAME J. 1931 Ur Succeeds H. P. Re as Title Holder. TORRINGTON, Conn., July 1 (#).— J. Ur of this city today believed he was the possessor of the shortest name in the United States by virtue of his lack of a middle initial. The death of H. P. Re, former claimant of the shortest name, was re- ported yesterday from Coldwater, Mich. 'F. P. A’ Columnist, Father of Girl. NEW YORK, July 21 (#)—A daugh- ter was born yesterday to Mrs. Franklin Pierce Adams, wife of “F. P. A.” the New York Herald-Tribune columnist. a{;:.t Adams is the former Msther Fayles AFTER THIS DATE 1 WILL NOT Bp RE- sponsible for any debts contracted by mny one but mysell. JAMES G. NELUON, 1214 Morse st. n.e., city. 22 1 WILL NOT BE RESPONSIBLE FOR ANY bills unless contracted by myself. Joseph F. Cady. 754 12th st. s.e. 22 CHAIRS _FOR _RENT, S BRIDGE PARTIES, banquets meetings, 10c up e 5 Also invalid rolling_chairs for rent or sale. UNITED STATES STORAG. 418 10th n.w._Metropolitan_1844. WANTED—FULL OR PART LOAD below-listed cities or points en route To or from New York. S Lou ? _ . GREYHOUND VANS. Adams 6010. OUR_REPUTATION COMES FROM CARE- ful handling, “on-time” ~arrival and low costs on moving household goods from points within 1,000 miles. Just phone and we will gladly quote our rates. NATIONAL DELIV- ERY Al _Natio AUGUS’ GOOD Atty, 907 15th 8t. The following cas will be sold at Wesch- fer's public auction for charges on August 5. : Richard A Lightfoot. Chrysler touring. 34 BY Schaeffer Motor Co.. 3700 Georaid avenue. ci it D—LOADS WANTE] To BINGHAMTON, N. ELMIRA, STON o BOS' Siaiis And_all_points’ South and “West VAN LINES, 'ALLIED . We also ‘pack and #hip by STEEL LIFT VANS anywhere. SMITH'S TRANSJER & STORAGE CO.. 0313_You St. N.W Phone North 3342-3343. § WILL NOT BE RESPONSIBLE FOR ANY ebts other than those contracted by myself. LINDSAY STOTT. 1631 Euclid st. n.w. _* FOR _RENT—SECOND-FLOOR office: desirable " location: ts. hw.: opposite hew bulid P‘leclnc Power Co.:. entire fetse terms o sood tenant. Cail MR. MOTT. e t. 1 —of any nature promptly and capably looked practical roofers. us up. 119 3rd St. 8.W. 0933. after b; Ao . KOORS Bootiie ™ 113 rd Company Make Your Appeal ll to your prospects through s National ' Capital Press printed message. This L ‘million-dol plant is at your service. The National Capital Press _ 1210 D St. N.W. Nat. 0650. SUMMER PRICES NOW n tinning and heating. new installations "%r 'repairs. Save money. Call Flood. BUDGET PAYMENTS if desired. QFLwD C‘ 1411 V St. NW. Dec. $100-—Bvenings, Clev. 0810. o > Text of U. The text of the American pro- ° posal follows: “The essence of the problem is the restoration of confidence in Ger- many's economic life, both in Ger- many and abroad. “1. On_the political side the United States hopes that, through mutual good will and understanding, the Furopean nations may eliminate all friction so that the world may rely upon the political stability of Europe. “2, On the economic side, the present_ emergency s strictly a short term credit crisis. Fundamental pressure upon German economy dur- ing the period of depression has been relieved by the joint action of the creditor powers in suspending ail payments upon governmental debts during the period of one year. But Germany has financed her economic activities to a very great extent through the medium of short term foreign credits. There is no reason to doubt the soundness of the basis upon which these credits rest. Credit Under Strain. But the general uncertainty which has prevailed for the last few weeks resulted in such a loss of confidence that the German banking and credit structure was subjected to a very severe strain. This strain took two very definite forms, both of which resulted in a drain of banknig re- sources and the depletion of Ger- man gold and foreign exchange holdings. “In the first place there was & flight from the mark within Ger- many. In the second place there was a withdrawal of foreign de- posits and a curtailment on the part of foreign banks of outstanding lines of credit. “Fundamentally, there is nothing to justify these movements, and if through co-operative action they can be arrested, there is no reason why the present emergency cannot be im- mediately and definitely surmounted. ““(A) As to the first, namely, the in- ternal flight from the mark, this can be and is being successfully com- batted by the vigorous action of the German government and the Reichs- bank. Once unreasonable fear has been eliminated, it is certain that the patriotish of the German peo- ple can be relied on to prevent the destruction of the credit of their own country. ‘Would Meet Needs. “(B) As to the external credits, we believe that the first approach to this problem is the development of a pro- gram that will permit the mainte- nance for an adequate period of time of the present outstanding lines of credit. In this connection it is our understanding that this volume of credit, together with the freed reparations and the natural gain from the allayment of the panic should be adequate to meet the needs of German economic life for the immediate moment. On the other hand, it must be THE EVENING S. Proposal Restoration of Confidence in Germany’s Economic Life Seen as Essence of Problem—Advocate Re- placement of Friction by Good Will. apparent that, unless provision is made for the maintenance of these credits, an attempt to provide new ones, whether of a short or long term character, would be ineffective. In the development of such a pro- gram, the governments of the coun- tries having principal banking cen- ters, including the United States, Belgium, France, Great Britain, Hol- land, Italy, Japan and Switzerland and other important banking centers, might well undertake to encourage their bankers so to organize as to permit the maintenance for an ade- quate period of time of present day outstanding lines of credit to Ger- many. Leave Details to Bankers. “The responsibility for working out the details of such a pre and the methods of making it effective with due regard to the protection of the banks and the needs of German economy should be left to the bank- ing communities of the respective countries and the central banks could be relied on to furnish the nec- essary leadership, co-operation and direction, we believe. “Such voluntary arrangements should be supplemented, for the time being, by strict control of all foreign exchange transactions by the Reichsbank so that the integrity of the program can be maintained and the banks that are participating can be assured that there would be no arbitrary withdrawal either from within or without Germany. “3. It is our belief that if such & program could be made promptly effective it would result in an im- medicte restoration of confidence and that in a comparatively short time the necessity for restrictions of this character would disappear and normal conditions would once more prevail. There is all the more ground for faith in such a result in view of the fact that the United States debt-suspension program has now become effective and that the events which succeeded the an- nouncement of that program clearly demonstrate that relief from pay- ment of intergovernmental debts established in the minds of the bus- iness world the basis for renewed confidence. Ask Bank Committee. “4. A committee should be select- ed by the Bank for International Settlements or created by some other appropriate method to secure co-operation on the following ques- tions: “(A) In consultation with the banking interests in the different countries to provide for the renewal of the present volume of outstanding short-term credits from those coun- tries. “(B) In making an inquiry into the immediate further credit needs of Germany. “(C) In the development during the course of the next six or eight months of plans for a conversion of some proportion of the short-term credits into long-term credits. BRITISH LEADERS PLAN BERLIN TRIP MacDonald and Henderson May Leave After Parley in Confidence Move. (Continued From First Page.) agreed Germany must have help and are prepared to see that she gets it whether Prance participates or not. It is understood the American and British views are in complete accord, that they regard immediate relief as imperative. In a long talk just before the session adjcurned, Mr. Stimson told the meet- ing the larger American banks on which the Government has been able to keep tab, have not withdrawn credits from Germany in this time of her distress. On the contrary, he said, there have been some increases of American capital in Germany. He assured the conference that the American banks will co-operate in relief, provided aid ccmes from other countries also. It was learned that no concrete pro- posals have yet been advanced formally and the conversations thus far have been along general lines, providing an opportunity for exposition of the posi- I tions of the participating powers. As one diplomat described the aims of the conferees—“What we want to do now is to give the little Dutch boy a chance to get his thumb out of the hole in the dyke so he can get to work.” Hold Speed Essential. It is understood France is rather in- clined to protracted discussions, but that the United States and Great 1 Britain maintain that speed is essen- tial. In support of this contention it was said Chancellor Bruening does not know from one momel; to the next how long his government\will last, and there are many who assert that Ger- many has been menaced with revolu- tion for some time. It is understood Chancellor Bruening ought to return to Berlin Wednesday night and that the Americans and British at least feel it necessary that R | he takes back with him definite prom- ises of help. Those who uphold this course assert that if the chancellor should go back empty-handed it might mean the end of his government at the hands of a people laboring under a nervous ten- {sion, which has long been near the breaking point. The official communique issued after the adjournment said: “The International Conference con- sidered the methods of international co- operation whereby confidence in Ger- many’s economic stability may be re- stored in the immediate future as a preliminary to examination of further measures which may be necessary: to effect a permanent restoration of Ger- {,nm‘}y‘! financial stiuation on a firm asis. “It was arranged that the finance 2 ministers of the countries represented 7 at the conference, with Dr. Bruening and Prime Minister MacDonald, should meet this afternoon to continue exami- nation_of the questions raised.” Unusual Secrecy Observed. At _the meeting of finance ministers the discussions are likely to come down to matters of dollars and cents and at R | full conference later decision prob- ably will be taken as to whether meas- ures suggested by the financial experts actually can be put into force. Unusual secrecy was being observed at the conference, but it was learned in authoritaiive quarters that Premier MacDonald and Foreign Secretary Hen- derson, in a_talk with Chancellor Bruening and Foreign Minister Curtius which lasted until nearly midnight, proposed measures which may bring the conference to an end by noon Wed- nesday. ‘These measures, it was understood, involved the withdrawal of Germany's request for an immediate credit of $375,000,000. The insistence of Prance upon certain political guarantees, to which both ‘Washington and London are adamantly opposed, was understood here to be one of the principal reasons for the change in the plan tc attempt to grant the credit requested by Gi y. The time factor in the negotistions | |loomed increasingly important. It was known that Herr Bruening wished to |return to Berlin tomorrow, so as to be | there Thursday when some of his emer- | geney decrees expire. In addition the diplomats at the con- ference wish to use every means pos- sible to counteract the depressing effect | on world markets which long drawn out | discussions would entail. | The feeling said to be prevalent among the conferees today was that if short- t:rm credits of about $125,000,000 falling due immediately sholild be renewed, the present crisis could be passed off—with the assistance of the Hoover moratorium —until Fall. By that time it was thought a new atmosphere of confidence in Germany would be conducive to larger credits. ‘The German delegates were the first to arrive today at the conference, which was held in the foreign office just across | from 10 Downing street, the residence | of the prime minister. |~ Herr Bruening, Dr. Curtius, and Ge: | man Ambassador Von Neurath called ¢ | Mr. Macdonald’s residence before the meeting and talked with him for a few | minutes. The Germans emerged from the prime minister's residence together and were followed a few moments later by | Mr. MacDonald, who was accompanied | by ‘a detective. | Secretary of State Stimson and Sec- | retary of the Treasury Mellon slipped |into the foreign office by a back en- | trance, apparently to escape the battery of newsreel photographers and news- paper men at the front door. Premier Laval, Foreign Minister Grandl of Italy and other ministers submitted smilingly to the photogra- phers. Even the aged and feeble Pre- mier Renkin of Belgium stopped for & | few moments and spoke in the micro- phones. Foreign Minister Briand of France was the best natured or the lot, despite two great gashes across his left cheek where apparently he cut himself while shaving. It was understood that at their long talk over the dinner table in the House of mons restaurant Mr. MacDonald emphasized to Herr Bruening that the only nation from which Germany could get a short- term loan at present is France, and France could not advance credits un- less the German government under- took what it considered to be im- possible political and financial guar- antees. Method Suggested. Germany's problem, the prime min- ister is reported to have told the chan- cellor, is to re-establish herself in the confidence of the world. One prac- tical method suggested was a visit by Mr. MacDonald and Foreign Secre- tary Henderson to Germany, to be fol- lowed by a visit by Premier Laval and Foreign Minister Briand of France. In opening the conference last night, Mr. MacDonald declared that “The present moment may be one of the turning points of the history of the world, for good or ill.” “If we cannot find a solution of the present crisis,” he said, “no one can foretell the political and financial dan- gers which will ensue.” Speeches also were made by Premier who explained that Germany and France had decided, at the negoti- ations concluded Sunday in Paris, to do their m.mosj to bring about conditions which would make financial and politi- cal collaboration possible, and by Herr Bruening, who gave his version of the economic plight of his country. FORMER KANSAS CITY DRY OFFICER DROPPED John B. Madden's Failure to Report for New Duty at Seattle Given as Cause. By the Associated Press. The Prohibition Bureau today made known the suspension of John B. Mad- den, former assistant administrator at Kansas Cit; y. The reason given for Madden's sus- pemlonwwn it het hll.lld cecu:ed to report a new pos igned him at Seattle, Wash. At the Prohibition Bureau, it was said that Madden had been given ample annual leave in addition to a period of leave without salary, but that he failed to report to his new post after the expiration of the additional time. The order for Madden’s suspension was signed by Prohibition Director ‘Woodcock, who lande yesterda; MRL STAR, WASHINGTON. RENEVED CREDTS | GRUK OF .. GermanAid Program Put Up to Nations With Main Bank Centers. _(Continued Prom First Page) Concretely the proposal of the Amer- ican Government suggests the appoint- ment of a committee by the Bank of International Settlements, or by scme other appropriate agency, to secure co- operation on the following questions: In consultation with the banking in- terests in the different countries to pro- vide for the renewal of the presnt vol- ume of outstanding short-term credits from those countries. In making an inquiry into the im- mediate further credit needs of Ger- many. In the development during the course of the next six or eight months of plans for a conversion of some propor- tion of the short-term credits into long- term credifs. Two Sides to Problem. The American Government recog- nizes in its proposal two sides to the problem in Europe and the rest of the world, one political and the other eco- nomic. Reference in the proposal to the political side is brief, but important. It says: “On the political side, the United States hopes that, through mutual good will and understanding, the European nations may eliminate all friction. so that the world may rely on the political stability of Europe.” As for the economic side, this Gov- ernment declares “The prescnt emer- gency is strict'y a short time credit crisis.” It points out that fundamental pressure upon German economy has been relieved by the joint action of the Nation, under the Hoover plan, in suspending all payments upon govern- mental debts for the period of one year. Germany, however, has financed her economic_ activities to a very great ex- tent by short term foreign credits. This Government takes the position that there is no reason to doubt the sound- ness of the basis upon which these credits rest, but adds that the general uncertainty which has prevailed for the last few weeks has resulted in a loss of confidence subjecting the Ger- man banking and credit structure to a very severe strain. ‘This strain took two distinct forms, both of which resulted in a drain on banking resources and a depletion of German gold and foreign exchange holdings. The first form was a flight from the mark within Germany. The second form was a withdrawal of for- eign deposits and a curtailment on the rt of foreign banks of outstanding ines of credit. This Government de- clares: “Fundamentally there is nothing to justify these movements, and, “f. through co-operative action, they can be arrested, there is no reason why the present emergency cannot be imme- diately and definitely surmounted.” Credits Total $1,200,000,000. ‘This Government expresses confidence that if the proposed program is followed effectively, it would result in a restora- tion of confidence and in a short time avoid the necessity for restriction and normal eonditions would once more prevail. Acting Secretary of State Castle, when he announced the proposal of the American Government, pointed out that already Germany has been greatly assisted by relief from the payment of reparations for one year amounting to about $400,000,000 under the intergov- ernmental debt suspension plan. He pointed out also that Germany's trade balances are favorable and on the in- crease. He said German authorities have already taken steps to protect the mark and to regularize the internal banking situation. Mr. Castle declared the next step was to stabilize and assure the continuznce of the volume of short-term credits, now held by foreign bankers and insti- tutions. The total amount of thes short-term credits is estimated to be $1.200,000.000. ‘These short-term credits are lagp'y in ordinary foreign trade bills. ney are offset by German deposits and credits. ‘The acting Secretary of State said the President’s new proposal is that the bankers and institutions in all coun- tries should, in the aggregate that al- reacy prevails in each country, main- tain the present volumes of credit to Germany. The proposal also involves a strict enforcement by the German gov- ernment through the Reichsbank and complete control of all foreign exchange 50 that there will be no arbitrary action favoring any bank or group of banks, thus protecting all of the country. Plan Not for Merglorium. Mr. Castle expressed #e opinion that a system of co-operation of this kind will put an end to the drain on Ger- many from abroad, and by restoring confidence make it possible for Ger- many to secure additional credits as she may require Jyn the normal course of business. It was pointed out by the Acting Sec- retary of State that President Hoover's new proposal is not for a moratorium, but merely for the mdintenance of the large volume of credits to -Sermany which already exists. If the program is carried out, in the opinion of Mr. Castle, it will permit the world to return to normal conduct of business through as- suring stability of the German credit structure. Mr. Castle looked upon this as 8| g necessary first step to give time for the development of any plans for long-term loans which may be submitted for short-term credits. He expressed the opinion that the interest France has taken in the provision of such a leng- term loan is good evidence of France's desire for a co-operative solution of the present situation. Received in Friendly Spirit. ‘The proposal of President Hoover, it was said here this afternoon, had been received by the representatives of the other powers meeting in London in a very friendly spirit. Some of the suggestions contained in the proposal had already been broached to the French and Germans by Secre- tary Stimson while he was in Paris. Officially the United States Govern- ment has no control, other than super- visory, over American banking insti- ! tutions. It would not be in a position to order these institutions to maintain the German credits, it was explained. But undoubtedly officials of the Gov- ernment would be in a position to use their friendly offices with American banking institutions to encourage the maintenance of these credits if the pro- gram is generally adopted, it was said. The effort is to prevent Germany from being submerged financially and economically by a continued run 7n her credit, and to give Germany time to get on her feet. VIENNA WATCHES HEARING. Sentiment for Customs Union Project Greatly Cooled. By Cable to The Star. VIENNA, Austria, July 21.—The ses- glon of the World Court, which will pass judgment on the Austro-German cus- toms union project, is being watched with great interest here. It was the announcement of the customs union project which started the ball rolling in Central Burope which has now resulted sis of world capitalism. m.:u:{r‘fln sentiment for the union has greatly cooled during the last two months, Austria does not want to be hooked too closely to Germany while the it is so precarious. The at The Hague have, D. C, TUHSDAY, JULY 21, 1931. Hindenburg’s Letter German President’s Direct Appeal to Hoover Without Use of Diplomatic Channels Describes Dire Situation of His People. (Copyright, 1931, by the Assoclated Press.) NEW YORK, July 21 (#).—The Asso- clated Press herewith publishes the ap- peal from President von Hindenburg of Germany to President Hoover which was cabled to Washington by the Ger- man President on June 20. For some reason unstated it has never yet been made public, either in Washington or Berlin. The following is the text: “June 20, 1931. “Mr. President: “The dire distress of the German people, which is now at its highest peak, compels me to turn to you with this extraordinary step. “The German people have lived through some infinitely difficult vears, with a climax during the past Winter. Even this Spring the hope for improve- ment in our business and industry has not materialized. “I, therefore, have put into effect, through the extraordinary powers con- ferred upon me by the constitution of the Reich, measures intended to safe- guard the execution of the most neces- sary tasks of state and to maintain the possibility of life for our unemployed | population. These measures cut deeply into all economic and social relations. They demand heaviest sacrifices from all parts of our population. Must Have Outside Relief. “Every possibility of improving the situation by internal measures, without rellef from the outside world, has been w<hausted. The economic crisis from which the entire world is suffering strikes the German people, who have been robbed of their reserves through the consequences of the war, with espe- cial vehemence. “As the developments of the last few days show, the whole world has lost its | confidence that the German economic | system is in a position to function, in | view of the burdens now resting upon her. Large credits which foreign coun- tries had given us have been with- drawn. Even within the last days the Reichsbank has been compelled to give up to foreign countries one-third o}r‘ its reserves of gold and foreign ex- changes. e_inevitable consequence of these events must be the further serious cur- tailment of our economic life and an increase in the number of unemployed, who already comprise more than one- third of the labor engaged in industry. “The ability, the will to work and the discipline of the German people justify a confidence that Germany will live up to the heavy private operations and meet the private loans which rest upon her and which cannot be changed. Appeals to Hoover, “In order to kep up her courage to face life and the confidence of the world in her ability to fulfill her obligations, Germany, however, is most urgently in need of relif. This relief must come immediately if disaster is not to befall us and others. Opr people must be vouchsafed the possibility of working under conditions of life which are bear- Ak “The relief which is necessary would, through its material and moral effects upon the general crisis, rebound to the benefit of all countries. It would im- provs conditions in other countries and essentfally reduce the danger to Ger- many of the internal and external ten- sion and strain that have been created by our distress and lack of hope. “You, Mr. President, as representative of the great American people, hold the possibility within your hands of taking the steps for th> German people and | for the world by which an immediate change in the situation, so fraught with danger, can be brought about. “(Signed) VON HINDENBURG.” however, more than an academic inter- est, because if the Court should decide that the customs union is legal, then the Germans will have a big moral vin- dication and can use resumption of the customs union project as a diplomatic and financial bargaining stick. Even if at the London Conference the Ger- mans formally give up the project, it will remain a constant reminder that the “Versailles front,” as it is called here, may again at any time be broken. Meantime. Austria, & country cheated by the elimination of Hungary, a head without a body, has to turn somewhere | for salvation. If orientation to Germany | fails, then the possibility of some future tie-up with Hungary is strengthened. This helps explain the great French | diplomatic activity in Hungary today. | France, possibly by a sudden Hapsburg | restoraion, might try to solve the Au- strian problem. All in all, the customs project, even if it gets no further, has helped Austria £o far rather than injured her. Like- wise, it has enormously stimulated gen- eral plans for European economic col- laboration and recovery. (Copyright, 1931.) - ~. - — l TWO WOMEN BURNED [ TO DEATH IN CRASH Two Men Seriously Injured When | Wet Pavement' Causes Auto Collisfon in Ohio. NEWARK, Ohlo, July 21 (#).—Two womer, believed to be from Columbus, | GERMAN CHDES FOE OF CUSTONS Dr. Bruns Hits Czechoslo- vakia in Long Address Before World Court. By the Associated Press. THE HAGUE, Holland, July 21— Swinging sharply away from the de- libcrations which have marked his exposition of Germany's position, Dr. Victor Bruns, arguing the proposed Austro-German customs accord before the World Court today chided Czecho- slovakia for its stand against the agreement. “If the nations fear closer union of he Germans and Austrians,” he said, “forbidding this customs treaty will avail but little. It needs something deeper. It would be necessary to change the Austrian race, to unlearn its lan- guage. and for all Austrians to emigrate.” Close Relations Told. His change of pace came in t of a long dissertation on the t he midst reasons | for the close relationship between mei"’ loyal will not allow it. German and Austrian peoples, Yesterday he ranged from economics Ohio, were burned to death and two | to political science, building up his case men from Missouri were injured se- riously in a collision of automobiles on the National Highway, near Kirkers- ville, Ohio, today. The machines skidded on the wet | Officials said the Missouri ' pavement. autamobile bore the license 220,826. | Navy Orders Capt. Richard P. McCullough, lieved from all active duty; to home. Lieut. Comdr. Gail W. Morgan, de- tachec aide on staff, Battle Force; to | aide on staff, commander in chief, | United States Fleet. Lieut. Comdr. Charles G. McCord, orders modified. to duty U. S. S. Jason lx'jxfléu%\le (&mcer. leut. Comdr. John S. Phillips, orders modified; to duty U. S. S. plsiorle as executive officer. Lieut. Henry L. Pitts, title changed, effective as of June 5, 1931, to aide on staff, commander aircraft, Scouting Force. Lieut. Carlisle H. Thompson, orders modified; to duty with Destroyer Squad- ron, Asiatic Fleet. Lieut. (Junior Grade) Clement R. Criddle, detached U. B. S. Pittsburgh; to U. S. S. Grebe. Lieut. (Junior Grade) William M. Haynsworth, jr., detached U. 8. S. Hous- ton: to duty with Destroyer Squadron 5, Asiatic Fleet. Lieut. (Junior Grade) Nelson M. Parry, to duty as watch officer with the staff commander in chief, Asiatic Fleet. Lieut. Ralph H. Wishard, orders modi- fied; to duty on U. S. S. Tracey. Ensign Finley E. Hall, detached Naval Air Station, Pensacola, Fla.; vo Squadron 4-B, U. S. S. Tennessee. Medical Corps. Lieut. Comdr. Max Silverman, de- tached Navy recruiting station, Detroit, Mich.; to U. S. S. Bushnell. Lieut. Rob R. Doss, detached Division 9, Destroyer Scouting Force; to U. S. S. inas. Lieut. Willard S. Sargent, detached recelving ship, New York; to Naval Hospital, Charleston, S. C. Lieut. (Junior Grade) James E. Amiss, detached Norfolk Naval Hospital, Portsmouth, Va.; to U. S. S. Antares. Supply Corps. Lieut. John M. Speissegger, detached assistant to inspector of Supply Corps, East Coast, Bureau S. and A.; to Har- vard University, Cambridge, Mass. Warrant Officers. Chief Radio Electrician Luke W. Du Fresne, detached U. S. S. Pensacola, about September 15; to Naval Research Laboratory, Bellevue, D. C. Death. Lieut. (Junior Grade) Charles Water- man Livermore, U. 8. N., retired, died May 17, 1931, at Jamaica Plain, Mass. Will Rogers re- | BEVERLY HILLS, Calif—This is sorter “give - the - down -and-out-a- chance” day. They pounced on Ma Kennedy (Almee’s mother) after the poor soul had tried to scare up some fun and amuse- ment. They started to ex- amine xl::r san- .politicians. rolnt to with pride in years to come) n sending Old Man Fall to the pen. He got the $100,000, but he evident- ly did not put up oil lands for se- curity, for he has lost the ranch to Doheney for the same $100,000. Course, everything wasn't exactly on the up and up, but that is one case that was tried entirely by pol= mmfi.m in favor of consummation of the proj- ected treaty which has been brought before the World Court by the League of Nations for determination as to whether it violates either the treaty of Versailles of the treaty of St. Germain. France, among other objectors, con- tends such an accord would compromise Austria’s independence, and it was upon the definition of that independence that Dr. Bruns trained his address, He was still talking as night fell. Interpretations Differ. “In five memorgnda filed with the court,” he said, “there are three differ- ent interpretations of the word ‘inde- pendence.’ The more I see of these in- terpretations the more I think they are intended simply to obligate Austria further.” Then, after tracing the history of the various_treaties which followed the ylo;ld ‘War he suddenly took another ack. ““Take this highly improbable case.” he proposed, “Suppose one power said to its banks, “Withdraw your credits from that country.’ “That nation, in such an event, would be guilty of a grave violation of the independence of its neighboring State.” He mentioned no names, but the majority of those who heard sup- posed this arrow was aimed at France. HITLERITES WARN BRUENING OF TERMS Not to Be Bound by Further Con- cessions to France, Says ‘Wire to London. By the Associated Press. BERLIN, July 21.—In & telegram to Chancellor Bruening in London today, Adolf Hitler, Alfred Hugenberg and other leaders of the Nationalist opposi- tion served warning that they will not consider themselves bound by any new political guarantees conceded to ince in connection with financial assistance for Germany. “The plan proposed by President Hoover and originally intended as a measure of relief for Germany,” the telegram said, “finds itself opposed by the undisguised intention of France to force the German people permanently under her dictation. Thus out of relief is to be made worse distress. “Responsible quarters in France can- not be unaware that the despair among our people particularly among our young people, has grown to such an ex- tent that all kinds of most dangerous gfim of thought have been set in mo- jon. “The German nation, which feels Itself free of war guilt, cannot and will not longer carry the unjust burdens forced upon it, and any further reduc- tion of the German State sovereignty is decidedly unbearable and inexcusable. “The whole national opposition, therefore, formally serves notice that, in accordance with its basic convictions, it will not regard as legally binding any ;\;rther conditions entered into with ance.” Cave-Ins Menace Homes. BRUSSELS, July 21 (#).—Residents in the vicinity of the Charleroi coal flelds fear the earth is going to swallow Upper Floors, 915 G St. N.W. —corsisting of 8 rooms and 3 baths, suitable for offices or apartments. In first-class condition. ‘Will rent as a whole or in part. Reasonable rent. A Mr. “’l, 917 G &. NW. IAIMS SUMMARIZED | BY BRITISH CHIEF Credits and Confidence in Germany Called Main Issues of Conference. __(Continued From First Page.) on their people, but they felt bound to declare last month that they could go no further and that they would have to| use their right to declare a postpone- | ment of their liabilities under the Young | plan unless the situation improves. | This alarmed foreign lenders, upon! whose support Germany has been large- ly dependent during the last six years, and withdrawals of short-term credits ensued on a very large scale. “By June 18 their position appeared almost hopeless, when the whole face of the world was changed in half an hour by the dramatic announcement of President Hoover's offer. History will pronounce this decision as an act of rare courage and statesmanship. It is no small thing to ask the people of the United States, far removed as they are from Europe, and themselves at grips with a domestic slump of un- precedented severity, to suspend for a year all their claims in respect to intergovernmental debts. But, in my belief, it was also stroke of sound business. Its effect at the outset was startling; not only did the value of securities rise with & bound, but even the price of commodities advanced. ‘Hoover's Action Aids. “War debts and reparations are mot self-liquidating obligations like loans made for productive purposes. They can only be paid by exporting goods to the creditor countries or, in so far as there are obstacles to the movement of goods, by the export of gold. Thus the payment of reparations and war debts in"a time of economic depression pre- sents peculiar difficulties, and the knowl- edge that these difficulties exist weakens the confidence of investors and this in turn enhances the original difficulties, so that a viclous circle is created. The Gordian knot was for the moment suc- cessfully cut by the President’s benefi- cent sword: but foreign credits in Ger- | y continued to be withdrawn. | “It has been stated by the German | minister of finance that from 150,000,000 | to 200,000,000 pounds of foreign ex- | change have been lost by Germany re- cently, & colossal sum, representing, as it does, more than the equivalnt of two years of reparations payments. The trickle of exchange purchases became a stream, the stream a river, and the river a torrent, until the inevitable break- down occurred. “Thus we have now not merely to consider the measures necessary to carry into effect President Hoover's proposal, but we have to add to that the urgent emergency that has since developed in Germany. * * * “Our position, therefore, in a word, Is to restore the confidence of the foreign investor in Germany. Clearly, the problem has both political and financial sides, but the mind of this ;:o‘x:ferente is to be concentrated on the atter. “The fact that we have all met here is in itself a demonstration that on every side a desire for the mainte- | nance of cordial relations exists. * * * “Let us admit first of all to our- selves, and confess it in our conferences, that there are some things which one or the other of us cannot do, because {the public opinion to which we must Two Main Alternatives. “We are not here to enforce or to defeat or to humiliate; we are here to understand and to consider our own problems objectively, to remember how closely in ecssentials we depend upon each other and, therefore, to accom- modate and to agree to something which each of us can take to our vari- ous Parliaments, explain and get ac- cepted as an agreement. I feel that each of us can do that, and that an agreement here, even if in every item we do not like it. will reinspire our peo- ple with confidence and courage to face the heavy responsibilities which are to be the lot of all governments during the immediate months ahead of us. “As regards the financial aspect of the crisis, the question of what can be done must largely be reserved for bank- ers and financiers. I can only speak in general terms. There seem to be two main alternatives. The one is to find the means of providing new loans or credits to Germany. That is & mat- ter that I understand has been under consideration in Paris. I am told that there are difficulties which would have to be surmounted before any loan could be obtained in the marxet here. “The other way would be to attack directly the question of whether by strengthening the internal position of Germany we can give an assurance of its stability to the outside world so as not only to prevent the capital that is| already in Germany from being with- drawn, but to enable it to be be aug- mented. “There can be no question about the inherent strength of the German econ- omy, provided that it has the capital resources it requires. It is for this pur- pose that President Hoover proposed the suspension for a year of all debts and reparations. This represents for Germany a very real and important re- lief. It may not prove to be sufficient— that is a point we can examine later— but I think our first step is to decide, with the greatest possible expedition, the means by which this shall be defi- Silver Stored —and insured from time of leaving house until re- turned, $3 for 2 m8nths ior a case valued at $300 or less, including cartage. ch When Visiting 7 Mt. Vernon » 4 23 Why PENN-DAW. o/ Coursel )’ Special Lunch from 6c up 113 miles below Alez. on U. 5.1 DELICIOUS ~ Pure Wholesome GULOENS .’ Mustard ‘ INVALID CHAIRS For Rent & For Sale GIBSON’S 917 G St. N.W. MADISON APTS. 1739 Eye St. FURNISHED AND UNFURNISHED. 1 ROOM., LARGE DRESSI CLOSET, BATH, $33.50 TO $45.58. L. W. Groomes, 1719 Eye St. Free Home From Bugs—No Stains Left on Furniture Science has discoveied a new death spray (harmless to humans) but 100 times more powerful in the destruction of bugs, moths, flies and mosquitoes. ‘This new spray will not stain draperies or fabrics—a marked improvement. Dethel death spray penetrates where brush or broom can’t reach. Protect your home and clothes with Dethol — the new death spray that will not stain. Go to your local dealer. Dethol Mfg. Co., Inc., Baltimore, Md. nitely carried into effect.” Conside The perfect Floor Plans in Westchester’s Beautiful, large, sp: Dethol I seriously New Addition acious rooms, with doors and windows architecturally designed and located to permit artistic expression in the matter of apartment fu rnishing. Rooms that provide a maximum amount of light and air, Step- down ] iving rooms and the Convenience Dining balconies and beautiful galleries, with wrought iron rails. Four hundred distinctive suites from one room and bath to seven rooms and three baths. Westchester is park-breeze swept and mechanically air-cooled as well. Occupancy Oct., 1931 . reservations being made. of a' Dining Room HESTER. Ve STCHESTT! CATHEDRAL AVE §. 39 STREET