Evening Star Newspaper, July 23, 1931, Page 4

A—4 w» PARLEY'S RESULTS PLEASE HOOVER President Thinks lZ:onfére.nceI at London Drafted Sound Program. ___ (Continued From First Page.) by last Autumn’'s financial reforms of the Bruening government—and was supported during the last crisis by the alleviation provided by the Hoover plan. The conference also adopted the American plan for a committee of central banks’ delegates to inquire into the immediate credit needs of Cer- many and the possibility of turning short term into long term credits. The Germans are greatly relieved by the success of their demand that the dele- gates of this commission should be ap- pointed. by the central banks them- gelves and not by the bank for inter- national settlements at Basel, where the committee will have its head- quarters, Yolces Appreciation. * Dr. Bruening at the closing sestion took pains to express the German ap- preciation of the cordial —reception French Premier Pierre Laval tendered in Paris and of the “frst frank con- versations” between French and Ger- man ministers on French soil since the World War. There will seemirgly be no new | credits whatsoever for Germany and | there has been no serious effort to deal here either with the underlying economic factors of the German situation or with the problem of the restoration of confidence by politi-| cal appeasements. This represents "“t strict minimum of possible accomplish- ment and, except for the French and perhaps some Americans, all are frankly disappointed. i Great Britain now looks forward to & new conference in October at which these iasues can be fully reviewed. It hopes either to obtain an sgreement here for such a conference or to bring | about a conference indirectly by the | device of adjcurning instead of ending the present conference. France wants no more conferences but hopes to achieve a Pranco-German and possibly also a Franco-Iialian un- | derstanding _ within the next few months by direct conversations. Germany. after being momentarily tempted by French proffers of friend- ghip, seems to have decided for the | present to look to Great Britain and the United States, and especially to its | own constructive efforts, rather than to France for the cure of its ills. Given Unofficial Promises. The Germans hope that Great Britain | and the United States will find a way | to advance Germany new credits wiih- | out French co-operation and without | political strings or other guaranties of | any sort. Unofficial promises along this | line seem to have been already mads | to_them To facilitate such credits, German Chancellor. Heinrich Bruening, at Mr. MacDonald's instigation, has proposed & Banking_Committee, consisting of Sir Robert Kindersley, a director of the Bank of England; the Swedish banker Wallenberg end O. M. W. Sprague, American adviser to the Bank of Eng- 1and, to visit Berlin to study conditions in the near future. What this conference has really ac- complished, as the Manchester Guard- jan perspicaciously points out, is a breathing space which will be "valuable or not in accordance with whether it is well or badly used and with the revo- lution of events. Four Important Factors. What happens next seems to depend mainly on the following factors: 1. Whether the measures recom mended by this conference really suc- ceed in restoring confidence sufficiently to ha't the flight of capital and the withdrawal of private credits from Germany. 2. Whether in case of fresh emergen- cles in Germany it will be possible for Great Britzin and the United States alone, witaout French co-operation, to render Germany sufficient aid. 3. Whether France and Germany succeed by private talks in the near future in reaching some sort of better understanding. 4. Whether the evolution of public opinion and the political siutation in the United States will be such as to make practicable a full discussion of war debts and reparations at a later conference. Yesterday's meetings of this confer- | ence were marked mainly by three refusals. One was the refusal of Philip Snow- den, British chancellor of the ex* chequer, to allow any kind of govern- ment guaranties to the consortium of private banks which are to be asked to leave their money in Germany. Redistribution Rejected. ‘The second was the French rejection of Mr. Snowden's proposal that foreign credits to Germany, now estimated at 60 per cent American, 35 per cent British and 5 per cent French, should be redistributed so that France, Great Britain and the United States would each share a third of the burden. The third was the refusal of Mr. Stimson, on instructions from Wash- ington, to allow discussion of war debts when Mr. Snowden raised the issue. The British seemed particularly sppointed by the American attitude in this respect. They imply that they had been led to believe that the United States was entirely ready for such a discussion and that this was one of the | main reasons why Prime Minister Mac- Donald called this conference. | The Anglo-American front here, which in other respects is closely maintained, is undoubtedly weakened by the appearance of misunderstandings, on the one hand between Washington and the Amcrican delegation in .lnn-‘ don, and_on the other hand between | Mr. MacDonald and Foreign Minister | Henderson regarding the advisability of supporting the French demand for po- litical guarantees from Germany, Mr. Henderson favoring such support and Mr. MacDonald and the rest of the cabinet apparently opposing it. ‘The la‘ent struggle for diplomatic and financial leadership in the European crises as between France and Great| Britain remains entire. The procedure of the conference is wittily described by the London Daily | Express, in the words of a famous anec- dote, thus: Bariender—Is Mike good for a drink? Pat—Has he had the drink? | Bartender—He has. Pat—He is. (Copyright, 1931 GERMANS ARE GRATEFUL. Curtius Holds American Attitude Has Been Most Helpful. LONDON, July 23 (#).—Dr. Julius Curtius, Germany's foreign minister, ex« pressed dep appreciation today for the part which the United States played in seven-power conference just ended. “It seems to me,” he sald, “that I ought to confine my comment to the political views of the German delega- tion, From that standpoint the con- ference demonsiraled international solidarity in & manner which was truly moving and most promising for the future. . e Praises U. S. Attitude, “Into this solidarity America is grow- ing ever more intimately, not only through her objeciive co-operation now, but a'so through her readiness to co- operate in the future.” ‘This attitude brought warm words of thanks from the French premier at the end of the conference. “So far as German-American rela- tions in this conference are concern even in Paris our delegation took every | that & Pranco-German |ing no demonstration {15 per cent. | creased its rate to 7'z per cent and BLOCKS REICH BEBATE Snowden Tells Commons Time Is Not Ripe for Discussion. LONDON, July 23 (#).—This is no time for parliamentary discussion of the international situation revolving about Germany, Chancellor Philip Snowden told the House of Commons today. 5 Answering & suggestion that such a discussion take place next week, he sald he did not think that would be in the public interest in view of the delicacy of the present financial situa- REHSTAG CALL PLEA I REITED Council of Elders Refuses to! Convoke Assembly Pend- ing Parley Outcome. By the Associated Press. BERLIN, July 23—The Reichstag Council of Elders today voted down a motion for the convor on of the Reichstag and thereby gave the Bruen- ing government another brief breathing | space in which to negotiate definite as- sistance for distressed Germany. “The motion was offered to the coun- cil by the Communists, Nationalists and National Socialists. Fall by 24 Votes. They were able to muster only 43 of the necessary 267 votes, but even so, the council seemed by no means 50 strongly pro-government as it was last YHE EVENING STAR, WASHINGTON, D. C, CREDIT EATENSION WON BY GERMANY = Parley Also Acts.tp Restore | Confidence in Final Ses- sion at London. __(Continued From First Page) . be of greatest importance in helping Germany.” Chancellor Bruening hurried out of the foreign office,” pausing only long enough to say that he had to leave right away. Holding Conference Tonight, ‘The chancellor and Foreign Minister Curtius are to have a private talk tonight with Secretaries Stimson d Mellon, who will be their guests at dinner. It was explained the conversa- tions to be held in Berlin with Mr. MacDonald and Forelgn Secretary Henderson will be postponed until Mon- day because Dr. Bruening wants to show the American _representatives conditions in Germany first. “It looks pretty bad,” one of the financial experts with the German delegation said, “Help in the form of cash is not forthcoming and the chan- cellor’s position -will _be very difficult when he returns to Berlin. I wonder if Mr. Stimson will see things in a diffévent light when he gets to Germany.” Mr. Stimson himself told a corre- spondent as he left the foreign office that he was “thoroughly satisfied.” Dino Grandi, the Italian foreign min- ister, sald, “I am very happy over the result.” Premler Laval of Prance, in one of the speeches which wound up the con- terence, congiatulated the delegates on their frankness and spirit of co-oper: tion, with particular compliments for Week, when thers was another attempl | the 'assistance given by Mr. Stimson to force through an extra session of | the Reichstag. The newspapers, meanwhile, con- tinue comments verging on pessimism regarding the conference in Londe Even the Berliner Zeitung said: “It is cleariy realized now that the London Conference will not bring the help which German industry needs,” add- ing, it is becoming more apparent daily understanding is more imperative than ever. Resent Attitude of Critics. Officials of the foreign office ex- press resentment at the attitude of he press, asserting the newspapers are | giving the impression that they are in closer touch with the actual situation than government officials. The people, on the whole, are giv- that they are worried about the way things are going. Nevertheless many prominent figures admit frankly that they can see no constructive help coming from the con- ference at London. The calynet met this morning and approved @ slight relaxation of the bank regulations. | GERMAN REACTION SKEPTICAL. Bruening Secures Only Enough Success to Act as Temporary Sedative. BY FREDERICK OECHSNER. BERLIN, July 23.—Chancellor Bruen- ing has securea at London only enough | success to act as a sedative on the German situation for & short period, in | which material assistance will remain | as_imperative as ever. The cautious optimism which so far has characterized the German reaction to_the international discussions was definitely giving way today o skep- tieism. While conditions here remain out- wardly under control, it cannot be doubted that when Chancellor Bruen- ing returns from London he will find himself faced with a potentially dan- gerous political situation, Hitler Success Forecast. Conversations with Fascist who are close to Adolf Hitler have con- vinced this correspondent that the Fas- cists consider it will be only & matter cabinet will crash and Hitler's party will take over the government. Both in Germany and abroad sur- prise has been expressed because of the peculiarly docile tactics empioyed in the present crisis by the stormy Fas- cists. Hitler even gave a tepid approval to Bruening's policy in the crisis, while Hugenberg urged his cohorts to behave. There is now evidence that Hitler's leaders have had difficulty in restrain- ing the more belligerent elements among_the Nazis, and today Germany is seething among the middle, classes, leaders | and Mr. Mellon. “I am very well satisfled with the re- sult of this meeting,” he said. Chancellor Bruening in his speech - | expressed appreciation for these efforts to aid his country and thanked the Americans especially. Hails Negotlations, Mr. Stimson emphasized the signifi- cante of the Pranco-German conversa- tions at Parls last week and described the negotiations in which he played so important a part as a great event which would re-establish world confidence. Dino Grandi for Italy, Amba-sador Matsudaira of Japan, and Premier Ren- kin of timents, Prime Minister MacDonald thanked the delegates all round. In authoritative conference circles to- day it was said the conferees hoped the four measures approved would enable Germany to pass through the present money crisis, and, meanwhile, to in- crease fath in the Reich's credits, so that when the 90 days expire long-term credits sufficent for the nation's need might be possible. The resolutions fell short of what ermany hoped to get when Chancellor | Bruening and Foreign Minister Curtius came to London Monday night for the conference. Thelr hope then was that they would leave with a long-term credit of about $375.000,000 to bolster their economic system and with a renewal of existing | short-term credits. Told Loan Was Impossible. But, at a dinner conference With Prime Minister MacDonald and Foreign Secretary Henderson, they were per- | suaded that such a loan was impossible {under present conditions, and they withdrew their request. The American position was that United States banks would give finan- clal aid to Germany, but only if the | banks of all the other nations shared the burden. Otherwise, the problem was to stop the flight of forélgn credits from the Reich, render necessary im- mediate aid and await improvement in the situation. This idea was held also by the Brit- ish and, according to Secretary of State Stimson, was put before the confer- and it might not be difficult to’fan the heat into flame. Chance Believed Missed. It has been clear all along that the opposition leaders would give Bruening a chance to make or break his govern- ment as @ result of the Paris and Lon- don Conferences. The average opinion now is that he has done neither. One thing the chancellor cannot old is continuing on_drastic lines his “self-help” program, already instituted. Those who have expected immediate re- lief from the program resulting from the present conferences will find that the disciplinary measures are not at an end and that Bruening has by no means issued his last emergency decree. RED BASES RAIDED Police in Frankfort, Seek Inflammatcry Handbills. FRANKFORT-ON-MAIN, Germany, July 23 (#).—Police today raided all National Soclalist headquarters and newspaper offices here, searching for inflammatory handbills and " evidence of other illegal activities. There were no disorders. Similar raids were carried out against Communists Tuesday. Germany, Austrian Rate Raised. By Radio to The Star and the Chicago Dutly News. PARIS, France, July 23.—On the ad- vice of the adviser in Vienna of the Bank for International Settlements the Austrian National Bank has increased its discount rate to 10 per cent. ‘It is expected that Budapest will increase |the rate to 12 per cent and Berlin to Belgrade has already in- might be obliged to make another in- crease to correspond to Central Euro- opportunity to make contracts with your excellent American statesmen. During the conference pauses I called on Mr. Stimson several times and all of us could chat in a friendly personal way with your representatives, Tonight we shall have the pleasure of enter- | taining them at dinner. Grateful to Stimson. “Above all we are grateful that Mr. Stimson, whose personal plans already have been bedly upset, nevertheless is illing to come to Berlin. “We highly appreciate this decision to visit us and we are grateful for the promised visit of the British statesmen. We regard it as a public gesture of America's readiness to stand by us in & belpful manner.” Dr. Curtius emphasized his belief that the first paragraph of the official communique issued at the close .of the cdnference is the most important, from the German viewpoint in that it testi- fles to the basic soundness of Ger- gmny's economic and budgetary situa- jon. ‘This paragraph asserts that with- drawals of eapital from Germany are economic ed, not justified by the and budgetary situation, clgium expressed similar sen- | | ence in its first form by Mr. MacDonald | keep the Stock Exchange closed until | 'and then it evolved gradually through July 0. of a short time before the Bruening | s of ks ansmaicon. LOOMMUNIQUE LISTS aythoritatively,” largely prevented the coriference from being able to work out means- of long-term credits to Germany. ‘The French were absolutely unwilling participate in such a loan without ’;:fllunl and drastic financial guaran- es. ‘ The ,British and the Americans were unwilling to share in the exaction of such political and financial conditions, and also were unwilling to make a large long-term loan without French aid, and 50 less tangible measures of relief were decided upon. The spirit of amiability was said by the conferees to prevail throughout the negotiations, which were likened to those of creditor bankers taking meas- ures to save from bankruptcy a brother banker in financial straits. Under the caption “A Lost Oppor- tunity,” the Times said today there will be general disappointment at the | meager achievements of the conference. “From the outsel,” the paper de- clared, ‘the conference was precluded from grappling with the fundamental factors responsible for the crisis in Germany. So long as the United States declined to discuss war debts and France declined to discuss reparations it was clear no real progress could be made toward permanent settlement of the economic problem of Germany.” The Times admitted the decision to maintain Germany's existing forelgn credits was of great importance, but asked, what of the future? “For & moment,” the newspaper: con- tinued, “France and the United States have succeeded in evading the real issues, but they cannot be evaded much longer. It is useless to deny the urgent necessity of finding a more permanent settlement of Germany's problems.’ The Daily Express said the real ques. tion of a loan to restore Germany's financial equilibrium was yet to be met. “In the end,” the paper continied, “it will fall on Great Britain and Amer- fca to praise it, and & new triple al- liance—Germany, Great Britain and America—will begin to take form.” The Daily Mail's diplomatic commen- | tator contended that the mere holding of the conference was sufficient to re- | store Germany. He declared the with- drawal of goid from Germany had | ceased and that a large loan no longer was necessary. 'BRITAIN'S DISCOUNT RATE IS INCREASED | Action Taken to Conserve Pound Sterling as Result of Big Outflow of Gold. By the Associated Press. 1 LONDON, July 23.—The bank rate | was raised today from 2'; and 3!; per cent. The increase in the bank rate was decided upon by the directors of the | Bank of England as & protective meas- ure. made necessary because of the | outflow of gold, which during the week |ended yesterday totaled 115,219,704 (about $76.000,000). It was expected in some quarters that | the Bank of England would not take action st present because of its large gold holdings, but unsettlement in other quarters at the lack of develop- ments to the extent hoped for from the | seven-power conference had caused a | | sharp “decline on the exchanges on London and created the possibility of | further gold withdrawals in the near | future. | The authorities took measures dur- ing the last few days to keep the mur- | ket discount rate up by buying bills, | thus hoping to make the 21, per cent bank rate—which was imposed May 14—effective, but developments in the money market and today's further un- favorable movement of exchanges on | London apparently made the Bank o | England directors decide on the pre- | cautionary measure to check the out- | flow of gold. | The stock exchange to some extent | | had discounted the fall by marking | down gilt-edge lssues last night and today. Stock Exchange Closed. BUDAPEST, Hungary, July 23 (#).— | Bourse suthorities today decided to | New Leisure in this Short-time Summer Offer *It will soon be withdrawn—the special offer that en: electric cleaner ever made, The New Hoover, for an unusually low down-pay- ment, This New cient than any previous cleaner and gives you not only extraordinary aid in your fight against summer dust, but new speed, ease and thoroughness of cleaning for many years to come! If you prefer, you can purchase the New Popular-Priced Hoover on these same terms: the small sum down, balance monthly, and a liberal allowance for your old cleaner. your Hoover promptly. Balance Monthly, Com- plete with Dusting Tools Dhe New HOOVERS S. Kann Sons Co. Lansburgh’s THREE PROPOSALS TO HELP GERMANY (Continued From Pirst Page.) of $100,000,000 recently granted to the Reichsbank under the auspices of the Bank for International Settlements be renewed at maturity for a period of three months. “Second, that concerted measures should be taken by the financial insti- tutions in the several countries with a view to maintaining the volume of credits they already have extended to Gel ‘many. “Third, that the Bank for Interna- tional Settlements should be invited to set up without delay a committee of representatives nominated by the Gov- ernors of the Central Banks interested to inquire into the immediate further credit needs of Germany and to study the possibilities of converting a portion o the short-term credits into- long erm. Joint Guarantee Noted. “The conference noted with interest & communication from Dr. Bruening relative to the joint guarantee recently placed by German industry at the dis- posal of the gold discount bank. “The conference is of the opinion that » guarantee of this description should make it possible to provide a sound basis for resumption of the normal operations of international credit. “The _conference considers that if these measures are carried through they will form a basis for more per- manent action to follow.” The communique was signed by Ramsay MacDonald as president of the conference. STIMSON PLEASED WITH QUICK RESULTS OF LONDON CONFERENCE ___ (Continued From First Page) leadership of our Federal Reserve Sys- tem, already have been organizing to reassure creditors against withdrawal of these funds. “The Bank of England has been taking similar steps to preserve the level of British lendings. Similar action now promised in the conference from all of the other creditors will greatly | help to end the panic and give Ger- many a breathing spell to reorganize | her resources.” “Once that panic is ended it will be easy to determine whether any further | capital is necessary and resolutions of the conference provide machinery for | making the necessary investigation and | stndy in this matter. “We belleve it is probable that once ! confidence is restored it will be found that Germany will be able to recover her equilbriim on the basis of her own resources and such assistance as will readily be available. But in any event we have provided the machinery necessary to meet that situation how- ever it may develop.” Secretary of the Treasury Mellon to- day expressed his satisfaction ouicome of the conference. “I am satisfled that the conference has achieved results which will be most helpful in restoring the financial stabil- ity of Germany,” he said. “That stabilliy has been shaken by a lack of confidence which is not justi- fied by Germany's internal economic| situation. “Germen industries are well or- ganized, and, given time and reasonably favorable conditions, will again assert | themselves and show the inherent | strength of Germany's industrial arm. “In proposing a one-year extension of war debts and reparations, Presi- dent Hoover has provided a necessary breathing spell. and in carrying his proposal into effect the creditor nations have relieved the German budget of heavy burdens during the period of recuperation. “The machinery set up by the con- ference will greatly assist the German government in meeting its immediate difficulties. 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