Hedin, June 18, The Minister of Finance, Dr Moldenbauer, a member of the German People's Party, has submitted to the Chancellor his resignation which he refused to withdraw although the Cabinet, after a speci sitting lasting fully.two how unanimously asked him to reconsider' his position, Chancellor Bruening: will now report to President von Hindenburg on Dr. Moldenauer's decision and the position of the Cabinet which has become rather precarious, inasmuch as it is! universally believed that a dissolution of the Reichstag with 9 subsequent general election would hardly strengthen the present. coalition parties.
Dr. Moldenhauer decided to resign when the Federal Council by a large majority rejected the Bruening Cabinet's proposed compulsory levy on all salaries anda tax on. all the unmarried men and women. alike, as a means to meet the deficit in the current year's budget, the Minister's former proposals having been rejected by parties] belonging to the present coalition while the steady growth of employment allows of very little hope of finding new sources of income for the badly depleted coffers of the Treasury—Trans-Ocean Kuo]
Min, Berlin, June 19.
It is highly probable that the] Chancellor; Dr. Bruening, will take over the vacated portfolio in an endeavour to disentangle the skein, Berlin, June 19.
The Cabinet crisis threatened by} the resignation of the Minister of ance, Dr, Molderhauer, has been staved off until next week as Chancellor Bruening is unable to leave the capital over the week-end and to proceed: to Neudeck where President! Yon Hindenburg is staying for holiday. the political] jtuation remains in a state of suspense, circles close to the government regarding the former Prussian rev of Finance, Herr Hoepker-Aschhoff as the probable successor to Dr, Moldenhauer whose decision to resign is final.
As to the effect of the Finance Minister's resignation the press as well as the politicians seem to be somewhat at sea. While normally the position of the Cabinet as -a whole would te untenable, it has, a5 "Vorwaerts," the organ of the So-
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