tion in Germany has been, to some extent, concealed by' the restoration of a normality under cover of the "standstill" agre ments. These agreements relate to the short-term loans, the total of which has been estimated at something like £225,000,000. When the crisis developed in the summer, as the result, first, of the' trouble over the abortive attempt to create Customs Union with Austri secondly, of the revelation of a heavy deficit, in the national tisanees, and, thirdly the difficulties of the Credit Anstalt, the Hoover plan brought relief in respect of the indebtedness of Germany under the Reparations scheme. Concurrently there was instituted al suspension of the payment of interest on short-term loans by. torium under the Hoover plan expires in June, the agreement in regard to the short-term loans is terminated in February next, "Germany is in the position of 2 solvent concern making reasonable profits but i drawn: at the bank" summing up of one authority on the subject. Much depends on the attitude of the banks. If they exercise their right of foreclosure in February, then the financial crisis of 1931 will be but a pale shadow of its success sor in 1982, Realisation of the dangers of the position has induced the German Government to create an Economi@ Advisory Council under the presidency" of Pre ident von Hindenburg himself. On the Council are rep: ives of the trade unio: industrialists, but no scientists or independent experts. The Council's functions, as the name: Suggests, are advisory. Sub-diary to it has been appointed influential sub-committee under Dr. Bruening, who hi opted leading bankers to him, with the object of studying German indebtedness, particular: ly under the "standstill" agreements. In German opinion the urgency of this question Li partly in the fact that whatever arrangement is reached for the redemption or prolongation the commercial debts, suspended animation under the standstill" agreements, will mainly decide how much foreiga exchange Germany is likely to have from her export surplus for! the resumption of any but reparation payments in kind after! July. The sub-committee, according to the telegram published today, invite the examination the country's private debts. Thi clearly is the outcome of an effort to put all her cards on the table s0 that abroad the supreme importance of tackling the problem of the "standstill" ments may be swiftly percei must be recognised that impetus to Germany's financial deterioration was undoubtedly given in 1980 by the result of the September elections which so nearly staged a Hitler triumph. This unseated foreign confidence. From that uneasiness directly' sprang the difficulties which brought about the three major: portents already mentioned. If the British electorate wanted tification for the emphasis with which it cast its recent vote on the side of stability, the plight of German finance would have been alone sufficient to provide it. Now, as will be 8 the question of the agreements turns to a la tent on the attitude of the creditor countries towards the Reparations issue. It may be asserted that the revision of the Young Plan, or, perhaps, a cot pletely new examination of the reparations must come within the immediate purview of the finance ministers of all countries concerned. M. Laval, on the occasion of his recent visit to America, ce-ordinated with Mr. Hoover their ideas for "a new arrangement of inter-governmental debts without actually fixing its details." This guarded statement by the French Prime Minister cannot be taken to do more than affirm a belief in the integrity of the Young Plan. It! fs, however, consistent with this belief. to suggest that a measure of relief is contemplated in dealing with German representa tions. M. Laval may, for example, believe that the crisis threatened in February can be averted by suggesting that a larger proportion of reparations be paid in kind. To set in m¢ tion the mechanics of finance relief to Germany it will be necessary to supply the oil of political confidence if not of a definite entente - between Paris and Berlin, The inquiry proposed by tie German Debts subcommittee may be a practical preliminary. Understanding of Germany's actual position must, surely, be essential to the development of French friendship for which itis fortunately' be-
Text read from the printed page and cleaned; old type leaves the occasional error.