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Capital Comment

August 12, 1934
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An unusual quietude on events in Germany has come over official Washington since the announcement that Hitler would adopt the title of “Reichsfuehrer and Chancellor.”

This silence, particularly noticeable since the death of Germany’s President, Paul von Hindenburg, reveals a startling situation in official and diplomatic circles. Inwardly and privately, Washington officialdom is asking questions. In general they would like to know what kind of a game Hitler is playing.

In his address on von Hindenburg delivered before the Reichstag at Berlin, Hitler made one reference to himself in the plural form. From time immemorial, that form has been used only by royalty. Some are inclined to think that the plural designation was thrown out to the people of Germany as a feeler.

In that same address, the Nazi leader pointed out that Germany will never wage war on anybody except in self defense. It is well known that for the present Germany is in no position to wage an offensive war. But the question in the minds of those who have their eyes trained on the Reich is what will happen in the event that Germany gets out of her economic straightjacket and possesses an army as strong and as efficient as Hitler and his henchmen deire.

Dr. Hans Luther, German Ambassador to the United States, is back again in this country after spending several weeks in Berlin. He came back to this country with his daughter, Fraeulein Gertrud Luther, who, by the way, will be married this Fall to Gerrit von Haesten, the Embassy’s secretary.

While in Germany, according to Washington talk, Dr. Luther took a hand in unravelling his country’s financial knot. The effectiveness of what was done during his visit is not known. But Dr. Luther is generally regarded as a financial and economic expert.

Dr. Luther’s stay in Germany was marked by a few exciting events. There was the bloody slaughter and purging of Nazi forces. Next came the murder of Dollfuss in Austria. Finally, there was the death of President von Hindenburg and the announcement that Hitler would assume the office of supreme being in Germany.

Now Dr. Luther is back in the United States. No doubt while in Berlin he had the opportunity of telling Nazi officials about this country’s reactions to Hitler policies. During his stay there, Dr. Luther was privileged to gain at first hand the realistic side of a horrible picture.

The attitude of the United States toward Hitler policies was made quite clear recently by Secretary of State Hull in his note on the debt default. Dr. Luther was in Germany at the time the note was received by the Reich.

Just before Dr. Luther left for Berlin, the McCormack Committee investigating subversive propaganda activities in the United States uncovered evidence which linked Germany with financing Nazi propaganda activities in the United States. This revelation added to the distrust of Hitler policies.

General sentiment in this country is against Hitler and his followers. For Germany, the situation is serious. The Hitler government would like to see a change in attitude. It may yet be Dr. Luther’s task to bring this about.

This month marks the beginning of the real crisis in the life of the German nation. While von Hindenburg lived, the nation was under the guidance of a steady hand. Now the ship of state goes into the hands of Hitler, a man who has brought onto himself the ill will of practically every nation in the world.

Not only is there this ill will against him, but also, there are the serious economic and financial difficulties which are paralyzing Germany’s internal structure.

Short crops caused by drought, is already threatening a food shortage. Taking everything into consideration, Germany is due for inevitable hardships this Winter. How her people stand the Winter will determine Hitler’s future.

Already wartime measures are being employed to conserve resources. The sharp decline in foreign trade and the increasingly difficult foreign exchange situation have brought on a program of rationing raw materials.

One of the outstanding developments was the order of at least a thirty per cent cut in cotton utilization which became effective August 1. Germany took this step to conserve spot cotton supplies which were reduced by the control exercised over imports in recent months.

The ordered reduction in utilization of cotton probably means a cut of more than thirty per cent from activity of recent months, when consumption was greater than in the first quarter of the year. Reduced factory production brings on a new problem—one of keeping factories operating and people at work.

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