Fear Cabinet Crisis That Would Endanger Rothschild Loan to Hungary Blamed for Bethlen’s Support of a

The fear of creating a cabinet crisis that would endanger the negotiations of the loan expected to be made to Hungary by the house of Rothschild was responsible for Chancellor Bethlen’s frank support yesterday in Parliament of the action of Julius Goemboes, minister of war, in barring Jews from membership in the Hungarian Order of Heroes, it was revealed here today.

In parliamentary circles it is reported that Chancellor Bethlen is determined to support Goemboes despite his anti-Semitic outburst because he doesn’t want to lose him as a member of the cabinet, fearing that this may lead to a rupture in the cabinet which would have an unfavorable effect on the contemplated Rothschild loan to Hungary.

This explains why the Chancellor took a stand in support of Goemboes’ refusal to admit Jews to the Hungarian Order of Heroes. Yesterday the Chancellor declared that Jews could not be enrolled in this honor legion because “they had participated too actively in the Communist revolution of 1918 and hence cannot be admitted to the legion which is aimed chiefly against another possible revolution.”

The Chancellor’s statement met with vigorous protest yesterday and today from the Jewish deputies. Deputy Paul Sandor today dramatically declared “you refuse to admit into the heroes’ legion even a Christian who married a Jewess. Is this Christian aristocrat with fourteen generations of good patriotic standing also a Communist?”

Deputy Sandor pointed out that the Hungarian Order of Heroes was supported with funds from the state treasury to which Jewish taxpayers paid their due share. He also emphasized that the war heroes had been alloted lands belonging to Jews. Deputy Sandor, continuing the discussion he had raised yesterday, and which led to the Chancellor’s statement, declared “I have no intention of migrating to Palestine.