462.00R296/4444
Address by the Chancellor of the German Reich (Bruening)53
Ladies and Gentlemen: All the peoples of the earth are deeply impressed by the historical step taken by the President of the United States on Sunday to check the tremendous crisis which has overtaken almost all nations and to bring aid to those who threaten to succumb beneath it. The German people and the German Government accepted President Hoover’s proposal with heartfelt gratitude. We see a new hope for Europe and for Germany proceeding from this proposal. It brings Germany aid at a critical moment in her history when difficulties have accumulated to the utmost limit. The first effectual initiative has been taken toward a better future; but the German Government must warn against the belief that through this proposal, if it is accepted by all the nations in question, we will have surmounted all the troubles confronting us.
While the German Government has attempted to gain control of threatening dangers by repeated rigorous measures in the form of the Emergency Decree of December and the last Emergency Decree and while it was forced to impose upon the German people the extreme of burdens and privations in order to get through the coming months and, above all, next winter, it was well aware that the climax of financial difficulties would, in all probability, be reached in 1932. Although the German Government has balanced the budget of the Reich for the current fiscal year, in the event that no further worsening of the economic situation occurs, and although it has even made a considerable amount available for the municipalities in order to alleviate the growing exactions for those unemployed who are supported neither by unemployment insurance nor by the Reich, the situation of the states and municipalities is still unsettled in 1931. According to the estimates of the German Government, the taxes transferred by the Reich will fall off by hundreds of millions. In addition there are the great losses in taxes on trading profits, real estate and rents which must be expected as a result of the bad economic situation. The result of the decline in incomes and wages in [Page 52] 1931 will be that the full weight of the tax deficit will only be felt in the 1932 budgets of the Reich, states and municipalities.
An additional factor was the acute danger, which we have experienced repeatedly during the past two years, that great anxiety manifested itself following a series of economic events and that this anxiety resulted in the sudden withdrawal of tremendous numbers of short-term credits by other countries. At one blow the danger which had long since been predicted, namely, that during the years of seeming prosperity German business had been largely built up on domestic and foreign money which was either loaned for a short time only or invested in undertakings from which it could not be withdrawn from one day to the next, became manifest to its full extent. The attempt now made for the third time to withdraw a large part of these short-term credits from Germany brought on a storm, which may now be regarded as calmed. At the same time, however, this storm clearly and drastically brought before the eyes of all discerning people the fact that the economy of the whole world is interwoven, positively and negatively. It transformed the plight of individual nations, especially Germany, into a plight involving the whole world. It showed that the living standard of one nation is conditioned by the living standard of other nations. If one nation suffers severely, other nations that have business relations with it cannot in the long run maintain their prosperity.
To believe that all Germany’s troubles will be at an end when President Hoover’s proposal is accepted, would be the most dangerous illusion to which the German people could surrender. The German Government was obliged to adopt the rigorous measures in question to save the financial situation and must adhere to them, because even without reparation payments extraordinary exactions will be necessary in order to hold out for the next year and a half. The Government has declared that it is prepared to mitigate the hardships and especially oppressive measures of the Emergency Decree, and it adheres to its statement. But it is not in a position to allow the general financial results of the Emergency Decree to be undermined in any way. Only under guarantee of these general financial results will it be possible to balance the above-mentioned additional losses in 1932, if President Hoover’s proposal is accepted.
The German people would jeopardize all the sympathetic appreciation of the world and all confidence if it did not adhere to the principle of absolute recuperation of our state finances, even if sacrifices are required to carry it out. The restoration of finances is one of the most important premises for the establishment of confidence. The proof of confidence, embodied in President Hoover’s initiative, important to the history of the world, can only bear fruit if the German [Page 53] people are determined to proceed by their own strength along the road of greatest economy in every field.
According to the proclamation of the President of the United States, the proposed holiday year is intended to serve not only to restore international business confidence, and consequently the economic reconstruction of the world, but its purpose is, at the same time, to free the political relations between the countries of disturbing tension and to promote and fortify a peaceful development based on determined cooperation between the states. This is necessarily a reciprocal relationship. Unless the economic and financial relations become sound, the political situation cannot become quiet, and without political pacification there can be no end to economic distress. The well-being of Europe and the world is contingent upon the resolute and far-sighted determination on both sides that those who by a tragic fate became enemies in the world war will now energetically make such resolutions as are demanded of all governments and nations by the extreme stringency of the moment. The American proposal will prepare the way to this magnificent goal, if it is accepted by the countries concerned in the same high-minded spirit in which it was offered by its author.
The German Government is prepared to cooperate with all its power in striving for this goal of the American proposal. It is sincerely determined to collaborate, on the political side as well, with all the governments in order to solve the questions which are of importance to the pacification of Europe. The greater the alleviation of the severe economic and social distress from which the German people are suffering, the more firmly and unanimously will they be prepared and competent to form a bulwark of quiet and order in Europe.
The solemnity of this hour and the responsibility resulting from it impel me to voice the hope and expectation that all those who are influential in forming public opinion will keep in mind the importance to Germany and Europe, at this moment, of moderation and self-discipline in all utterances and demonstrations of all our compatriots.
The German Government is aware that in all this the future shaping of the relations between Germany and France will be assigned a particularly important role. Though many difficulties and obstacles have shown themselves in the development of these relations, though there have been animated disputes in the press on both sides of the border, I nevertheless hold fast to the conviction that all this is not insurmountable, that, on the contrary, if there is mutual good will, ways and means can be found to bring to the fore what is of common interest to both countries and to fasten it so securely in [Page 54] the minds of both nations that it will provide a guarantee of durability. For the reason that I am convinced that a really well-balanced and fruitful cooperation among the peoples of Europe and the stabilization of peace in Europe, which is necessary for an active business exchange with the New World, will only seem secure on the day that in the souls of the two great neighboring nations the past will have been overcome and their joint vision directed toward the future and its mental, economic and political shaping, for that very reason it is the aim of the Government which I lead to look ahead beyond the gloomy mood of the moment and to do everything feasible that it can answer for to help President Hoover’s generous action succeed as it deserves to do and as it should do in the interest of Europe and the whole world.
The German Government for its part will not spare good will. When once agreement has been reached regarding the holiday year, all the more easily will it be possible to pave the way for peaceful collaboration of both countries by means of a straightforward discussion. I would welcome it if an opportunity presented itself for such a preliminary discussion, as the recent meeting in Chequers paved the way for a discussion between Germany and England. The tasks confronting Germany and France are too big and too urgent for both countries that it should not be possible to find a common ground, in confidential and unreserved exchange of views, from which the solution of these tasks could be attacked with prospects of success.
- Delivered over the German radio, June 23, 1931. Text and translation transmitted to the Department by the Ambassador in Germany as enclosures to his despatch No. 1003 of July 1; received July 14.↩