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Show WALL STREET VIEWS By James McMulCn, financial Observer not bring effective pressure without with-out British cooperation, and the British have refused to ooo jurats. jur-ats. They were apparently satisfied satis-fied with ths t per cent annual Interest paid en the "frosen" notes. Wbat'a move, the Bank ef England, by discounting these notes at -par. gave them the status of 100 per cent valid nego liable paper. Now, suddenly, the Bank ef England has said in effect: "Let's quit kidding. These obligationa are not good as they atand, and we shall cease to give them a fle-titlous fle-titlous value by discounting them, unless Germany makes some arrangement ar-rangement In good faith ta pay them off as rapidly as possible." The only way Germany can do this is by curtailing current Imports Im-ports and using ths funds thus conserved for ths purpose. One would expect Germany, under the circumstances, to tell the foreign note-holders to go ait en a tack. But the Bank of England Eng-land haa a powerful weapon with which to compel the Germane to come to terms. If they refuse to undertake a eetUement on the "frown" notes, ths bank can and will stop discounting their current cur-rent commercial notea also, thus destroying ths market for these and making it much mora difficult diffi-cult for Germany to finance ths purchase of English goods she urgently needs. American banks are jubilant at the prospect of forcing repayment repay-ment of the "standstill" obligations. obliga-tions. Germany is privately eo concerned that Reichsbsnk officials offi-cials are coming soon to Englsnd and the United 8tates to discuss a settlement. But the most Important Im-portant feature of the situation is the significant change la ths Bank of Englaid's attitude. Copyright, 193, for The Telegram NEW TORK Exceptionally In formed New Torkera report that irtce President John N. Garner 4 a lot ta do .with President Roosevelt's selection of Frank Murphy rathar than Robert H. lacksoa to succeed Homer Cum-nings Cum-nings as attorney general. Garner likes and admires the former Michigan governor per-KHially, per-KHially, although he disagreed irlth tha letter's tactics during iie UST sit-down strikes In auto factories. On the other hand, he raa opposed to Jackson's promotion promo-tion Because he feels that the olloltor general Is altogether too intimate with the Corcoran-Cohen lllque. So Garner told the president, arithout mincing words, thst he would hsve a tough time getting Jackson past the gauntlet of senile sen-ile confirmation, whereas there would be no serious objection to Murphy. He also stressed the angle that the west and south ertuld object to another New Yorker In the cabinet. F. D. R. recognises Garner's tremendous power on Capitol hill and evidently evident-ly decided not to challenge it on this issue, especially aa Murphy was entirely acceptable to him. The V. P.'a influence was therefore there-fore a decisive factor In his choice. This backstags development illuatratea the point, noted by Ray Tucker in the Telegram's Washington Wash-ington column, that Roosevelt and Garner while fundamentally in opposition to each other on many issues will maks every effort ef-fort to keep their disagreements under cover. Each hopes to dominate the Democratic party In next year's campaign. If they fought each other publicly, it would aplit the party wide open and virtually asaurs Republican success In 1M0. There would be no percentage In that for either of them hence the wisdom of concealing family fusses and aeeklng to convey an Impression of harmony to ths public. That's sound strategy in the gentle art of politics, at which both the president and vice president presi-dent are past masters. No "Withering Away' Last week our Moscow correspondent, corre-spondent, Harold Denny, called attention at-tention to what ia tantamount to a formal repudiation by the present pres-ent Russian communist party of the doctrine of Karl Marx, that with the coming of communism the state will "wither away," and society will become an orderly, anarchistic Utopia. But this repudiation de jure had already been preceded by an obvious ob-vious repudiation de facto. Tha repudiation of this particular doctrine, doc-trine, moreover, can hardly be called a betrayal of Karl Marx. It is. rather, the Inevitable consequence conse-quence of accepting his central " doctrine the public ownership of the means of production. Of sll ths contradictions In the Marxist system this doctrine of the stats "withering away" was perhaps ths most glaring. Karl Marx did not like the particular examples of the state that ha found in his own day. Hence "the state," aa auch. became anathema to most radicals, and socialists snd anarchists joined in condemning it But nothing could have been more confussd and inconsistent in-consistent on the part of the so- '. delists. For if the state ia to own and operate the means of ' production and. thia is. what so-cialiam so-cialiam proposes then' It must dominate not only political and legal but economic life. To expect ex-pect it at one and the aame time to swallow the whole of the nation's na-tion's economic life and to "wither "with-er away" is a little unreasonable. The rulers of a stata that la able to plan and control all economic eco-nomic life must be expected to control the individual in all his activities far more than the rulers of a state which does not have such powers over economic life. Socialists who expect otherwise are the victims of wishful thinking. think-ing. New York Times. Denmark is investigating the possibility of mors extensive development de-velopment of its mineral resources in Greenlsnd. Financial insiders find backstage back-stage evidence of a stiffer attitude, atti-tude, toward Germany. The British government Is not offi-cislly offi-cislly involved, nor has the development de-velopment any direct connection with the Munich accord or its aftermath. But the Bank of England, Eng-land, which works In close .harmony .har-mony with the government Is taking the lead without any publicityin pub-licityin a move to tighten up on Germany financially. It would hardly do so without Chamberlain's Chamber-lain's tacit approval. The German "standstill" agreement, agree-ment, negotiated in 1931 before Hitler came to power, provided for a moratorium of Indefinite length on repayment of ths principal prin-cipal of German commercial obligations ob-ligations held abrosd in the form of notes. A small proportion of this debt haa been repaid In recent re-cent years, but the bulk of ths notes are still outstanding. About I17S.O00 000 of them are held In the United Statea and much more than that amount in England. Both this country and Britain also hve substantial sums in current cur-rent German commercial paper (about $129,000,000 here). These current notes s're used to facilitate facili-tate the financing of German purchases pur-chases in New York and London. They are in perfectly good standing, stand-ing, being aecured by bills of lading on the goods purchased and being constantly replaced by new notes on new purchases as the goods are delivered In Germany. Ger-many. The American holders of the "standstill" notes have been trying try-ing for several years to get ths Germans to do something about 'paying them off. They have had no luck at all, because they could |
