Thursday, March 27, 2014

Thursday, 27 March 1930: German Chancellor Hermann Mueller's Government Falls

Berlin:  

The “Grand Coalition” government of Chancellor Hermann Mueller falls.  Having held together long enough to see the Young Plan through, against growing financial pressure, it falls apart now over a disagreement about funding unemployment insurance.  Two of the political parties that make up Mueller’s government, the German People’s Party and the Social Democrats –Mueller’s own party – cannot agree on the matter, and the Social Democrats announce they are withdrawing. 

 The Social Democrats, representing primarily socialists, want to see unemployment insurance funded to the fullest extent possible, despite the cry from many in the populace for relief from taxes.  The German People’s Party, representing primarily industrialists, want to see the cost of funding the unemployment insurance reduced.  Mueller and many of the socialists were prepared to negotiate a compromise, but Rudolf Wissell, Social Democrat Minister of Labor, wouldn’t budge and led the withdrawal.  Mueller tendered his resignation to President Paul von Hindenburg shortly thereafter.

Unemployment benefits are costing Germany $300-400 million annually. 

Mueller’s cabinet has governed since June 1928.  Early speculation centers on Heinrich Bruening, a centrist, as a replacement.  Mueller himself has recommended him. 

The Mueller cabinet 

Elsewhere:

England:  More evidence of the worldwide economic depression: a new survey shows that 100,000 mill workers are unemployed in Lancashire.  Sources call it the worst economic depression in that part of the country since the 1860s.

 Tokyo:  The government still hasn’t replied to a U.S.-backed proposal from the London Naval Conference that Japan accept a 66-2/3 ratio of capital ships compared to the U.S. and Great Britain (which is less than the 70% Japan sought).  Sources say opposition to the reduced ratio from within the naval general staff is so fierce, the government is fearful of precipitating a crisis if it moves too quickly.  

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