Wednesday, July 16, 1930: Bruening and Hindenburg Invoke Article 48

Berlin:  Following through at last on the long-threatened maneuver, President Paul von Hindenburg and Chancellor Heinrich Bruening invoke Article 48 of the German constitution – the “emergency decree” provision – to enact the Bruening cabinet’s package of emergency taxes and other financial reforms without Reichstag approval.  It’s the first time the emergency decree provision has been invoked.  The constitution allows for the unusual step in instances where “the public safety and order in the German Reich are disturbed or endangered.”

 

The chain of events starts this way: the Reichstag, which has been wrangling with Bruening’s cabinet for weeks over the measures, votes them down, 256-204.  After this the communists in the Reichstag begin shouting, “Resign! Resign!” at Bruening, who shouts back, “In the name of the government I must now declare that it no longer places any value on continuation of debate.”

Bruening’s cabinet then holds an hour-long meeting, during which they vote unanimously to invoke Article 48.  Bruening then goes to Hindenburg, who signs the decree enacting the measure as law.

 

The decree does not dissolve the Reichstag.  That step is covered by a separate article of the constitution.  But Hindenburg reportedly has already given Bruening a signed decree to dissolve the Reichstag if he needs it.

 

He may.  The Socialists have already announced their intent to bring a motion before the Reichstag tomorrow declaring the use of Article 48 illegal.  If it passes, it’s expected that Bruening would then use Hindenburg’s decree to dissolve the body.  Ironically, the nationalists are expected to vote against the socialists’ measure, or at least abstain, ostensibly just to spite them, and thus may help uphold Bruening’s government.  But much hinges on what happens in the Reichstag tomorrow.

Meanwhile, at the state level of government, Prussia lifts its ban on the Stahlhelm paramilitary after Hindenburg said he wouldn’t attend any Rhineland liberation celebrations there because of it (see yesterday).  The Stahlhelm’s leadership made the decision easier by promising not to allow military training exercises by its members.  Prussia’s ban was based on its official view that the Stahlhelm is essentially a military organization.  Lifting the ban means Hindenburg will resume his plans to attend celebrations in Prussian towns.

New York:  More bad economic news -- the Annalist magazine’s monthly index of business activity falls to its lowest level since 1924.   

Tuesday, July 15, 1930

Berlin:  President Paul von Hindenburg announces he will refuse to attend Rhine liberation celebrations in Prussia, because of that state’s ban on the nationalist Stahlhelm paramilitary, of which Hindenburg is the honorary president.  Hindenburg still plans to attend celebrations in Hessian and Bavarian cities.

Meanwhile, maneuvers in the Reichstag are getting tense over the taxation proposals of Finance Minister Hermann Dietrich.  Chancellor Heinrich Bruening again threatens to invoke Article 48 of the German constitution and enact Dietrich’s taxation measures by emergency decree if the Reichstag doesn’t approve them.  That threat – especially in view of President Hindenburg’s demonstrated willingness to play hardball (relative to Prussia) -- is enough to get one of Dietrich’s proposals through: an income tax increase.  Even so, the nationalists, communists and nazis vote against it.

 

Meanwhile, beer sales have plummeted as a result of the tax on alcoholic beverages.  Sales are down 20%, which just about offsets the 10-20% price increase resulting from the tax.  Bavarians are buying across the border in Czechoslovakia.

 

Helsinki:  President Lauri Relander dissolves the diet and calls for new elections after legislators fail to pass (for the second time this month) a constitutional amendment outlawing communist organizations.  Relander and Prime Minister Pehr Svinhufvud reportedly hope new elections will produce a parliament that will pass the amendment.

Monday, July 14, 1930: Pope Warns Against Bolshevism; Frick Seeks Citizenship for Hitler

Vatican City:  Pope Pius XII warns the United States that it must “beware lest bolshevism spread in America at this moment of financial depression and unemployment.”  Speaking in a private audience with James H.A. Ryan, Rector of The National Catholic University in Washington, the Pope says, “This is just the ripe time for the spread of bolshevism.  The people of the United States do not realize how far bolshevism has spread.  We hear that, following the market crashes, there has been considerable unemployment.  When the number of people are out of work and when business leaders are crippled by depression and unable to care for them, this is a favorite period for the introduction and development of Bolshevism.”

Weimar, Germany:  Wilhelm Frick, nazi Minister of the Interior and Education in Thuringia, is at it again.  Rumors circulate that Frick intends to try to help nazi party head Adolf Hitler gain German citizenship, for example by appointing him as a police officer in Thuringia.  By law, this would confer on Hitler automatic citizenship.  The nazis evidently hope to avoid the same treatment of Hitler as recently happened to Waldemar Pabst, who, being a German citizen, was deported from Austria for his revolutionary activities (see June 15).

 

Rome:  In response to France’s recent gesture of suspending naval construction, Italy announces it will do the same for six months.  This is considered a significant improvement in relations between the two countries.

Sunday, July 13, 1930

Elbersdorf, Germany:  A battle breaks out between nazis and nazis, as a group of nazis loyal to Adolf Hitler interrupt a meeting of a group that was discussing pulling out of the party.  The “pro-Hitler” nazis beat speakers from the other group with blackjacks and switches made of steel.

Washington:  More bad economic news -- new government figures for May show U.S. import and export levels are down almost across the board, to virtually every part of the globe.  Import business was down approximately 28% in May 1930 vs. May 1929, and export business was down 18%.

London:  Still more bad economic news -- unemployment is up to nearly 1.9 million, a staggering 65.5% increase from same time last year. 

Saturday, July 12, 1930

Germany:

Berlin:  Germany submits its official reply to France’s idea for a “United States of Europe.”  Echoing some of the themes of Italy’s reply, Germany asks for a revision of the Treaty of Versailles and “equality” for Germany as a condition of Germany’s participation, as well as general European disarmament.

Meanwhile, Hermann Dietrich, Finance Minister, presents modified tax proposals to the Taxation Committee of the Reichstag which call for helping municipalities provide unemployment insurance to those who lose their jobs.  This would be funded by a poll tax, graduated according to a person’s means, and taxes on alcoholic beverages.  The proposals meet with a rough reception from the committee -- so much so that Dietrich is quoted as saying there’s no point proceeding with them, even though they will go before the full Reichstag soon.
 

Weimar:  Wilhelm Frick, nazi Minister of the Interior and Education in Thuringia, announces he has no plans to discontinue the “hate prayers” being recited in Thuringian schools, despite yesterday’s court decision that they are unconstitutional.
 

Rome – Paris:  The French and Italian governments find themselves in an odd spot – having to deny rumors that Italy had sought assurances of neutrality from Germany in the event of a war between Italy and France, and that France had communicated its displeasure to Germany over the matter.  The story supposedly came from a “high German authority,” who said Italian dictator Benito Mussolini had approached Berlin unofficially through naval and military attaches, asking whether Germany would remain neutral should Italy go to war with France.

“The Berlin story is a base lie and product of the imagination,” the Italian foreign office says.  “Italy has never proposed that Germany remain neutral in case of a Franco-Italian conflict.  France’s acceptance of Premier Mussolini’s proposal of a naval holiday is the most glaring proof of Italy’s desire to maintain the most friendly relations with France.”  France likewise calls the story, “a ridiculous fantasy and another hot weather yarn.”

Friday, July 11, 1930

Germany:

Leipzig:  The courts deal Wilhelm Frick, nazi Minister of the Interior and Education in the state of Thuringia, another blow when they declare unconstitutional his “hate prayer” which he has introduced in Thuringian schools.

Berlin:  Meanwhile, an ordinary automobile accident in the capital leads to evidence that nazis may have been planning a coup attempt.  A man and woman riding a motorcycle, killed in the crash, are found by their documents to be active members of the nazi party and transporting materials referencing the coup plot, which leads police to a large stash of arms.

Tokyo:  The cabinet of Prime Minister Osachi Hamaguchi decides to move forward with plans to present the London Naval Treaty for ratification by the Privy Council, without waiting for approval from the navy’s officers.  This despite earlier statements from some Privy Council members that they would not approve the treaty without the navy’s agreement.  Cabinet members nonetheless express confidence the treaty will be ratified.

Thursday, July 10, 1930

Paris:  In a goodwill gesture, France announces it will suspend its naval construction program until December to open the way for negotiations with Italy.  Speaking before the Foreign Relations Committee of the Chamber of Deputies, Foreign Minister Aristide Briand says, “Another war in Europe is impossible and inadmissible.” 

Wednesday, July 9, 1930

Canberra:  In a sign both of the growing economic depression and reaction to the U.S. tariff, Prime Minister James Scullin proposes an increase in import tariffs by 2%, and an income tax increase that some say will increase cost of living by $5 per person per week.  He’s dealing with a $68 million budget deficit, and blames the shortfall on the depression and a drying up credit market.

Tuesday, July 8, 1930

Tokyo:  A new complication emerges in Japan’s approval of the London Naval Treaty -- members of the Privy Council, the high-level advisory body to the Emperor, say they won’t approve the treaty until the navy’s officers do.  Considering the rate at which naval officers have been resigning in protest over the treaty, this would seem to be deal breaker.  Admiral Takarabe Takeshi, Minister of the Navy, says he thinks he can patch up the disagreement.

Rome:  Making good on its earlier commitment to increase defense spending, the government institutes a new 1.5% sales tax across the board. 

Monday, July 7, 1930: The Peasant March in Finland

Helsinki:  A mob estimated from 12- to 14,000 enters the capital at the end of what is being termed a “Peasant March” against communism.  They hold a demonstration during which parliament suspends its session, and are greeted by the new Prime Minister, Pehr Evind Svinhufvud.

Rome:  Italy publishes its official response to France’s idea for a “United States of Europe,” and the tone is not friendly, though it doesn’t reject the idea outright.  Instead, it places conditions on Italy’s participation in a union, some of which Benito Mussolini raised in an interview with a Paris newspaper July 3.

“Cancel all remaining demarcations between the conquerors and the defeated [from the World War] in favor of the establishment of conditions of absolute equality.  The fascist government is convinced that any project for a federal European union should be harmonized with the structure of the League of Nations.”  The response further says Russia and Turkey should be included in the invitation to union.  “The fascist government considers a federal union of Europe conceivable only as a union of all the states of Europe.  Otherwise the union might become a system in which one big state would be grouped with several minor states.  Therefore not coordination but secession would result, with Europe divided into contending groups of states.  We cannot divide modern civilization.  Material and moral progress have fixed intercontinental solidarity.  The League of Nations was founded on this universal solidarity.  The world of the League has only begun, having before it vast, complex and difficult work to accomplish.  It must be protected against any danger which would diminish its efficacy or weaken its authority and prestige.”  The desire to include Russia and Turkey is motivated of course by Italy’s constant desire not to let France dominate the continent.  The statement also makes a Europe-wide arms reduction a condition of Italy’s participation.