Little Man Blue

Reichstag President Paul Loebe tinkled his brass bell. Under the big glass dome which roofs the Reichstag, buzzing deputies came to sudden order. Prim as hot-house crocuses the entire cabinet sat in a row on their bench. As usual there were few glances for fat, tortoise-spectacled Chancellor Hermann Mueller, a dependable, mediocre Socialist. But many an eye was full of the small, trim, quietly dressed, smooth-shaven man on the Chancellor's right, Dr. Julius Curtius. He was going to make his maiden speech as Foreign Minister--as successor to Stresemann the Great.

Over on the Nationalist right sat Prussia's famed "Little Man in Blue," his bristling upturned grey mustache just visible behind the pile of books and papers on his desk. He worked steadily, ignoring everyone. Yet this was an important day for Dr. Alfred Hugenberg, super-Nationalist, super-demagog, "The German Hearst."

All at once the hands of the cabinet went CLap, clap, clap--all except Dr. Curtius' hands--and Socialist Mueller lead a cabinet cheer of "Hoch! Hoch! Hoch!" in which most deputies joined. With a little bow of thanks Dr. Curtius walked quietly to the tribune, began to speak in clear, firm, ringing tones, completely eschewed gestures.

The little Hearst in the suit which is nearly always blue serge went on working, got out more papers from his blue leather brief case. He paid no attention when Stresemann's successor accused him of reaching "the pinnacle of demagogy." Dr. Curtius was referring of course to Dr. Hugenberg's notorious Liberty-Law.

Under the German Constitution the Reichstag must consider any "law" or piece of foolishness if 10% of the electorate so decree. After months of frantic efforts, the Hugenberg press (Der Tag, Berliner Lokal-Anzeiger) recently induced 10.2% of German voters to ballot that the Reichstag must consider the Hugenberg "law" (TIME, Oct. 28). One of its provisos is that an official of the German Government, from President von Hindenburg down, shall be clapped into jail if he sanctions any further reparations payments by Germany to the Allies.

"This is not a law, it is an infamy," said Dr. Curtius in level, fervent tones. "It is an attack on the authority of the state. You would force us, Mein Herr," turning upon Dr. Hugenberg, "to carry on foreign policy as though we were the prisoners at a criminal trial. . . . We must pay no more reparations? We must reject the Young Plan? What positive proposition do you have to make for other political measures?"

The little man in blue kept briskly on with his pretense of working, kept mum. When he won in the referendum by only two-tenths of 1%, he knew he would lose in the Reichstag last week. A shrewd loser's mouth stays shut.

"Your policy is anything but heroic. . . ." said Dr. Curtius at last with quiet scorn. Then, rising to his climax he cried: "Ach! Heroic was the life and influence of Dr. Stresemann! He strove, with death in the balance. . . . Deliberately spent his last ounce of strength to advance his principles on a path which he recognized as right! ... It is for the dear Fatherland to wisely follow him. . . ."

"Hugenberg! Hugenberg!" roared dozens of deputies, "Can you answer? Speak!!" But the little man only smiled, stroked his grey Kaiserlike mustache.

Next day the Reichstag threw out the Liberty-Law with a savage vote of 318 to 82. But it will not be dead until Dec. 22. On that date a second referendum must be held, according to the constitution. If 50% of the electorate should vote with Hugenbergists--which seems utterly improbable--then the Liberty-Law would come automatically into effect despite its rejection by the Reichstag. Worse could not befall the Fatherland. The Allies will ruthlessly force her to keep paying reparations if she tries to refuse, but so long as she continues to pay willingly they will go on fattening with loans the wise goose that lays their golden eggs.

Friends of Dr. Curtius were sorry that his first appearance as Foreign Minister was in what amounted to a sham battle which he could not lose. He served as a battery commander 1914-18, is the first man with a combatant war record to become Foreign Minister of the Republic.

A lawyer by trade, like Stresemann, and one of his proteges in the moderate People's party, Dr. Curtius entered the German cabinet in 1926, served hand-in-glove with the great foreign minister until his death. Whilst Stresemann strove for peace by diplomacy, Curtius, as Minister of Economic Affairs, patched up the first post-War commercial treaty between France and Germany. He is a low tariff man, a quiet optimist, a vigorous advocate of more and still more loans from abroad, "loans which fertilize German industry as the waters of the Nile fertilize the parched soil of Egypt." As a "borrowing man" he enjoys the thoroughgoing contempt of Reichsbank President Dr. Hjalmar Schacht, always a "bear" on German futures, who constantly grumbles that the Fatherland has already borrowed far too much.

Friends of the little man in blue were sorry not only about his Reichstag defeat, last week, but also at the failure of his Eastern Bank for Trade and Industry, a mere scratch. Colossally rich, Dr. Hugenberg instantly put 1,000,000 marks of his private fortune as surety for the Eastern Bank, arranged that it should be absorbed by the Dresdner Bank. Ominous is the fact that small German bank failures are on a rapid increase. Suicides of petty bank presidents are being reported at the rate of five or six a month. For example in Chemnitz and Biberach, last week, Bank Presidents Weitzer and Groner respectively shot themselves. Explainers commonly mention the crushing competition of the great German banking trusts, also claim that many small Teuton bankers were trading in Wall Street before the crash.

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