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French Gesture. French statesmen, learning that their offer had been refused, played a shrewd game. One and all calmly deserted Paris for the three-day Bastille Day holiday. Minister of Finance Flandin ran down to join his family at a Brittany beach. Brer Briand filled a can with worms at his Cocherel farm and went fishing. Premier Laval packed his bag and went down to the country. The Press, loyal sounding-board of French politicians, bluntly announced that France had made a generous offer, it had been refused. Let Germany take care of herself.
Sunday afternoon German Ambassador Dr. Leopold von Hoesch telephoned wildly for an interview with Premier Laval. Premier Laval, having made his gesture, came back to town; so did sleepy-eyed Brer Briand. Hysterically Ambassador von Hoesch begged the Premier to reconsider. Did he really intend to bring about a revolution in Germany—on France's doorstep? Had he considered the possible consequences? Premier Laval was polite. He had considered. . . . Mais non. Without political guarantees from Germany, there was nothing more he could do. Ambassador von Hoesch left and Premier Laval had another, slightly sinister interview with two other gentlemen: Marshals Pétain and Lyautey, commanders of the French Army.
Sleepless Sackett. Back in Berlin the Cabinet sat conferring all night long. U. S. Ambassador Frederic M. Sackett cabled to Washington. Germany was making a last-minute appeal to the Federal Reserve Board for funds. Unless an immediate credit of $300,000.000 was forthcoming collapse was unavoidable. Germany had a potent threat to hold over the heads of Reserve Board Members. The Cabinet was seriously discussing the advisability of declaring a moratorium on all private debts. U. S. investments in Germany since the War total $3.000,000,000. Am- bassador Sackett stayed up all Sunday night waiting to be helpful.
Sunday in Wall Street. Through silent, Sunday-deserted Wall Street went the motors of potent men to the Italian castle of the Federal Reserve Bank of New York. George L. Harrison, Governor of the Bank, had called an emergency meeting, Acting Secretary of the Treasury-Mills had come over from Washington. They called in Owen D. Young, expert, then Morgan Partner S. Parker Gilbert, expert. Governor Eugene Meyer of the Federal Reserve Board was handy at his home in Mount Kisco if needed. No statement was given out during the Wall Street meeting, but reporters hazarded that the questions being put to Messrs. Young & Gilbert were: Would $300,000,000 really be enough to avert calamity? Would the Reserve Board be throwing this money into a ship already doomed?
Washington was none too sure. Acting Secretary of State Castle came in from the Rapidan Sunday evening and announced that Germany's salvation was up to the world's banks to settle privately. The Government was exerting no pressure whatsoever. In New York, Mr. Mills said the same, reminding the world that the Hoover Holiday already had thrown $400,000,000 to Germany. By nightfall the best that the Federal Reserve Bank of New York could do was make an offer like London's: to share in another loan originating in some other central bank of issue. In other words it was still up to France.