ABSTRACT
The looming world financial crisis had now arrived. As the Austrian financial situation continued to descend into chaos, rumours were already circulating that Germany would request a reduction in reparations during the month of June. In the case of Germany the increasing political strength of the Nazis led the Bruning government to search for a victory to weaken the appeal of National Socialists and their allies. The question of a new Austrian credit was thus held in abeyance as during the end of the first week of June, attention shifted to Germany on both sides of the Atlantic. In the US as opposed to Great Britain, France, Germany and other major nations, the financial and political capitals were in different locations which, inter alia, created in the US a division between New York bankers and the rest of the nation.
