The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-09-18
Drive Germany Into
Financial Ruin
Says Erzberger
Declares Allies Refuse to
Recognize Import Laws
Because Peace Treaty
Not Ratified.
BY KARI. III. Won WIEGAND.

BY KARI. III. Won WIEGAND.
Berlin, Sept. 17.--The entente
is doing everything or permitting
everything TO be done TO drive
Germany into financial ruin. If
it continues in this policy there
will be nothing left for me TO do
but to declare Germany incapable
of meeting her obligations"
DR.. Matthias Erzherser, vice resi-
dent and minister of finance and In
cidentaliy the most attacked man in
Germany, threw out his hands ana
turned up his palms In an eloquent
gesture portraying his feelings as his
made at the above statement to me
In his office today.
In what way is the entente driving
Germany toward ruin?" | asked.
BY refusing to recognize our law
that import duties must be collected
on a gold basis" he replied. They
declare this law does not apply TO tho
occupied territory and thus make it
practically impossible for me to raise
any revenue from import duty.
That has been one of the chief fac
tors in the rapid drop of the German
mark approximately four billion
marks (s1,000.000) in imports are
going to the occupied territory either
duty free or on duty paper basis.
Goods have been showed across
! the occupied districts into Germany
| interior through Mayence and Col
/ ogne. and we are unable to prevent it
as the English and French refuse to
recognize our law providing for col
s4eetion on gold basis
! That result is that imports
! through Hamburg and Bremen are
ceasing and everything is routed via
the occupied territory That will be
understood when | tell you that the
/ import duty at Hamburg and Bre-
men, on a gold basis. is almost four
times higher than on the paper basis
/ through the areas occupied by the
! French ard British"
DIR. Erzberger referred to a mum
| Der of men whom had met coming
cut of his office. That's a delega-
lion from the Hamburg chamber OF
commerce. the Economic Trade Coun-
ell and the Workingmen's council
They came here to tell me that Ham
burg and Bremen are being ruined oS
the Hole in the west as all imports
through these ports are ceasing and
e.. hey demand that som ething baAaan
Il have protested To- the entente
but my protest was not even acknowl
edged"
The German vice-premier thet
quoted English newspapers as sayin1
that at the present moment between
sac 900. 600 and $4,000, 900 worth %
British goods were at Cologne await
ing shipment into Gcrmany's interior
He said he had numerous reports o
entire ca~oaa lots being let througs
fhe Isruish. linog from Cologne by the
payrn ont Of 8y40G marks =
He declared That for Germany e
meet hor external and Internal obiga
lions ii was necessary to raise revenue
4 ON every possible source and tina
import duty was enc Of those sources
Tho hole in the west has been ont
or the worst notes IN Germany
finances" said he.
n instead of helping us TO STABILIZE
our finances in their own interest, thu
entente powers not only refuse u
recognize a law which the German
government considers essential ~
raise revenue and meet it's obligations
hut lhey permit such things as thos'
l. lave told 5ou about, which tend Z
undermine our financial stability"
i Eut for this situation, Erzberge
said he would be far from pessimisti
as 10 Germany's ability, with som
outside help. to get on her tinancia
feet again.
lie admitted the hole In the
west" would be stopped up with
the ratification Of the peace
treaty, but ne asserted at present
both the French and British were
insisting that German territory
was TO be regarded under the
terms OF the armisttce. not OF the
peace treaty,
There were few complaints abou
smuggling from Coblenz, the gatcwa,
OF the American sector. he said, .
no American goods were coming tina
way and the French and English wer,
naturally shipping through their re
spective occupied districts