The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-04-12

OF INDUSTRIES
Nobody Knows How Much Germany
Has Gone Into Debt as
Result Of Losing
War.
rBy Frank ]. Taylor. United Press
CORRESPONDENT

Correspondent
BERLIN. March 20. lBy MALI
Industry and government are hand ID
Rand on the verge of bankruptcy in
Germany and viii probably have 10
he united. each to save the other,
para6oIical though il sounds Indus
Try can be revived. il Is felt. and can
become the only security the govern
ment has against bankruptcy
Nobody knows bow much Germany
owes as the result OF the war and me
revolution The secretary Of finance,
Schiller. is responsible for that state
nent- His figures show that Ger
marr's war loans alone amount 10 one
hundred and fifty billion marks. while
cermsuy's reserve N money, good OUT
side Of the realm, amounts TO some
four billion marks, most OF which VIII
be used 10 buy food this year from
tire entente.
In addition, there Is Germanys
previous debt, the cost of the reFolu-
ion. much Of which is cue 10 misuse
Of funds By sovie-s and damages
caused BIZ unrest. and the cost OF rep
aration that VIII be imposed by the
peace conference. As security against
this almost hopeless debt, the govern.
ment hopes 10 bring into it's control
the railroads, telegraph, and the nost
important coal and electrical INDUS
tries.
On the other hand the government
does not want TO discourage private
industry entirely. II aims 10 take
oYsr only the industries most suitable
10 public ownership and those in
which production will not De ham
pered. Just how far the Specialization
may 20, depends probably more On
the demands OF the working classes
than on the socialistic Intentions OF
the government.
The workers soviets demand the
specialization Of practically all indus
try, and increase Of wages, as wen as
decrease Of the amount Of work that
las TO oe done To earn this. The VAST
majority Of workers have agreed TO
Keep quiet and not join Spartacan
movements, by reason Of the govern
ment's promise 10 take oyer the coal
and iron industries Of the Rhinelznd
very soon Here the mines and fac-
tories are so closely connected that
they cannot be taken separately, &C
cording 20 both labor leaders and cab
7 met members.
On the face CT i the government has
IN impossible problem Of taking over
the industries. Increasing wages, De
creaEing working hours. and making
! the industries pay well enough 50 that
! they viii become z security against
Z the debts Germany owes, both intern.
! ally and externally To make it worse
the government has no money now,
2nd the twenty-five million mark bud
get for the present year Just voted
viii have 10 be credit, and nothing
more.
! During the war the Pr1esian govern
ment was not good business man
ager, with regards 20 railroads and
telegraph lines. The BaTarians Gid
better and suffered z smaller deficit
but they now Dalk az throwing thei'
property into the national pot. -
! what stroke Of genius the new repuo
lie can take over the industries with
Cut money 70 pay for thsm, and 81
tablish ownership in return for moth
ing but z proTnisSory note 10 pay ths
. present owners sometime. is hard u
see. The gOTernm enr will conh5cat'
nothing, it IS announced officially.
Yet the cabinet members think 4
can be done. They are hopeful tia
the specialization process can 5egir
very soon, and that their Management
can begin bringing in returns 70 IN
government Golfers. They realize III
tremendous difficulties in connectio,
with the specialization. but think i 4
the only way the German republic cal
become solvent Taxes are Impossible
at present. since there f. very Iitth
that is productive that can be taxed.
Conception Of property raRst change
not by stroke Of idealigra over IN
country. but by hard circumstance
according TO the secretary of fnancee
speaking for the new republic Herr
after individuals must regard propert
merely as trust which they adpainir
trate. is the way he stated the pro5
csition to the new reichstaR. The ne,
. republic begins with a 1heoyetics
, ownership of everything. which give
: It wealth, SO long as il is gustaine
when the permanent constitution
adopted. Though that wealth ig mos
ly unproductive now, organization an
Ieace should make It pay and frs
Germany, figure the socialists.