The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-03
GERMANY SEEKS
BANKRUPTCY TO
SAVE INDEMNITY
Working for Cancellation
of Important Clauses in
Versailles Treaty.
INDUSTRY PARALYZED
But Plants in All Parts of
Country Work Only
Part Time.
DEFICIT BLAME SHIFTED
Berlin Officials Say Only Hope
Is [. S. Will Cancel British
and French Loans.
DEFICIT BLAME SHIFTED
by RAYMOND SWING.
staff Correspondent Of THE HERALD

BY RAYMOND SWING.
Staff Correspondent Of THE HERALD.
Copyright, 1920. by THE NEW YORK HERALD.
BERLIN. Oct. 2.-Germany stands to-
day between Spa and Geneva-that is
to say, between her preliminary
emancipation from the restrictive
peace terms imposed on her by the
Versailles treaty and what is heralded
as sound regulation of her business
life.
Although German newspapers refer
to the coal agreements to which Ger
many subscribed in Spa as a menace,
that agreement represents In fact
concession to Germany by the Entente
Allies. However, what the Geneva
League of Nations meeting will bring
forth remains to be seen. But in so
far as Germany's wishes are concerned
the case is quite clear. What Ger
many wants Is tantamount to a dec
laration OF bankruptcy by her.
She wishes to acknowledge the
amount of her debt, no matter how
great a sum it may be, and then make
an assignment based on her ability to
pay. Just what is her ability to pay
is. Of course, a question for experts to
decide. for even German opinion diff
fers on it and there Is no we'll thought
out programme even in Government
circles.
What Germany really desires is the
cancellation of the indemnity clauses
in the Treaty Of Versailles so she can
relieve her industry, which is showing
a growing paralysis.
sthtistics Are Befogged.
This is not an attempt to prove or 10
disprove reports of misery in German
industry. On this point IL must be said
that there Is nothing more difficult 10
obtain than reliable information on Ger
many's exports. imports. trade. employ
nient and wages. Official statistics give
the number OF persons drawing unern-
p,oyment insurance, but not a single
fact relating to the number of idle
hours in manufacturing plants or any
information relative to orders or ma
terials The German statistical service,
which was so prompt and accurate be-
fore the war. cannot now even produce
figures on Germany's trade balance.
Three different Ministries give three
different figures regarding Germanys s
coal output.
Confusion or mala DIM inistration Is OBJ
vious In the Ministry of Finance. where
the estimates Of tax resources are often
incorrect. and where the admission is
made that a reliable budget cannot be
put together. In a word the State does
not know how much needed money Il
will fail to raise. 1t has no means for
defeating tax lodging and no means OF
putting a stop to the smuggling OF
money across the frOntiers
Rut certain seneralities arc outstand-
ing. even without statistics. There is a
strong movement to curtail production
In virtually all branches OF industry II
is guessed--for no one Is IN a position
to do more-that 100000 hours Of
work are lost in German factories every
day through the shortening OF working
shifts.
Wnste I'm German Factories.
The number OF persons drawing un-
employment insurance who are intirely
without work Is only about 400. 900.
while the total OF idle hours. on the
eight hour working day basis. is. per-
haps, $4,000 day. This statement of
waste pictures the German situation
and supplies the real reason for all the
nations inpoverishment and under
nourishment
To what extent this waste OF German
labor Is affecting world production no
statistics can measure OF course. II
tho world markets were hungrier. Ger
man labor would be more in demand.
But from the German viewpoint. the
problem reduces itself to coal. Ger
man labor could compete in the world
markets II coal were plentiful here.
they hold. and German factories could
sell their product TO their own PEE e.
who. In turn, would be able once more
10 replenlsh their stocks
The coal issue was tho crucial test
Mt Spa. because II meant that n lacka .
daisical fulfllment OF the Versailles
treaty would be replaced by an un-
escapable necessity. To-day. according
to Herr Hue. German miners union
leader. 12s. 900 OF 100000 miners in the
Ruhr district are working exclusively
for the Entente.
1t is figured here that German Indus
try must be deprived OF 16 per cent. OF
It's meagre supply to live UP to the Spa
agreement Only fraction of this 1e
per cent. has been translated into the
100000 idle working hours already
mentioned.
More IDLE Men Predicted.
That there will be more idleness H.
foreseen by virtually all Industrial
prophets here. They declare II will he
increased because of the failure Of the
Upper Silesian mines TO produce coal
for Germany's account, due 20 strikes
and attendant propaganda in connection
with the comiag plebiscite.
On the other hand raw materials are
available Tahat IL TO cay. II Germany
can work up raw materials economically
she can obtain orders a system which
Is now functioning well has been devel-
oped since the revolution. in that syndi-
Gates and private concerns furnish raw
materials or advance credits on a guar