The New York herald., 1921-11-28
Asserts German Prosperity Is
Sign of Infection Under
the Surface.
LIKENS ALLIES TO MIDAS
Predicts Americas Golden
Moose Around His C0untry's
Neck VIII Avail Nothing.
BY RAYMOND SWING.

I II h{t NOND . W lNNs
Special Cable to TIE New YoEK FIrs,tn.
COPYRIGHT, 1927, Dy THE NEW York IIncALD.
New York Herald Bureau
Berlin. Nov. 81.
BERLIN. Nov. 27.-"When man has
tuberculosis his cheeks are rosy. Like
wise Germany's temporary prosperity is
the flush OF a fatal and infectious dis
4 ease"
/ With this simile Dr. Helfferch, leader
of the Conservatives and bitter opponent
/ OF the late Matthias Erzberger in politics
and economics. characterized the tinail-
cial situation in an interview In which
he emphasized the need for an interna-
I tional conference to revise the rcpara-
tions settlement. It will be recalled
1 1rzberger Inspired the financial pro-
gramme of the Wirth Government to
meet the reparations, which plan Helf-
ferich denounced.
What are the prospects OF Germany
| meeting the January and February pay
ments?' the correspondent of THE NEW
YORK HERALD asked of DR.. Helfferich.
Preserves Used to Pay"
Precisely zero" he replied. unless
something extraordinary happens. With
ont credits we cannot pay and credits
must be for long terms. Otherwise we
in an even worse position than we are
/ now.
"Of $25o.O0o .ocO paid up to August
only about 5100 100000 was raised IN
the norma. way. The balance was made
up from reserves of gold and silver in
the Reichsbank and by foreign exchange
loans Since then we have had TO re-
pay the loans with interest.
In November we had q s6,000,000
/ rv,lRf i -~ff.
! to the Allies, and since August the Gov
ernlnent may have bought some $4,000
I 600 in foreign exchange. All told. we
probably have not more than $12,000.000
or Sl3,o00000 to meet the payment OF
S125 100000 in January. German pros
perity cannot have q long run as long as
there is great difference between the
purchase Price Of the mark at home and
abroad.
And You must remember that Ger
many once bought one-eighth Of the
worlds total exports How shall Ger
many meet her obligations with the bal
! ance of trade against her? To-day eF1e
Is importing at the rate OF $500 900
600 and exporting at the rate OF 81 i,G0O,-
100000 year. Besides she has for
eign debts outside OF reparations and IS
! paying possibly a quarter of a billion
dollars interest annually on these and
w N+f4NNAANb9 ~OA thtlSAS Va NcTIIlIu
shares.
"The reparations cost s75O.ooo. 900
and the occupation OF the Rhineland an
other S250.000,0 giving total ma
tional deficit of s1.750. 900, 900.
And Germany's invisible balance?"
he was asked.
"At the most. not over $3.50, ,ooo, 900
year." he replied, which still leaves US
/ 00,000.000 behind as each years
business Is DONE England and France
cannot pay the interest on American
loans and yet we are expected TO be
able TO pay reparat.ons.
| After the Napoleonic wars men we're
more reasonable. The French never
were made to bear the costs of their
depredations. and If they had been
forced to do so the nation long since
would have ceased to exist. In 1870 the
indemnity Germany demanded was only
per cent. of Frances national wealth.
| But We must pay every year over 3 Der
cent. OF ours. No nation in the world
could do it.
"No Benefit for America
II recently described the situation as
one in which America possesses n long
golden chain. One end is held in her
| nand. The other forms a moose that is
| hung around our necks. But the golden
chain will not win America anything
\ The Allies are like King Midas. whose
touch of gold finally brought ruin.
| yet the problem can be solved only
" beginning is courageously made at
the end of tho chain in America, and
systematically extended all the way
| through Germany. Only By crossing off
the war costs from the books can the
world como to rights again.
| DO you believe that Russia means
\ much TO Germany from a business
standpoint" the questioner asked.
| I'm the long run, yea" he replied
Russia cannot be brought to a sound
! business basis short of ten or even
twenty years. Then VIII come the vital
factor. Russia's restoration cannot be
done without Germany.
$50 before Russia can be opened I'D
Germany must get her budget in order
must make It balance and make Il pos
! sible that the reparations be revised and
| time allowed for her return to normal
economic health. ] do not mean that
Germany should not pay for anything.
Even my party, though much decried
as nationalistic. believes in our re-
building northern France and Belgium.
! To that there is no opposition Whatso-
ever In Germany.
But we can pay only IN goods and
services and ] admit that after the re-
construction OF the devastated areas IS
finished the question of our paying more
might be discussed. But we must al
ways be measured according to what is
economically possible for us"