The New York herald., 1921-08-17

Special Gable to THE NEW 1ozK HERALD.
Copyright, 1891. by THE New YoRx HEuALp-
New York Herald Bureau.
Berlin. Aug. 18.
The German Government Is consid-
ering bills establishing brandy and
saccharine monopolies. Brandy has
already been partly monopolized and
gives slight tax return. but the sue
cess OF such a monopoly In other
countries has influenced the Germans
to make n serious attempt now to do
the same.
Should the Allies confscate excess
coal profits the Government will be
obliged to reestablish coal market con-
troll. Popular agitation favors this
and also a monopoly Of the chemical
industry, where profits are rumored to
be exceedingly high.
The National Economic Parliament
is categorically opposed to monopolies,
and proposes extensive decentraliza-
ton and denationalization of these in
dustries. The Economic Parliament,
representing industries, would do away
with tax collection by the Government
and would farm out tax collection, and
various branches OF industry would
each receive an allotment to collect in
it's own sphere 1t Is very possible
that the Government, through Its in
ability to collect despite Its large per-
sonnel for this purpose. will be forced
to adopt this scheme. Opposition
among consumers is great. because
they see behind this method Of the
manufacturers a pretext for shifting
unhampered the entire burden OF the
new taxes upon the consuming public.
Even Decentralization OF the rail-
roads is now proposed in certain indus
trial circles. on the ground that only
through private ownership can the nee
essary foreign credit be obtained to con-
tinue repairs and eliminate the present
III, 600, 900 900 paper mark deficit. 1t Is
argued that the present bankruptcy COM
pels the State to tear UP some lines of
track. no as to use the rails for repairs
elsewhere. The opponents of this pro-
posal object on the ground that private
to be increased beyond the ability of the
people to pay and that the present ex-
cellent repair work done by the State
would depreciate. This controversy be-
tween the partisans OF public and pri-
vate ownership will become acute this
fall
German financiers best informed re-
garding the American attitude see little
hope for a large credit there In the i'm
| mediate future, although in such a
credit. combined with stabilization of
the mark in Germany they see the only
means of a return to wholesome fnan-
cial conditions In this country. The ne
cessity for such an American loan i'm
diately they see as entirely apart from
| the question OF floating large Euro
pean reconstruction loan based on rep
aration bonds. special currency or other
\ security. In the same breath that. .finan-
ciers discuss the need OF such an Amer
lean loan they admit the improbability
OF seeirg their hopes realized soon.
Superficial observers OF German in
4
port activity following the slump in
/ quotations on the German mark recent
~. Others. looking further ahead. fear
that accelerated exports will result in
| further anti-dumping and protective
tariff legisla ton abroad.
Already a situation Is beginning to
exist where Germany can only meet her
foreign obligations through expectation.
Speculation In foreign securities Is
now rampant in the German domestic
market and Is comparable only 10 specu-
iation In German marks broad. Busi-
ness firms here are making enormous
paper marks profits but they do not re-
gard these as definitive until they are
able 10 convert them into more stable
securities--rither Industrial at home or
foreign paper. Even grocers and nov
city shop owners now have their dollar
dealings and discuss with their custom
ers the best moments to buy and sell.
The so-called flight" Of marks abroad
Is estimated variously at between 30,-