The New York herald., 1921-09-17

Special CobIe to THE New YoRK HERALD.
Copyright, 1921. by THE NEW York HERALD
New York Herald Bureau
Berlin, Sept. 10.
and manufacturers is willing to offer
10 mortgage their property and mobil-
lze their credit to raise 1900, 000, 900
marks gold for the purpose of meeting
Germany's obligations to the Allies.
Chancellor Wirth met the members
OF the Manufacturers Association and
forty prominent bankers to discuss the
plan, which in itself is an extraor-
6inary proposal because it comes as
a voluntary offer from the manufac-
turers and bankers, and also because
they do not pledge the credit of the
State, but propose themselves to seek
the money outside Germany and to
offer a mortgage directly to outside
banks through the combined German
banks. Another condition is that the
credit raised serve exclusively to meet
the external obligations of the State.
To Mortgage Industries.
Hans Kraemer, vice-president Of the
National Economic Parliament, origi-
mated the plan and outlined its Sig
nificance to THE NEW YORK HERALD
correspondent. His earlier plans were
for mortgaging the principal basic in
dustries, including coal, iron and steel.
The present plan includes all the indus
tries.
The opinion in German banking cir
cIes now Is that it Is impossible for
the German state to float large foreign
loans. The state also In their opinion
is economically too unsound for them
to sacrifice the last Of their capital In
an attempt to fill bottomless pit.
Their proposal indicates that they lack
confidence In the states finances, but
proves their conviction as to the power
Of German industry and labor and their
determination to meet to the farthest
possible point their outside obligations.
Herr Kraemer said.
That serious support OF the plan is
given in banking circles is indicated in
the announcement that Max Warburg.
Cermany's leading banker, has volun-
teered to head national mortgage
board Reports of an attempt to raise
a private loan in the United States are
characterized as premature.
Bankers Take Initiative.
\ The political significance of the move
Is great The hackers of the plan are
taking the initiative from the Govern
ment in applying their own taxation to
German capital. 1t is preferable to con-
fiscation, in the opinion OF the manu-
lecturers, because the proposal leaves
all the machinery Of production In the
hands of the owners. 1t also permits
industry and finance to silence the labor
agitators' charge that capital is not
carrying its full share of the taxes.
II a foreign loan can be realized, then
the obligations to the Allies can be met
without another slump in the value OF
the mark, threatening the state with
bankruptcy. If the combined banks and
industrials fail to raise the loan. then
Germany can reply to the Allies that
the demands cannot be met. Either al
tentative puts German industry in a
particularly favorable position. The only |
opposition comes from those who seek to
break the Versailles treaty at all costs |
and from radical labor leaders, who sus- |
pect the plan springs from capitalistic
desires to evadc the coming heavy tax
alton.
The Socialist press warns against such |
n gift, declaring that the Government |
has n right to demand share In in
dustry and should take the credit d.
rectiy without accepting Indirect gifts
which may bind the Governments free
dom of action. The Socialists already |
oppose participation of the industrial
party in the enlarged Wirth Cabinet
Whether the Socialists maintain this pro-
test and whether their strength Is suf- /
flcient to cause the Chancellor to defer |
seeking the industrial collaboration
necessary to meet the nations obliga-
tions is questionable.
The mortgage proposal is now receive
ing the full consideration of the Govern
ment and the various political parties.