The New York herald., 1921-09-29


Copyright, 1881, oy TIE New Yosx HnsAD.
New York Herald Bureau,
Berlin. Sept. ~.
A Cabinet crisis may arise in the
Reichstag before the end of this week
It is regarded as possible that Chan
cellor Wirth, in opening the political
discussions scheduled for Friday and
Saturday. will offer the resignation OF
he entire Cabinet. 1t is expected, how
ever, that President Ebert will give
the Chancellor an opportunity to form
a new Cabinet.
Whether this will be possible will
depend on the decisions the Industrial
party reaches in It's meetings to-mor-
row and on whether this party can
make an agreement with the Majority
Socialists. Both these parties are pre-
pairing to announce their minimum
conditions for collaborating. There al
ready have been informal converse
lions in the National Economic Parlia-
inent between these principal rival
parties which makes a working agree
ment seem probable.
The Majority Socialists practically
have renounced their demand that gold
values be directly taxed, thus remov-
ing the principal obstacles to an agree
ment.
Demand wirth's Head.
1t is regarded as likely that the In
dustrial party will make the elimination
of Chancellor wirth q condition for their
collaboration in the Cabinet, and the
Majority Socialists might concede this IL
they arc permitted to name the new
Chancellor from their own party.
The political conflict on Friday win
centre around the Industrial party's pro-
test against Chancellor Wirths press
censorship. 1t 10 charged here that he
papers because OF their political ten
denotes and not for specific offences.
THn NEW York HERALD correspondent
here asked a prominent majority So
cialist why his party capitulated on the
question OF taxation 'of, gold values. He
said: <svgs ~ M
"rhe Socialists did not feel suffi-
GENTLY strong to fight more than one
battle. Now the breaking Of unity be-
ween the Nationalists by placating the
Industrial party seems more urgent snan
immediate taxation reform. BY provok-
ing class war taxation we risked forcing
the right wing OF the Industrial party
into the arms Of the Nationalists."
Lack Taxation Problem.
The Majority Socialists also are han.
dicapped because they lack a practical
taxation programme.
The Industrial party, on the other
hand, has proposed O. workable scheme
10 raise a foreign loan through mortgsg
ing German industries.
The Majority Socialists think the in
creased cost of living and the unrest
resulting from the deprecated mark will
suffice this winter to raise the taxation
issue, which they now avoid.
The Majority Socialist compromise
with the Industrial party has again split
the two Socialist parties. the Majority
and the Independent. which had again
been working together. The National
Democratic bloc now removes the possi-
bility Of a Socialist bloc. The Socialists
are disoontented. and Q prominent leader
Of that party told THE NEW YORK Her
AID correspondent here they were now
looking toward the Communists. This
nev formation reduces the lineup in the
forthcoming class struggle that Is re-
garded as Inevitable in consequence OF
The heavy taxation measures now pend
ing
The Independent Socialists, OF the
radical wing of the Socialist party, and
the Communists have become insignih-
can't minorities, while the Majority So
cfRlists are able to win prestige only
through opportunst compromises with
The middle classes. The Majority So
cfalists cast on their old party doctrine
at their Goerlitz convention a short time
ago.
Karl Kautsky. author OF the Erfurt
Socialist programme Of 1892 and a
leading German theorist. was not per-
nitted to participate in the work Of re-
vising this programme in the recent con-
vention. Instead the Goeritz meeting
repiaced the old doctrine with general
ities. which provide for protection of the
existing republican government and the
democratising OF the administration OF
the army.
The minority opposition TO this pro-
sramme has charged that the leaders
have departed from the very principles
they preached for = decade. notably so
cfaliZation Of the basic Industries
BERLIN AND MUNICH
DEACu A lEgCr