New-York tribune., 1921-09-29
Rathenau Tells Industrial
Association World Will
Suffer if Reparations
Terms Are Not Changed
Predicts General
Economic Collapse
Speech of Churchill rs
Followed by Campaign
to Obtain Better Terms
By Joseph Shaplen
By Wireless TO The Trib,.o,s


BERLIN, Sept. 28.-Walter Rathenau,
Minister of Reconstruction, set off the
opening gun in Germany's campaign for
revision of the reparations obligations
in an address to-day before the Asso-
citation Of German Industry meeting in
Munich.
Germany must continue her efforts
to meet the reparations obligations, DR..
Rathenau said, in order to convince the
world of her good will and sincerity
in trying to fulfill the terms of the
Allied ultimatum. At the same time, he
added, an international readjustment
of the worlds financial situation, in
cluding the reparatlons problem, as
suggested by Winston Churchill, the
British Cabinet Minister, in his ad-
dress at Dundee, is absolutely neces-
sary if the complete breakdown of the
worlds economic fabric is to be averted.
Cesnans Hope for Treaty Revision
| Encouraged BY Churchills speech. as
/ we'll as by other indications abroad,
such as the summoniNg of an interna-
tional conference III London to deal
with the exchange problem, the Ger
mans now hope 10 obtain a readiust-
ment OF the entire financial structure
Of the Versailles Treaty. That is what
makes the session Of the Reichstag now
in progress SO important, for most of
the projects before the Reichstag are
combined with the reparations prob
| lem.
"Germany's efforts to meet the con-
ditions OF the Allied ultimatuln will
hit the rest of the world harder than
they will hit u.s." said Dr. Rathenau
in his speech to-day. "The world itself
will realize the impossibility of Ger
many's fulfilling the conditions OF the
ultimatum. England has 100000 un-
! employed and America 5000, 900.
Armies OF unemployed in the Allied
nations are as great as their armies
during the war. The more Germany
must work, the more must the others
remain idle. Nations cannot exist on
usury. All the state must work in
order to live.
"Germany's efforts cannot feed more
than one unemployed man out of five
IN other countries. There must be n
new international understanding. A
new organization for the economic CO.
operation Of all nations must be
created.
@ ut is no longer possible to sell
only way open is that of new under
standing. We have sought such an
understanding with France and NV
negotiations should not be regarded
from a political point of view.
"The difficulty of the problem Of
French reconstruction is a financial
one one. Frances resources are limited.
The inhabitants of the devastated area
wish quick action. SO do we. Our
greatest trouble in meeting the repa-
rations Obligations is supplying the
necessary cash. The best indication of
that is the continued fall of the mark.
The problem is to substitute materials
for gold. A beginning already has been
made on this point, but we must con-
tinue our efforts in this direction
Points Out French Error
"The capacities of French industry
are limited and the French err griev-
ously if they direct all their efforts
toward the reconstruction of the dew
astated regions. The French are now
beginning to realize that.
For the present, German industry
| IS working full blast. That is CON
sequence of the fall of the mark. But
''.*o 40 boiiS W happen TO herman
industry later? Our erstwhile enemies
must not be deluded as to the state of
German industry"
Dr. Rathenau expressed a hope that
the plan indicated by Winston Church
| III be followed, but meanwhile urged
the German industrialists to continue
their efforts of the last three years
toward the reconstruction of the coun-
try he expressed the hope that the
government would be reconstructed on
wider coalition basis by the entrance
ol representatives of big industry into
the Cabinet, and that tn. industrial Al
interests of the country would assist
The government in its further efforts to
meet the reparations payments, pend
ing possible international readiust-
ment of the whole question.
Dr. Serge, president of the associa-
| tion, before which DR.. Rathenau smoke.
declared in the opening address tha.
CONTINUED on page thrce)