The New York herald., 1921-04-30
GERMANS FAVOR
ECONOMIC LEAGUE
SHINES and Kraemer Want
Cooperation OF. Nations,
America at Head.
TO GET FOREIGN CREDIT
OverprOduction in U. S. and
Lack of Buying Power
in Europe Seen.
TO GET FOREIGN CREDIT
DEADLOCK IF CONTINUED
Occupation Of Ruhr Region to
Be Light and No Resistance
Expected.

Special Gable to THE New YORK HEHALD.
Copyright, 1891, by THE NEW YoRx HERALD.
New York Herald Bureau.
Berlin. April 20.
| German manufacturers, notably
Hugo SHINES, have renounced the
earlier plan of an Industrial con-
sortium for making reparations In
which they would have the dominant
position, Herr SHINES will speak
shortly in favor OF an international
economic league of nations in which
the United States would have the
presidency.
Hans Kraemer. vice-president OF the
National Economic Parliament, has
long been advocating such a league
as the only way out Of the interna-
tional currency anarchy and the only
way to meet international war debts
and obtain foreign credits. He re-
CARDS it essential also IL an approx
mate balance between supply and de-
mand in the worlds markets is to be
established
Without an International economic
league, Herr Kraemer told THE NEW
York HERALD correspondent, the situa-
ton resulting from overproduction in
America and the paralysis caused by
want Of buying power in Europe
will be prolonged. 4
Would Yi.ld German Industry.
Steel gives a typical example Of the
present economic disorder" he said.
America seeks a market for her home
product in Europe. while French and
German manufacturers are now COM
peting with the British manufa cturers
in seeking foreign markets for the
steel they cannot consume at home.
Should the French realize a steel
hegenony and increase their produc-
ton. as they plan, then a deadlock
greater than the present would be
created.
Wood pulp gives an instance In
which International paper manufacture
ers were obliged to make an agreement
in the spirit OF an economic league to
Stabilize the International market.
American manufacturers participated in
the far reaching Copenhagen paper
agreement"
many would have to give security COW
ering her obligations to the Allies. He
recommended some months ago turn
| ing over German mines of a minimum
valuation OF 30, ,0oo. .0000 900 paper marks
to the Allies. This exceeds the sug-
gestion Of the German Government to
turn over merely the State owned
mines. The result of the larger con-
cession would be that the Allies would
have valuable security and public opin-
ion in Germany and abroad would be
assured that large secret profits were
not flowing into the pockets of the
owners.
Herr Kraemer would favor turning
over besides the mines other important
industries, such as chemicals iron.
steel and potash. to an international
economic league. which would super
wise the administration and use the
excess profits to meet reparations>
His scheme can best be summarized as
combination Of the international
league idea with many Of the Seydoux
(F'rench economic expero methods Tor
practical execution of the scheme
German Business Depressed. !.
C;ernan business circles are extremely
depressed in consequence OF the French
decision that the German repar1Ioh
nroposals are not acceptable. The opin-
ion until yesterday has been that tho
Government made OF even exceeded the
maximum of possible concessions and
thew see nothing hopeful ahead except
the vague possibility that America
| might do something to delay applica-
tion Of new sanctions pending now ne
! gotiations.
THE Manufacturers National Economic
Council generally admitted the necessity
| ~ studying ways for the fulfilment OF
the reparations indemnities. some MEM
hers because Of the certain rejection by
France. and others, regarding the totai
| as In excess OF Germany's ability TO pay.
regretted that the Government had not
| a greed to the Paris terms.
| German employers, including Herr
ctinnes. met with the trade union heads
his week and all agreed to combine their
efforts and influence to increase pro-
/ euction.
Herr Kraemer regards the future de-
spairingly II the sanctions are applied
"F-urther occupation will not give the
French the sum they demand" he said,
while Il will entail disastrous conse-
auences for us. Suppose the French
stimulate an increase in coal production
in the Ruhr Valley, where will they find
. market for it? Germany must remain
fie principal market and her buying