New-York tribune., 1921-11-21
Industry Loan
Plan i'm Berlin
Not So Bright
Reparation Commission May
Suggest Changes to Meet
Objections, However; Tax
Program Being Watched
Little Hope for the Mark
Further Depreciation Seen
Unless Outside Help Is
Obtained; Decry Sabotage
specia, Cable to Tho Tribune

Copyright, 1921. New York Tribune Inc.
BERLIN, Nov. 20.-The last week has
been one OF watchful waiting for the
mark, which has maintained a course
of $50 to the dollar, not knowing
whether to fall or rise.
Reasons for this action are found in
several pending problems, namely, the
ultimate outcome of the Preparations
Commissions visit to Berlin, the final
movement of German industry's credit,
government control and the ultimate
shape of the governments taxation
program now before the Reichstag,
definite outlines of which are expected
to become apparent within the next
few days.
In addition, the financial world is
still looking to Washington in the hope
of news that the conference will
actually take up the discussion of the
international financial situation in a
manner affecting the whole reparations
problem.
AS far as the probable action of the
Preparations Commission is concerned,
the German press in semi official way
IS evincing optimism. Indications are
that the commission will leave Berlin
without having taken any radical ac-
tion affecting notifications of Ger
many's obligations.
New Plan Doubtful
Prospects are likewise not bright for
a successful elimination of the neeo-
tiations between the government and
representatives of German industry on
the latter's recent proposal to grant the
government a large credit in exchange
for the transfer of railroads and other
government enterprises into private
hands. A report was in circulation,
however, that the Reparations Commits
sion was discussing a new plan for in
dustry's credit that might prove ac-
ceptable.
So far as the pending taxation dis
cussion is concerned, Chancellor Wirth,
as we'll as the rest of the Cabinet, is
understood to be very pessimistic in
regard to next years early repara tions
payments and the government budgets
deficit in the face of the critical condi-
tion of the mark
In view of these factors the mark has
been standing still around $50 to the
dollar, while industrial stocks and other
securities have ceased their upward
fight. In fact, some have turned down
ward, and losses of 700 points have
been recorded in several instances.
This decline was not great in view Of
the sharp advance which preceded it.
There IS reason to believe that, not
withstanding the marks temporary in
activity, it will fall considerably in the
not far distant future unless interna-
tlonal action of some kind is taken to
stabilize it.
Mark Sabotage in Industry
Although no objective observers are
inclined to regard the fall from sixty
to three hundred to the dollar as due
to Germany's artificial manipulation,
there is no denying the fact that there
has been a certain amount of direct
of industry. This has recently taken
South American countries on long term
credits.
Amounts thus outstanding are be-
lieved to be enormous and if paid i'm
mediately the inflow of high standing
foreign currency into Germany would
certainly exercise salutary effect on
the mark
Many industralists, the Tribune cor
respondent learns, are deliberately cx
tending long-term credits in order
first, to keep money abroad free from
taxation and, second, to force the mark
downward, with the end in view of
shaking the foundations of the Wirth
government, which the large industrial
class considers too much in sympathy
with the working people.
The government is now considering
ways and means Of compelling indus
tries to bring into the country the
money outstanding abroad.
Whatever charges of sabotage Of the
mark are made against Germany, there
fore, must be directed not against the
government, but against the indus
trial class.