The New York herald., 1921-07-11
Erzbcrger Directs Policy.

1t is Erzberger who inspires Chan
cellor Wrth's financial policy, although
he tells THE NEW YORK HERALD corre-
spondent that he proposes 20 remain
in the background for a while longer
to avoid provoking bitter Nationalist
opposition a-asainst the Catholic party
and thereby weaKenIng's The party's
freedom of action. Erzberger Is maxi
ing a big bid for popular support and
is campaigning the Industrial regions
preaching shop solidarity alons the
lines OF Christian harmony as he de-
ciares. or synd caliSm. as his enemies
assert.
AS leader of the group. favoring con-
ciliation with the Allies, Erzberger
necessarily must look toward the work.
ers for his strongest support. The right
wing of the Centrum party headed by
Trimborn fears this leaning toward
socialism and would bring the party
back into harmony with the German
industrial party, where Hugo SHINES
and the Krupps have the leading voices
Should the. policy of the Allies cripple
German industry, events will soon de-
termine which course the Centrum party
will take. The Wirth Cabinet will fall
II further sanctions are applied or in
the event Of an entirely anti-German
decision in Upper Silesia. and most
RibpdO4S lllt AdNHOilCS Will De SWEPT
along In the Nationalist wave.
Should Chancellor Wirth be able 10
weather the storm, then Erzberger
when the Reichstag opens in September
VIII become the dominant personality
collaborating with the Democratic and
Socialist parties. Should new allied
demands arouse a Nationalist wave. il
Is not probable that the labor parties
will join, because their hatred for mill
tarlsts and Nationalists still exceeds all
other considerations.
Chancellor Wirth's taxation nro
gramme, which calls for so. 900 900 900
paper marks the coming year. is home
issue tending TO accentuate the split be-
tween the Nationalist, Citizen and So
cialist parties The Industrial party
led by Gustav Stressmann and which he
has held I'm balance, now gives its sup
port TO the nationalists In It's exterior
policy OF opposing the Allies and In its
nome policy OF opposing the Wlrth Cabi-
net. and is showing excessive suspicion
and reserve toward his new taxati IN
bill.
Manufacturer Dominant
The manufacturers who dominate the
Germ n industrial party believe tho sal
walton Of the State will come III -5igh
big industry and not vice versa This
party holds the dominant position in the
national economic council and defends
the principle that German resonstruc-
tion is only possible through maxi
mum Of individual initiative ard private
industry. Hence it Is hostile TO al So
ciaizatlon and governmental control
schemes and against the taxation which
In their opinion hampers business en-
terprise This is In striking contrast to
the demands OF the left wing OF the
Catholic party and the labor party.
Tho Socialists nrve made nationaliza-
tion their battle cry. Their party Ia de-
Tending the interests Of small trades
men and workers in the fight against
indirect taxation and the formation OF
trusts. and would extend Government
control over the essential industries as
counter measure. But the Socialist
parties now play n mo~e insignificant
role than at any time since the revou-
ton
Marxianlsrn Is now but party slogan
while the leaders use their entire energy
toward keeping petty Socialist function
aries in office and fighting wage reduc-
tions IN industry. The Majority Socialist
party is the party Of the German trade
unions and its whole campaign now Is
centred on preventing reductions In wage
scales agreed upon hy employers and
the unions Here their difference with
the Industrial party is acute because
the manufacturers see in cheap labor one
of the few remaining possibilities for
German goods to compete proftably in
the world markets.
A fusion seems increasingly likely be-
tween the Majority and Independent SO.
cia'ists The members OF the latter party
slrcsdy are working with the Majority
.ocialists in the Ruhr and Saxony fac
tory districts. They can aid one another
because ;he Majority Socialists are con-
spicunrsly lacking "a brilliant leaders
and me nfepcrdcats aye rotor!Dusly
cut of contact vt.h ;ra ~urxors. wh!le
having a surplus c, cicvor parry leaders
The Communsts, after running against