The New York herald., 1922-09-07

Special Cable 10 THE NEw YORK HERALD
Copyright, 1929, by THE NEw YoRK HERALD.
New York Herald Bureau.
Berlin, Sept. 8.
Hugo Stinnes's victory over the
Wirth Cabinet relative to repara-
tions ended long conflict between the
Chancellor and the big industrialists.
The private war between the two
groups only ceased when the Cabinet
andN industry struck compromise
over the reparations program which
Herr Schroeder presented at Paris
concerning the delivery of wood and
coal.
Stinness hostility toward Chancellor
Wirth was not so much a personal
matter as opposition to the Govern
ment's efforts to control and regulate
German business. The big manufac-
turers believed themselves best able
to save Germany and opposed such
control by Socialist Ministers.
After DR.. Wirth failed to make good
his promise to the Preparations Commits
sion. SHINES and the manufacturers in
tervened with program leaving a wide
range for private initiative. The Chan
cellor. confronted with the alternative
of choosing between this proposal or oc-
cupation of the Ruhr, accepted the
SHINES program, leaving the way open
for full participation by private German
Industries to satisfy the reparations de-
mands
Some confusion as to Herr Stinnes's
intentions existed because his Berlin
newspaper attacked the Government for
having lost confidence. at home and
abroad and that the Government com
prised persons and methods which are
discredited" The paper was suppressed
because Herr SHINES had failed to in
form his editors OF his abrupt change In
attitude. toward the Government
Now the Industrial Peoples Party
probably will enter the cabinet provided
the socialist methods are abandoned
and industry is given free hand
With the socialist parties uniting this
month and with an enlargement of the
cabinet the German Government will
comprise coalition including capital
and labor with German industry dornin-
ating.
One factor that win have a strong
influence on any readjustment OF the
Government Is the expected reunion Of
l.i~ two Socialist parties which have
been in the field as separate organiza-
tions since 1915. when the Majority
Socialists. led by Phillip Scheidemann.
supported the measure voting war
credits to the Imperial Government.
while Karl Liebknecht. at the head Of
the left wing, opposed 1t SO strongly
that the new party known as the In
dependent Socialists was formed.
But now the two factions have come
to realize that by combining they can
be the strongest party in Germany with
no less than Isl seats in the Reichstag,
so a joint meeting has been called for
tho near future at which. It Is expected
a merger will he effected.
In such an event il would mean that
all other parties in Germany would have
TO combine in order to present a stronger
front than the Socialists. 1t is possible
according TO Socialist circles, that the
united party may decide 10 withdraw
from the Government, which would
amount to an overthrow of the Gov
crnment, for II would be bound to fall
without the support OF the combined So
cialist parties. At any rate threat OF
such action is being made in an
effort to compel the Government to be
moro drastic in its application OF So
cialistc measures, including the control
of the food supply.