New-York tribune., 1922-05-28
Wirth to Tell Reichstae
Tomorrow That Reply
Will Be Based on the
Terms Fixed in Paris
of Bankers
Merely Tentative
Conference to Terminate
at Once if Their Ideas
Fail to Win Approval

BERLIN. May q (By The Associated
, Press s).-The German Cabinet has con-
cluded its three days discussions on
the reply to be made to the demands
of the Reparation Commission respect
ing the May 81 payments, Chancellor
Wirth on Monday will inform the
Reichstag that the German answer is
virtually based on the memorandum
| agreed to at Paris between Finance
Minister Hermes and Sir John Brad
bury, British member of the commits
sion.
The reply will not contain specific
reference to q force majeure reserva-
ton, but will permit the Allies to as
sumo that Germany will consider her
self incapable Of carrying out financial
and other economic reforms unless she
receives an international loan of ade-
quate proportions and on reasonable
terms.
When the Cabinet session closed
Chancellor Wirth Dr. Hermes. Dr..
Rathenau and the other mir's.~,'- ap-
peared before the Foreign Relations
Committee for the purpose of discuss
ing the German reply to the Reparation
Commission. The present coalition, it
is announced, will support the Cabinets
declarations, and the government has
also been promised the support of the
maJorlty of the members of the Ger
man Peoples party, while the Indepen-
dents will refrain from embarrass ssing
the Chancellor by abstaining from vot-
ing.
Wirth's Support Adequate
The Chancellor therefore will have
sufficient parliamentary support to i'm
press the Allies with Germany's rcadi-
ness to carry out their demands.
All Germany apparently is convinced
that there must be unity during the
present crisis and during the period Of
uncertainty over the reparations ques-
ton and German loans which interna-
tonal bankers are trying to arrange in
Paris.
Paris dispatches declaring that the
CAited States iavors an international
financial conference has created tre-
mendous interest in Berlin, while Pre-
mlcr Lloyd Georges vote Of confidence
IN the British House of Commons has
revived the Importance of the Hague
conference in the minds of Germans
Germany seems convinced that commu-
nism has proved a failure in Russia.
The informal agreement entered into
by Minister Hermes and Sir John
bradbury during the German Finance
Minister'S conversations at Paris. and
which will serve as a basis for the
German note. essentially contains
n hn ct of
imitation and budgetary administrative
economy. The question of levying
new taxes is temporarily left in abcy-
ance, as the government hopes TO adopt
other reforms.
New Tax Levies Opposed
1t was said after to-day's Cabinet
session that new levies would prove
doubtful sources of added revenue and
that unless Germany was given tan
gible aid from abroad in the form Of
a loan, even new tax lows would not
suffice to save the situation.
With the exception of Chancellor
Wirth. virtually every member of the
Cabinet as we'll as President Ebert, ap-
proved of DR.. Hermes's procedure at
Paris. The Chancellor's apprchensions
are said to have been provoked by the
Finance Minister'S suggestion that new
taxes might be raised
Subsequently the Chancellor's fears
were partly allayed. The German note
will set forth that the force majeure
reservation was more in the nature Of
symbolism. and that Germany pre-
fers to have the Allies know that an
international loan. after all, is the
crux of the situation growing out of
the Reparation Commissions demands
for May 81.
The Chancellor and the Minister of
Finance will open the debate on the
note in the Reichstag Monday. after
which the coalition party leaders will
announce their approval o' the gov
ernment's course. The note will be
forwarded to Paris Tuesday.
Opposition is developing in indus
trial circles here to an international
lean for Germany, based on the opin-
ion that while it would stabilize ox-
change on marks for short time. the
ultimate effect would be to undermine
German industry, forcing Germans out
OF the world markets. Pessimism has
apparently gained the upper hand in
quarters capable Of judging the situa-
ton, where the attitude toward a loan
lately has changed.
PARIS, May 81 (By The Associated
Press ).--Hope of settlement of the
reparation crisis without the necessity
Of action by the Allies together or by
France separately, raised by the auspi-
cous opening Of the bankers confer
ences, diminished to-day on receipt of
news from Berlin indicating that al
though a German Cabinet crisis has
been avoided, agreement is not com
plcte on the understanding between