The New York herald., 1922-07-21
BERLIN LABOR ASKS
| SEIZURE OF CAPITAL
FayOrs COnfiscatiOn to Relieve
Financial Crisis, Not for
Communism.
USE IT FOR INDEMNITY
DenOunce Tax Evasion Of
Property Holders and Send
ing Money Abroad.

Special Gable to TIE New YoRK HERALD.
Copyright, 1922, by THE New YoRK HERALD.
New York Herald Bureau.
Berlin. July 20.
German labor leaders are demanding
the confiscation of capital to relieve
the present financial crisis. They are
not favoring this move for communis-
tic purposes, or even the socialization
of German industry. but they hold con-
fiscaton is the sole remedy.
This. in one sense. is what the French
wish to see. The Socialists. with their
new power in the Reichstag, hope to
bring it about. THE NEW YORK HERALD
correspondent obtained declarations to-
day from labor leaders which show
their ideas. Until now" they say,
'the workers were carrying the bulk
Of the burden OF taxation and repara-
tion."
Urich. head OF the Metal Workers
Union. said: THE workers have a
definite percentage deducted from their
wages weekly, while the property
classes pay their taxes only at the end
of the year. and then several months
late, meanwhile enjoying their prop
erty tax free. They can easily find
ways of avoiding the tax collector and
deposit their money I'm foreign banks.
Therefore we demand that the pres
ent budget of reparation payments be
met, not through indirect taxation. but
the direct confiscation of capital. II
is the only way. The Government
simply cannot pull through this crisis
unless it takes part Of capital. such as
could be effected il the Government
would take a percentage of shares. In
this way part of the profits of the
capitalists would be credited to the
state as they We're made and tax
evasion as it is occurring now would be
impossible"
This is not the time for the socializa-
! tion of industry" said Philip Scheide-
mann. leader Of the majority Social
lists. 1T would be most foolish to social
! ize and bankrupt industry, as we should
get only abuse for falling to make both
ends meet Germany cannot get along
without the outside world, and it must
| have a Government which will give
US access to the worlds markets. A
| Socialist Germany in the midst OF q
capitalist world would leave us iso.
! lated"
These leaders add that unless theil
! program is adopted the Allies never will
| be satisfied, which simply means that
the crisis would be aggravated. Or
| the other hand. the employers say tina
such a program as the workers are
1 Trying 10 IoTCc WOulu Hledn cTlppllnt
industry. which must pull the countr,
through.
Hans Kramer. vice-president of thu
National Economic Council of Employ
ers and Employees. told the correspon
dent that a terrible crisis is unavoid
able in September. estimating that th'
number of unemployed would be 100000
this autumn. 1.-The time will come.
he said. when We simply have not tn
capital to pay the wage demanded t
enable workers to live. There is litt
unemployment because OF the harves,
! but orders are diminishing rapidly. an
d by September we must face the mos
serious unemployment we have eve
had, which must have its effect upoi
other countries"
Synptomatic of the Progressive finan
cial disorder here. the mark took
further drop yesterday, closing at 49,
to the dollar. Business leaders say tha
at anything over 500 German bushes
will be absolutely unable to finance il
self further.