New-York tribune., 1922-11-07
Elatly Turn Down Pro-
posal for 500, 900, 900
Gold Mark Loan and
Finance Commission
Reply Cuts Short
Further Debate
Wirth Sharply Told Ger
many Has Net Carried
Out June Obligations
BY Joseph Shaplen
Special Cable TO The Tribun,

2pctsdi Cdotc 10 1hs IrfO6nS
Copyright 1922. New York Tribune Inc.
BERLIN, Nov. 6. - In n letter ad-
dressed to Chancellor Wirth the Repa-
ration Commission tonight fatty re-
Jects the German proposals for stabili-
zation of The mark and rehabilitation
of German finances. These proposals,
in addition to asking foreign loan
of 50O,0o0,oo0 gold marks, called for
the raising Of large internal loan
in Germany, stimulation of German
production and formation of an inter
national finance commission to handle
the loan problem as we'll as the prob
lem of stabilizing the mark.
In to-night's letter rejecting these
proposals, which is signed by all the
members of the Repara.ion Commits
sion and was unanimously approved by
them, the commission indicates that
the German government has thus far
failed to carry out the obligations 1t
assumed last June on the guarantee
committees visit to Berlin. The COM
mission expresses disappointment that
the German government has not come
forward with more concrete idea in
regard to the stabilization of the mark.
In rejecting the German proposal for
the raising of q 10000 0,000-mark loan
by the Allies the commission says that
this is not the business Of the Allies
or of the Reparation Commission, but
of the German government. The COM
mission asserts further that it cannot
undertake the floating of loan for
Germany, since in SO doing it would
have to take over guaranty for the
same. The commissions letter is writ
ten in an emphatically sharp tone and
does not indicate that reply is ex-
pected. The letter is therefore taken
as indicating a break in the present
negotiations.
Charges Of Sabotage
From sources Of the highest author
ity The Tribune learns that, prior to
the dispatch of this reply, Hugo
SHINES and group including other
prominent German industrialists had
been conducting conversations with
members of the Reparation Commits
sion and that they had clearly indi-
Gated their intention to sabotage all
proposals for settling the reparation
pIOplCIll LildG SIIldHdtC0 lLOili SAlS w IL CA
government. Their aim is to force the
overthrow of the present German Cabi-
net, in which the Socialists play so
large part, and form government
with representatives of industry and
big business. at the head. When this
overthrow comes SHINES and his part
ners will step in with comprehensive
economic and financial plan, which they
say will be acceptable to France and all
the Allies.
That the position of the Wirth
Cabinet is becoming increasingly diff
ficult is felt to-day in circles both
friendly and inimical to the present
government. With to-night's rejection
of the governme5 proposals by the
Reparation Comm. ion, on top of the
continued, uninterrupted decline of the
mark and the ever-growing cost of
week alone showed a rise of ten per
cont-it is felt that the reassembling
of the Reichstag will bring about the
formation of new government, with
the Peoples party occupying several
important posts, particularly those of
finance and national economy.
Socialist Attitude Doubtful
Whether the Socialists would con-
posed largely of enemies whose in
tention is to wipe out the eight hour
day and a great deal of other social
and labor legislation, which conserva-
tives contend is responsible for Ger
many's economic troubles, is problem
attic. If they are not excluded the
Socialists may consent to the recon-
struction of the Cabinet in conserv-
ative direction and yet remain in the
government in order not to surrender
leadership entirely into the hands of
SHINES and those elements which, un-
able to destroy the new order by direct
attack, are trying to smash it through
flank assaults, by means of organized
economic pressure.
This week, therefore, is regarded as
pregnant with serious possibilities.
Besides to-nieht's rejection of the
German proposals by the Reparation
Commission, the issuance to-day of the
Reichsbank's report for the last ten
days of October has added to the general
feeling of pessimism. The report shows
the issues of 59,500,000,000 new paper
marks, making total paper circulation
of nearly 47O000,0o0,0OO marks. The
mark opened to-day at 5000 to the dol
lar. The closing was 6,400. Late in the
affernoou the FREQ nnoff, c;oI ~,4.