The New York herald., 1922-07-08
Agrarians and Nationalists
Bitter Over Grain Sub
sidy Bill.
MONARCHISTS ON WATCH
Murder Of Rathenau Brings On
New Troubles, With More
to Come.

Special Dispatch to THE New Yonx HERALD.
New York Herald Bureau.l
Washington, ID. c., July Z.
That the German Government Is
threatened with collapse and the Re-
public is itself in danger, owing to
the struggle for supremacy between
Monarchists and Republicans, is the
gist of report to the Department Of
Commerce by c. e. Herring, COM
mercial attache at Berlin.
The conditions he set forth are ag-
gravated by the sensational fall of
the mark in the European markets
to the lowest level yet reached. 1t
was worth to-day for one cent. This
collapse is attributed 10 the failure
Of the attempt to provide an inter-
national loan for Germany and the
effect Of the assassination of DR..
Rathenau, which indicates the ex-
tent to which the Monarchist ex-
tremists in Germany are ready to go
to overturn the Republic.
Reports to State Department.
Further depreciation Of the mark,
greater currency imitation and in
ternal political disorders Of very
serious nature are feared.
1t is known that the State Depart
ment has confidential reports which
have not been made public indicating
that the monarchists are becoming
increasingly aggressive. State De-
partment officials are prepared for
news within the next few days Of
revolutionary movement of greater
proportions than anything that has
yet occurred since the passing Of the
German Empire.
The German Embassy officials here
profess to be in ignorance of the
exact condition of affairs but admit
the situation in many parts of Ger
many is menacing to the republic
and say privately that they are fear-
full of serious trouble. The Repub-
licans, they say. are determined to
uphold the present form of govern
ment by force of arms.
Worse Conditions Feared.
Mr.. Herring. after stating that the
failure of the foreign negotiations.
aggravated by the political crisis re-
sulting from the murder Of Foreign
Minister Rathenau, has inaugurated
new period in German currency de-
probation, says:
THE feeling is now general that
Germany faces a further fall OF ex-
change and further imitation, to-
gether with grave political complica-
tions. The consideration by the
Reichstag of important legislation,in-
cluding the forced loan bill and grain
subsidy measures, was interrupted by
the Rathenau incident and by the
consequent consideration and enact
ment Of stringent measures for pro-
tecting the Republican regime.
These measures provide the death
penalty or life Imprisonment for con-
spiracy against the republic. Ba-
varia, where the anti-republican feel
ing Is believed to be most prevalent.
refuses enforcement of these pro-
tective measures, alleging that no
necessity exists for them.
Intense party feeling prevails In
Germany, being manifested in nu-
merous assemblages under strict
police supervision. All anti-republi-
can agitation is being suppressed. A
strike among Berlin printers has re-
suited in the suspension OF nearly
all newspapers.
The passage by the Reichstag Of
grain subsidy measure providing
for the assessment OF large quanti-
ties of bread grain from farmers at
prices appreciably under the market
level has aroused bitter opposition
from the agrarians and the National
party, which threatens the fall of the
Government"