The New York herald., 1922-01-28

BERLIN, Jan. ~ (ASSOClated FTeSS).
In the absence of specific informa-
ton to the contrary, official quarters
in Berlin assume that the Genoa eco
nomic conference will be convoked
according to schedule. Reports that
the economic parley might be in
jeopardy through the attitude OF TIE
United States is just reaching the at
tention of German newspaper readers.
They also are furnishing Reichstag
circles with material for speculation.
america is turning her face from
Europe to seek her own domain in
the Pacific" says the Tde0liche
Rundschau, commenting on these re-
ports. Tie newspaper expresses the
belief that American interest in trans
atlantic affairs will continue to wane
until Europe gives evidence Of "stabili-
zation and businesslike conduct"
The Bocrsen Zeitung declares that
American interest in European eco
nomic affairs always has been ex-
aggerated. 1t says the people keep
hoping for American aid and asking
why there should be such differences
Of opinion between the two continents,
but that the United states has made
it clear it is not going to pour oil on
the troubled economic waters as long
as there is danger Of fire.
Hopes to Impress Allies.
Political quarters are agreed that
Chancellor Wirth was fortunate T.. hav-
ing effected truce with the Majority.
Socialists and the parties of the Center
on the taxation issues before the re-
ports reached Berlin of the likelihood
Of postponement Of the Genoa confer
ence. as the so-called tax compromise
arranged by him In a large measure
was pushed through in order to give
the Chancellor "a leg to stand on in
case he should become a delegate to
Genoa.
The compulsory loan of 200, 900 900 gold
marks. on the basis of which Dr. wirth
united with the Reichstag factions. is
said to have as its primary purpose the
impressing Of the Allies and others with
the German Governments determination
to take a long step forward in the direc-
tion of tackling internal financial and
economic reforms.
with the compulsory loan approved
by safe Reichstag majority. Chancel-
lor Wirth can now travel to Genoa with
his trunk filled with attractive sam
ples.' said one of the political leaders
to-day.
As German official and political quar-
ters firmly believed one OF the primary
undertakings OF the Genoa conference
would be readjustment of the whole
arrangement OF reparations issues, this
leader added that with an attractive
program OF tax legislation. even IL only
on paper. Germany hoped at least to
enjoy reputable standing as one OF the
delegate Powers.
Loan Called "Raid on CapitaI.o
The financial writer's are not enthusi-
astic regarding the working out of the
compulsory loan and its ultimate yield.
Hugo SHINES. in the Eugemeine Zei-
tlno. expresses the belief that the forced
levy Is misnamed. He regards the loan
under pressure as a simon pure rad on
capital and fortunes. especially as II
Is to be non-interest bearing for the
first three years. He predicts that the
loan eventually will be quoted at about
80 or 40 per cent.
The Boerscu Zeitxng sees new paper
initiation as result OF the stipulation
that the loan and interest are to be
payable on gold basis.
The Government hopes the loan will
prove a panacea for its many financial
ailments. The skeptics express belief
that II Is bound to produce unfavorable
results in connection with Industrial
and economic developments. and to leave
the nations finances in the same dis
turbed condition a year hence.
The supporters OF the forced levy.
however. argue that the moral effect on
the Allies will be desirable asset for
Germany. while the proceeds will enable
her to coordinate her internal finances
and finally enable her to inaugurate a
rational budget system.
This loan constitutes the nucleus of
Chancellor Wirth's taxation program.
Its adoption, after prolonged bartering
among the Majority Socialists. the
Clerical party. the Democrats and the
Peoples party. Is pointed TO as enabling
the Wirth Cabinet TO face the coming OF
the Genoa conference with good grace.
while also permitting II TO make con-
crete guarantees to the Rcparations
Commission in connection with the lat
ter's demand for evidence OF Germany's
willingness 10 accomplish internal re-
forms and state the extent OF her ability
10 meet her reparations obligations.