The New York herald., 1922-01-12
CANNOT PAY YEARLY
1,25O,OOO,OOO MARKS
Germans Say Wirth Can Bal
ance Budget, but Not Rep
aratiOns Too.
BY RAYMOND SWING.

Special Gable to THE NEW YoRK HERALD.
Copyright, 1929, by THE New York HERALD
New York Herald Bureau,
Berlin, Jan. IL.
vicious circ.e is what some German
business leaders call the Cannes repara-
tions settlement. 20 far as 1t has been
defined In the newspapers. for they say
it provides for continued reparations
both In cash and goods and abolishes
the issuance Of more paper money.
The normal German budget can be
made to balance. especially II Chancellor
wirth succeeds IN passing his tax re-
form measures, but it is argued that II
cannot be made to provide revenue to
cover annual rerarations payments of
1880, 100000 marks gold. 1t is declared
that while the allied leaders made only
indefinite terms and called what Ger
many is able to Fay zero. they now say
that half of zero remains. Such phrases
as the United States of Europe and the
reconstruction Of Russia also inspire
little confidence especially among cer-
tain business mcr, and 1t Is feared that
these expressions will be used as q
slogan to invoke and gloss over senti-
mental impossibilties.
But other op'rions also are to be
heard in Berlin. A leading Social Demo
crat to-day predicted that 1922 would
witness Germany's economic surrender
German business. he believes. would
have to relinquish its struggle to main
tain its own individuality and Germany
would become an economic dependency
of England and America and the organ
ization Of Europe into a trust would
begin.
Any world co asortium plans. he said
must inevitably have this consequence
Of internationa,'Z'ng business and the
only comfort to be derived from It he
added, was that Il also mean. the crca-
ton of an international labor movement
and gradual reduction of the chances
for nationalistic wars. "As such q gen.
eral development holds something worth
WHILE" he said. I'VE viii have beer
obliged by the world war;"
There is room for considera BILE doubt
as to whether Chancellor Wirth will be
able to put through his tax reform
measures which the Supreme Council IL
reported to insist upon. At present his
chances of obtaining a majority In the
Rsichstag hangs by single thread II
he Is willing to make one concession &c
the farmers he may be able to get the
conservative party on his side. and the
price he must pay Is to tax the land or
| productive instead of marks at values, as
| intended.
Without the conservatives the tax
| bills would probably be lost and new
| elections would become necessary A,
| any rate the Majority Socialists hav.
too much influences at stake to abandon
the fight for State participation in in
dustry altogether Since DR.. Helphand
leading Socialist and economist, cam,
out against this platform. Socialist lead
ers are now trying to formulate q sub
stitute and many propose an enforced
loan. This in their opinion would con
stitute som sthing of an assurance tina
| the idea of State participation In in
dustry has not been dropped altogethe,
and should elections be held II woulc
probably constitute the principle Social
Isl plank.
| Rumors continue to be heard OF ar
expectation of business with Russia
one German newspaper states that inn
po-tant negotiations are pending be
tween the Soviet Government and IN,
new economic headquarters for IN,
East. In which New York bankers AR,
said to be financially interest A Social
ist news agency reports that Hug,
SHINES made his recent visit to T,ondoy
to try to purchase shares of the Ans,n
Russian-Asiatic Company and wa,
given the cold shoulder. In the ne.n
time the krupp company Is said 70 ba ".
bought q large block Of shares of tbi,
company SO that II has a start on a.,
| long time rival