The New York herald., 1922-08-07

I 1T Is evident that Poincare has lost
his patience. We Germans have not lost
ours, but our strength is gone
saws Note Had Friendly Tone.
The Chancellor would not say whether
his reply to Premier Poincaire indicated
Germany's< willingness TO make the
August payment larger than the $780,
600 he had proposed in his previous
note but he explained that his last note
was addressed in a friendly tone ana
an accommodating spirit with the inten-
ton OF furnishing a possible point OK
departure for a full revision or the ell
tire reparatons program.
Emphasizing the need OF prompt act
ion to save Germany from disaster, he
said: Unless the present reparations
demands are reduced and the method OF
collection revised. Germany viii become
| incapable not only of making financial
| payments but also deliveries OF goods
The German Government cannot con-
tinue TO buy foreign currencies for re-
parations payments while the mark 10
worth only 200th part of Its former
value. Even great piles Of depreciated
German paper notes will not buy the
necessary foreign money for the repara-
| tions Germany cannot pay l32,oOo,-
| 900 900 gold marks. The amount must
ha one which the world can regard as
reasonabIc and which can form the basis
| for floating an international loan.
| cannot say how much we can pay uhoef
the present unsettled financial conui-
lions The amount which Germany can
nav to-day is less than it was six weeks
ago. and that was less than year ago.
4 .'It Il essential that Germany receive
\ !, ra,i moratorium. Our Intention IS
not 10 cvade further payments. we
want to make payments, but payments
4 snroad over a longer period. The pre-
sent reparations m<hods are funda-
mentally wrong.
"The British admit that the amount
Of 132. .Ooo. 900, 900 gold marks was nor
fixed after an economic investigation %
Germans. capacity to pay, but accord
,n~ 70 the demands OF creditors and
nni,tical considerations. Then there y
,ho erroneous idea abroad that finance
can somehow be separated from induS,rs
| and general economic prosperity. ou,
T,ra,ce Il merely the exponent OF wha'
Industry can produce. lf you are CON
font with some theoretical program 20,
are building in thin air. and your whol'
structure will collapse like mousse o
cards.
Asserts Good Faith.
chancellor Wirth insisted that Ger
.ny was acting in good faith anc
sa,d :. ave do not keep two sets OF &C
cornt hooks. as has been charged. The
a,ics must look into Germany's eco
nomlc plight and act to. avert disaster.
Asked whether he would not sugges
that the Allies extend their fiuancia
Investigations. he replied that the Com
mittee OF Guarantees had full opportu
nltv 10 Investigate Germany's condition
Ua warned that should the London con
ference prove a DISAPPOINTMENT to th'
Germans they would 'lay down theil
tools and lose heart.
"The rise IN prices" nc continued
"exterminates the entity OF classes. 4
yaIueless mark would have more seri
ous consequences In Germany than u
Austria. where industry Is limited. Ger
many Is one big factory. A break
down of 60. 900, 900 Germans could no
ba repaired over night"
The Chancellor said the existence o
the German republic hangs IN the bal
ance and will be decided by the repa
rations settlement. When asked abou
tho League Of Nations he said the Cabi
net had no time 20 consider Germany
attitude az TO the league when ther
were 80 many other vital problems pend
ing. When a man Is in water up &
his neck and tho water Is still rising.
he said, that man would rather wal
until he is sure he will get out aliv
before he discusses whom he would lik
TO associate with
Denies German wealth.