The New York herald., 1922-07-17
union OF SOCIALIST
PARTIES THREATENS
GERMAN CLASS WAR
Independent and Majority
Combine May Mean Trade
UniOnism Rule.
CONTROL 18O SEATS
Would Pay Reparations if
Own Demands Are First
Fulfilled.
INSIST ON SUBSIDIES
INSIST ON SUBSIDIES
Combination of the Bourgeois
Parties Only Means to
Block Plans.

Special Cable to THE New York HERALD.
Copyright, 1929, by THE New York HnaALp.
New York Herald Bureau
Berlin, July 16.
fusion of the two big Socialist
parties of Germany now appears vir-
tually assured. Whether for the veal
or woe of Germany. it is the biggest
political event that has yet resulted
from the murder of DR.. Walter Rathe-
nau, the Foreign Minister, and unless
the bourgeois parties themselves sue
coed in forming a counter fusion Ger
many seems destined to return to
new domination by trade unionism,
such as existed for a month after the
armistice during the so-called German
revolutionary period.
What is now feared is determined
class struggle here. of which already
signs are not wanting. which will rock
the country to its foundations and will
make dofbly difficult the task of pla-
eating the French and solving the
reparations problem. After having
been split since 1918 the Independent
and Majority Socialists are now united
again and will hold $50 out Of 466 seats
in the Reiehstag. They will represent
the collective might of 10.oo0,oo0 trade
unionists who want to increase rather
than diminish the present subsidies to
which the French are objecting. and
also want to impose new burdens on
the German budget and are for more
class legislation.
Slight Danger Of ODmmunism.
But while these IRE consequences to
be feared from the formidable coalition
of workers parties. in which the present
political crisis eliminated. there is
fact conceded by every one, and that is
that 1t has almost eliminated the danger
Of communism getting the upper hand in
the present situation and has insured the
republic against an immediate monarchist
uprising.
One dangerous feature. therefore, to
those who wish for the welfare Of Ger
many Is the likelihood of class war, Of
which the leading newspapers to-day
speak with surprising freedom.
The clouds surrounding the Immediate
future of this country of 100000 peo-
ple,- still in state OF f1px. could be moro
easily pierced II the operation of the two
chief factors could be more accurately
measured in advance. These are:
First, the interior one involved in the
reformation of political groups now GO
ing on and precipitated by Dr. Rathe-
nau's assassination, and the extent to
which the combination of the two So
cialist parties. representing the trade
unions. seek TO exert their domination of
the Government and to carry out their
program for more subsidies. the social
istic panacea, and the extreme repub-
lican defense measures
Second. the exterior one involved in
the attitude France and England will
take on the forthcoming report of the
Commission on Guarantees and the Rep
arations Commissions action on this re-
port.
Fenrs Unemployment.
Germany, according to the best opin-
lon here, has been saved in the present
crisis. as 1t was in the time of the
kapp putsch, by the fact that there is
virtually no unemployment This has
kept the 10,000,000 trade unionists rep
resenting the new fusion in favor of a
social republic and against a communis-
tic one.
The moment our production cost
level approaches that of the rest of the
world we will have unemployment on
vast scale" big German manufac-
turer told THE New York HERALD
correspondent. "and unlike England and
the United States no Government here
for some years to come will be strong
enough to deal with 1t. The situation
which is serious enough in England
would mean anarchy here"
This may be merely threat so that
the Germans may continue to undersell
others, but the very thing which this
manufacturer pointed out apparently
has the whole Committee on GUARANTEES
guessing. 1t seems to explain why the
committee left here tonight for Paris
with report that does not settle any
thing. Fearful of any recommended
ton that would. IL carried out. precipi- |
tate unemployment with Germany In its
present state, the committee is about to
pass the responsibility to the Repara-
tions Commission.