The New York herald., 1922-03-23

on Germany! That is the general ver-
dict in political circles to-day on the
decision of TIE Preparations Commits
sion that Germany must raise co.
900, 100000 paper marks in additional
taxes after passing the present Gov
ernment tax program.
mo Government can be found to
carry out such requirements" declared
one radical leader in the Reichstag.
Another prominent member said: "The
money simply cannot be raised even
il the Government should undertake
to promise it,
The so-called tax compromise carry
ing forced loan of 1000, 900, 900 gold
marks and regular taxes of over 40,-
600. 600. 900 paper marks had only in the
last few days been towed into quiet par
liamentary waters after threatening to
wreck the coalition. Now 1t is believed
that Germany Is confronted by a crisis
for which no solution seems conceivable.
Although Chancellor Wirth's policy
Of fulfllment' Is regarded as doomed
even by his followers, 1t Is suggested
that he may not resign until after the
Genoa conference, because there Is a
faint hope that something may grow
out Of that meeting to give new basis
on which to deal with the reparations
question.
Figures Guido aGlnation.
II this Is not forthcoming not even
the most sanguine prophet in the Reichs-
tag seemed willing to predict that Ger
many would be spared a political jar
or the severest nature. The Socialists
who have been pressing for the taxation
OF gold values and wished the state to
participate In industry so that more
money could be obtained for repara-
tions. expected through this scheme to
be able to raise only about 25.000,0 ,000,-
900 paper marks more than through the
present Government program. In other
words. even the most hostile anti
capitaltistic parties in the Reichstag
saw no plan to approach the figures now
set by the Reparations Commission.
The news OF the Reparations Commits
sions decision reached Chancellor
wirth during a session of the Foreign
Affairs Committee. which was immc-
diately suspended. A Cabinet meeting
was called for tonight to discuss the
terms. The Governments tax COM
by the new demands and IL seems qucs-
tionable whether the volkspartei viii
continue to support the Government.
What will happen II the Genoa confer
ence does not result in any marked i'm
provement is much dreaded.
That Chancellor wirth and Dr. WAL
ter Rathenau. Minister of Foreign Af-
fairs, would have to resign seems in
evitable. Also 1t is doubted whether tho
t.xt,A Izr
different leadership. The Conservative
party would only take over the Gov
ernment to conduct policy of defiance.
but with the present lineup in tho
Reichstag It probably could not obtain
sufficient support to gain power. The
only remaining chance would be to
form a government OF Socialists. and
these to-day were as emphatic as any
other group in denouncing the decisions
OF the Reparations Commission.
May Force Election.
II no party ia strong enough and no
coalition could be found TO take over
the Government general election
would be inevitable. and IL this were
held on the issue OF voting 10000. .000, 90
marks in new taxes II probably would
result In tremendous gain for the con-
servative and monarchist elements.
That would make possible a policy OF
defiance.
One Reichstag member admitted
frankly to-day that the only purpose Of
the Government policy Is to prevent
France from keeping the Rhineland or
occupying more territory. That Is the
entire purpose OF the policy of fulfill
ment," he said. "A year ago France
might have marched in with the ap-
provai OF the entire world. Now she
would have almost the entire world
against her. After the Genoa confer
ence public opinion may be even more
hostile to such steps. Therein lies our
one justification or taking a course of
conciliation."
BERLIN, March % ASSOCIATED Press).
The decision OF the Reparations Com
mission fell like bombsheil in the
official quarters In wilhelmstrae ese and
in the Reichstag created anger and dis
may.
The financial proposals are Character
ICED as impossible and the proposed
guarantees as humiliating. The general
opinion expressed by the newspa pers is
that the commission has shown no dis
position to meet Germany in a work.
able scheme.
Chancellor wirth and his colleagues
betray no outward signs OF perturbation.
and pending an inspection OF the official
text OF the communications they are
deferring comment. offlcial quarters
permit the inference that IL is believed
there the decision does not bear the
character OF an ultimatum. but that IL
leaves the way open for a counter pro-
posal or fresh negotiations.
For the moment the Government IL
really more concerned over its progra m
Of taxation. which In now being debated
in the Reichstag and vote upon which
is likely next Saturday. IL no pnrlia-
mentary Instructions Interfere, the Gov
eminent will be able TO put into Inn
mediate operation fourteen major tax
laws and a measure providing for a
loan OF 1000, 100000 gold marks. The
fate OF these laws to-day occupied the
Cabinet to greater extent than the
reparations communication.
The coalition leaders say that II the
new conditions are 20 be complied with
new sources OF taxation will be needed
but they do not see the possibility ol
f,nding any. The Liberal and Socialist
leaders declare that the allied program
IL intolerabe and not susceptible oi
being complied with. They express :hs
hone that the Genoa conference vii
proye a source Of smeiioration.