The Birmingham age-herald., 1923-10-19
Crisis Comes When Dresden Government DiSmiSseS It's Charge d'AffaireS And Ap- points New Envoy
 GRAVE ISSUES CONFRONT STRESEMANN'S CABINET Need For Early Use Of Dic- tatoriaI Powers Voted It By ReiChstag Seen As New Dangers Loom Within
RuILETIN

Press s.)-Diplomati relations between Bavaria and Saxony have been severed.
 Saxony today dismissed it's charge daffaires to Bavaria and announced the appointment of new minister, whereupon the Bavarian government replied declining to receive the new minister as long as the communist party was represented in the Saxon ministry. At the same time it re- called the Bavarian minister from Dresden.
 BERLIN, Oct. 1S.-(By Associated Press With the situation in the Ruhr and Rhineland rapidly ap- preaching a condition of an acute social and economic crisis; with SaXony's socialist-communis min istry continuing it's defiance of the central government and with Ba- varia having severed diplomatic re- lations with Saxony, Chancellor Stressemann's coalition cabinet IS confronted with issues that will af- ford it an early opportunity to make use of the dictatorial powers voted it by the reichstag.
 These are the outstanding issues which harbor elements of immediate danger, the internal situation in it's entirety, especially with respect to the financial eataclysm toward which all classes of the population are heading through the further depreci- ation in the value of the mark, is automatically constituting itself a contributory factor which is destined to have a decesive hearing on the further course of events.
 f lf.YI T the nine billion mark today. new period of price chaos set in, and with 1t the governments helplessness with respect to the adoption of speedy reformatory measures became more emphasized.
 Socialists Become Restive.
 The social situation growing out of the complete wreck of the na- tions economic structure is making the socialist party restive. in that 1t apparently no longer is able to cope with the clamor of the masses, waose cause is being espoused by the more militant of the communists. This phase already is seriously re- acting on the socialist party, and as the party, as such also is demanding the repeal of the state of emergency act in an effort to placate the ram pant Saxon government, it is viewed SOCldlSl party will instruct its members If the cabinet to retire from the gov ernment.
 Such an eventuality in all prob- ability would wreck Chancellor Stressemanns present ministry, un- less President Ebert in the emer- Sency should give Stressemann carte blanche authority to wield his dic- tatorshlp without heed of party or partisan consideration.
 Herman Mueller and Otto Wells, who are the traditional emissaries of the soclallst party when important as lsSnments are decided upon, today had long conference with President Ebert Representatives of the social ists and communists also have been conducting informal deliberations looking toward the creation of a
 proletarian working alliance," al- though the ultra Reds have put for ward such extreme demands that the conferences have been postponed for the time being. The conferences. however, are significant as represent ing the first serious attempt to unite both the radical parties on com mon platform, especially as the social lst party, as such, up to quite recent times has openly and repeatedly as- severated it's refusal to make com mon cause with communists.
 Line Considerably Blurred.
 Since the German bolshevists joined in the formation of the Saxon min istry the previously existing line of cleavage has become considerably blurred and there is an insistent de- mand in the ranks of the Berlin so- cialist that the central government forwith assume q more conciliatory attitude toward Premier Zeigner and his Red Saxon regime.
 By way of laying stress on its de- fiance of the Berlin government, the saxon today announced the appoint ment of two radical communists, Herr Boetticher and Herr Heckert as SaXony's delegates to the federal council. Herr Boettcher, who is min ister of finance in the Zeigner cabinet. is a young communist who has just returned from Moscow where he is reported to have taken "course of instructions" at the sovets fountain head. Herr Heckert is min ister of economies and as such holds portfolio of strategic importance to his party in view of SaXony pre- eminence IS an industrial state. Both these ministers. have refused to take the oath of allegiance to the repub- lies constitution and htis is being made a cardinal feature of the present controversy with the Berlin govern ment.
 A section of the bourgeoise prin- ciples demand that both men be re- quired to swear fealty to the central government
 Failure to meet with any small de- gree of accommodation from Premier Poincare for the renewal of negotia