Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-01-16
BACKGROUND OF EVENTS
BY P4JL ]. COLLINS.

After months of effort to repIa &c
! a coalition cabinet. and after an ulti-
| matum from President Hindenbers
| fixing Wednesday as The limit Of
time for the new cabinet 10 be formed
| by Erick Koch. the former chancellor,
! DR.. Luther was given leave TO re
organize his cabinet and continue in
power. The Luther cabinet had
! pledged 10 resign after the acceptance
! of the Locarno treaty, but the opposi-
ton has at last been obliged to release
| the government from that pledge. 1t
was the price of the Nationalist Party
| for its vote TO support the Locarno
! treaty confirmation. Germa ny u fac
ing serious unrest.
During the campaign which result
, ed in the election Of Field Marshal
| HindenberS 10 the presidency II was
| reported that former Kaiser Wilhelm
/ had given 100000 marks to his cleo
, ton fund. Royalists are active in de
handing that he now @c&une dicta
, torship, and 20 most prominent royal
lists. including Prince O0ar and sew
/ eral generals. have signed a manifesto
! 10 that effect.
| News comes that the Communists
| have planned an uprising in the lat
ter part OF this month. 1t is said the
! Social Democrats are weakening In
| their opposition in the face of the dou
! Bile peril-Communis bread riotins
and a Hindenbers dictatorship backed
| by the army.
| Conditions, financially and indus
triaIly, are growing rapidly worse, So
! that there Is real danger of socia
| unrest and discomfort amongst the
! jobless and hungry. leading TO dis
| turbances which may call for mar
! tial law in the larger cities-or even
| for a Hindenberg dictatorship. though
| that is pledged to be temporary.
! This seems anomalous in view Of
! The recent reports from Germany OF
| amazing prosperity, and of dtsap-
| bearing of unemployment of its
| workers. 1t transpires that the
! prosperity was only during the in
: fation Of per money and now
! that denation under the Dawes plan
brings the nation nearer to d SOUND
| money basis the artificial prosperity
! weakens, resulting in withdrawal OF
credits to industry. increasing bank
ruptcies or receiverships and rapidly
| increasing unemployment.
During December 1850 firms went
| into bankruptcy. and in the year
! 1925 1886 firms. as compared with
! 1900 in 1924. Some of the greatest
| concerns, seeing the danger, closed
| down their unproductive branches
thereby throwing thousands of wage
! ca rners out of employment. The
Manufacturers Association openly
calls for additional fluid capital from
| outside sources. in the form OF tor
| eisn credits.
While Germany has met the Dawes
plan obligations. she has done SO
! with money borrowed of which 50
! per cent came from America. She
| is now asking for more loans and
! Secretary Mellon has recommended
| that the United States indorSe her
| per cent bonds and help market
| Ihem-a proposition which has met
strong opposition in Congress.
The German government Is now
paying out $10.000.000 a month fol-
doles to support the unemployed. the
| number of whom has Increased Sc
per cent within the last month.
The peak of unemployment since the
war was reached In the last of 1928. Or
January 1, 1924, there were 1856. 00t
jobless, receiving doles, and total Of
at least 100000 out of work. Lasl
September there we're only about
| zoe, 900 on the dole list: but last Decem
Der 1000 900 jobless were dependent
! on doles. and January l there were