Evening star., 1928-12-30
GERMAN SPIRITS
Low AS 1928 ENDS
Bright Hopes Entertained in
Beginning of Year Were
Not Fulfilled.
BY Radio to The Star.

BERLIN. December 29-The old year
goes out leaving Germany bitterly dis
appointed. Bright hopes that were en-
tertained for this country In the be-
ginning of 1928 have not been fulfilled.
When the year opened Hindenburg At
a diplomatic reception here gave it as
his New Year wish to his countrymen
that the Rhineland should be freed from
foreign soldiery. Yet to the Germans
the termination of the watch on the
Rhine by the allies now seems as far
OF as ever.
Then, industrially. the present year
witnessed a marked, even if not a
disastrous, slump after the prosperous
business years of 1925 and 1927. Then,
like fire alarm bell in the night,
to use Thomas Jefferson's vivid phrase,
came in the Autumn of this year the
industrial conflict in the metal indus
try involving lockout of more than
100000 workers. which revealed how
deep social unrest in the country is.
Before DR.. StreSemann went to Lu-
gano he said in press conference here
that he felt his task like that of
Sisyphus-that after the efforts he had
made to convince France that Germany
desired to live peacefully with her as
a good neighbor by renouncing Alsace-
Lorraine and accepting the present
Western frontiers as definite line, by
assuming the obligations of the League
of Nations covenant by signing the op-
tional clause of the Hague Tribunal
and by eagerly indorSing the Kellogg
pact-had been fruitness.
= Bank Reports Pessimistic.
The annual reports of the business
year issued by the German banks and
Chambers of Commerce are tinged with
the deepest pessimism. Even after one
makes deductions for a large part of
this peSSimiSm as being due to the Ger
mans wishing to create an impression
on the eve of the meeting of the eX-
perts committee that they are unable
to fulfill the present reparationS an
nuitieS, 1t is undoubtedly true that the
leading German industrial authorities
are alarmed by the shortage of capital
in this country and fear that Ger
many's recent prosperity has been built
on sandy foundation for capital. In
domestic politics. too, is the year a dis
appointment. The elections of the
Reichstag produced an overwhelming
majority in the German Parliament for
the parties supporting the republic and
the Locarno policy. The Socialists re-
turned the largest party in the Cham
ber with the result that the reactionary
cabinet was forced to resign. But all
the efforts to form a grand coalition"
which would give Germany the stable
government it needed, were shattered
owing to the wide Emergencies in politi-
cal views between the Socialist and
PopuliSt partieS-a reflection Of the
wide gap between workers and en-
ployers today. For the German Popu-
list isn't to be confused with the Amer
lean Populist party of the nineties, but
so far as being a peoples party in the
usual sense of the words is primarily
a party of big business and heavy in
dustrialists. The failure Of negotiations
to form a grand coalition party may
partially be traced to the serious ILL
ness of Dr. Streseniann, whose absence
during the greater part of the year
from the Wilhelmstrasse greatly handi-
capped the conduct of German foreign
policy.
Today-eight months after the gen.
eral eleetior--Germany has govern
ment which does not rest on party
support, but instead the nations busi-
ness Is conducted by ascabinet COM
posed by the party leaders who have
no mandate from their followers. POUR
parlers for the grand coalition will be
resumed when the Reichstag reassem-
bies after the Christmas recess, but it
will be matter for general amaze
nlent If they succeed. To make Christi
mas still merrier for the Germans their
budget for the coming year has
deficit of 60o, ,000, 900 marks, which is
making the finance minister, DR.. Ru-
dolf Hilferding, roll his head to find
lays and means OF covering.
Crazy Quilt System Persists.
No progress at all has been made in
simplifying the relations between the
ileich and the states. The evils OF tire
.crazy-ouilt system, which Parker Gil
:bart pointed out in his memorandum of
'iOet0her, still exist as flagrantly as ever.
The conference between the reich
sc3binet ministers and the premier states
which assembled in Berlin last January,
broke up after passing number of
pious resolutions. The historic jealousy
between Prussia and South Germany
still acts to prevent Germany from at
tanning the unity she badly needs. But
after all is said and done, the present
year witnessed one notable step that
promises to lead toward definite set
tlement of the reparations problem and
tae eventual evacuation of the Rhine
land by the allied troops. Scarcely a
year has passed since Parker Gilbert
urged that the total reparations liability
should be fixed and that Germany
should be given definite task to per-
form on her own responsibility and
without the protection of the transfer
clause. The initiative of the agent gen.
eral Of reparatiens bore fruit at Geneva
last September when the allies and
Germany agreed that a second Dawes
committee" should be appointed to de-
wise final settlement of the wars most
vexing legacy. Finally, after wearisome
negotiations, this committee has come
into being and offers the hope that we
may see Europe well on the way to a
solution of the reparation and Rhine
land questions.
Copyright, 1927