Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-29
MUELLER DESTINY
DEEMED UNSETTLED
ehanceEor's Changes Fol-
lowing Schacht Demand
j: Called Palliative Only.
By Radio to The Star.

eESS NdoiO 70 Inc STAT
BERLIN. December 2s.-The govern
ments equalization to DR.. Hjalmar
schaeht has gravely endangered the
ERbinet.
Finance Minister HiKerding has re-
signed to protest against outside inter-
ference" and his state secretary, Popitz,
who has been chief advisor Of all finance
ministers since the sterilization of the
currency, followed suit.
"A struggle for the vacant post was
threatened. but Chancellor Mueller ad-
1uSted matters quickly by naming Herr
Moldenhauer, former minister of eco
Monies, as finance minister. Modem
hauer belongs to StreSemann's Peoples
party. He is regarded as a level-headed
man, experienced in economic affairs,
but he will first have to orient himself
IN financial policies, and 1t is doubtful
whether the present urgent problems
VIII leave him time for this.
Naturally, Chancellor Mueller had to
RppeaSe the Socialists for the loss of the
finance post and he named as Modem
hauerS successor in the post of minister
OF economies Robert Schmidt mod
crate labor leader with economic train
ing, who once held the same portfolio.
Socialists Embittered.
Thus the cabinet is again complete
and will be able to go to the second
Hague conference to join its reparations
creditors in putting the Young plan
into effect.
But the governments fate is still I'M
certain, even though the new men
measure up to their jobs. The Social
lists are embittered over the action of
{, DR.. Schacht. the Reichbank president,
and the parties of the Left Wing which
from the beginning have regarded CO.
operation with the bourgeois parties
with suspicion, will now bend every ef-
fort to force the party back into OPP
position, in order to avoid such I'M
pleasant experiences in the future.
There will be no lack of points for
friction In the coming months. The
Reichstag has adopted, at Dr. Schacht's
demand, . law providing for the accu-
mutation of an amortization fund of
ESQ, 000, 900 marks during 1880. But the
so-called immediate program will bring
in only about 100000 marks. The
balance must be obtained either by new
taxes or by economy.
The Peoples party, which is a Goa
'1ition of the Right wing, demands econ
omies, but these would have to be at
the cost of social expenditures against
which the Socialists are the most
strongly opposed. And il new taxes
are decided upon. then the question of
what shall be taxed higher will give
rise to bitter disagreements.
Mueller Dignified in Crisis.
To be sure, there could be one Solu-
ton: The difference between the pay
mentS of the Dawes and Young plans
could be used for amortization. But
it has long been planned to use this
automatic reduction in reparation pay
ments for the reduction of some espe-
cially oppressive taxes, and it would be
very dificult for the bourgeois parties
to disappoint these expectations alto
gether.
Furthermore, nobody can tell how
much will remain of the Young plan
: savings If the 1880 budget is carefully
drawn up so that the government will
not be surprised by some new deficit
The steadily increasing difficulties of
the economic situation will undoubtedly
bring heavy decrease in receipts from
faxes.
Chancellor Mueller. by his dignified
attitude throughout this crisis, has won
increased respect from all parties, but
he is still handicapped in energy by his
recent illness. 1t Is a question whether
he will be able to surmount the gil
gantic difficulties and hold the gov
eminent together after The Hague con-
4cIcuCc' ~ ID QuCoIAoLl, w, HACIhoA
that conference will not itself bring
new difficulties.
An overwhelming majority Of the
German people rejected Alfred HUI
'genberg's nationalistic proposal to re-
ject the Young plan in the past weeks
referendum, and one can only hope
that the road to consolidation will not
be endangered by internal quarrels
among government blocs, which have
plainly assumed disquieting proportions.
(CopyrIght, 1920