Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-28
BY Gable TO The star.

BY CaDle 70 Inc star.
BERLIN, June 27-What the Hoover
plan for one-year moratorium on war
debt and reparations payments will
mean to the great number of Ger
mans of modest means is a question
foremost in discussion throughout the
country.
To machinist, for example, with a
wife and two children, 1t would theo-
retically mean a family saving of $25. 20
for the yOar, since every man, woman
and child is taxed $500 annually I'M
der the reparations schedule as figured
in the German budget.
Actually. however, the worker will not
benefit from any such savings at all I'M
DER the Hoover plan. His present taxes
will be maintained. Household econo-
mics which have been made up to now.
whether on beer, food, coal, clothing or
whatnot, will have to remain in force
What a moratorium in all likelihood
would do would be to stave off the is
suance OF further emergency DEGREES in
the coming year and thus check the in
crease of tax burdens which now rest
so heavily on the middle and lower
classes. In that sense a one-year holi-
day would act as a great stabilizing in
fluence. 1t would provide the basis of
security in figuring the family budget,
which after all Is directly part Of the
government budget.
Aid to Social Unrest.
Few people outside Germany can
gauge the impact of each new emer-
gency decree on the middle and lower
social structure Of the Reich. To avoid
that impact for a while would mean
| much to the safety of the Bruening
regime. The reaction to the last decree
| can leave no doubt that such stringent
, measures. as necessary as they may be,
gravely 1mperil the government.
Practically all the social outbreaks
in Germany, such as hunger demonstra-
tons, strikes and riots, are the result
OF organized agitation by radical politi-
cal parties like the Communists, FascistS
and Nationalist. The response of these
parties to the Hoover plan Is typical.
The Communists conceive the move as
one to aid industry and capitalism in
the oppression of labor. The Reds, as
we'll as the Fascists and Nationalist,
regard the American proposal as a lot
OF humbug and swear that nothing will
suffice but a complete and final over
throwing Of all reparations.
Soberer Judgment is shown by the
Socialist workers and the trade unions
afdliated with them. Despite their
move for refusing to pay the emergency
tax and their concentrated onslaught
on certain restrictions of the dole in
the new decree, they admit that altera-
tons in the decree in favor of the
working classes cannot be made effective
simply on the basis Of a one-year holi-
day on reparations. Socialist leaders
are quite aware that the treasury Of
the Reich will need for the present, as
we'll as the coming budget year, every
mark saved on reparations in order to
keep out Of a new hole.
Another Breakdown Seen.
Chancellor Bruening's last emergency
decree based its financial estimates on
maximum of 100000 unemployed.
Since, however. at the height of the
Summer season there are 1000, 900 job
less and conservative estimates figure a
minimum of 5,500,000 unemployed IN
the coming Winter, another breakdown
would seem to be in prospect. This
threatened collapse may probably be
balanced by the financial results of the
proposed moratorium. If the German
railways. for example. were freed of
their $50 ,000. 000-marks share of the
reparations debt, they would be enabled
to employ large part of that sum in
construction and repair work as count
ermeasure against increasing unem-
pIOymenL.
If at the same time the years res
pite from reparations should stimulate
German and world economics. as Presi-
dent Hoover seems to anticipate, the
industrial, unemployment and wage
conditions In the Reich would ease up
somewhat. The burden of social pro-
lection on the government and munich
palities and on employer and employe
can be imagined when 1t Is realized
that fully two-thirds of the entire Ger
man population. including employees
families. is covered by different forms
Of social insurance.
AgitatOrs Breed Reds
The workers now on the dole or
either of the two other public funds
are not in actual danger of starvation.
Others who are employed part time or
have suffered wage reductions are in
the same boat they cannot live AS they
used to in the good years around 1927
%, when Germany's postwar recovery
was amazing the world. but they can
survive. Technically they are in a