The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1931-09-18
APPROACHING FURTHER
AGGRAVATION OF THE
GERMAN CRISIS

a year been carrying out the most rigid re-
trenchment measures PRODUCTION of the scale of
public benefit, economies in the cultural budget,
cessation of public works, increase Of municipaI
rates. whereby, it is estimated $50 million
marks have been saved their situation is disas-
trous. The Reich, however, which has spent mil
lions in supporting the bankrupt private econ
orny, has up to now refused to render any aid
On the other hand it has issued an Emergency
Order empowering the provincial governments
70 fix at will the budgets of the municipalities
lie, to dictate that fresh revenue be obtained by
increasing the taxes of the masses and to order
further reductions Of social and cultural expen-
diture Nevertheless it is exceedingly doubtful
whether it will be possible by these means to do
away with the deficits of the municipalities,
which this year probably amount to 1000 million
marks.
Like the municipalities the provinces also are
being drawn more and more deeply into the fl
nancal crisis in spite of all economy measures.
They are now proceeding to raise the necessary
means by fresh heavy burdens on the masses
Following the example of Baden, Bavaria has
reduced the salaries of the employees and Off
Gals by s per cent, and at the same time has in
creased the rent tax, doubled the tax on slaugh-
ter houses and cut down expenditures on edu-
cation These measures, which are calling forth
the greatest bitterness among the population,
are not yet sufficient to overcome the present
crisis. Therefore the central government must
render aid.
But already in the first four months of the
budget year, the Reich has to record falling off
in the revenue from taxation amounting to 582-
10000 marks compared with the corresponding
period of last year. and this in spite of the fact
that since April 1880 the taxes have been in
creased five times. 1t has to reckon with total
deficit for the whole year of $500 million. In
addition, in supporting the bankrupt banks it
has undertaken such enormous burdens and LA
bilities, the extent of which cannot yet be esti-
mated that the financial position of the Reich is
exceedingly critical
Therefore, fresh emergency DEGREES, the last
argument of the government, are to be resorted
to. This will be the fifth attempt at restoration
of the finances under the glorious government
of Bruening No concrete plans have been yet
published, but one can safely expect further cuts
in unemployment benefit, further reduction of
the salaries and wages of officials employees
and workers employed by public bodies, increase
Of the turnover tax, and probably an alteration
in the Rent Restrictions Act which would mean
handsome present to the landlords and fur
ther burden on the tenants.
Herr Stegerwald, the Reichs-N Minister for Labor
made some statements regarding the approach
ing cutting down of unemployment relief He
limited that the financial relief would be re-
placed by relief in kind which will enable the
amount of benefit to be reduced while the I'M
employed will be fed on thin soup in municipal
public kitchens
Reichs-C Chancellor Bruening firmly reckons
that the social democracy will give him the sup
port necessary to enable him to carry out these
attacks on the working masses And he will
probably not be disappointed. But he will Ger
tainly experience disappointment if he thinks
that such boundless impoverishment of the
working masses will remain without effect The
furious Indictment against the Communist Party
will not help the bourgeoisie to hold back the
masses from the revolutionary movement. The
social democracy, which support Bruening's pol
ICY cannot, even though they employ the most
dirty fighting methods against the C. P of Ger
many, prevent the assertions of the workers
from their ranks. To those who soberly observe
this development it will appear as if the Reichs-
Minister of the Interior, Wirth, with his bonn
bastic words against the revolution which he
will not hesitate to crush with extreme vio-
lence" is biting off more than he can chew.