The Daily News. MONDAY, JULY 17, 1922. THE GERMAN SITUATION.

Taranaki Daily News, 17 July 1922, Page 4

The Daily News. MONDAY, JULY 17, 1922. THE GERMAN SITUATION.

While no one without an actual knowledge of what is transpiring in Germany can form any true conception of the state of affairs there, it is obvious that subterranean force., are at work gathering strength for an upheaval of considerable proportions. The ,vo main features that affect the Allies are the reparations and the maintenance of the Republic. So far as the reparations payments are concerned, France insists on her fun pound of fl I’-. for the reason that she needs the money and has been counting on receiving i.. Germany admits having sunieient gold wherewith to make the July payment, but has put forward a that the amount remain at Germany’s disposal, presumably to ch . : the depreciation of the mark. She also asks for moratorium en. ending to 1924, but what she would certainly is an international loan, sufficiently targe to tide, over her financial' obligations for several years, thus giving hv,r time to recover from her present financial difficulties. If the present form of government were firmly v Aablished and had the necessary power available to effectually repress Monarchists’ machinations, it is lite possible a substantial international loan might be raised, but by arranging a pact with the Soviet the German Government showed its instability and lack of moral rectitude, as the result of which the likelihood of obtaining a loan has become very remote. It is only necessary to note the attitude taken by the Russian envoys at the Hague Conference in order to arrive at a conclusion Ihp/ Germany, equally with Russia, cannot be trusted to be honest in recognising obliga on~ as to debts, or compensation tai’ private property. Russia demands, reply to all questions regarding restitution and compensation, that she must first receive credits, and Germany practically adopts the same cours?. France iia declared that she will not agree tz the moratorium proposal unless it is accompanied by measures showing definitely how she is to be paid. From a business point of view this attitude is correct, but the proposal is far’ more than a mere business negotiation, inasmuch its rejection may plunge Germany into a seething state of civil war. Although it is necessary to discount much of the matter written by special correspondents of British jour .al. which have adopted and disseminated certain views that need bolstering up with S” table comments from Berlin, yet there is abundant evidence of orgr.uised action throughout Germany to overthrow the Republic. It is ’tated that in the movement for a counter-revolution, the militarist reaction anfl the Monarchist movement, are -■ mcttaally identical, and there is no reason for doubting the assertion. a the Monarchist

movement that menaces the future peace of Europe, and i'Qiat is the reason why the Allies should not play into the hands of the reactionaries by forcing Germany into insolvency and civil war. Tl is to the manifest advantage the world at large that the German Republic be made strong enough to grow " ' strength and thus be able to crush out the Monarchist and militaristic firebrands who talk of nothing but a war of revenge. and whose aim is to restore the partially lost privileges of their class and re-establish Germany’s military dominancy. Surely it is well worth while for the Allies to regard this serious situation with, cool heads and discerning minds. Even from a business point of view the factors deserve the most careful consideration. On the one hand the prevention of a financial crisis will largely undermine the intrigues and revolutionary tactics of the anti-Republi-eans; on the other hand the dominance of the latter will mean another great upheaval that may cost the nations far ioo dearly to risk. The Reparations Commission is not only faced with what may result from an imprudent move on their part, but there exists a divergence of views. To say the least the situation r&gpires the

exercise of the utmost sagacity. The matter is one that not only affects Europe, but the whole of the British Empire.