GERMANY'S DIFFICULTIES.

Press, Volume LVIII, Issue 17613, 16 November 1922, Page 7

GERMANY'S DIFFICULTIES.

REPARATION PROBLEM. PBBSH PROPOSALS rOBMUX»ATBD. (By Cibl*—Preea Association— CopT^S 1 *';) (Aurtraliaa **<3 N.Z. Cabl* AssoMat* 0 ?*) BERLIN, November 14. It is stated that Cabinet has decided to make fresh proposals to the Reparation Commißsio!i with a view to stabilising the mark. It is understood that the Reichsbank has offered to advance 500,000,000 gold marks, provided an equal amount is forthcoming ' from abroad, and subject to the conditions laid down in the foreign experts' recent report. "Later. The Government's Note to the Reparation Commission promises increased production, savings in the Budge,t, a restriction on luxuries, and an internal loan. The Note demands a long-term moratorium except for payments in kind, the definite fixing of the amount of the reparations, the restriction of the Allied occupation, and most favoured nation commercial rights. The German Not© also proposes a gold loan controlled by an independent body consisting of representatives of foreign creditors and the Reichstag Finance Committee, and the establishment of agencies abroad to redeem marks held abroad as soon as the Germans thejnselves have regained confidence in the mark.

RESIGNATION OF CABINET.

RECONSTRUCTION ABANDONED. (Renter*! Tel®gr«n».) (Received November 15th, 7.40 p.m.) BERLIN, November 14. Oabinet has resigned, and President Ebert has accepted the resignations. The Chancellor, Dr. Joseph Wirth, abandoned his attempt to reconstruct the Cabinet, owing to the decision of the Social Democrats not to enter any Coalition Government that included the German People's Party, with which big industrialists like Herr Hugo Stinnes are associated.

Dr. Joseph Wirth formed his Cabinet on March Ist, 1922. It included four members of the Centre Party, two Democrats, and four Majority Socialists. Recently the industrial and financial interests represented ,by the People's Party demanded representation in the 'Oabinet.

An earlier message said: Dr. Wirth is experiencing the greatest difficulty in the reconstruction of the Ministry. The bourgeois coalition jparties are willing to ' accept representation of the People's Party in the Cabinet, but the Socialists rofnse without an explicit statement as to the People's Party's attitude •on the stablisation of the mark. The Rhine province is bristling with riots and : strikes, and the Communist agitation is. growing. The Reichsbank has raised its discount rate from 8 to 10 per ceiit.

FOOD RIOTS CONTINUE. TROUBLE IN RHINELAND. ("The Times.") (Received November 15th, 7.40 f p.m.) BERLIN, November 14. The dear food riots continue in thq Rhineland. Bands of armed youths are patrolling Cologne and sacking shops, the majority of which are barricaded. t Fifty rioters have been arrested. A panic occurred et Dusseldorf following an .exchange of shots between the- police and the rioters. Four of the latter were killed. The bystanders sought safety bv climbing on to roofs, and in the mad jostling several fell and were injured.