22 MAY 1926, Page 3

Herr Luther, the German Chancellor, resigned on May 18th as

the result of a disagreement about the national flag. President von Hindenburg shortly before had signed a decree ordering the German Embassies and Consulates to hoist alongside the Republican flag the German mercantile flag which has the black, white and red of the German Empire with the colours of the Republic in the corner. The Democrats thought that Herr Luther was playing too much into the hands of the Monarchists and their censure compelled him to resign. About the same time the Berlin police discovered an organization which they said was attempting to establish a dictatorship. The organization draws its strength From the numerous Sports Societies which apparently make athletics cover a military training. Herr Marx became the new Chancellor and there were some changes in the Cabinet. The settlement is evidently temporary. The President himself would like to form a Cabinet from the Great Coalition which extends from the People's Party to the Socialists.