RESPITE FOR GERMANY.

Press, Volume LVIII, Issue 17585, 14 October 1922, Page 12

RESPITE FOR GERMANY.

THE REPARATIONS COMMISSION (fkoie oto OWN" correspondent.) LONDON, September 1. After a whole day's deliberation.', the Reparations Commission, in Paris, yesterday, unanimously reached a decision, to grant Germany a respite. Sir John' Bradbury's proposal to grant » simple moratorium waa defeated, but the Belgian-Italian plan of accepting Germany Treasury bills, payable in gold in sis months, was adopted. Provision for 1923 will bo considered at the conference in November. The Commission lias been sitting for 3J hours daily, and has engaged in a long series of laborious deliberations, botli with and- without the German delegates.

German Credit Lost. Th' 9 resolution states that, considering that Germany has lost all her credit both at home and abroad and that the mark has fallen to threethousandths of its value, the Reparations Commission decides to postpone a decision on tho demand for a moratorium until the completion of the scheme for radical reform of her finances, including:— Balancing of tho Budget. Subject to the Allies' consent, a reduction of Germany's foreign liability for the* restoration of her credit. Monetary reform. The floating of internal and external loams with a view to the consolidation of the financial situation. Sir J. Bradbury stood alone in his proposal to grant Germany a moratorium without guarantees. France and Belgium voted against the British proposition. Tho Italian delegate did not vote, but according to the Treaty provisions this abstention counted as a hostile vote and left Britain in a minority of two. , The Belgium plan was submitted by the Italians and the Belgians jointly. Its adoption means that the rest of tho year's payments, a total sum of £14j000,000, will, be payable by Germany in monthly bonds, which, when they reach maturity, will be met with gold marks. Belgian and ; German delegates are to discuss the details of the scheme either in Berlin or Brussels. There is really only one question remaining to be decided, namely, what guarantees Belgium will accept. It is understood that Germany will offer thr&o banks—the Deutecher, the Dresdner, and tho Disconto —or, failing acceptance, will deposit money from the Reichsbank in either Copenhagen, or Berne.

Sir J. Bradbury, commenting on this decision, said: "I would have preferred the postponement of this year's payments, but as it is, Germany obtains the necessary relief within & very short time. The Reparations Commission will have to study German payments in cash and kind for next year." Although the decision seems to have given satisfaction'in reparation circles, there is much comment generally on M. Poincare's apparent sacrifice of his "productive guarantees." .It is stated in quarters usually well informed that it is possible that the French Cabinet may refuse to accept the Commission's decision. . Tho Accepted Proposal. To M. Honri Bourdin, the Paris representative of the "Daily Chronicle," Sir J. Bradbury saidi: "My proposal simply to grant a moratorium—with, of course, a guarantee of financial control already' imposed upon the Reich. —was, put before the Commission, and was defeated by two votes against one—mine. The Belgian and French delegates voted against; the Italian Then "we voted on a, Belgian-Italian joint proposal which consisted in accepting the payments for the remaining period of this year—payments which go to Belgium according to lier right of priority —in Germany Treasury Bills payable in six months. "These payments are to be made in gold and to be guaranteed in such manner as may be agreed between the Belgian and German Governments. In default of an agreement, then a deposit of German gold, which would be equivalent to £14,000,00 is io be made in a foreign bank to cerve aa guarantee. "It is," remarked Sir John Bradbury, "a respite to Germany, provided she can find tne necessary guarantees to back her Treasury bills. I hope that some - arrangement will be found that will avoid large drafts of German gold to a foreign bank which would undoubtedly affect the relief of German finances. Should this measure become necessary the foreign bank will possibly be in Copenhagen or Berne." The, solution arrived at by the Reparations Commission touches only tfie immediate payments which remain to be made by Germany for this year, and the Commission has to occupy itself with the provision for 1923, but this will undoubtedly come under the agenda of the groat Conference of next November. As for the Wirtli-Stinnos proposal (consisting in the guaranteeing of coal and timber deliveries by private contracts), M. Bourdin hears that the Commiusion took the view that this offer was made by the German Government with a view to obtaining a moratorium. Ab the moratorium was not granted in words—although in fact—the Commission decided not to take immediate advantage of the offer, and reserves its right in case future deliveries of coal and timber are not satisfactory to call in that' case on the German Government to make arrangements such as have been suggested. Now an important question arises. Was M. Louis Dubois, the chief French representative, in accord with his Government when he voted in favour of the joint B9lgiaMtalian proposal? ' i The "Morning Post" representative in Paris wires that some fear is expressed that the suggestion of moving gold from the Reiehsbank may hav® the disastrous result of further depreciating the mark. The effect of the decision ia i that Germany gains- a temporal? re- I mission of a. sum of some £14,000,000, though the sword of Damocles is held over her .head in that 3he may always j required to deposit gold against her bills in an -independent bank. ' 'lt is obvious' that the finding of : to-day's meeting is only temporary, and that the Commission will have immediately to embark on the problem of liow reparations in eaah ana kind will be irin.de in 1923. As regards the vexed question of timber, and coal, nothing was decided. The Commission adopted the attitude that the offer whereby private German firms should guarantee these deliveries had been inado in _conf teraplation of a definite moratorium. In the event of the deliveries not being satisfactory, the Commission reserves to itself the right to make such demands on the German Government as it may think proper to ensure that the Germans will carry out their obligations in this respect." Currency Complications. In Berlin yesterday the currency complstely broke down. The earliest corners at the bank were the only ones served. In some of the smaller banks after 11 o'clock no cheques whatever were cashed, and no foreign money exchanged. there being no more currency available. Some heated altercations ar o reported by "The Times" correspondent to have taken place at various banks when belated customers came in , to'cash cheques to pay their monthly salaries, [n very few oases were the cheques paid to the value of mora thant -10 per cent., and a great many were J*°t paid at all. Salaried employees nave had to be content with only a proPortion of their pay, the balance being held over till there arc notes to pay it A further all-round iaer&asa ia

ia th» oort of w» ooal, iron, rogar. aad #« §ss# oi tics' besides railway rateß / a J; -TJ? *? ? OT S!iS r ti^* w 3«& h^jn Idifficult 1 difficult to «xcJiaßge them, and now a premium of fifty m -f^°L, l3 ;fi mandA steps for &***£%rf" out a purchase. Soon, thousand mark notes themselves to small change. Th* foreign Ranges hovered on th© brink of an appalling uncertainty. "STo More Ctomanfiistafr" The Minister of Food/ Br. announced in the Economic Committee of the Reichstag that though Germany a bread supply, owing to the measures taken bv the Government, was assured foP the Immediate future, owing to the depreciation of the murk it would, bo necessary to increase th© price corisiderablv from October Ifth- *" ls year's grain crop was unsatisfactory, and strict economy was necessary* J™> Government was considering the prohibition of th® production of strong beer. The position of the potato orop throughout Germany was satisfactory. Censures were under consideration to prohibit the manufacture of sweets, liqueurs, and sweetened wines from home-grown sugar.. These measures, however, would not bo adequate, and the Government would have to consider how to meet the requirements of the needy by means of popular kitchens. D-r. Fehr further stated that the u«> of fruit for the manufacture of alcohol would also be prohibited, and gormandising in restaurants would be countered by making it » penal offence to give guests in restaurants more than one meat course.