DUPING THE ALLIES

Evening Post, Volume CIV, Issue 91, 14 October 1922, Page 18

DUPING THE ALLIES

GERMANY AND REPARATIONS

GOLD HOARDED IN ENGLAND,

The German Government' pretends that it cannot pay sums due to the Allies for reparations because of the imminent danger of national bankruptcy. What are the facts? asks the "Daily Mail."

Inquiries in commercial circles in London revealed some strange and .disquieting information as to German activities.

Finns in England which buy German goods or act as agents for the sale of them have lately been requested not to send the money for the purchase of the goods to Germany but to place it in British banks to the credit either of the German 6rms or of their nominees.

The Germans have been sending their securities out of Germany, lodging them in foreign countries to avoid their seizure in Germany and to give an appearance of poverty. . German merchants are placing their money in British banks to delude the Allies as to the real wealth of Germany and to hasten the collapse of the mark, since the less the cash* that goes into Germany the greater the depreciation of the exchange rates.

In spite of the plea of threatened bankruptcy Germany can still find money for extensive foreign purchasesAdvices have now been received in London that, owing ■, to enormous purchases of fats by Germany in Denmark and' Holland, there are great advances in the price of these commodities, the effect in Copenhagen being already to cause a sudden rise of 45 per cent. Glycerine is one 1 of the products of these fats, and is also one of the principal ingredients in the manufacture of high explosives, and the shortage of glycerine in this country during the war owing to the requirements o£ explosives manufacture is still remembered. In these circumstances the great demand now from Germany for this product deserves careful inquiry. German purchases of fats are being shipped from Copenhagen to the ports of tho Baltic provinces. Their subsequent destination has not yet been traced, but is believed to be Russia. Specialists in the trade believe that they are destined for one of two uses. Either they go to the great munition works, formerly Putiloff's, now owned by the German firm of Krupp, or they are being used by German agents as foodstuffs for the Russian population, and as part of the German scheme to penetrate and colonise Russia. ,-• ' • '

It is known that German agents in Moscow are offering German products for sale readily for nine months' credit, andj in fact, with no expectation of getting cash for them at the end of that time.

In other words, Germany, the alleged bankrupt, can afford to give away goods to Russia, with the ultimate object of obtaining by gratitude, if not by more direct measures, control over large parts of that disordered country.

Meanwhile, though there ia Allied supervision over the manufacture of munitions in Germany itself, German-; owned works in Russia are turning out munitions of war without stint or control.

For the past three months the Germans have been buying wool in the London market of an average daily value* of £25,000, and it vvas estimated last month -that' approximately £1,100,000 worth of ■wool has gone to Germany since the beginning of May. One prominent broker said that the Germans had for many weeks past been among the principal buyers. "They pay for their wool in gold, which they obtain by selling to us the manufactured article. They take care, in their own interests, to keep that gold in England, so that they have a big reserve here for the purchase of other commodities when necessary. It is in this way: that they can afford to laugh at the declining mark and to plead . poverty. Their wealth is safe from the hands of those who would attempt to squeeze Germany for hei- debts and reparations." In addition to large buying of oils, fats, oilseed, and glycerine, German manufacturers for months past have been trying to corner the scrap metal of this country, even to the extent of buying, obsolete British warships from the British Admiralty. Protests were made by British buyers and the sale was stopped, otherwise nearly 50 big ships would have been towed to Hamburg. Failing to obtain warships, the Germans have now succeeded in acquiring old British liners and cargo steamers. The announcement has been made that the 7500-tons Union Castle liner Cans' brook Castle, the 2200-tons Natal lin«r Umhlati, and the 11,000-tons Giinard liner Royal George, and three other smaller vessels have been sold to the Germans for scrapping purposes. Payment was made in. 'London,- and in gold. In other markets Germany has also manipulated with varying success and degree, according to her requirements more than to her inability to obtain the raw materials. That she can pay for them is beyond doubt, for the payments made to those merchants who have sold to Germany have been prompt and regular.