GERMANY

Evening Star, Issue 18533, 16 January 1924, Page 5

GERMANY

THE REPARATIONS INQUIRY. AMERICAN PRESS COMMENT. Press Association —By Telegraph—Copyright. NEW YORK, January 14. New York Press comment on the speech made by Mr C. G. Hawes (the American representative) is unanimously enthusiastic, i and shows no partisanship. the newspapers unite in praise of its sincere and homely bluntness. The Now York ‘Times’ says: “Reparations must come after restoration, not before. Incidentally there is good hope of valuable results at the hands of a may who is not afraid, and carries under his hat so large a stock of commonsen.se.” The New York ‘World’ says: “We should bar politics and seek commonsenso to effect an agreement.”—A. and N.Z. Cable. PLIGHT OF CAPITAL. 'INDUSTRIALISTS’ METHODS. LONDON, January 14. Tlte ‘Daily News’ publishes startling extracts from a book dealing with the question of the flight of Gorman capital abroad. The book, is written, by two well-known Swiss experts, MM. Wulsfson and Wornle, who declare that in organising the fraudulent flight of capital the German business men and manufacturers displayed the samo practical and methodical spirit which they applied before the war to the development of German industry and commerce. The reconstruction of Gentian capital has been proceeding for five years, not ''•ithin Germany, but in foreign countries. The actual smuggling of money and va’nibles out of Germany has been relatively small, though largo sums, including private fortunes, have crossed the frontier. It was, however, under cover of foreign trade that the real flight of capital was organised. A German firm would band ower its export sales to a firm in a neutral country, which would act as a gobetween. The goods would be invoiced at far below their real value, and when thev were sold at their full value only fictitious figures would bo returned to Germany, which the Gorman firm would bo compelled to hand over in foreign money to the Reichsbank in exchange for naper marks. The difference between the real and the fictitious values of the poods remained abroad. Thousands of firms adopted this plan. Another method was to take advantage of the Government’s fiermission to send money abroad to pay ust debts. Fictitious debts were created, and huge sums left Germany for the settlemont of these debts. The authors declare that German capita! is an unstable factor in the countries where it has taken refuge, as it may become a considerable political danger, and that_ the German industrial magnates are seeking by the indirect channel of neutral intormed'ia.ries to regain the nower in Alsace, Poland, and Bohemia which they lost under the Treaty of Versailles.— Sydney ‘ Sun ’ Cable. POOD CREDIT PROPOSAL. POSTPONEMENT ANNOUNCED. NEW YORK, January 14. The New York ‘ Tipies’s’ Washington cnrresnnndent says that the proposal to extend Germany food credit of 70,000,000 dollars has suffered an indefinite deferment. Official information which has just been received indicates that the French and Belgian Governments are jointly determined to delay the Reparations Commission’s decision on the subject until the Dawes Committee completes its inquiry. It is understood that the Reparations Commission has been hesitant, to .announce its flat refusal of Germany’s application because it is felt that such a credit would relieve the actual food shortage. However, it is pointed out that France could scarcely acquiesce in such a loan because France has steadily urged that Germany was able to pay the reparations, and that no food shortage existed. The correspondent learns that all the arrangements for the credit had been completed co-operatively by private American bankers and the Federal War Finance Corporation, for which reason keen dis■rennintmenit is felt over the miscarriage of the plan. Nevertheless, it is expected that the Administration will strongly support charitable efforts in regard to German relief.—A. and N.Z. Cable. HERR HEINTZ. A FRIEND OF FRANCE. PARIS, January 14. A message from Speyer otates that the Bishop of Speyeri refused to allow a priest to officiate at- the funeral of Herr Heintz, the murdered President of the Bavarian Palatinate. The funeral was attended by 300 persons, including Separatist troops and Frenchmen. The service was opened by a French genera,! paying a tribute to Herr Heintz as a friend of France, and placing a wreath on the coffin. The French occupation authorities forbade the Palatinate clergy to read the anti-Soparatist protest from the pulpits.— Reuter.