THE EXCHANGE QUESTION.

Hawera & Normanby Star, Volume XLII, Issue XLII, 18 April 1922, Page 5

THE EXCHANGE QUESTION.

GOOD PROGRESS MADE.

LONDON, April 14. The Australian Press -Association's Crenoa correspondent reports that the Finance Sub-committee; has made good progress, especially on the question of, exchange, upon which a tentative draft! was prepared to fix the standard of ex-! change according to the financial position of the various countries requiring assistance. Italy is quite prepared to accept the! standard suggested for her, and will balance her Budget accordingly. France objects to having her standard fixed. The committee is unable at present to arrive at a basis for Germany, owing to the reparations, but there is a suggestion to provide an international loan to enable her to recoup France for what the latter has expended in restoring her devastated area, Germany to pay interest annually. If something of this sort is done it will pave the way to fixing German exchange. The Germans and Russians submitted amendments, the former's not being by any means revolutionary, and ™ French delegates being quite satisfied with them. Herr Hermes explained it was not sufficient to balance the ,4g*rnal budget. They must balance external payments, which probably inclnde *he cost of the army of occttpa«9S/ VM not reparations TJb# Fregdi

deduce from Herr Hermes' speech that Germany is agreeable to leave the reparations outside the orbit of the Genoa Conference.

The Russian amendments are numerous, but mostly academic, except ©n« asking for a special loan, and another suggesting a division of the world* gold, which is regarded as a joke. M Rakowsky's optimistic financial statel ment is fanciful even for a Russian Experts estimate the Russian deficit at eight hundred million gold rouhto. Mr Lloyd George presided at a meeting of Allied Prime Ministers and diecussed the Russian nosition.