Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-01-21
Gen. Smith Arranges for
Sale of German Products
in France
PROVIDE WORK FOR ALL
Administrator Of Civil Affairs
Plans to Make U. S. Sector
Prosper
BY EDWIN L. JAMES
Special Gable 10 Evening Public Ledger

Copyrioht. 1919, by the ". y. Times Co.
Coblenx, Jan. ol.--Brigadier General
II. A. Smith. who Is in charge OF the
administration Of civil affairs In the
German territory occupied by the
American army. has effected an ar
rangement with the Allied high COM
mand by which manufacturing estab-
lishments in our sector may market
their products both in France and In
Germany. He has also made arrange
ments looking to a full supply OF coal
down the Rhine. lie hopes within three
weeks to have every idle man in our
region at work.
General Smith aspires to put our part
of Germany in good economic conditlon
At first he met some opposition from
other Powers indirectly concerned, De
cause some officials deemed the Ameri-
can plan unwise, in that 1t would
strengthen Germany and therefore be
a bad step for the Allies to take.
But he countered with the argu-
ment that articles he wished to be man
ufactured would not add to Germany's >
military strength and that 1t was the
desire OF the American army civil ad-
ministration here to make its part Oh
the Rhineland prosperous and not 70 en-
danger France or the other Allies, but
to place at least a part Of Germany IN
a position where it would be able TO
pay it's part of the Allied indemnity.
France put forward a suggestion that
she be allowed to buy that part of the
regions manufactured products which
she could use, and when she agreed 10
this his plan for the sale of the products
in other parts of Germany went through.
Cash Payments Only
Officials intrusted with arranging for
France to take part of the products she
needed started out on the supposition
that credit could be made, but 1t was
firmly pointed out that the Americans
mad put themselves in position wnere
they were responsible for economic
prosperity hereabouts and must have
assets in form that could be quickly
/ liduidated, and that therefore all Gus
toners In this market must pay in cash.
The French agreed.
When this plan, which will take in
most of the workers whom 100000
( of German population supplies, gets TO
working we shall control n wide range
of manufactured products, as well as
incidentally a large wine business. In
addition, this part of Germany produces;
a great amount of foodstuffs, dstribu-
ton of which will be under American
direction.
The American army also has charge Of
food conditions at present in that part
of Germany we occupy. and. incident
ally, I quote "A sentence from yesterday S
army summary OF intelligence:
"In the American area the food stua-
ton continues TO improve
Our army is attempting to American
iZe business methods in this district. As
an instance of methods that are peculiar
tC our administration. take the matter
of compelling banks in our area TO pre-
sent semimonthly statements and check
these up with care. This method is. OF
course. modelled on the United States
bank examiners system. We thus avoid
n certain degree of interference Will
German local business and at the same
time know what is going on at the
banks.
Local situation Serious
The fiscal situation is most serious il
connection with the restoration of Ger
man business life. Marks are being Is
sued at rate Of something like hun
dred million Il day. while the productiv,
business Of n large part of the natoI
stands still \ recent statement Of tn,
Rhlnish Bank shows 1900. .OOO. 40,
marks in notes in circulation, while III,
treasury has notes deposited for abGu
10000 100000 maDks. Rechsbank di
rectors say:
at cannot be denied that the gray,
danger menacing our entire industry lie!
in this swollen paper money circulation
While productive industries. which alon.
can bring new values, lie dormant. tn,
food Of paper notes grows"