New-York tribune., 1919-03-24
Credits Here Are
Necessary for Quick
Belgian Recovery
Banker Declares Devastated
Country Cannot Wait on
Indemnities From Ger
many for Reconstruction

Belgium will be seriously handi-
capped in her efforts at industrial ra-
habiltation and will be forced to en-
dure further hardships unless meas
urcs are taken quickly to establish
commercial and Industrial credits in
this country to supply Belgian manu-
facturcrs with the whcrewithal to re-
store their devastated plants, buy new
machinery and purchase raw materials.
This is the opinion expressed by Albert
Breton, vice president in charge of the
Trust Company, in an analysis of the
fiscal status of Belgium.
Mr.. Breton declares that the Bel
glans cannot wait until the Germans
are made to indemnify them in full for
the wanton destruction and damage
inflicted upon them during the war,
which competent authorities have con-
scrvatively estimated at not less than
$4,000 900 900. This sum represents
the monetary value Of the damage done
to state and private property, to agr-
culture, to industry, to commerce, and
by enforced expenses.
Belgium is full Of resources and
vitality" says Mr.. Breton, "and ought
to be able to rehabilitatc itself rapidly
if it can be supplied with the means to
do So If the needed credits are OBJ
tanned the working population of the
country will be able to return to their
occupations and to resume their former
activities.
Blow Well Sustained
"But, despite the terrific strain which
the war imposed on Bclgium's finances,
they have sustained the shock with
somewhat the same hardihood as the
people of the country.
"On October 81, 1913, the paper cur
rency Of Belgium aggregated 1,067, 7,OOO,-
600 francs, or $206, 900, 600 valuing the
American dollar at 5.18 francs. Five
months after the declaration of war
against Germany is. on Decem-
Der |, 1914, the paper currency totalled
/ 1,6l4 100000 francs, or 1912 100000. On
November II, when the armistice was
signed, Belgian paper currency
amounted to 2,600,000,0 900 francs, or
$5o2,00o,000. On February last this
currency aggregated 1000 900, 900
francs, or $772,00O,OO0.
These notes arc secured, first by
gold currency and bullion to the value
Of 300,00O,0OO francs, or $57 100000,
and, second, by German banknotcs
(Relchbank) aggregating 100000, 900
marks, or S1,217, 100000.
reserve and the total amount Of notes
in circulation is only rs per cent, if, in
conjunction with the gold reserve, the
notes Of the Rcichbank are taken into
account, the ratio is much above 100
/ per cent.
"Thc amount Of marks 5000 900 OOO)
originated as follows:
"Thc subscription to thrcc-ycar 5 per
cent Treasury notes, in francs, issued
since the armisticc, rs per cent Of
which the buyer had the option to pay
in marks, and the exchange OF mark
currency against Belgian banknotes
have brought into the Golfers Of the
Banque Rationale de Belgique 3,400,-
100000 marks, or $s20,oOO,00O In ad-
dition, Germany has already been
obliged to reimburse Belgium for the
sums Of money which it conhscated
from Belgian banks and private firms
This reimbursement has amounted to
1,600,000,000 marks, or 1886, 900 900
"The National Bank has credited all
marks so received on the basis Of
l.25 francs per l mark. Therefore, the
National Bank has now credit against
Germany amounting to 5000 900 600
marks. This credit is guaranteed to
the National Bank by the Belgian gov
ernment which has, in turn, the pledge
Of the German government to redeem
the marks on the same basis of 125
francs for mark.
War Expenses Large
"The Belgian national debt before
the war, that is, on December 81, 1918,
amounted to 3,743,O27,4 ,43S francs, or
| $728,000 900, ITO which should be added
treasury bonds aggrcgatng 5s4,272 400
francs, or S103,000O0O; so that the
total debt was then 4.277, ,299 1873 francs.
or S826,000,000. Expenses during the
war amounted to 5,000,O0O,00O francs,
or 1865, 100000, which sum was ad-
vanced to the Belgian government by
England, to the extent Of 1000 OOO, 900
francs, or $5S6,00O,OOO; by France, g.
000,000000 francs, or $4,000, 900, and
by the United States, 100000 900
francs, or $193,00O,00O.
"Thc Belgian government ought to
receive full reparation for the destruc-