New-York tribune., 1921-11-12
Fear Germany May Plead
Bankruptcy and Fail
in War Payments Is
Bringing LoucheurHere
BRAND Sends Call
For His Colleague
Devastated Regions Minis
ter Will Arrive After
Lloyd George Is Here
BY Wilbur Forrest
Special Gable to The Tribune

PARIS, Nov. 11.--With the opening
of the Washington conference. Euro
pean stability is being so menaced by
the threatened bankruptcy and Geo.
nomic collapse of Germany that
Premier BRAND, in the defense of
France and the entire world, may have
to stay in Washington far longer than
he planned and force discussion there
of the reparations problem. SO urgent
has the situation become that BRAND
has cabled Louis Loucheur, French
Minister of Devastated Regions, to
come to Washington Immediately in
the expectation that the gathering
there may suddenly, of necessity, be
converted into an important session of
the Supreme Allied Council.
French plans that call for sweeping
seizures Of property in Germany in
payment Of the war bill. which France
will carry out with or without the con-
sent of her allies if Germany goes to
the wall, must be talked over i'm
mediately. The expectation here is
atives in Washington, with American
participation must divert their atten-
tion to European problems before they
can be free to make final decisions of
any sort on the questions now set for
discussion at President Harding's cor
ference.
Catastrophe Is Feared
The difference between the French
and British reparation policies and the
danger of Germany's utter financial
collapse force the necessity of a dis
cussion of these matters. The Frenc1,
official view is that II similar meeting
in European capital without Ameri
can influence might result In disastrous
failure. Loucheur will be in Washing
ton. by the time Premier Lloyd George
arrives. with full information in his
possession, ready to enter an imme-.
diate discussion of the problem.
Inc tribune learns on the highest
auvnority that, despite the presence in
Berlin of the Allied reparation com
mission, Germany's financial position
has gone SO far that it can become q
catastrophe at any moment. In this
event, france has plan of action for
mulated which must greatly change
FRANCES whole program in Washing
ton.
With serious if not critical differ
ences of views, not only toward Ger
many's war bill, but on Near Eastern
analrs between France and Great Brit
ain. it is doubted whether much svm-
pathy with the French point of view
can be gained in any capital other
than Washington. If Germany Cracks"
as the recent drop of the mark ind;-
Gates she may do, France intends to
take steps which she first desires to
talk over with the Allies at Washinp.
ton.
Plans Immature
Although Frances plan in the event
Of the financial collapse of GERMANY IL
immature, 1T shapes up along these
lines: ''e'e
The Allies will take complete con-
troll. of the fiscal administration Of
Germany in order to balance the
budget. ~
They will take control of all hank
notes and credits now at the disposal
OF Germany as a result of exports to
foreign countries.
They will force strict observance
OF the Wleshaden agreement. under
~ 10y was W pay part OF
her war debt in kind.
They will compel Germany to con-
tract loans in neutral states in order
to avoid the necessity. of paying out
cash in countries where Germans
already have bank credit.
They will take stocks in German
industries in lieu of cash for repara-
tlon payments, will dispose of these
TO banks in Allied countries and let
the Berlin government reimburse the
owners of the stocks with marks. no
matter what their value.
They will seize the proceeds Of the
new German government tax on al
cohol and tobacco sales and apply
them on payment of the war bill.
II France doesn't succeed in getting
Ailied endorsement at Washington for
thls plan she is prepared to use force
and this, far from disarmament. means
the calling up of more troops.
The French view Is that the 4situa-
tion can be improved by inter-Allied
action and that the financial collapse
OF Germany would have such far
reaching. effect that it would be more
than European problem; indeed. it
would affect directly the world prob
lens to be discussed at the Washing
ton conference. Therefore, it is felt
here that it would be better to discuss
the matter in Washington with the
United States as an actual participant
rather than in Europe, where America
Continued on page sIsht