Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-12-16


Paris, Dec. 16.-(By the Associated
Press. 1.-The allied reparations COM
mittee meeting today to consider the
German notice of inability to pay the
next two installments in full and re
questing extension of time, virtually
agreed that ythe commission itself
should take definite action on the re-
quest instead of referring the ques-.
ton to the allied governments.
1t was announced that the commits
sion would meet again this afternoon
to discuss the matter further.
Note Delivered.
DR.. Mayer, the German ambassador
delivered to Premier BRAND today q
copy of the German reparations note.
The German embassy announced that
DR.. Mayer was limited to this errand
and that there was no truth in the re-
port that he had presented formal
demand for delay in the payments or
for a moratorium.
Whether the reparation commits
sion's action will take the form Of an
other note to Germany or the immedi-
ate transmission to the allied powers
of statement of the facts together
with implied recommendation, has
not been determined, but in repara-
ton circles 1t is believed the latter
course will be followed. Majority
opinion in the commission is said to
favor submission to the allies or a1f;
outline OF the only three methods con-
sidered possible by which Germany
could meet the forthcoming payments.
Three Methods.
The first method. it is pointed out,
would be for Germany to use the
money held by German nationals
abroad, amounting to about seven bill
lion gold marks. To a request of this
kind Germany could reply that she
was unable to force her nationals to
give up this money. and the allies
would have no recourse.
The second method would be the
use of the gold reserve in the German
reichsbank of more than one billion
gold marks. Reparation officials say
that while this reserve covers only one
per cent Of the outstanding paper
and. therefore is valueless as guar
anty. the German people nevertheless
derive confidence from it, and if the
entire reserve were wiped out financial
chaos with unlimited potentialities for
harm might follow
The third method indicated would
be for Germany to buy foreign ex-
change with her paper marks, which
method in the view of the experts,
would be even more disastrous than
the second method suggested.
The experts advocate the inclusion
of these three methods in note to
the allies with the statement that
these are the only ways open to Ger
many for payment Of the next two in.
stallments and that if. in the opinion
of the allies. failure to report to one
of them would constitute default,
then Germany should be formally de-
clared in default of her payments.
Germany Responsible.
The allied experts. in expressing
themselves Of the situation, declare
Germany herself is responsible for the
situation, as the German government
had failed to make any serious at.
tempt to balance it's budget. They de-
clare. however, that regardless of Ger
many's responsibility the allies and
the commission are faced with the
apparent inability of Germany to pay
except in one of the three ways out
lined. These methods. according to a
majority of the experts might lead to
more serious situation than default
in the January and February pay
meptS would bring at0lt