The New York herald., 1921-04-17
Menace of Reparation Penal
ties and Restrictions
by the French.
VINCE AT CUSTOMS BAR
Germans Say Collections Will
Not Be Worth Expense
Entailed.

FRANKFORT. April 16.--If the Frank
fort fair is a barometer of the COM
mercial situation to-day, there is an
almost entire absence of French and
British buying in the Rhineland and
nine-tenths of the sales are for the
German home markets. A French
buyer told THE NEW York HERALD
correspondent here that the decline In
French prices makes the manufac-
cured goods of France cheaper than
those OF Germany, while the customs
restrictions make business between
France and Germany hazardous. The
Germans demand full payment in ad-
vance from the British and the French
and an additional 100 per cent. guar
antee to cover every possible export
duty.
The only foreign exhibitors are those
from countries whose currency Is de-
preciated. Many Films are here buying
agricultural machinery, electrical goods
and cutlery for storage in anticipation
o. the opening of large trade with
Russia. Also there are more than a
hundred Swedes here buying for Russia
and for the Uaited States, while ten
American ruyers of textiles were here
on the opening of the fair. Several
hundred Dutch buyers also attended the
opening and more are expected
Despite the German defeat, our in
dustries have regained their stability
said Herr Sutler. director of the fair
The principal exhibits are of machinery,
textiles and leather goods
See AngIo-French Pact.
In Frankfort fair circles is still heard
the report that gained circulation sew
eral months ago that France and Eng
land had entered into a secret agreement
whereby the French agreed to follow
the British lead in the Near East and in
Russia. while Great Britain trails after
the French policy in connection with
Germany. Many observers here declare
that this report is borne out by occur
rences in this region. as the present
British policy in the Rhine is in sharp
contrast with that OF a year ago. when
Frankfort was occupied by French
troops. Then the French only whispered
discreetly OF their intention to occupy
the Ruhr basin. Now they proclaim IL
openly.
Conversations with Britons here give
the impression that they are following
the customs barrier programme only
passivcly. The customs officials are
mostly French. II was reported when
the customs barrier became effective
that the methods Of application OF it
would come first from the French
at last we are following our rolicy
unliindered. a French official said
The Germans must be forced to real
ze that the reparations proposals are
serious and imperative. Statements like
that Of DR.. Walter Simons. German For
egn Minister. when he asserted that
20, 900, 100000 marks gold had been paid
toward reparations are mere BLUM and
will provoke further sanctions" (penai-
ties).
According TO French General other
sanctions outlined include a prolonged
occupation of Upper Silesia. with possi-
bly, a customs barrier. and the occupa-
tion of the remainder OF the Ruhr Basin.
The French have let II be understood
that they arc uncertain regarding the
economic consequences OF the present
sanctions and that they are postponing
application OF further sanctions as long
as possible. One report said that the
next move by the French would be the
occupation OF Darmstadt and frankfort
Customs Returns at border.
A month ago a member or the High
Commission OF the Rhineland estimated
that the revenue the Allies would collect
through the customs measures would
amount to three-uusrters OF a billion
marks gold a year. Now the French
avoid making any estimate OF this reve-
nue.. ninting that the present measures
are more in the nature OF showing the
Allies determination to enforce the
reparatlons payments than they are in
the way OF a practical economic pro-
gramme.
Herr Won Weinberg. member of one
OF Germany's principal dye manufactur-
ing concerns and ieading nnancier and
race horse owner, declared that the con-
sequences OF the SO per cent. tariff were
not to be foreseen.
The British alone put the tariff into
practical application he said but there
's no indication on their part to put the
tull SO per cent into effect The new
customs barrier Is intended to hamper
us. and IL Is uneconomical and impracti-
cal We anticipate trouble again by the
creation of military barriers between in
terloclSed chemical works. but we are
accustomed to these petty formalities
More disgusting is the American agi-
tation for the destruction OF tho German
dye works on the childish pretext that
We arc preparing world destructive
gases. while the hidden object OF the
Americans is = high tariff which would
eliminate German competition. Better
than these methods would be practical
proposition from American capitalists
offering 10 buy participation In tho Ger
man chemical works. They arc buying
our dye experts while we are importing
American jockeys as the best in their
line"
Bsrrier said to nc Costly.
Or. Wolff. director Of the Chamber Of
Commerce OF Frankfort and leading
lawyer here. said that he was convinced
the French, after two months. would ad-
NIT the unprofitsbleness OF the new Gus
toms barrier. He enumerated common
subterfuges which permit an evasion Of
the tax and called attention TO the
camouflagc practice In giving The origin
OF tho goods exported, the Justification
Of invoices and the pipe lines" between
the occupied area and Germany. and de-
clared that a certain amount OF dishon-
be expected
indignation In German business cir
cles IN Frankfort Is high" he said "Our
wora OF rebuilding our old allied clien-
tele through again winning their conf
dence Is being destroyed. our old French
and British customers share our ihdig-
nation over the new sanctions. with
one dissenting voice the Frankfort Mer-
charts Lca1uce decided on eliminating
purcha scs from countries upply Ing thrAr