The Birmingham age-herald., 1921-03-17
SEE TWO PURPOSES

SEH INO HOhfODEc
 Washington, March 16.-Inclusion by tlle allied reparations commission of the American federal reserve banks as an optional depository for German lndem- nity payments brought from treasury officials tonight the statement that the commission possibly had two purposes in view:
 First--To enable the German govern ment to call upon vast credits which it is said to hold through private agents in the United States.
 Second--To employ in favor of the allied governments the tremendous dif- ference in exchange notes.
 Information gathered by the reserve banks was said to show that since the armistice Germany has been amassing credits in United States national banks, holding the funds in the names of in dividuals. No approximate estimate o1 the amount could be obtained. but offi- cIals said the sum would run into many millions. This money, it was said, was presumed to be for use in Germany future trade, much of which would cen ter in the United States.
 NO INITIATION GIVEN
 There had been no intimation given the United States government that its bank Ing system might be employed as the feparations note forwarded to Berlin s today suggested, orricials stated The mere fact that this governments banks would serve as practically neutral ter ritory so far as reparations were con- earned was not accepted as the reason for the commissions proposal. aItnougn the reserve banks have acted as oe- positories for several foreign govern mants since the beginning of the war.
 Some $sa,0oO0o0 is now held for foreign xoyernments the weekly statement of the federal reserve board shows, and to receive . deposit from Germany, all though technical enemy, would mean only the placing of that additional credit to the nations designated by the com mission.
 EXPLANATION LACKING
 Officials gave no explanation of meth eds employed by the Germans in build ing up their supply of funds in this coun- try. It was said that their government has used similar tactics in Holland, m the Scandinavian countries and more lately in London after assurance had been given by the British that the de- posits would not be confiscated
 In some quarters. it was believed that allied intelligence agents had discovered the existence of the German funds here and that the commission had acted on the feeling that Germany would use the money in indemnity payments. The sus- Restion also was made that Germany might attempt to borrow in the Unileu States, in which case the shipment or gold to Europe would react favorably on the exchange situation. now strongly against all the allied nations. No intor- nation has reached the treasury, how ever. it was said. that would indicate Germany had sought or would seek loans through private financial houses here.
 Dusseldorf, March 16.-The Rhenish provincial diet closed it's sixteenth ses- sion today withsa solemn protest against the allied penalties. asserting that in stead of safeguarding the interests of the occupied territories they would utterly destroy them. The diet members de- clared they refused to believe that the eense of justice of the other nations would permit such wrong
 A resolution was adopted unanimously by the diet declaring that no matter what happens the Rhinelanders wiil faithfully remain united with the ter man state and that neither force nor misery can separate them
 There was a great turnult at the clos ing of the session when two communlsts shouted. Down with Germany! as tne president Of the diet called for cheers for Germany.