New-York tribune., 1921-12-16
Note to Preparations Com
mission Announces Cash
for Next 2 Settlements
Has Not Been Obtained
Unable to Get
Loan in England
Belief i'm Paris Is Amer
ica Will Cooperate in
Plan for Readjustment
BY Wilbur Forrest


Copyright, 1921. New York Tribune Inc.
rAhlS' Dec. 15.-The German gov
ernment tonight notified the Allied
feparations Commission, in note that
asks moratorium on reparation nav
ments, that the Berlin Treasury hasn't
the money to pay the installments on
1ermany's war bill, due January Is and
February Is. These amount to 5oO.-
100000 gold marks each.
The communication, which was signed
by Chancellor Wirth, pointed out that
Germany had failed in her efforts to
obtain credits in England or elsewhere,
and said that although all Germany
asked at this time was an extension of
time in which to pay these installments
1t was expected that similar difficulties
would face the Berlin Treasury in the
future.
This note was accepted here tonight
as q frank confession of German bank
ruptcy. The Reparations Commissions
notified the Berlin government last
month that it would have to meet the
January and February instalments "or
suffer grave consequences" In the face
of this ultimatum, the German Cabinet
announces that it cannot obtain more
than 200 100000 gold marks toward the
sums due.
No Invasion Planned
What reaction the note will bring
from the Allies depends largely upon
the meeting of Premiers BRAND and
Lloyd George in London on Monday. II
may be said now, however, that the
French plan on other occasions of in
vading the Ruhr Valley when Germany
didn't live up to her obligations has
been abandoned, and the Allied answer
wlll be that Germany must pay, even if
payment is possible only through
means devised by the Allies. The
French and British Premers are ex.
pected to bring forward a plan that
will solve the German governments
difficulty. In any event, Germany
must pay.
No military measures are being
planned by France to enforce pay
ments. The BRAND government favors
instead fiscal operation. whereby the
German government will float loan
that carries the Endorsement of the
sumo control of certain physical as
sets that will be sufficient guaranty
to the lenders. The prevailing opinion
mere is that this scheme will compel
Germany to pay when punitive meas.
ures would not, because the latter only
dampen Germany's will to pay and
hamper her ability to meet obligations
both present and future.
1t is believed that the new found
unity of France and Great Britain that
prevailed in Washington will pervade
the London conference and permit
early agreement on some such finan-
cial plan as here outlined.
Cooperation of America
There is a tendency in some circles
here tonight to believe that the
United States is going to have to help
the close connection between the rep
arations issue and world finances.
Premier BRAND talked to-day with NJ.
.Iaspar, Belgian Minister. who later
conferred with President Millerand and
Louis Loucheur, French Minister of
Devastated Regions. Tonight NJ
Jaspar told the Tribune correspondent
he was convinced that an agreement
between England and France could be
reached on the details oil a large tinan-
cial operation by which German repara-
tions loans would be guaranteed by the
Allies with liens against certain prop
critics as guarantees But, he said, this
question was so intimately connected
with several economic questions of a
worldwide aspect that it could not
be solved one way or another without
the active cooperation Of the United
States.
M. Jaspar limited that the Allies
had made new though discreet, repre-
sentations to Washington in this re-
gard, and that the French hoped sat
isfactory answer would be received by
next Monday.
The Reparations Commission with
held the announcement of the receipt
of Chancellor Wirth's letter until after
the Bourse had closed this afternoon
but the evening papers carried the
bare outlines Of the fact that Gtrmany
was not disposed to pay.
PARIS, Dec. Is (By The Associated
Press) The text of the German note
which is signed by DR.. Wirth and al