The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-18
British Writers Urge That
Germans Furnish Machinery
Other Schemes for Modified Preparations In
clude Mortgages on Ihdustrials and Re-
construction by Former Foe.

ing buyers, that these buyers would
have a direct interest in the pros
perity of German industry and that,
though part OF the indemnity would
have been met out OF the pockets
of capitalists outside Germany. the
problem of getting payment of div
idends and interest without taking
goods would be exactly the same
as that now under discussion" The
Times is not confident. either. that
the supplying by Germany to the
allies of materials not produced in
large quantities in allied countries.
such as potash, timber, etc, would
work out satisfactorily. 1t finds no
objection to the plan of actual res
torationl of devastated areas and
the execution of CONSTITUTIONAL
works such as mentioned above,
yet. even in such work. the Times
sees certain disturbing possibili-
ties, saying: Apart from the OBJ
jections they themselves recognize.
the allied governments would be
bound to take into consideration
the possibility. II not probability.
that in operation this plan would
tend to foster those very indus
tries which would be most useful
to Germany IN a future war. At a
time when the British government
is faced with the prospect of sub
sidizing British armament firms OF
seeing their plant and organization
strapped. II might be unwise to do
anything calculated to keep the
great engineering works in Ger
many In being, their plant occupied
and their employees in training. For
that reason alone, II for no other.
it seems to us that the proposals
of the subcommittee require some
further consideration from the
grand council"
The Yorkshire Herald. in discuss
ing the same report Of the fedora
ton. says that the proposals are
novel and even startling. 1t doubts
that the plan of German industrials
turning over underlying securities
would be successful. In regard to
the other scheme-that of Ger
many's doing great construction
works-the Herald Is Inclined to be
favorable. saying: 1T is quite
conceivable that such schemes
might ultimately have harmful eff
fects which II Is not easy to fore
see. but on the whole they seem a
not unfeasible means of removing
existing difficulties and might pos
sibly help towards the restoration
OF European trade and enterprise.
The suggestions will have to be
carefully considered, as they doubt
less will be before they are put for
ward with the authoritative back
ing OF this representative business
organization"
Norway Has Currency Troubles.
Recently Norway has witnessed a
fall in the exchange value OF her
currency. The fall OF the kroner has
added Norway to the list of coun-
tries whose currencies are below
par. This situation is causing
some alarm in the Norwegian press.
The Norges Handles og Sjofart-
stidende undertakes to explain the
cause OF this currency situation a.
follows:
The origins OF the bad state of
the Norwegian exchange a. COM
pared with that OF the other two
Scandinavian countries lie in the
war period. Norway's shipping
brought her in great wealth during
tho war and as q result of this her
consumption of goods Increased
vastly. Norway was better able to
import than Denmark. and far bet
ter than Sweden. A habit of reck-
less extravaganza in all strata OF
society was formed in Norway and
actually encouraged by the state
which granted special aid to all
kinds of persons IN no need of It.
The flour subsidy, for instance. was
extended even to those who Guilt
subsidy to those whose sole occu-
patton was selling frewood Fish
erfolk could sell fish at high prices
to the state and buy II back at low
prices the next day. Meat. -four
and sugar were sold at artincially
low prices while times were good
and the money which should have
been saved up against bad times
was squandered on luxuries. Mean
while wages were raised by law
and hours OF labor curtailed by law
till soon everything that Norway
could make cost too much to be
able to compete with tho products
OF other nations. The bureaucracy
also Increased enormously. creating
a needless drain on the state's re-
sources.
The vast purchases made sy the
state entailed the acquiring OF
quantities of foreign bills all at
once, and so drove down the Nor
wegian exchange. which has now
fallen so low that It can hardly helm
falling lower since whatever Nor
way buys from abroad must be
bought at prices which reckoned in
kroner are fantastic. II
some Of the money squandered on
subsidies during the war had been
used to purchase good American
and English money to consolidate
the Bank OF Norways position,
Norway would not be so badly
placed today in comparison with the
other two Scandinavian countries"
The same paper tells the conse-
quences of the fall Of the kroner and
makes gloomy predictions about what
Is to follow. Concerning this outlook
this newspaper says the following:
The recent catastrophe fall Of the
Norwegian kroner has brought Nor
way into the ranks of States with de-
preciated currencies. This fall has
been accomplished by the most de-
plorable consequences, especially for
the lower middle classes. workmen.
fishermen, servants-all who work
FOR fixed wages. And the familiar
sequence Of events will be repeated
in Norway as in all low-currencied
countries. Higher wages are de-
manded because a deprecated cur
rency, especially for an importing
nation like Norway. Is equivalent to a
general cut in wages. Central Europe.
however. including Poland with its
hntastic currency. has the advanta ge