New-York tribune., 1921-01-23
Crisis
impending as
Preniers Meet
Conference at. Paris to
Discuss Aid Required for
Austria; English Labor
Protests Rate of Exchange
Italians Make Demands
Press Favors a Mitigation
of the Provisions of
L re atty of Versailles
By Ralph Courtney
Special Cable to The Tribune

Copyright. l92l. New York Tribune Inc
PARIS, Jan. 22ALloyd George, at
the head of large British delegation.
and Count Sforza, with a group of dele
gates from Italy, will arrive in Paris
tomorrow afternoon for Supreme
Council meeting of great Importance.
Japan will be represented by Viscount
lshii, while Belgiums members. who
have already arrived here, will be
headed by Foreign Minister Amaspar.
The council meets at moment when
Austria is sinking below the political
horizon and when the whole economic
stability of Europe and the world is in
the balance.
Lloyd George comes, leaving behind
him in England a situation the seri-
BUSINESS of which is marked by nearly
100000 unemployed men. Germany,
followed to less extent by other
countries of Europe. is continuing to
issue an endless stream of paper
money, entirely unsupported by gold.
Desrite their bad financial condition,
the German people are able to export
products at prices which may seriously
affect the industry Of her neighbors
with their stronger currencies.
Italian Press for Modification
Labor leaders in England are saying
that English exchange is too high,
while from Italy comes the equally bit
ter complaint that her exchange is too
low.
In the last few days the Italian press
has started violent campaign in favor
of mitigation of the provisions of
the treaty Of Versailles. The Italian
lira is worth little more than half of
French franc. Under present condi-
tions Italy cannot deal freely with Ger
many, yet the exchange rates with all
her other neighbors are nuch as to
make it impossible or her to fulfill her
needs from them. Under these circum-
stances the Allied Supreme Council
may have to reconsider the whole
European situation.
IN connection with the discussion of
Austria and Hungary, which will take
place first, it is understood that Lloyd
George will advocate an international
credit system to permit those two i'm
poverished countries to resume the pur-
chase of raw materials
Must Act, Within Six Weeks
1t is estimated that six weeks is the
limit of Austrian endurance. Help
from the Allies must be forthcoming
within that time to prevent the disin-
tegration of the country, with part Of
1t joining Germany and parts irving
to mike their way alone.
Hungary is reported to be consid-
ering the destruction of her old money
and the institution of new system of
coinage, in hopes Of remedying the
present situation. Her intention is to
issue her new currency, probably, in
francs.
Premier BRAND, when he goes into
Frances heavy nAtional deficit, but
the situatiop-is improved by the fact
that the country depends less on trade
than other great powers, and as an ag-
ricultural country produces most of
what it consumes. However, the Pre-
micr will urge upon his associates at
the conference the strong connection
between Germanys payments on her
reparatons bill and the economic re-
habilitation of all Europe.
France has now definitely adopted
the policy Of fixing the amount which
Germany shall pay annually for the
next hve years, leaving the task OF 1X-
ing the total Of Germany's debt to the
Supreme Council to be worked out at
some future time. Most of the people
in France have begun to realize that
they cannot hope to obtain a settlement
Of the reparations bill which the
PREPARATION commission will present to
the Germans next May. This attitude
on the part of the French people marks
great change in their opinions within
the last few weeks, England is said to
be still in favor Of fixing lump sum
which Germany must pay, but it is be-
lieved that Lloyd George will raise no
serious objection to the French fyc
year nronoSal