The New York herald., 1921-12-04
MORATORIUM PLAN
Will Be SENT TO
SUPREME COUNCIL
Reparations Commission Is
Sure to Vote UnfayOlably
on Proposal.
AMERICA is LEFT OUT
Chairman Dubois Would
Have Two Votes, Giving
Decision to France.
PAYMENTS WANTED FIRST
Germany Would Be Held to
Her January and February
Obligations.
PAYMENTS WANTED FIRST

Copyright, 1921. By TIE New YORK HERALD.
New York Hernld Bureau.
Paris, Dec. 3.
Whether asked to do so by Great
Britain or Germany, the Reparations
Commission will refuse to consider the
German moratorium scheme and will
leave the whole question to the de-
cision of the allied Supreme Council,
which is expected to meet in Paris or
London this month.
Behind this decision lies an unfor-
seen tangle in the Reparations Com
mission, which. If the moratorium
suggestion is put on the commissions
agenda. not only would prevent arbi-
ira ton by an American delegate. but
also would result in defeating the
scheme by the ruling that in the event
of Italy and England voting contrary
to France and Belgium, Chairman
Dubois would be entitled to cast a
deciding vote in addition to his vote
as Frances representative.
This would be disastrous to England's
hopes of getting the moratorium accept
ed by France with certain guarantee
such as credit advances. as the supreme
council could not be expected 20 over
rule the Preparations Commissions ma
jority judgment.
"Payments to Come First"
A high official of the Reparations COM
mission told THE NEW YORK HERALD
correspondent here il was now certain
that even If the moratorium was grant
cd by tho Allies 1t would not he until
after the January and February repara-
tion payments had been met, the com
missions data showing that Germany
by applying stricter control OF her
finances and by compelling the big in
dustriaI leaders to hand over their for
eign currencies deposited abroad could
meet her obligations.
THE commissions note to Berlin yes
terday," he said, twas purposely very
strong. although it only confirmed what
the commission on guarantees told the
German finance leaders last month. or
course II the supreme council decides TO
waive the January and February claims
that is another matter. but in the pres
ent state French opposition this is
NO. l:.seiy.
THE commission is now negotiating
with various international bankers who
have offered substantial short term
loans to Germany. but the negotiations
are only as control measure to pre-
vent Germany's finances from being
further ruined by inadvisable interest
rates or disadvantageous pledges OF re-
payment"
These bankers are chiefly Dutch and
Swiss. with a small group of English
Industrial leaders who are willing to
lend to Germany In order TO reopen Ger
man markets for their wares.
Doubts Exterior Loan.
The same authority doubted the possi-
bility of Germany floating an exterior
loan even at per cent. as the only
takers probably would be Germans
themselves, who might be induced to
lend money to their Government II as
sured the Allies would not press for
further cash payments in the next few
years.
Although the members Of the Repara-
tons Commission are convinced that the
moratorium idea will be adopted eventu-
ally. 1t will be greatly altered by the
French opposition probably in such
manner as to provide for more extensive
payments In kind and labor and in such
a way as to counter the loss in specie
payments, on which the French are de-
pending TO balance their budge..
BERLIN. Dec. 3 ASSOCIATED press).-
Chancellor wirth has appointed COM
mission for dealing with credits. It's
deliberations. which will be under the
guidance OF the Chancellor behind closed
doors. will concern direct dealings with
foreign security brokers to obtain credits
abroad to enable Germany to meet her
obligations to the Allies.