Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-04-20
GERMANS SEE RUIN
IF GOLD IS YIELDED
Experts Declare Transfer OF
Reichsbank Reserve Would
Mean Collapse Of Money
ALLIED CHIEFS, TO MEET
BY the Associated Press

Berlin. April 2U.-N MIC the Gcrindl
cabinet has not yet indicated the nature
of its reply to the reparntion commits.
sion's demand that the German gold
reserve be transferred to some point in
the occupied zone. President Haven :
stein. of the Reichsbank, and the finan :
cial writer's summarily reject the prop
osition.
They take the ground that the gold
is not only the property of a private
bank. but that its removal from Berlln
under the conditions named would re-
suit in tho collapse of German currency
at home and abroad.
The experts assert that such n pro-
cocding would work havoc with Ger
man economic interests and promptly
result in an advance of all commodities
to fabulous prices.
Declared Impossible
President Havenstein declares that
&Crious consideration of the proposition
by the cabinet would be mere waste
of time and doubts whether any govern.
mCnt could be found in Germany which
would accede to the Ententc's demand.
The impossible is impossible; that is
all there Is to it." said Herr Haven E
stein.
The Norddcutschc Allgcmeine lei
: tung. owned by Hugo SHINES: cx-
presses suspicion that the French arc
the driving force behind the now de-
nand. " says that once the gold re-
ScrvS is outside the confines OF the
RciGhsbank's vaults and placed under
Entente control in the occupied zone,
II will no longer remain as an active
asset Of the bank, as its ultimate seizure
would then become a simple matter.
Sees Catastrophe Effect
This newspaper estimates the volume
Of German currency held abroad at 20,
600. 900 900 marks. and that foreign dc
mands on Germany of all kinds total
1000, 100000 marks. The value OF
the present gold reserve Of 900 900, =
900 marks is computed MS representing
Is, per cent of Gcrmany's currency is.
sue.
Its disappearance from the banks as
sets. the newspaper asserts would not
only result in the instant vitiation OF
the foreign creditors claims. but also
have catastrophe effect upon Ger
man exports and imports especially
with regard to purchases Of raw prod
uCtS.
A special dispatch from Essen today
says tho new customs control set up by
the Allies in tho occupied zone for the
collection of duties under the penalties
plan became effective at midnight last
night. Passenger trains are being de-
tanned ten minutes for the inspection OF
the passengers and their baggage.
Paris. April 2O.-(Ry A. P.l-
British and French military leaders will
confer at Hythe. England. next Sun
day with Premicrs BRAND and Lloyd
GcorgS. il is said by newspapers here,
Marshal Foch, General Weygand and
I Field Marshal Sir Henry II. Wilson
/ will be present. and Earl Curzon
British secretary Of state for foreign
! affairs. will take part in the conversn
tons. (which. it is declared. will relate
/ TO military penalties to be placed on
| Germany in case she refuses 10 make
rcparatipns payments due on May |.
Premier BRAND, it is declared by the
Echo dc Paris. will insist that the Brit
! ish flag. fv with the French tricolol
! over the Ruhr district. The newspaper
SAYS that. in Il letter 10 Prime Minister
! Lloyd George. tne French premier ha:
! emphasized the Importance of unanimity
between the French and British Gov.
| CrnmantS.
The Temps publishes a dispatch from
Cologne giving what purports TO be
propositions which the newspaper says
Germany will make to the Allies. Ac.
cording to the Temps, Germany pro.
| poses
To pay to the Allies 5000. ZOO. .0OC
gold marks $3.50 900 0O0l annually
during ten years, and also yearly pay
mcnts equal to one-tifth of the value oi
( German exports to Allies countries dur
ing the preceding year.
In order TO realize n part of the above
indcmnitics, TO issue an international
/ loau of 10000. 900 900 gold marks
i (S2. 800 400 .0O0l. upon which Germany
I is prepared to pay interest up to ) per
cent. The loan would be guaranteed by
railroad earnings and by participation
up to 20 per cent in German .privatc
| industries.