The New York herald., 1921-11-09

cpectuI Cd0te TO IHn NEW YORK HBHALD.
Copyright, 1891, BY THE New YoRK HERALD.
New York Herald Bureau.
Pnris, Nov. 8.
With both Roland w. Boyden and
Col. James A. Logan accompanying 1t
as observers of American interests, the
entire Preparations Commission left to-
night for Berlin to demand that Ger
many make an immediate ADVANCE
payment of between 100,0o0.o00 ana
00,000,000 marks gold on instalment
Of the fixed annuity of SOC, ,O00. 600 due
January Is. Germany has been MAX
ing representations that she desired
this payment postponed.
This new test Of Germany's good
faith. said high Official. was dictated
chiefly by the marks fiuctuation and
the. desire Of the Reparations Commits.
sion to ascertain Just how far Ger
many's Government is guilty of pro-
voking the marks fall. That Germany
Is capable of paying an advance sum is
considered certain, as the Commission
on Guarantees has obtained the fullest
data regarding the total sums Ger
many has obtained from interior and
exterior revenues, and the Preparations
Commission intends to insist that a
substantial portion Of this total be
paid into it's Golfers rather than to pay
the constantly increasing army Of Ger
man functionaries or increased divi-
90 ptA tn xxy1,i i<.k1
the Government is interested.
The Reparations Commission does not
intend to deal lightly with Germany and
far reaching decisions may be expected
In the event that Berlin balks this Tine
The French press. which for two weeks
has been clamoring for action. now con-
s!ders that as far as the Government
Is concerned Germany has reached the
long sought state of bankruptcy and.
therefore, the Liberte says:
"Germany's Sovereignty must be re-
stricted and put under the Allies super
vision. The Treaty of Versailles gives
the Allies this right Just as it gives the
right to remit all or part Of the repara-
tions II II deems 1t necessary. 1t now
only remains to be seen which OF these
two rights the Allies have decided to
employ"
The Reparations Commission is ex-
pected to stay In Berlin for three weeks
and It's work will involve conversations
with industrial and political leaders. and
private financiers as well as Government
officials.
Fostering Fall of Mark.
The conviction is generally expressed
here that Germany Is fostering and US
ing the fall in the mark to affect her
reparations payments In two ways 10
her own advantage. These are:
First. to secure postponement of
part OF the fixed annuity payments such
as January's on the plea that the fall In
the mark is complicating her financing
of these payments.
Second. without reducing her exports
to reduce the value of the Allies rs
per cent. tax on these when figured in
gold marks.
There Is a suspicion that while this in
the long run would ordinarily benefit
Germany she Is counting on pursuing
such a policy until the Allies reduce her
total debt. The situation is recognized
In Preparations Commission circles as
growing steadily more acute. involving
German Government from manipulating
the mark to its own advantage
Commission Cannot Intervene.
The Commission on Guarantees has
begun a more active investigation OF re-
ports Of speculation as being behind the
steady drop OF the mark. The serious
fact in the situation is that the commits
sion admits that II has no power 10 pre-
vent tho German Government from
printing hank notes. this being uues-
tion of internal administration. but af-
fecting IL is now disclosed. the whole
question of Germany's payments.
Between September 15 and October 8
Germany printed $500. 100000 new paper
marks. with the commission powerless
to prevent this. Her programme is be-
lieved to be as follows:
First--She does not have to pay ary-
thing on the November Is variable an
nuity payment because the 900. 00o.000
marks due has been covered by pay
ments In kind.
Second--To cover part of the 5oo.-
900. 900 marks gold. fixed annuity due
January Is by a certain amount In kind
and part through external loans which
she rs now trying to arrange in England
and the United States. with only a small |