The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-05-07
FRENCH PREMIER
WOULD MOBILIZE
GERMANY'S DEBT
BRAND Expects U. s. Sup
port in Floating Rep
aratiOn Bonds.
ALLIES AS GUARANTORS
Penalties Become Applicable if
Germans Fail to Observe
Conditions.
ALLIES AS GUARANTORS


Copyright, 1921, by TIE New York HERALD.
New York Herald Bureau.
Paris, May 9.
The yielding of Premier BRAND to
Premier Lloyd George on the i'm
mediate occupation of the Ruhr region
was solely for the purpose of obtain
ing American support In floating the
bonds which Germany, IL she accepts
the London solution of the reparations
problem. must issue Immediately. This
was said In we'll informed quarters
following his return to Paris last night.
He undeniably is worried as to how
the latest delay will be taken by his
political opponents.
Already the Premier is preparing to
counter the opposition by the fol-
lowers of Raymond Poincare by show
ing the value to France of being able
at least to mobilize Germany's debt.
And also he is planning to appease the
Tardieu faction by showing that the
Paris accord has been definitely buried
by all the Allies and that the figures
of the Reparations Commission alone
are henceforth to govern attitude tow
ard Germany.
Floating bonds All Important
The all-important question to France
OF whether she can extricate herself
from her budget difficulties, even II Ger
many accepts the ultimatum sent to
Berlin by the Reparation Commission.
depends entirely on the ability OF the
Reparation Commission to market Ger
| many's bonded promises. primarily in
America. The official terms of the ult-
matum, as contained in London des-
patches yesterday. were handed to DR..
Won Oertzen, head Of the German War
Burdens Commission here, by the COM
mission this morning
These terms leave all France in doubt
as to how much she will receive, the
Temps says tonight in a long analysis
Of the terms, stressing that on it's face
the London solution OF the reparation
problem seems inferior to the Paris
accord Of the Allies. This will be the
focus of political discussion involving
the fate of the Cabinet of Premier
BRAND. as France must have money i'm
mediately. unable as she Is now to ad-
vance any more to the devastated re-
gions until the German reparation pay
ments begin to arrive here.
1t Is apparent already that the Lon
don agreement by no means reaches
Frances future budget requirements.
although covering her immediate needs
provided buyers can be found for the
German bonds. France receiving about
twenty-five days after Germany's ac-
ceptance of the terms about one and a
half billion francs in paper. and as soon
as the November issue is completed
and marketed. IL at par. she should
receive approximately six and half
| billion dollars as her share of the pro-
ceeds.
The value of the London solution.
therefore, az compared with the Paris
accord. for France-which is now
vital factor In the European situation
lit Is admitted here depends. first, upon
the German attitude, and, second upon
the absorption power of the American
and neutral markets. IL the will OF the
German people is not behind the bonds
there will be behind them only the
French army and British sympathy.
No Reparation Commission expert here
whom THE New YORK HERALD corre-
spondent interviewed to-day would ven
ture to say what the bonds would bring.
out inquiries brought out. the fact. hith-
crto overlooked, that Germany. whatever
may be the discount value OF the bonds.
must make up to the Allies for the diff
ference. This was flatly stated by ex-
perts to-day, although IL seems contrary
TO the common Interpretation Of the Lon
don text, and II would increase Ger
many's exterior debt by the amount OF
the discount. which Is n factor not to be
overlooked by bond buyers
Undoubtedly furious discussion Is
about TO begin here regarding the Lon
don terms, which, heving so many un-
certain factors. including doubt as to
how long the final issue OF So 1000, 0O0. 900
marks gold VIII be allowed to run, can
be the subject of many interpretations
by Premier Brands political enemies.
With so many uncertainties, the Temps
sees French rights subject TO many
vicissitudes.
France TO Seek Market Here.
In conversation last night Premier
BRAND declared that IL previous terms
drawn up under the provisions of the
treaty had been accepted by Germany
II would have been impossible to mar
ket any bonds as the bankers would
never know whether the date fixed for
maturities would not be extended by the
Preparations Commission on Germanys
plea that her economic prosperity was
insufficient to meet expenses.
Now IL Germany accepts France will
take her share OF the first bond issue
and will promptly attempt to find buy
ers among her friends, chiefly In the
United States The fact that certain
American bankers were known to be
interested In having the maturities def