The New York herald., 1921-04-17
SMUGGLING GROWING
IN Rl1INELAND SECTION
Business Droops and French
Fear for Customs Returns.

Special Cable to THE NBw YosK HERALD.
Copyright, 1891. bp TUE NEW YORK HERALD.
WrEsBADEN, April 16.-The French In
the Rhineland are as uncertain about
the way the new customs frontier will
work as are the Germans and cannot
foresee consequences that may devolep.
Smuggling and subterranean business Is
increasing and trade lie stagnating. IT
Is generally admitted here that II must
continue to stagnate until the situation
in the Rhineland is more clearly de-
fined. French business men in this re-
gion harbor a lively fear OF German
business hegemony
I'VE recognize the close affinity be-
tween German coal and our iron" a
representative Frenchman here re-
marked. I'VE acknowledge as sound
Hugo Stinness continental economic
idea. But we believe 1t will come to a
fruition without SHINES and August
Thyssen. whose only interest is their
personal domination of the scheme"
1t is harder to obtain an understand
ing of the meaning OF the customs bar
rier here In the region most affected
by 1t than II Is In the capitals where
the policy OF the Allies was determined
The French here give two justifcations
for the measure. First, they say France
needs the cash. which evidently they re
not sure 5,:o is going to obtain in this
manner. and secondly, they say there
is a need for intimidat ting the Germans
The impression prevails here that only
by such methods can France hope 10
obtain even a part OF her claims for
mulatcd at Versailles.
In military circles the customs wall is
regarded solely as a display OF French
determination. and the occupation OF the
Ruhr Basin by the Allies is expected.
The economic effects or the customs
frontier is variously regarded and a
prominent French offciel In the Rhine
land declared II was impossible to tell
how closely the Rhineland and free Ger
many were ecoomically welded together
because OF lack OF statistics.
Including the Rhineiand within the
customs barrier was a leap in the dark"
no said. Il am sceptical regarding the
returns from the customs collections and
fear economic confusion unless this
mea sure is followed by control OF the
from the customs wall win be less from
smuggling than from subterranean infiu-
ences favoring trade. and particularly
private interests That has been the ex-
perience of the allied administration
hitherto"
Germans here call attention to the CO.
incidence that the rebirth OF the separ-
atist propaganda under French insusa-
tion was simultaneous with the estab-
lshment of the customs wall. and that
II Is stressed again that separation from
Germany would be in favor OF Rhineland
industries. This propaganda apparently
il being borne out by French statements
that in France protests are already
being heard against facilitating the en-
trance OF German manufactured goods
into France.
The Germans here feel that the Gus
toms measures are altogether destruc-
tive. and see in them an effort to intro
duce economic difficulties similar 20
those suffered In Germany Just after the
armistice Most OF the leading Rhineland
business men are proposing TO reduce the
output OF their factories and await the
return OF normal conditions.