The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-10-25
OF
GERMAN
FINANCES
French Officials Pro-
pose Plan to Insure
Collection Of Repa-
rations


control of ali German finances,
power to veto expenditures and reg
ular taxation, and authority to die
tate the arrangement of the budgess
of the various German states are
among the chief proposals con-
tanned in the plan OF the French
government for solution of Ger
many's financial difficulties and for
the placing that country in po-
sition TO meet her reparations pay
ments.
The plan was submitted to the
reparations commission tonight bS
Louis Barthou. the. French repre-
sentative on the com mission, and
discussion of the project will begin
tomorrow. Although not men
tened in the official summary, NJ,
Barthon's plan contempiates a
meeting of leading business men
of the world to determine Ger
many's capacity to pay and to con-
slider the question of inter-allied
debts.
The plan, in effect, Is reply
to the British reparations project
recently placed before the COM
mission by Sir John Bradbury. 1t
differs radically from the British
point of view. NJ. Barthou urges
the calling Of the Brussels confer
ence TO deal with a broad repara-
tions commission to the applic:l-
ton OF new guarantees and re-
forms for Germany, leaving the
more comprehensive Issues TO an
interna -ional meeting.
The proposition wonld gradually
put Germany. on gold basis. be-
ginning with an issue of gold treas
ury securities. NJ. Barthou would
have Germany pay her outstand-
ing obligations in paper currency
and he calculated that Gernnany's s
paper circulation would he So
600 600. 900 marks, which at the
present rate Of exchange are worth
less than the reichhanll gold re-
serve.
The moment has come, according
to NJ. Barthou when the allies
must take energetic steps or else
be faced by a Germany proclaimed
before the world a ruined nation.
despite the fact that her actual
capital is intact.
I'VE don't accept, the contention
that Germany is-totally incapable
of paying" says NJ Barthou in his
plan. Despite Germany's enor-
NOUS budget. difficulties. she retains
tremendous riches and has great
strength to continue production
and maintain her national vitality"
The French plan would so in.cr-
pret the theory Of prohibition OF
interference in Gernaayn's internal
affairs as TO permit this radical
control Of German finances:
The budgets OF the various Ger
man states will be supervised
thoroughly to prevent eXtrava-
gances. regulate expenditure and
make provisions for indemnity
payment. a committee would he
permanently established in Berlin
and would have charge Of the
carrying out Of all new reforms. In
case Germany should refuse inn
mediatelv TO observe the new de-
mands, she would be declared in
voluntary default by the commits
sion under the provisions Of the
treaty of Versailles. a minimum
OF receipts would be fixed and a
maximum OF expenditures for Ger
many would he set and Germany
would he required TO float inter
national loans at an opportune mo-
ment. Neither the government
nor the states would float loans
without allied authority.
NJ. Barthou's memorandum con-
cludes with seven proposals as fol-
lows:
First: TO place Immediately
Germany's public finances under
control of Germany's creditors. as
previously outlined.
Second: To take all measures
necessary to balance the budget
and keep it balanced. meanwhile
progressively including repara-
tions payments not otherwise pro-
yided for and the interest on loans
fioated for reparations payments.
Third: To forbid the German
treasury TO discount any bonds o.:
any sort with the reichhank ana
to require submission OF all issues
OF treasury obligations, either ol,
shor, or long term, To the ;tllied
control authorities.
Fourth: TO place the reic,s-
bank under allied supervision in o.,
der TO see that ii observes all al
lied requirements affecting it.
Fifth: To strengthen 10 what
ever extent the allied supervisory
deem necessary prep
arations taken TO prevent the eN-
port Of capital and the boarding or
foreign exchange.
Sixth: Az soon as circumstances
perni, to begin the issuance OF soln
treasury securities, the fotation Of
which is TO be Facilitated by GER
tain fiscal advantages. the receipts;
from the isSues TO be devoted eX-
clusively To the strengthening "f
the reichbank metal reserve. 50 far
rs necessary, so as TO insure sue :
cess OF currency reform and also
10 repay reparations not covered
in the budget.
Seventh: The German govern