Norwich bulletin., 1922-11-09
EXPERTS RECOMMEND 4
 MORATORIUM FOR GERMANY

Berlin, Nov. s (By the A. P)-The report of the experts who have been in- Vestlgating economic conditions in Ger many, Professors Keynes, Brand Jenks and Cassel, advocates two years moratorium from reparations payments of cash or in kind and stabili- zation of the mark on the basis of 5000 to $500 marks to the dollar by utilizing the reichsbank's gold reserve. The re- port contends that the financial prob lem cannot be solved unless the mark is stabilized, and that stabiIization would be impossible without a mora torium.
 The experts suggest that half the reichsbank's gold would suffice, ant should be devated to re-purchase paper marks, the re-purchases to be restricted to German bank notes, especially those In foreign possession, but excluding ex. chequer bills.
 The moratorium might need to be e1. tended, and payments should not be re- sumed until Germany is able to dis. charge them from a real budget sur. plus, which the experts think may be attalnable in two years. Thus stabili- zatlon. would depend for success not on foreign loan, but on development of the conditions of production and final -xrO1le They consider that their plans would be facilitated if in the meantime nero- i tlations were started with a consortium 1 Of bankers to support stabilization by fnodest credits, and also. that a foreign l loan cannot be expected until the rep. aratlons problem is finally settled Regarding an ,unfavorable trade bal. ! ance,., the experts state that statistics at present available cannot form ground ] for adequate judgment and that Ger many should have equal rights with other nations to impose customs duties l on luxuries and the right to demand the most 1aVored naticn treatment as re. gards exports. The signatories believe 1 tnat IS neither necessary nor practi. l cable 10 prohibit absolutely an increase Tn the floating debt, but that with tbt mark stabilized it would be possible tc ] allow just enough further increase tc tide over imm mediate difficulties. Ihey point out that on the basis oi J,9OO marks to the dollar the reichs. banl< 4 gold would be about twice in, 1 value of the note issue, and that thi, is an unprecedented situation, as m other currency has fallen into such 'a state, with so great a potential support 1 unutiiized. When stabilization ig full, accomplished. it is recommended. ne; I uiilC SAoulu DC dQopLeo Tor general con lvenience
 The report suggests that in retur, Tor a nlpratorium Germany should of fer the reparations commission definit, guarantees as to the maintenance of ar l independent board of exchange control limitation of the net floating deb and assurance of the purchase by th,
 boa z of paper marks on demand a,
 long as any part of the gold reserve A
 aside for this purpose remains un
 pledged. -
 The report states, that on consent q the reparations commission to the forz going measures the following step,
 should be adopted:
 First. Financial cooperation and tn
 support 1of an international fnancia
 consoruum to be invited
 1 Second. A foreign currency reserve
 on such a scale as may be required, [ be created on basis of the gold at tn
 disposal of the board of exchange i
 conjunction with cities which. may ne stiun. ! Third. Abolition of exchang. resuls
 tons and restoration of free and unre
 stricted dealings Tn exchange, and fol
 eign securities.
 It is recommended further that th
 bank rate be raised to a high point an
 dear money maintained until stabilizs
 tion is quite secure.