The New York herald., 1922-10-21
PLAN TO CONTROL
GERMAN FINANCES
French Propose Allies Have
Veto of Expenditures and
Tax Regulation.
TO RESTORE GOLD BASIS
Worlds Leading Business Men
to Decide on Germany's
Capacity to Pay.
TO RESTORE GOLD BASIS

PARIS. Oct. 20 ASSOCIATED Press).--
Complete control Of all German
finances, power to veto expenditures
and regulate taxation and authority to
dictate budgets of the German States
are the chief proposals contained in
the plan OF the French Government
for solution of Germany's financial
difficulties and for placing that coun-
try in a position TO meet her repara-
tions payments. The scheme, which
was submitted to the Reparations
Commission tonight by Louis Bar
thou, the French representative on the
commission, also contemplates a meet
ing of leading business men or the
world TO determine Ge-many's capacity
to pay and to consider the question OF
interallied debts.
The plan Is reply TO the British
repara tions project of Sir John Brad
bury and differs radically. NJ. Barthou
urges the calling OF a Brussel- confer
ence to deal with q broad reparations
settlement and allied debts, and the
question OF German payments in 1873
and 1924 France would limit the pow
ers of the Preparations Commission to
the application of new guarantees and
reforms for Germany. leaving the more
comprehensive ISSUES TO an lnterna-
tional meeting.
The proposition would gradually put
Germany on gold basis. beginning
with an issue of gold treasury securi-
ties II would have Germany pay her
outstanding obligations In currency. NJ.
Barthou calculates that then Germany's
paper circulation would be $4,000, 900. 900
marks. which at the present rate OF
exchange are worth less than the
Reichsbank gold reserve.
The moment has come. according TO
NJ. Barthou. when the Allies must take
energetic steps. He does not accept the
contention that Germany Is Totally inca
pablo Of paying. a committee would be
permanently established in Berlin and
would have charge of the carrying out
of all new rcforms a minimum of re-
ceipts would be fixed and maximum
of expenditures for Germany would be
set. and Germany would be required to
float international loans at an oppor-
tune moment. Neither the Government
nor the States would float loans with
out allied authority. NJ. Barthou's
memorandum concludes with these pro-
posals:
FIRsr-To Immediately place German
public finances under control OF Ger
many's creditors. ag previously out
lined.
SEcoSD--To take all measures ncces-
sary to balance the budget and keep I,
balanced. meanwhile PROGRESSIVELY. in
cludiDg In its reparations payments not
otherwise provided for and the interest
on loans floated for rcparations pay
m, nts.
THIRp--To forbid the German Treas
ury TO discount any bonds OF any sort
with the Reichsbank. and to require
submission OF all Issues of Treasury
obligations. either OF short or long term.
70 the allied control authorities.
FouRTH-To place the Reichsbank un-
der interallied supervision. In order 70
see that IL observes all allied require
mcnts affecting It.
Fifth--To strengthen 10 whatever
degree the allied supervisory authorities
deem necessary dispositions taken 10
prevent the export OF capital and tie
boarding OF foreign exchange.
Sixth--As soon as circumstances per-
NIT. to begin the issuance OF gold Treas
ury securities. the hotation ~ which
is to be facilitated by certain fiscal ud-
vantages. the receipts from these issues
10 DC utNoteu exclusively TO the strength
oning OF tho Reichsbank metal reserve.
AT far as necessary. so as TO insure sue
cess OF currency reform and also 10
pay reparations not covered in the
budget
Seventi--The German Government
would continue 10 collect In gold or In
foreign exchange nj least 25 per cent. on
the value OF exports. The receipts from
these collections. as we'll MS customs
duties on exports and Imports would Lc
paid into special Rcichsbank account
In the name OF the committee on guar
antecs. and under the committees con-
troll the German Government would die
pose OF this money so long as the
Repnration Commission found the Ger
man Government fulfilled obligations
which had been. or would be. imposed
by the commission.
'"If at any time the commission finds
otherwise" says the memorandum,
then the committee OF guarantees VIII
take possession OF the sums 10 its credit
in this account and the collections made
thereafter. which II viii see AFRO regu-
larly paid into this account"
GET THEM ~ EARLY
IA aUIf n INa4. -