The New York herald., 1922-07-17
GUARANTEES BOARD
FOR MORATORIUM
Committee, After Visit to
Berlin, Will Report in
Paris This Week.
ASKS ADDED POWERS
Suggests 1t Be Given Ac-
tual Supervision of Ger
man Finances.
COULD GET MORE GOODS
Idea of Payments in Kind Is
Gaining in Favor Among
French Leaders.
COULD GET MORE GOODS
Copyright, 1922, by THE New York HERALD.
Special Cable to The New York HERALD.
New York Herald Bureau,


Special Cable to THE New York HERALD
New York Herald Bureau,
Paris, July 16.
Germany needs the moratorium
which she has requested, but if the
powers Of the Committee on Guar
antics are extended to cover the ac-
tual supervision of financial and COM
mercial affairs she will be in a posi-
tion to meet even greater payments
in merchandise than have so far been
exacted. At-
This Is the summary of the COM
mittee's report, which has already
been started and which will be de-
iivered to the Preparations Commits
sion this week.
Even the French experts. according
to information obtained by THE NEW
YORK HERALD correspondent from re-
liable source. have agreed to the neces-
sty of substituting reparations in kind
Tor the cash arrangement, although
they insist that if this is to be effective
u must be accompanied by real control
over every phase of Germany's business
relations. and that there must be
greater loyalty than has been shown
thus far towards the efforts of the COM
mittee to unravel the German financial
tangle.
Accept Payments In Kind.
This explains the haste of the French
Government during the last week, to
organize cooperatives in the devastated
regions so as to take advantage of the
Wiesbadcn agreement whereby the
French re N ~
600 gold marks in kind during the next
three years. although up to the present
neither individuals nor industrials In
the devastated departments have shown
great desire to take advantage of
payments in kind. preferring to deal
direct with the French Government as
long as the treasury was able to ad-
vance cash.
Premier Poincare intends to notify
Berlin Immediately that the Wiesbaden
accord must be considered operative
beginning July 20, and will seize the
first sign of recalcitrance on Germany's
part again to invoke formal notica-
ton to Germany by the Reparations
Commission of "wilful default" there
by warranting the bringing up of the
sanctions question.
Although the committee on guarantees
is virtually unanimous in its opinion that
Germany Is partly responsible for her
own financial difficulty, it is hot believed
that the Preparations Commission will
consider this to be voluntary despite
the insistence of the French Premier in
his conversations with NJ. Dubois that
the French thesis must be upheld by him
before the Reparations Commission.
The request by the committee on guar
antics to make it more than body to
investigate books after a default is ac-
complished. however. will be we'll re-
ceived by the French as opening the way
to sanctions of a financial nature None
here now Is anxious to extend the mill |
tary occupation if there is any possibility
OF Germany wiping off the reparations
obligations by merchandise deliveries.
Premier Lloyd Georges definite state |
ment before the House of Commons that
the British Government considers /
moratorium imperative. although at first |
bitterly regretted by the French press |
now is taken as a solemn warning to |
France that she cannot expect support !
IL she demands what Great Britain and |
Italy and probably Belgium consider i'm
possible.
As a result. Premier Poincare,s talent
as a lawyer has taken a new direction
based upon the necessity Of financial
and economic control if payment in mer- !
chandise Is to be effected, and it is
hoped here that conciliation to this ex-
tent will obtain British consent.
French budget Upset.
The most troublesome feature about
Germanys plea for a moratorium on all
cash payments. including the settlement
of individual pre-war claims. is the i'm
r1ediate effect 1t will have on the
French budget provisions for the pay
mont OF the army of occupation.
The French army up to the present
has claim OF one bilion-odd gold
marks that is unpaid. and as France
lad counted on even reduced cash pay
msnts from Berlin to ease thc financial
tension in this direction the Repara-
tions Commission will be asked to de-
wise some method whereby Germany
will be made to pay at least running
accounts other than those distinctly I
carmarked as rcparations during any
Nor torium period.
In order to effect this NJ. Dubois will
stress treaty paragraph hitherto con-
sIdered unlmportant. but which clearly
provides that the commission shall in
sist that the claims of the Allies have
Jriority over settlements of Germany's