Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-10-21
RIGID CONTROL
Of ALL ERMAN
FINANCES PLAN
Of THE FRENCH
Power to Veto Expenditures
Regulate Taxation and
Dictate Budget Arrange
nentS Also Demanded,
SCHEME OUTLINED TO
PREPARATIONS BOARD
Meeting of the Leading
Business Men Of World
viii Also Be Proposed
by Frances Envoy

VTTT TNTOV 10 VFgVV~N
by Frances Envoy
Faris, oct. 20 (by the Associated
Press)-Complete and rigid con-
troll Of all German finances, power
tJ veto expenditures and regulate
taxation and authority to dictate
the arrangement of the budgets OF
the various German states are
among the chief proposals contain
ed in the plan OF the Ftench gov
eminent for d solution of Ger
manys financial difficulties and
for placing that country in posi-
ton to meet her reparations pay
meut5.
The plans was submitted to the
reDarations commission tonight by
Louis Barthou, the French repFe-
sentative on the commission, and
discussion of the project Will begin
tomorrow. Although not mention
cd in the official summary, M. Bar
thou's plan contemplates meet
ing for the leading business men
Of the world to determine Ger
many's capacity to pay and to con-
slider the question OF inteT-allied
debts.
Reply to British Project.
The plan, in fact, Is a reply TO
the British reparations project re-
Gently placed before the commits
sion by Sir John Bradbury. 1t diff
fess radically from the British
point of view. M. Barthou urges
the calling of q Brussels conference
to deal with broad reparations
settlement and allied debts and the
question Of German payments In
1928 and 1924. France would Linz
it the powers of the reparations
commission to the application OF
new guarantees for Germany,
leaving the more comprehensive
issues to an international meeting.
The proposition would gradually
put Germany on a gold basis. be-
ginning with an issue Of gold treas
| ury securities. NJ. Barthou would
have Germany pay her outstanding
obligations in paper currency, ana
he calculates that Germany's paper
circulation would be 510,000,000,-
| 600 marks. which at the present
rate of exchange are worth less
| than the reichsbank gold reserve.
Allies Must Act.
The moment has come, accord
ing to NJ. Barthou, when the allies
must take energetic steps or else
be faced by a Germany proclaimed
before the world as a ruined ma
ton, despite the fact that her ac-
| tual capital is intact.
eve don't accept the contention
that Germany is totally incapable
of paying" says NJ. Barthou in his
plan. Despite Germanys enor-
nous budget difficulties she retains
tremendous riches and has great
strength to continue and maintain
her national vitality
| The French plan would so inter-
pret the theory of prohibition OF
interference in Germany's Internal
affairs as to permit this radical
control Of German finances.
| The budgets of the various Ger
man states would be supervised
thoroughly to prevent eXtravaganc-
es, regulate expenditures and make
provisions for indemnity payments.
/ A committee would be permanently
established in Berlin and would have
charge of the carrying out of all new
reforms. In case Germany should
refuse Immediately TO observe
the new demands. she would be de-
clared in voluntary default by the
commission under the provisions
of the treaty of Versailles. A min
lmum of receipts would be fixed and
a maximum of expenditures for
Germany would be set, and Ger
many would be required to float
international loans at an opportune
moment, Neither the government
nor the states would float loans
without allied authority.
Seven Proposals.
NJ Barthous memorandum con-
cludes with seven proposals, as
follows:
First. to place Immediately Ger
q. man public finances under control
Of Germany's editors as previously
outlined.
Second, to take all measures
necessary to balance the budget
and keep it balanced. meanwhile
progressively including In it repa-
rations payments not otherwise
provided for and the interest on
loans floated for reparations pay
mcuts
Third, TO forbid the German
treasury to discount any bonds or
any sort with the reichsbank. and
to require submission of all issues
of treasury obligations, either OF
short or long term, to the allied
control authorities.
Fourth, to place the reichsbank
under allied supervision, IN order
4 . 81. Al n
requirements affecting it,
Fifth. to strengthen to whatever
degree the allied supervisory au'
; thorities deem necessary, disposi-
tons taken to prevent the export
of capital and the boarding OF for
eign exchange.
Sixth, as soon as circumstances
. permit, to begin the issuance or
gold treasury securities. the flota-
ton of which is to be facilitated by
/ certain fiscal advantages, the re-
ceipts from these issues to he de-
) voted exclusively to the strength
| ening of the reichsbank metal re-
: serve. SO far as necessary. so as to
| insure currency reform and also
/ to pay reparat.ons not covered IN
the budget.
[ Seventh, the German govern
! ment would continue to collect in
: gold or in foreign exchange at
least 25 per cent on the value OF
| exports. The receipts from these
, collections, as well as customs
: duties on exports and imports
. would be paid into special relchs-
! bank account in the name OF the
committee on guarantees. and un-
der the committees control the
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