Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-09-01
FRENCH CABINET
JUST 'COGN|zANT'
Refuse to Take Action on Re-
Iieving Germany Of 1922
Cash Payments
SEE VIRTUAL MORATORIUM
By Associated Press

Paris, Sept. 1.-The French Cabinet
today simply took cognizance' or the
decision Of the Reparations Commission
on the German moratorium question,
neither approving nor disappearing 1t.
t specifically reserved. however. "entire
liberty of action" in case later develop
ments made other action necessary.
The decision relieves Germany of max
! ing any further cash payments for the
remainder Of this year, but defers the
moratorium issue Mt present.
The Cabinet held that inasmuch as
no moratorium had been granted Ger
many 1t could only recognize" the
! ference should be called. attended by
''all the Allies without exception at
which the questions of interallied debts
and reparations should be fully consid-
cred.
The first effect Of the decision is to
take the reparations question out OF
the hands Of the commission for the
present and to make 1t matter for
negotiation directly between the Berlin
and Brussels Governments. Belgium is
left to determine what guarantee she
deems necessary to acceptance OF the
short term notes.
on the necessary guarantees. Germany
then is required to deposit an unfxed
sum Of gold with some foreign bank ap-
proved by Belgium. 1t is believed.
however, that a speedy agreement would
be reached. as Herr Schroeder, the
German spokesman. yesterday virtually
promised NJ. Delacroix, the Belgian
representative, that Germany would
give any guarantees demanded.
The decision also anticipates an
allied conference in the near future, at
which reduction Of the indemnity to
about fifty billion gold marks and the
settlement by cancellation of the inter-
allied debts will be undertaken.
The Reparations Commission prom
ises TO consider later Germany's request
for a moratorium of several years du-
ration. This will be taken up after a
new scheme for radical reform of Ger
many's finances. including the balancing
of the budget, IS presented to the Berlin
Government.
The relief granted at the present
time is for the purpose of giving the
commission time in which 10 complete
the new scheme of reform and Germany
the opportunity of carrying It out.
The commission expects that these re-
forms and the relief afforded by the
virtual moratorium for the remainder
of this year will permit Germany 70
float external and internal loans, the
latter to be used partly TO pay repara-
lions and partly to rehabilitate the
country's finances.
The manner in which the decision was
arrived at was dramatic. NJ. Dubois, the
French representative and president of
the commission. held up the meeting for
an hour and half while he pleaded
with Premier Poincare to accept the
compromise and thereby preserve against
Germany the united front Of the En-
tente.
He returned to the meeting on the
run. and when he breathlessly an
nounced the French acceptance BY
sion restrained cheer with the great
est difficulty and Immediately took their
unanimous decision.
Prime Minister Lloyd George, OF
Great Britain, is believed to have ap-
proved the plan over the telephone
only a few moments before the de-
c!s.on was announced, and the Italian
and Belgian delegates are known to
have been in telephone communication
with their capitals during the late aft.
ernoon. Thus the decision came pri-
marily from the very seats of the En-
tente Governments.
While political circles generally are
favorably impressed by the agreement,
It is received with anything but en-.
thusinsn By the press this morning.
London, Sept. 1.-(By A. P.)--Al-
though considered only in the nature
of a respite, the reparations decision
rendered in Paris yesterday had quite a
marked effect upon financial London,
indicating the sensitiveness OF the money
interests and the amount Of speculation
recently.
Quotations on the mark on the for
eign exchange market, which yesterday
ruled around 1900 TO the pound sterling.
ruled 500 at noon today. Paris eS-
change strengthened to $50, as against
1888 yesterday.
A similar effect was experienced on
the stock exchange, where repurchases
hardened the war loan to 100, while
other gilt edged stocks and French
bonds showed fractional improvement.