The New York herald., 1922-04-17

banking and industrial leaders. M
by the candid manner in which he
conservative leader would obviously
impose before diverting his capital to
the purpose of government or large
private loans in Germany.
His proposals for a determination
of the theoretical value Of the paper
mark, based on the average index fig
ures and exchange rates during the
era of imitation, have also impressed
German circles as novel method OF
approaching a solution Of the German
financial problem. Sound banks and
industrial concerns Mr.. Crosby con-
siders fairly responsible for short
term loans, as they are naturally op-
Grating cautiously and will cease to
borrow on the approach of impending
trouble, in an effort to conserve their
established regulations.
Theories Shell shocked.
Sound economic education and
theories seem to have been shell
shocked by the war, the revolution
nd reparations," he continued. More
dangerous than mere unpreparedness
and apathy concerning the funda-
mental need of sound currency is an
attitude which regards the debt OF
the German Government as having
been actually reduced to the days
gold value OF the paper mark. did
not find in Germany among many
bankers and responsible Government
officials with whom / conversed one
man who had thought out plan for
giving a clear meaning to the prom.
ise to pay" autographed on the Ger
man paper mark.
"TEe highest fight OF German fancy
contents itself with proposing. in con-
nection with the reparations mora
torium. syndicate which shall 'stabi-
ize' the mark by buying and selling in
the market Such stabilization OF
course, Is simply respectable and
officially condoned speculation. No
German expert thus far las proposed
positive value to be arrived at in
the future, even though its realization
would require years"
Mr.. Crosby believes that he has dis
opposition to recognizing as a debt
that which the Government has ac-
tually received for its paper obliga-
tons This tendency, he states, is
partly based on the theory that the
German Government by such ac-
acknowledgement might possibly give a
profit TO foreigners who have bought
German paper marks.
1t is estimated that the German
Government probably realized $1,000
100000. gold value. by virtue of such
foreign purchases. which receipts
probably materially helped TO finance
its commercial needs during the last
two years.
Lose Hope and Sell.
When foreign holders of part OF GER
many's ]. o. us for 10000. 900. 900
Paper marks lose hope and sell, said
Mi. Crosby. they temporarily dcpress
the. exchange rate. but at the same time
make "a present to Germany of the
amount lost by them.
Complete frankness concerning her
internal and external industrial anc
financial situation should be inmedi
atcly Forthcoming from Germany IN the
opinion OF Mr.. Crosby. who suggests that
she present TO the Preparations Commis
sion and the world at large an unvar-
nished statement OF her true present
condition. emphasizing the urgent need
Of a currency plan. dealing precisely
with the ultimate redemption value OF
the mark and proposing concrete plans
for realizing this value by gradual and
known annual incremcnts.
This national inventory should also
direct attention TO the necessity for
frecr markets In which TO sell surplus
production and should further propose
a plan for complete and final settle
ment on Il liberal basis of the repara.
ton demands. He suggests that n this
appeal by Germany can also be made 9
demonstration in favor OF necessary linn
itations not now recognized By her
creditors Il will have the effect OF plac'
ing future responsibility where u be-
longs.
THAT such complete and essential
ste tcment has not yet been forthcom-
ing" said Mr.. Crosby. rs due to the
fact that both sides have overlooked
tho prime Importance Of immediate cur
rency reform. Blndly-t do not suppose
intentionally-both tho German Govern
pcnt and tho Reparatons Commission
arc riding for q fall. Tho sign here
policy has promoted ncssmism among
her leaders and carcfree enjoyment OF
the present among tho German people.
Happily, tho Rcparstions Commission 4
last communication sounds o new note.
Whether 1t comes too late remains 10
be seen"
Mr Crosby believes that the United
states should not be represented on the
Reparatlons Commission owing 10 com
piications that might nrise because OF
her rejection ~ the vc~sr'''er '~~afv.