The New York herald., 1922-05-31

autonomy OF the Reichsbank is already
assured by the bill passed May 25 and
that economies already have been ef-
fected to the amount of 24,500.0O0.0 600
marks as compared with the appropria-
tions for 1921. Further reductions
amounting to 5000. 100000 marks, il
Says. will be effected in the extraordi-
nary appropriations. y
A special commissary of economy. 1t
IS announced. will be attached to the
Ministry Of Finance.
Agrees to Control.
The German Government agrees TO the
principle os cnntrol of receipts and ex-
penditures proposed by the Preparations
Commission, but says it ''understands"
that this control will not infringe upon
German sovereignty or violate the Sc
crecy of the fortunes or private affairs
OF taxpayers.
The consideration of proposed meas
ures TO prevent the removal of capital
from Germany and to obtain the return
of capital already placed abroad has
been delayed, says the reply by the alb
senee at Genoa of number of those
whose presence in Berlin was necessary
for tile purpose.
The Government agrees fully with the
Preparations Commission. it says, that
remedy this condition regarding capital,
and it purposes taking all necessary
measures to induce the return OF eX-
patriated capital through the means of
interior and foreign loans.
The German Government, the reply
adds, will deliberate with the commit
tee on guarantees to this end. and will
also confer with the committee regard
ing the application of fiscal legislation
.,,,1 -. .
mittee every facility to inform itself
fully regarding receipts and expend-
lures.
France to He Satisfied.
The disquieting prospect that France
would bring further pressure to bear on
Germany, with the extension OF her mill
tary occupation, is regarded in repara-
tions and political circles as eliminated
by the reply. Dealing with the question
OF loan the reply says:
The German Government, determined
to make the most strenuous endeavors
10 prevent any further increase in the
floating debt are. however, convinced
that in the present financial conditions
such efforts cannot be carried through
unless Germany receives reasonable as
sistance in the way of a foreign loan.
Provided such assistance becomes avail
able !, ithout undue delay the German
Government will undertake to deal with
the question on the following basis:
'The amount of the floating debt as it
stood on March 81, 1922, is from now
on TO be the normal maximum. If at
the end of June or at the end of any
subsequent month the amount exceeds
the normal maximum steps will be taken
to secure repayment Of the excess within
three months following by means of ex-
cess receipts or by raising credits other
wise than in the form of giving rise to
fiduciary initiation"
The German Government promises
that in case the maximum is exceeded
again it will endeavor to impose new
taxes sufficient to make up the differ
ence. Pending the receipt of the pro-
posed foreign loan, however, the Gov
crnment asks that the floating debt may
be increased in paper marks to the
equivalent of payments OF foreign cur
rency made and TO be made since March
81 under the terms of the Treaty Of Ver-
sailes
The condition imposed in the reply
that Germany must have help from a
foreign loan was first thought to be
mistake in the French translation, since
the German text was interpreted as ex-
pressing the mere hope" that this help
would be given. Inquiry in Berlin, how
ever, developed the fact tina. the German
Government intended to make that pro-
viso.
The Temps remarked that the reply
was silent on the question OF forced
loan. which was expected to produce
1000, 600. 900 marks, but the newspaper
forecast it's acceptance by the Repara-
tions Commission.