The New York herald., 1922-07-16
FOREIGN Loan ONLY
HOPE FOR GERMANY,
DR.. SCHROEDERSAYS
Under Secretary Of Finance
Explains Critical Position
of His Country.
MORATORIUM WILL AID
Mark Must Be Stabilized or
People Will Suffer From
Rising Prices.
Special Gable to TIE NEw YORK HERALD.
Copyright, 1929, by THE NEW YoRK HERALD.

Special Gable to TIE NEW YORK HERALD.
Copyright, 1923, by THE NEW York HERALD.
New York Herald Bureau.
Paris. July Is.
There is no doubt as to the crisis
Germany is experiencing. Apart from
the political upheaval which Is menac-
ing us, unless there can be found some
method for stabilizing the mark ex-
change and of bringing the dollar back
at least to the rate of the spring OF
1921, upon which our budgetary calcu-
lations were made, the effect on the
public confidence in Germany is GER
tain to be disastrous"
That is what Herr Schroeder, Ger
man Under Secretary of Finance, told
THE NEW YORK HERALD correspondent
in the first interview he has given here
on the critical situation which brought
him to Paris. Herr Schroeder had just
left the Preparations Commission. with
which he had deposited Germany's plea
for thirty months moratorium, in
cluding the July payment of 100000
gold marks. He said Germany would
have to buy foreign currencies at
tremendously inflated rate to keep its
internal life going at the dangerous
level it has now reached.
Prices Rising Daily.
with prices going up daily" he con-
tinued, "and without any means of rails
ing wages to meet these prices. except
through the prohibited system of print
ing billions of new marks. the workers
and the budget must suffer and the tenn
per OF the people also. Naturally the
! Communists in Germany and others who
are against the Government. are more
than ready to take advantage OF this
! situation, which only the loyal coopera-
tion OF the Preparations Commission can
remedy.
I'VE have purposely not asked for
any reduction in the payment of repara-
| tions In goods. We are willing to do
our best in this respect and are trust
ing that a moratorium for the remaining
payments this year and no fixed pay
ments in cash for the next two years
will aid us. II. as 1 believe, some sort
of stability in the mark can be restored
during this period. even at 800 to the
dollar, we feel that we will be able to
20 on. always provided the cost of liv-
| ing decreases proportionately with the
| fluctuations In the mark.
"Of course, the idea Of an fnterna-
tional loan has by no means been aban-
doned. Other remedies are only step
ping stones. The real solution must be
found by getting down to the heart OF
the problem, namely, Germany's need for
| sufficient money from exterior loans or
credits with which to restore her eco
nomic life on a workable foundation.
Although the fall In the mark has doubt
less destroyed confidence in Germany.
we can point to the fact that until the
mark began to slide we were on the way
to balancing the budgets.
| For instance, during April and May
| our receipts were about 3O.co0O00OOp
paper marks. while our estimated ex-
penses~for the year were only 10s.0oo.
100000 marks. or surplus of 1000, 100000
| had the same ratio been continued.
yet our living expenses continue to
| increase at tremendous rate. and dur
| ing the last two months the cost index
| for food and household supplies has
| risen more than IS per cent. We hope
that the bankers committee will again
take up It's work, and feel that a meet
\ ing of the finance experts OF the allied
countries such as has been suggested
in the English press would be step
toward this end.
Sees Hope In u. 8.
"As to the proposal that England and
4 the United States cancel q portion OF
Frances debts to them In return for a
reduction In the reparatlons total. while
this is a matter for those three nations
| TO settle. it certainly would have its ad-
vantages for the United States. From
the standpoint of commerce in Ger
many alone II would lead to stabiliza-
ton and would enable Germany TO buy
In much larger and more profitable
| quantities from the United States.
There has been great misunder-
standing as to Germany's trade. IL
must not be forgotten that before the
war we were able to balance trade
| deficit by special freight arrangements
| by banking operations and by certain
revenues from our colonies. but to-day
that IS impossible. ave. as well as the
rest OF the world viii be much better
| off when we are able TO buy abroad on
a more liberal scale. which is not possi-
bic until our financial situation has inn
| proved.
This Misunderstanding IL also ap-
parent In the French charges that We
have not worked Loyalty with the COM
mittee on guarantees. There has been
absolutely no bad faith on our part
We have replied fully and promptly to
every request for Information as provided
In the treaties, but IL is only natural
that lines should be drawn between
| Information and the Turkfication OF
Germany. As TO conccallng It's finances
tho German Government certainly has
not tried this. In a country with
Parliament the most accurate figures
must always be at the disposal OF the
Parliament and the people. II is. there
fore. as much TO our interest as to that
Of the Allies TO have our financial status
definitely known"
wEyNsToCK IN VEnvv~