The New York herald., 1922-01-28
FRANCE OPPOSES
WIRTH'S PROGRAM
Strongly Objects to Its Ac-
ceptancc by Reparations
Commission.
FOR INTERNATIONAL LOAN
Wants Leading Germans to
Float One With Factories
as Security.

Special Cable to THE NEW YoHx HEaALn.
COPYRIGHT, 1899, by THE NEw YonK HraALp.
Now York Herald Bureau.
Paris, Jan. 81.
LII Chancellor Wirth's financial pro.
gram. as outlined in the Reichstag yes
terday, Is to be taken as a suggestion Of
what Germany's note to the Repara-
tons Commission will be. It may be
stated In advance that France will inn
mediately set up the strongest opposi-
ton to its acceptance by the Preparations
Commission and will urge return to
the letter of the London schedule Of
payments. The note itself is not likely
to arrive until late tomorrow.
Frances great objection will be that
not the slightest effort has been made
to bring Germany to recognize that q
great international loan, as we'll as O.
tax on her capitalists. must be the first
step towards unburdering the repara-
tions difficulty.
The Temps confirms this attitude by
stating that Chancellor Wirths decla-
ration Is considered clever from O diplo-
matte viewpoint and from that Of in
terior politics. but is not so satisfactory
financially. as 1t provides merely n
treasury expedent affecting only the
interior OF Germany. without increasing
the guarantees or enlarging the sphere
of subscribers thereto"
international Loan Wanted.
The opinion OF leading French econo-
mists Is that Germany must induce her
leading industrialists to float an inter-
natioraf loan with their factories as Sc
curity, the German Government to as
sure the interest and amortization, but
the funds themselves not to pass
through the German Treasury on the
way to the Preparations Commission.
Such scheme, It is held here, would
be subscribed to willingly throughout
the world. The element Of compromise
which entered Chancellor Wirth's first
attempt to unite the financial tangle
also has served to increase French sus-
picions. Already there are protests that
while the French are facing a doubling
OF their sales tax, and In the case of de
luxe articles possibly an increase to
20 per cent, Germany only proposes q
per cent. tax. while the sugar tax Is
considered to represent a ludicrous eff
fort to blind the Allies to the public
waste going on in Germany, a.p.
Tax Evasion Tried.
Attention also is being called to one
item In Chancellor Wirth's proposals
which will affect the United States de-
livery Of properties now held by the
Alien Property Custodian, namely, that
the tax on postwar profits be abandoned
Under this If the United States, for jn-
stance, decides to hand back, say, $780,
100000 worth of property to German
holders after the payment Of American
claims this would only be taxed on the
pre-war value of 1,600.00O,000 marks In
stead OF at the present exchange rates.
In, nf d. - -
sidered In such instances to be willfully
trying to prevent the collection of taxes
on the present day mark value Of their
property. ~
One official of the Reparations Com
mission tonight admitted that II was
doubtful II even the British would sup
port such an effort to hamper the rep-
arations payments. but suggested that
Gcrmany's note might have a special
clause overcoming such objections.
Germany has paid the second of the
ten day reparation installments OF 31.-
100000 gold marks. She paid the first
on. January 10. The Preparations Conn
mission does not anticipate delays In
the later ten day installments pending
a decision as to what steps the Allies
will take to control for themselves Ger
many's internal and external finances
BERLIN, Jan. 27 (Associatede Press).-
According to the Ta0eblatt the German
note to the Preparations Commission in
explaining the Governments plan to bal
ance the budget especially mentions in
creases In postal and railway rates. 1t
points out that the ordinary budget for
1922 balances and that only the ex-
traordinary expenditure. mainly for rep
arations, remains uncovered. 1t Is
At.r-
loan. Moreover, the Governments right
of control of the Reichbank will be
abolished by law. thus altering the
Reichsbank's charter.
Unofiicial reports are that Germany
agrees to pay 500.o00.000 gold marks in
cash and goods to the value of 1,500,-
100000 marks as the current years in
stallment.