New-York tribune., 1922-05-31
Paris Abandons
Its Plans for
Ruhr Invasion
Necessity for Separate Ac.
ton Believed to Have
Been Eliminated by the
German Reply to Allies
Loan Regarded as Detail
Teuions Agree to Make
Every Effort to Bring Back
appropriated Capital
BY Wilbur Forrest
Special Gable TO The rrsb,aae

I Copyright. 1872. New York Tribune Inc
PARIS, May Tomorrow. the date
OF the expiration Of the Allied Repara-
ton Commissions ultimatum to Ger
many, will pass serenely in Europe as
the result OF Berlin's acceptance of .he
l eon missions demands The German
reply made public to-day. came lust
in time to forestall new ultimatums
and even the march Of military feet
toward a new state of dscord. if not
war. It was known tonight that the
crisis had definitely been averted and
that the commission was satisfied with
Germany's answer
The communication from berlin
signed By Chancellor Wirth. assured
the French and other Allied govern
rents that the subject Of reparations
would not cause further strife. at least
THIS year. Waile 1t IS very Likely
that the commission will ask Germany
% clear ND several points as to pro
oedure in handling the de0t question.
the spirit of the German note is so
satisfactory that the commission de-
oded not to invoke its prerogative n
throwing back the whole reparation
problem to the Supreme Allied Council
This fact is regarded as important. for
il means that the commission, feeling
there IS no need for compulsion. will
proceed with the plans for mora
torium on 1922 payments from
Germany.
Financial Control Accepted
Germany accepts Allied control Of
her financial affairs In exchange for
the moratorium and promises to give
every facility to the Allied Committee
on guarantees, which, with headquar-
ters at Berlin. will act as inspector
ior the Reparation Commission.
Absolute severance of the Reichs-
bank from the Berlin government is
assured, thus eliminating the banks
Obligation to print more paper money
10 fill the Cabinets needs.
The Allied demand that Germany
DO her utmost to insure the return
TO Germany of capital smuggled out
Of the country and prevent its further
exportation, IS fully accepted by the
berin note. The German government
promises full cooperation with the
comm ssion in carrying out this work
The German note says in this
connections:
me German government has at
tached very great and special impor-
tsnce to the return of expected capitl
1t Will take every measure necessary to
obtain It's return by means of a foreign
or internal loan. Furthermore, the
government is prepared to discuss in
detail with the committee on quaran-
tees the steps to be taken against the
fight Of capital and, on the basis Of
such discussions, to adont any meas
ures deemed useful for that purpose"
All Subsidies Abolished
Taking up the commissions demand
for reduction of Germany's national
expenditures, Chancellor Wirth assures
ne Allies that the much criticized Sub
eldles to public services have now been
abolished. The government grants to
reduce the price Of foodstufs now
amount to less than 1000, 900 900
marks annually, as compared with more
tnan 1900. 100000 in 1921. the note
says. Other subsidies to shipping and.
railroads have been abolished in so
far as existing obligations have al
loved and as 1T has been possible to
modify administrative organization"
The expenditures provided for under
the 1922 budget, says the Chancellor
are 24,500,000 600 marks less than for
1921 He submits a table to show that
economies Of at least 100000 900
marks in government operation have
been made this year. and he asserts
mat measures have been taken to effect
llrther economies
1t IS on Wirth's answer relative to
@ss1ble further increases in the Ger
| man floating debt that tbs Reparation
Commission may have further negotia-
tons with Berlin. This part OF the
reply seems to lean somewhat on the
possibility Of obtaining the interna-
uonal loan that J. P Morgan and
other bankers have been considering
IN Paris. 1t is the opinion of some
MEMBERS of the commission that Ger
many leans too heavily on this pos
nolIity Therefore. in q note dealing
particularly with this phase of the
German reply, the Preparation Com
mission may ask Berlin to clarity its
Intentions.
Bankers May Clear Situation
However the situation may clarity
Itself now that the international bank
efs here are cognizant of Germanys
/ aeslre for moratorium and the
sngth gone TO obtain it, Wirth's an
'~er on this phase of the commissions
demands contains too many ifs, al
'naugh some mem bers Of the commits
son are ready to ADMIT that 1t con
tains n certain amount -'cf logic and
may be permitted to prevail. This
passage says;
Germany is determined 70 make
the most strenuous endeavors to pre-
vent any further increase in the float
ing debt. The government is CON
Wnced, in Che present financial CON
a'tions, that such efforts cannot be
carried through unless Germany re-
ceyes reasonable assistance in the
'orm Of foreign loan. If such as
sstance is Forthcoming soon, Ger
many agrees to pay back any excess