The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1922-08-24
PANIC IN GERMANY
AS ALLIES CLASH
All Efforts TO Bolster Mark Fail
After End Of London Farley;
Anti-French Feeling Bitter.

Berlln.-Not since 10 collapse o
the German battlefront and the coun
try's plea for an armlstice has such
panic swept the country as has oc
CURED since the news OF the fallur,
Of the London conference whicl
dashed all hope Of a moratorium
The Bourse, banks and fnancia
houses generally have gone through
some Of the widest hours In the his
tory Of Germany.
All efforts 10 halt the catastrophe
decline Of the mark have failed. Pre-
mier Poincare's declaration with re
gard to Germany at the close OF the
conference destroyed the optimism Of
even those Germans who had insisted
all along that the country already had
touched bottom. From government
circles and from the press come only
Wild cries Of despair. predictions OF q
swift collapse and a sure reduction "a
the state of Russia. Austria and Po,
land.
Expressions against France are par.
ticularly bitter, the press holding the
old enemy responsible for the crisis
In government circles 1t was trying to
force the occupation OF the Rhur, the
left bank of the Rhine and the gen.
eral dismemberment of Germany
Hatred against France permeaies all
classes to an extent equaled only by
the bitterness felt against England
when she entered the war against
Germany.
In an Interview Herr Won Glase-
napp, presiden, OF the Reichsbank, de-
clared that any effort by France to
exact from Germany by force what
she cannot voluntarily pay is doomed
to failure. Germany's reparatlon
debts, he said. must be brought to a
reasonable and bearable basis. "Other
countries" be said, "are suffering
through the failure OF the entente to
adjust the reparation problem and the
international debt question"
Discussing the proposal 10 curtall
the Issue Of paper money. Herr Won
Glasenapp said: "our opponents pro-
ceed from the wrong premise when
they believe that the decline of Ger
man exchange Is due TO credits placed
at the governments disposal by the
Relchbank. Even a totally autono-
nous Reichbank could not suddenly
curtail its credits to the government
without throwing the country's entire
economic structure into catastrophe
Moreover. you cannot deprive the gov
ernment Of all control over the Reich
bank. We realize the necessity OF
holding down credits to the lowest
possible limits but the Reparatlon
Commission itself said In a note OF
June IA that the amount OF currency
In circulation Is contingent upon the
balancing Of receipts and expenditures
and that no curtailment of the Issue
OF paper money Is possible until this
is achieved and the nations finances
set In order.
Likewise does the imposition Of
taxes have Its limits. which to a GER
tain point tend t. increase rather than
decrease the total paper circulation.
The proposal for an internal loan has
as little chance OF success as the re-
cent negotiations In Paris, So that ia
the absence Of other means The gov
ernment must continually return to
the Relchbank to obtain cash for Its
needs. especially reparation payments
The sooner that France learns these
things the better"
Germany's fulfillment policy has
now reached It's limit and she cannot
20 beyond the point she has reached
In an effort to reach the demands Of
the Allies for reparatlons. declared
DR. wledfelt. German ambassador 10
the United States on the eve OF bis
departure for America.
The ambassador said DR.. Raihenau
shortly before his assassination as
serted that Germany could not make /
July payments The ambassador add- /
"a that the decline Of the mark pre-
sented new difficulties In maintaining
trade with America, and that the
was nov In the most critical
condition since the end OF the war