Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-10-21
HAS PLAN
IN SOLUTION OF
GERMAN Problem

Paris, Oct. 20.-(By A. P)-Com-
plete and rigid control of all German
finances, power to veto expenditures
and regulate taxation. and authority
to dictate the arrangement of the
budgets of the various German
states, are among the chief pro-
posals contained in the plan of the
French government for a solution of
Germany's financial difficulties and
for placing that country in a position
to meet her separations payments
The plan was submitted to the
reparations commission tonight by
Louis Barthou the French represen-
'tative on the commission. and dis
cussion of the project will begin to-
morrow. Although not mentioned in
the official summary. NJ Barthou' S
plan contemplates a meeting of
leading business men of the world
to determine Germany's capacity to
pay and to consider the question of
InterAllied debts.
The plan in effect is reply to the
British reparations project recently
placed before the commission by Sir
John Bradbury. 1t differs radically
from the British point of view. NJ
Barthou urges the calling of Brus-
sells conference to deal with a broad
reparations settlement and Allied
debts and the question of German
payments in 1928 and 1924. France
would limit the powers of the repair
ations commission to the application
of new guarantees and reforms for
Germany. leaving the more compre-
hensive issues to an international
meeting. Or
The proposition would gradually
put Germany on gold basis. be-
ginning with an issue of gold treas
ury securities. M. Barthou would
have Germany pay her outstanding
Obligat tons in paper currency and he
calculates that then Germany's pa
per circulation would be 510,000,000,-
100 marks, which. at the present rate
o! exchange, are worth less than the
Keichsbank gold reserve.
The moment has come. according to
NJ. Barthou, wien the Allies must take
energetic steps or else be faced by a
Germany proclaimed before the world
as a ruined nation, despite the fact
that her actual capital is intact.
I'VE don't accept the contention that
Germany is totally incapable of pay
ing" says NJ. Barthou in his plan. De-
spite Germany's enormous budget diff
culties, she retains tremendous riches
and has great strength to continue
production and maintain her national
vitalitEsi
The French plan would so interpret
the theory of prohibition of interter-
ence in Germany's internal affairs as
to permit this radical control of Ger
man finances; the budget of the var
Gus German states would be super
vised thoroughly to prevent extrava-
gances. regulate expenditures and
make provisions for indemnity pay
ments A committee would be per-
manently established in Berlin and
would have charge of the carrying out
of all new reforms. In case Germany
should refuse Immediately to observe
the new demands. she would be, de-
/ AIRED involuntary default by the COM
mission under the provisions of the
trt atty of Versailles.
a minimum of receipts would Re
fixed and maximum of expenditures
for Germany would be set. and Ger
many would be required to float inter-
national loans at an opportune moment.
Neither the government nor the states
would float loans without Allied auth
GRITTY.