The New York herald., 1922-06-14

has at least been postponed Dy the
payment of the 5O,OOO,OOO gold marks
by Germany due Thursday.
Special Gable to THE New YORK HERALD.
Copyright, 1899, By THE NEW York HERALD.
New York Herald Bureau.
- Berlin, June 13
The German Government will try to
fulfill the terms accepted in Paris by
Andreas Hermes. German Finance Min
lister. In regard to a reduction in the
issuing Of paper money and a strict
economy program, a Government Off
cial told THE NEW YORK HERALD cor
respondent The German Government
will continue 10 make provisional pay
ments of 50.O00,00O gold marks monthly.
totalling from July to the end of the
year 35o.oOO.OoO gold marks. In addi-
ton Germany intends to pay in paper
the equivalent OF 1.200,OO0,o00 gold
marks necessary, to meet the costs of
the armies of occupation.
The assurance Of the Government to
reduce expenses constitutes pious wish
rather than a tangible reality because
the task of eating down the national
bureaucracy involves political difficult
ties which the present Cabinet does not
dare to face.
Increases Bring New Demands.
The same official admitted that
Germany cannot. stop the printing of
paper money owing to the constant de-
mands for higher wages due to the
increase in the cost of living. The
latest rise in the value Of the dollar
brought new increases in the cost OF
food which will automatically bring
on new demands for higher wages
The nationalist manufacturers Eave
shown satisfaction in the decision Of
the bankers committee not to float an
international loan at this time. DR..
Karl Helfferich, former German
Finance Minister, wants the Govern
ment to repudiate the Hermes agree
ment as to the introduction of strict
economy measures and to inform the
Allies that Germany will not make
further purchases of foreign currencies
to meet the reparations until the dollar
exchange is reduced to low level.
THE bankers memorandum should
be Germany's magma charta to show
the French that the London agreement
demands cannot be fulfilled" Theo-
CoIe NOii says III tHe oeffW0 luye-
bidtt. o1s
More Depreciation Expected.
Leaders of the Peoples Industrial
party say that they are glad the scheme
for small loans failed. The manufac-
Jurors, under the impression that the
mark would be stabilized through loan,
thus bringing on higher costs Of produc-
ton. had speeded up their production to
the maximum. Now they figure that
there will be an immediate depreciation
in the mark to at last 400 to the dollar
and further feverish stimulation of pro-
duction is on the way.
Authoritative official and rnanufac-
turing circles see a revision downward
In the Versailles reparations demands as
essential to payments after the present
year. With such>a revision they couple
the need for large international loan
which will go primarily to France but
which will permit Germany to stabilize
her own currency. Such a loan, whether
covering the whole amount of repara-
tions or not, they think viii mark the
limit of reparations which Germany will
ever make.
Meanwhile the SHINES group figures
that the political situation will change
to Germany's advantage. due largely to
the Russo-Gernian treaty. And the
Government in the meantime intends,
through economy, TO show foreign in
vestors that Germany is determined to
put her finances in order