New-York tribune., 1922-03-20
OurReparations
Claim Fails tn
Disturb France
Whole Program Would Have
10 BE Modified if Ameri-
can Demand We're En-.
forced, 1t Is Believed
Large Exports of Gold
Lack of Ratification of Ner-
saiiies Treaty Here Fac
Tor i'll Unset,Iing Problem
spec1ol Cable to The Tribono

'Nopyrght. t922 New York Tribune Inc,
fAkiS, March 19.--Pubic oninion il
not greatly disturbed by the request Of
the United States for share in tho
ilrst oillion marks reparation to cover
me cost OF the American army of oc-
cupa'lon' This question Of reimburse.
,"'hl Tor the armies Of occupation has
teeh discussed for two years nv tho
AlIled powers, the final decision hoinc
20 give Britain 500,0O0,0O marks. while
belglum is to receive 100000 00o
france l40,oO0,000 and Italy 10000 600
AS America did not ratify the Yer
S,auleS treaty and did not express a
ueSlre TO be reimbursed while the dis
eussion was proceeding. il was aoraad
20 hold her claims in allegiance until
some general knowledge Of the repara
uohs payments during the next two
years could be had. These payments
would certainly have to be modified If
lnter-Allled government debts shonld
require partial reimbursement in tbc
near 1uture, because the moratorium
Iof the benefit of Germany in respect
TO special payments at a time when
4e'tS exports OF gold were being sent
20 the creditor nations would make
the burden of reconstructing the devas
tated regions doubly onerous.
ii is curious paradox that what was
inc richest part of France is now the
greatest obstacle to her financial re-
covery. The national budget is now
potentially balanced at 25oOQ.OOO, 900
francs, but an additional outlay of
more than $4,000 100000 will be re-
CURED this year to carry on repairs of
villages, mines and public utilities. The
reparatlons in kind will diminish the
dehcit, but these will not total more
than 4,500,o00,000 francs in paper
francs at current exchange, probably
nearer 3,500000,000
The ratification, however, Of the
Wlesbaden agreement put the treasury
IN sounder position as German de
llveries of coal machinery Will be
turned over to industrial and agricul-
tural interests in Northern France who
Will pay one-ffth of the loan pre-
vlously advanced by the French gov
ernment for reconstruction purposes.
Under the new agreement these inter
ests will receive annually IS per cent
of the deliveries, not to exceed
total Of 1,750000,000 gold marks.
The financial policy of the Poincare
government is developing clearly
toward low interest rates in order that
investors might again take an interest
in long term bonds and accept the con-
solidation loan which will be floated
on reasonable terms this spring. 1t is
contended that with the interest rate
on treasury bills just reduced from 5
to Az per cent, the new perpetual, is
sue should, if possible, maintain the
same rate, if exempt from inheritance
and income taxes.
The government has been so stead
lily in the market for funds that the
demand for capital has been rising to a
point where it constitutes an excessive
burden on the 6.6 per cent national
bonds. and handicaps private industry
as we'll. The result has been a stock
market lower than at any time since
1914, despite the intervening imitation.
P. L. NJ. stock, which sold at 1882 in
1914, now has declined to 829; Credit
Foncier has fallen from $50 to sos,