New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-15
With Sees Change
I'm Worlds Attitude
AS Aid to Germany
Preparations International
Problem, Chancellor De.
clares i'm Address to u. s.
Students Touring Country
Spccia! Gable to The Tribune

Copyright, 1922, New York Tribune Inc
BERLIN, July 14-The political
crisis threatening the dissolution of
the Reichstag continued in the fore
ground to-day. although in leading
government financial circles the main
interest conferred IN the moratorium
prospects which were laid before the
Cabinet by Herr Schroeder, Under Sec
rotary Tor Finance, who returned from
Paris to report the result of negotia-
tons with the Reparation Commission.
Before the Cabinet meeting Chancel-
lor Wirth addressed fifty American
students who are touring Germany, APP
peallng for American participation in
solution of the PREPARATIONS problem.
n, Il am gratifed," said the Chancellor,
ito know that both England and
America are realizing that the repara-
lions question is world wide. This
IS beginning to permeate even the
French mind. Economic problems can
not be settled by ultimatums or by the
sword. America once fought to free
the slaves and should understand that
an attempt to force upon a European
nation impossible burdens means the
establishment of slavery"
International Loan Necessary
The financial side of the trade situa-
ton IN Germany was outlined to-day
by Dr.. Otto Won Glasenapp, vice-presi-
dent Of the Reichsbank and one of the
leading financiers of Germany, in an
interview with The Tribune's CORE
spondent. DR.. Won Glasenapp urged
reduction of reparations and an inter
national loan as the only means of
saving the mark.
"Onr trade haiopco ic p.ee;,,o
DR.. Won Glasenapp. "Our essential
IMPORTS are not balanced by exports.
There are no factors to make up the
deficiency, as our trade balances in
former enemy countries have been
llquidated and German claims on for
eign creditors have not been met.
Former considerable profits from Ger
man overseas shipping hardly count in
view of the loss of our merchant feet.
Under these circum stances Germany is
in no position to meet the enormous
obligations imposed upon her by the
treaty of peace. The necessary foreign
currency to meet these obligations
must be obtained by the sale of marks
or mark securities, which in turn i'm
plies an increasefin obligations. These
transactions further depreciate the
mark abroad and will ultimately de-
prive 1t of all value.
Explains Mark Depreciation
'"The Reichsbank attempted to the
best of its ability to check this de-
velopment. 1t brought pressure to
bear upon exporters to fix their
charges on basis of world market
prices in order to cheaper the acqusi-
ton of foreign currency. The Reichs-
bank also endeavored to get control Of
foreign currency obtained by exporters
in order to facilitate PREPARATIONS pay
ments. But these measures are only
palliative for the real Improvement Of
the mark is only possible through a
substantial reduction of the intolerable
burden of Preparations accompanied by
al international loan that will enable
Germany to reconstruct her industry
and increase production. The wide
spread idea abroad that spectators are
in the depreciation of the
mark is not born out by facts. 1t is
also wrong to assume that Germany
has large holdings in other countries,
for how can she accumulate these in
face of the unfavorable trade balance z"
The mark at the close of the bourse
to-day was quoted at 470 to the dollar.