The New York herald., 1922-03-23


Washington, ID. G., March 22.
The United States Government in
all probability will have to take Ger
man goods in payment Of the $241,
100000 claim for maintaining the
American army on the Rhine. as a re-
suit Of the establishment of a partial
moratorium in Germany.
This opinion developed in Admins
tration circles tonight, when State
Department officials began to study
United States. following the dispatch
Of the identic notes to the allied Gov
ernments insisting upon the legality Of
the American claim for repayment OF
army expenses.
Secretary Hughes declined TO speou-
late as to the prospects. but from other
State Department sources 1t was learned
that no real concern exists over the de-
cision OF the Allied Preparations Com
mission to accept from Germany during
| 1879 a total Of 720, ,000, 900 gold marks
and 1,450. 100000 marks in kind-that
Is. in German goods
WOuIu WelcOme Sertnln DSes.
The Government, from present indi-
cations. would not be averse to the ac-
ceptance OF German goods IL they were
what are needed In the United States.
The country is short Of dyestuffs, for
instance, and certain German dyes In
quantity would be welcome.
When the Preparations Commission
first set to work II took upon itself the
distribution OF dyestuffs to the allied
countries, and the United States was
included in the general scheme OF dis
tribution. Since the United States is not
a party TO the Treaty OF Versailles. under
/ which the Reparations Commission IL
constituted. the American share was to
be in charge of the Textile Alliance.
Money was paid in for the dyes and the
money was distributed TO the allied
nations by the Reparations Commission.
The scheme has collapsed. however. and
the United States is receiving none OF
\ the dyes.
The total amount Germany is to pay
\ in cash-720,0 000. 900 gold marks---is
considerably less than the amount OF the
American claim, which stands. UP to
May !, 1921, which Is the date OF COM
putation, at e66.374,00o gold marks. or
approximately 3241, 900. 900. 1t is OBJ
vious of course, that the United States
| In ell events could not be paid In fun
in cash, since Germany will not pay that
amount OF actual money into the repar-
ations fund.
Secretary Hughess statement in che
note to the allied Governments that the
United States would enter into reason
able arrangements for the payment Is
taken to be indicative OF the American
willingness TO take goods II necessary.
1t never had been expected that the
money due would be paid In cash.
Representation Urgent.
The decision Of the Reparations Com
mission to take German goods instead
1 of money makes IL even more desirable,
State Department and other Administra-
ton officials declared tonight. that the
United States have a representative "a
n member of the commission. Tbs
money due to the United States Is ho
small amount, OF course. and there is the
ever present concern as to what Is COINS
| on in a general economic way In Europe
knowledge Of which is regarded by Some
of the officials as essential TO American
business welfare.
4 president Harding has already indi'
| Gated a desire that the United States &C
| cent membership on the Reparations
Commission. II Il is authorized by Con.
gress There is reason TO believe thai
some such step will be taken. parti.
culariy in view of the turn that repara.
tions affairs are taking. Up TO this time
the trouble has been with the Senate
some members of which always have
been vigorously opposed to the United
States having anything to do with the
subject, on the ground that II would
involve the country in European en-
| tangIements.