New-York tribune., 1922-03-23
Bankers Here
See Progress
In Moratorium
Terms of Modified Program
of Reparation Collection
VIII Reduce Cash Rcquir-
ed From Germany, Belief
Faires, Proposal Made
Importance 10 United States
Lies in Benefits To Be
Derived From Trade

Decision Of the Intcr-Ahed Rcpara-
lion Commission upon conditional
moratorium embracing the pavmen1s
REQUIRED by Germany this year was re-
serded by international bankers here
Yesterday SIS indicative OF distinct
nrogress toward settlement OF prob
lem whose existence has contributed
IA Important measure to retarding Eu
-opeaN recovery. Lack of specific
know edge Of the basis OF tho decision
made !; impossible FOR bankers to cs-
innate whether it was formulated with
6se cons derstion for Germany's Geo
nomic and financial ros tion or was
perhaps too much influenced by po-
iisicsl eNigencies. hut generally it was
accepted aS the faircst proposal vet
brought forward
The terms Of the modified program,
+. was emphasized yesterday. reduce
very substar tia Is the amount of cash
required from Germany Bankers re-
marked that it Was in mccti.g the cash
payments that Germany had cxperi-
cnced the greatest difficulty. having to
resort 80 purchase Of exchange in the
market. with consequent cemoralizing
cfcct upon the quotation Of the mark.
Since January when Germany Informed
the Allies Of her inahi ity to meet The
origira Al schedule, Il total Of 1Sj 600 900
gold marks has been t0rned over to the
Allies IN inst2ilments of $1,000 900
marks each ten days. leaving on 544
100000 eold marks to be paid during
the remainder OF the year.
Characterized as O almost coua' i'm
portance with the reduction in the
amount Of payment, the extent of
which could not be calculated because
Of the uncertainty Of the . per cent
tax on exports, now dropped. the new
degree Of supervision to be exercised
over Germany's Fl ancial and economic
asdmlnistra ion by the Allies was widely
indorsed. Private advices received in
the finsncial district indicated that the
Allies would not take direct charge Of
admin strative operations, but wou d
supervise them II the point of assur-
ing against fraud and trickery.
Terms Em;nently Fair
It is difficult for an american to
judge such matters,' said q partner
il orc of Wsll Streets argest bank
ing houses, but believe that the
terms now proposed are eminently fair
and arc in accord with Gormanv's
ability to pay. | base this opinion
npon the fact that tie terms approx
mate very closely those presen e1 ut
London a year ago by DR. Walther
Rathenau es spokesman for the Ger
man delegation AS stated then, they
we're conditioned upon reten n of
Asacc. 'avorable in.ernreta ton of
'he s. csian plebi cite and other con-
tessions - Germany, but these were
put forward in my opinion merely as
flac rg rroD 'siti0ns.
q am rarticulGrly pleased that tre
Niles. perm ting temporary modi-
acsson did not attempt 70 fix what
L Germany should have finally to pay.
The T. uble Wit he Versail es terms
sas that they tried to squeeze too
-uch out at the star. The news CON
firms my earlier understanding tat
PREMIER P;incere of France had come
70 reNli7c the inevitability of a policy
Of delays"
None Of the barlers whose opinion
vas sought would coneent to be
quoted by name. but t ere was a quite
general inclination to .alk frecy on
the detision. A member of another
leading frm was less optimistic as to
Tic ability of Germany TO meet the
aofy terms.
Step in Right Direction
The decision merely pu;s into effect
the Sc edulc formulated at Cannes"
he said. at is q step in the right
direction bccaus it involves modif-
gation Of the original terms and be-
eause the Allies are TO undertake some
supervision Of Germany's affairs, which
eheuld acquaint them with her real
situation T ere is no evidence that
the revised terms have been framed
@ith any attention TO what Germany
ran pay; IN fact, so far no attempt
seems TO have been made to find out
ir ba .rD+
IN will never be settled except on a
usiness basis. Germany is a broken
.ewn and unwilling debtor, and her
'ifairs must bc rcorganized in the
amc way that railroad reorganiza-
on would be undertaken.
Inc new arrangement does not pro
de receivership for Germany but
s5ner the creditors arc organizing
'ommittee 10 overlook Germany's finan-
Aal and economic administration to
9rotect their interests. In this task
'Aey are likely TO obtain the facts that
re requisite TO a solution Of the prob
'em, Germeny's ability to pay is meas
red by her capacity for production as
Aeasured by gold marks, minus the
'od -aark value of imports Of raw
Materials necessary to enable hey to
roduee values that the world will &C.
ept. The Allies will be in q position
ascertain this when they shall cease
linking purely in terms of politics
nd VIII have Gernany's cooperation
vhen she is Convinced that their pug
ose is not to squeeze The last possible
e1t from her
The Importance of the decision from
ae American standpoint was said to
10 solely in the benefits acruing to
ne trade Of the United States from
ny action or event tending to stabil-
70 conditions in Europe.
Wool Machinery More