New-York tribune., 1922-01-22
But Apparently the
Fntherland's Goose
Has Been Overly Can-
MI and Stopped Lay
ino Too Soon, for Con-
ditions in the Nation
Nou Indicate q State
of Fake Bankruptcy

l. The Allies imposed on the Reich the
obligation to lay so many reparation
,~cs wear and to keep on laying them for
,a.r,v half century. The Berlin govern
oent now is busy explaining to the Repara
,on Commission that the German goose can't
;rs m 10 schedule. 1t also tactfully hints,
With the moral of the fable in view, that it
would be entirely foolish and improbable to
strangle the goose for that reason.
The German goose is canny, perhaps too
csnny She stopped producing eggs too soon
There has been too much method IN her
nsingering. The Versailles Treaty demanded
elden eggs only. The German tinanclers and
industrials quickly saw that it would be
cossjbe for them to bring on golden egg
shortage By overworkng the printing presses
thew suothered Germany in paper marks. The
cold value Of the mark fell from its par of .
"a cents plus to about one-thrd of a cent BY
selling billions of this practically worthless
currency TO foreign spectators the Germans
gathered together considerable sum of real
money. Some of this they have used to pay
off their back treaty accounts. But with the
mark worth only a fraction of cent they
nox come to the Allies with the poser: "How
can we paw YOU in gold, when it is too dear
for US to buy with our deprecated paper notes
and when the desperate state of our finances
makes it impossible to borrow gold In foreign
markets"
Germany was obligated to pay 5O0,OOOOOO
cold marks on January Is of this year ana
275OOO,O00 on February Is. On December z
last the Reparation Commission (after visit
10 Berlin and an examination of conditions
there) Informed the Wirth government that
these two payments would have to be met.
About 375 0o0 900 of the 775,000,000 marks due
have already been charged off against pay
nlents in kind The commission bluntly told
l Chancellor Wrth that indulgence could pe
considered in view of the facts that the Relch
had not taken measures necessary to balance
its budget, that it was spending sums on IN
ternal administration which were far beyond
its present resources that it was promoting
imitation and that it had neglected either 70
\ prevent the transfer abroad Of assets belong
ing TO German citizens or to recall similar
assets already conveyed to foreign countries
4 chancellor Wirth was still persuaded, how
+ ever that the golden goose theory would work
l He wrote a letter to the Reparation Commits
! sion saying that he had made every effort to
arrange TO meet the January and February
i payments, but had failed, chiefly because the
i English bankers, whom Walter Rathenau went
+ 10 London to consult had refused t. make
Germany either long term sr shoxt term
loan. Consequently he had T.. report regret
fully that his government could no way to
mako payment in full He put the sum In
gold available for the January and February
statements at from 150000,0o0 to 200,000,00O
marks and asked for delay on the balance.
The Reparation Commission stood firm, how
l eFer subsequently, Chancellor Wirth an
l hounced that ho would be able to deliver the
tall amount. The golden goose had been per
Suaded to return temporarily to duty.
IN AT the Cannes conference, where Walter
Aathenau appeared and made a plea for
! atial moratorium, the reparation commits
s'a shifted ground to some extent. A pro
alona delay" on the January Is and Febru
sy payments was granted, under these con
dtions:
Inst-During the period Of provisional de
's germany must pay III approved foreign
seufites 100000 gold marks every ter
'S' tne hrst payment to be January 16
Necond-Germany within a fortnight nlus
-'aat to the commission plan for reform:
appropriate guarantees for its budget ane
paper currency. and also a program fol
q f"'aO'on payments in cash and in kind fol
til -"ro-Ihe period Of provisional della,
| eN" END when the commission, or the Alliet
| Ill Aa'ents, have reached decision in re
s.'o 20 the plan and program mentioned i,
| second condition. the balance due becon