The Washington herald., 1922-03-05
Belgium and Luxemburr.

~ NE of the results of the great war which has
~ not been very popularity noticed has been
the economic union of the Grand Duchy of Luxem-
burg with Belgium Luxemburg's history since 1914
has been very quiet Much sympathy for the
Duchy felt in America when the German arm
les made Luxembourg their own, and such reports
came from Luxembourg to the effect that the
sentiments of the people favorable to the
allied cause Naturally, such would be the case.
But whatever the sentiments were, they were never
weadvertised. Luxembourg appears to have no
press agent, department of propaganda. Like
wise, the changes which have taken place in the
Grand Duchy since the ended have not been
noisily proclaimed to the world.
Something of the connection between Bel
gium and the Grand Duchy is told in the Economic
Review of London in its issue of February II. The
article on the subject includes the following:
THE Belgian chamber has ratified the eco
nomic convention with the Grand Duchy of
Luxemburg by I3o votes to and absten-
tions; Under the agreement the customs bar
r1er between the two countries will disappear
and the duties and regulations in force in Bel
gum will be extended to the Grand Duchy,
while the revenue derived from customs and
excise will be equtably divided between the
two countries the basis of population. The
Belgian government is also to afford the Grand
on sound footing. After the armistice the
government OF the latter country withdrew the
German currency from circulation in exchange
rate of I.25 francs per mark. The Withdrawals
amounted to eoo,oooyooo marks. and to enable
the Luxembourg government to redeem this
treasury note issue it is to be allowed to float a
loan OF I75ooo,ooo francs in Belgium through
the Banque Nationafe, bearing interest at per
cent, the. proceeds to be paid over in Belgian
banknotes. Eventually Belgium will relieve the
Grand Duchy treasury of its stock of German
money. Finally, the railway tariffs of the two
countries to be assimilated. but the method
of administration of the Luxembourg railway sys-
tenn is to form the subject of further negotia-
tions. 1t is anticipated that, a result of the
convention, Belgium will find better market
for her coal and coke, also for drawn or
rolled zinc, machinery, earthenware and china,
window and plate glass; soap and mineral oils,
chemical fertilizers, cotton and woolen yarns
and fabrics, linen goods and clothing, footwear,
colonial produce, and foodstuffs. Antwerp, too,
is likely to benefit by large increase in the
industries while the Grand Duchy has the pros
pect OF building up a fine market in Belgium for
her Moselle wines"
This economic union of Belgium and Luxem-
burg will doubtless prove of benefit to both. It
will surely have political as we'll as an economic
effect tending toward political stability. This union
OF an economic sort gives hint of what may be
accomplished elsewhere in Europe, perhaps in the
succession states of the Austrian Empire. Many
regrets about the damage done by splitting of big
states into little have been expressed. If
economic Unions, measures of that general ma
ture, can be effected in many of the European
states regrets over political divisions will be
justified.
1t is interesting to note that the depreciation
of the German mark, through initiation of the paper
currency by the German government has caused
a loss in Luxembourg in the value of the 2oooooooo
marks converted, mentioned above These marks,
Of course, worth only fraction of what they
worth at the end of the war. Apparently,
Belgium is to take these German marks off Luxem-
Wi az Re1C ia IN
be added to the lst-which includes Lithuania and
France because of the exchange of francs for
marks in Alsace-Lorraine)-o countries which Ger
many has really been able to tax through that form
of invisible taxaton"-nflated paper currency