New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-21
Poincare Yields TO Plan
of Reparation Experts,
but Insists Relief Is
Not to Extend to 1923
Germany Bows to
Monetary Control
Strict Supervision of All
Finances by Allies Pend
ing Payment Is Assured
Special Coblc to The Tribune

Copyright, l322, New Ork tribune Inc.
PARIS, July 20.--The first break in
the financial clouds that have been
hanging over Europe came late to-day
when it became officially known that
France would agree to short time cash
moratorium for Germany, although
maintaining stand against extending
this to 1928 or longer. In addition to
this, the Reparation Commission heard
from the guarantees committee the de-
tails Of the German acceptance of AL
lied supervision over Germany's
finances.
Briefly, this means that the Allies
will soon be enabled to put in opera
tion system OF supervision at Berlin
which will really result in framing
both government and Reichstag meas
ures for conserving receipts, curb the
! expenditures of the German Treasury,
control the floating debt, prevent Ger
man nationals from hiding their capi-
tai abroad and stop further printing
OIL paper money.
Germany Formally Accepts
The acceptance by the German gov
ernment of the Allied plan of control
was officially announced this after
noon in q special communique issued
by the Reparation Commission after
its session with President Mauclere of
the guarantees committee, adding that
a formal reply in writing would soon
be received from Berlin.
Mauclere had long talk with Pre-
mier Polncare at the Quai d'Orsay, and
there is no doubt that their conversa-
tion envisaged the acceptance by France
of the short time moratorium for cash
payments by Germany as we'll as
French cooperation with other Allied
powers in keeping Germany afioat
until such time as her financial regen-
Grafton is accomplished to such an ex-
tent as to enable her to meet the repa-
ration schedule
In the mean time France by virtue
OF the Wiesbaden agreement which
also by the consent of Berlin becomes
effective to-day, is content to look for
ward to payment in the form of Ger
man goods for the devastated regions,
with a possible extension to the SINH
lar Letrocquer plan for German pay
ments in kind outside the devastated
regions.
The French government declines to
comment on the possibility of can
collation. of Frances debt to England
but is awaiting a concrete proposition
The public, however, is known to be ia
vorable to further concession to Ger
many as compensation for relief from
the British debt. Such a cancellation
would, it is expected, bring back to
Paris the bankers committee headed
by j. ?. Morgan to make another at
tempt to arrange for an external loan
for Germany.
Allied Solidarity Foreseen
Greater teamwork among the Allies
was forecast by the breaking UP of
The Hague conference where they
stood shoulder to shoulder against
the Russians. This Allied solidarity
at The Hague is regarded by
many students of Europe's ills as a
happy augury. By the Forthcoming 6
supervision of German affairs Britain
finds her viewpoint nearer to that of
frances than at any time since the
bottom began to drop out of the mark.
The Tribune correspondent is able
tonight to quote the consensus of of
fetal opinion as follows: The govern
mcnt is convinced after careful re-
search that Germany is able to pay
PREPARATIONS. There are two sides to
the German question, one financial and
one economic. Inere Is no QOuDC CnaC
Germany voluntarily attempted to
ruin herself to escape the payment of
her debts.
Germany is living in an era of un-
precedented economic prosperity, and
with good will she can pay. Since there
has been no good will and nothing but
bad faith in all her dealings with the
Allies it is the latters duty TO see
that Germany's finances are put in
such shape that she is able to pay.
simple moratorium is useless, as the
mark has already reacted downward to
the one granted. While France knows
that Germany can pay, she is faced
with the concrete situation of the low
mark that she is physically unable to
stop. Therefore France agrees TO the
short-term moratorium combined with
the most severe financial supervision
in order to prevent the continued infla-
ton of the paper currency and the
reckless expenditures which have hith-
erto marked the German budget.
AS before stated the short time mora
torium with the cancellation of the
British war debt is certain to react in
France toward a greater moratorium,
should this be deemed necessary.
Says Titles Dazzle u. S.