The New York herald., 1922-03-23
SEVERE CONDITIONS
IMPOSED ON BERLIN
BY THE COMMISSION
Must Float Foreign Loan or
Levy OH Capital to Pay
Reparations.
STOP CAPITAL EXPORTS
Submit to Supervision by a
Commission on Guar
antics.
STOP CAPITAL EXPORTS

4 4.
A partial moratorium has been
given to Germany for her reparation
payments in 1922, according to de-
cision of the Reparations Commits.
sion, made public here to-day.
The plan carries with it specific
obligation on the part Of Germany to
raise 6o,OO0,OO0,00O marks (paper) !.
in additional taxes. to float an inter
nal loan to balance her budget; to
stop the expectation of capital and
make the Reichsbank independent; |;
to radically reduce expenses; to sub
NIT TO system Of supervision
through obligatory consultations with
commission on guarantees, and
either to float an international loan
or make levy on capital to raise a
substantial sum for reparations.
The moratorium is conditional upon
the fulfllment of the conditions Of
the commission by May 81, which
may be revoked later il Germany does
not continue to comply with them.
The commission calls for the execu-
tion of the Cannes agreement pro-
viding for the payment of 10000, 900
gold marks and of 1,450, 900, 900 marks
in goods during 1922. AS Germany
has paid about 2s2.ooO,ooo gold marks
In ten payments, there remains a
balance Of 3S,000,000 marks due.
The balance is payable 1s.ooo,o 900
marks on April Is, 50.000,000 marks
monthly from May to October Is. in
elusive, and sO.0oo,o 900 marks each No
vember and December Is.
The goods reparations are payable
$50 100000 marks to France and 500,-
100000 to the other allies as far as
they place orders. The British will
receive 26 per cent of the import tax.
German goods and other similar funds
are to be credited against the mer-
chandise account, but IL Germany
fails to deliver the goods ordered she
must pay the balance in cash.
Merchandise delivered to the armies
OF occupation Is to be credited only to
army costs. All deferred payments on
army cost reparations are to bear 5
per cent. interest.
Germany's Course Criticized.
The Preparations Commission deliv-
cred it's terms to the German repre-
sentatives in Paris early this morning
after an all night session. There were
two letters given the Germans signed
by the four delegates, the first OF 500
words outlining the payments re-
quired and the second of 100 words
answering the German Chancellor's
letter Of January 2S.
The commission takes up the Ger
man Chancellor's proposed reforms at
the start and insists they are far from
adequate. 1t remarks that the budget
receipts exceed the $4,000, 900. 900 paper
marks expenses by 16,500, ,000. 600
marks. which was partially necessary
to balance other deficits. so that there
is a total deficit in the reparations
budget OF 1s3,250. 100000 marks, which
the present moratorium reduces by
45, 900, 900 900 marks, but that this is
based on forty-fiv paper marks to the
gold mark. while the actual exchange
is seventy to one.
The commission holds that the Ger
man budget. including reparations pay
ments, should be balanced as far as
possible through taxation. but that an
internal loan OF a levy on capital must
wipe out any deficit.
/ The text of the decision Is divided
into six parts-budget. loans or levy.
expectation OF capital the Reichsbank.
compilation OF statistics and the final
paragraph obiigating Germany TO ac-
cept conditions which are to be made
later.
Must Reform Budvct.
Budget reforms. the commission says,
must be effected Immediately the pro-
gram Is known. "a the fiscal compro-
mise must be put into effect before
April 30. IL also says taxation must
be increased to raise the $4,000, 600, 600
marks additional during the fiscal year.
and 10000 900. 900 or the amount during
1922. The commission urges the institu-
ton OF n taxation system by which the
tax rate will reflect automatically q
fail in exchange or an increase In the
German debt to the Reichsbank.
All these measures must be imme-
dlateiy communicated TO the commits
sion. Financial legislation and methods
for collecting taxes must be formulated
In consultation with tho commission.
which Is TO exercise constant supervi-
sion over Germany's execution OF the
demands through committee Of guar-
antics, and proper steps arc 70 be taken