New-York tribune., 1922-08-02

OF the other Allied signatory statea
Those measures will cor,a ;,,.
iorce, as ! have indicated. a, Tia ha.
gihn'ng OK August 3, and the govern
i. men, OF the republic does not feel at
loefty Just now to disclose the nlan
effect. fo" " 'ha'
While making it's reservations
against the allegations contained IN
'ae note OF August /, the government
OF the republic simply observes that
the herman government makes no eff
Iort Whatever to insure the payment of
the sums due to Allied officers by real
aehtors. namely, individual Germans
Nno, according to the best information
reaeang US, have contributed bv their
purchases Of FOREIGN currency To tba
present fall in the mark"
BERLIN, Aug. (By The Associated
Fress).--The text of the German gov
ernment's note to France regarding
payments by Germany to the Allied
clearing house on account of debts CON
traeted by German nationals with Al
lied citizens before the war is as fol-
lows:
The agreement regarding clearing
house payments vf June 10, 1921, was
not made By Gernany with single
powers but with all the Allied govern
meats concerned at one and the same
time. Therefore the German govern
ment's note of July Id was, as is known
to the French government, addressed
simultaneously to all the chief powers
concerned
Decision Hald q,,,nrss;;sIo
"The German government for this
reason cannot come to any decision as
to their future attitude before having
received answers from all the govern
ments in question. 1t is Furthermore
impossible for then. to act otherwise
on account of Frances threat made in
the form of an ultmatum, to take
steps, which, however, are not specified.
against Germany. But even now, un-
der reservation further to enter into
the matter, the German government
would like to make the following re-
marks:
Clearing payments, as we'll as pay
mcnts according to Article 297 (of the
treaty of Versaillesl to be made by
Germany, will ultimately have to
! emanate from the same sources as rep
| arations payments. No matter whether
| the debts are owed by the Reich or by
pri 7ate Germans, the necessity of pro-
vid'ng bills of exchange out of the ma
tional economy as whole remains
unaltered
$50 far as the influence Of this oper-
alton on the marks rate of exchange is
concerned, it is of no Importance
through which agency and according to
whioh paragraph the payments are
mad. Given Gerruany's inability to
bear the monthly extraction Of 5o,oOo,-
600 gold marks for reparation pay
inen s. it would be an illusion to be-
lievc that clearing payments of almost
40,0C0,000 gold marks per month could
be further provided. All such payments
can only be considered as an organic
whole and be treated according to a
unified plan.
German Ability Exhausted
"The German request, aiming not at
curtail1nent of the clearing payments,
but at distribution of such paym mants
over longer period, reposcs on the
very principles which have caused the
German governments request to cb-
tain a moratorium for neparation pay
ments, namely--the present exhaustion
Of Germany's capacity for payments in
foreign exchange, as clearly expressed
in the catastrophe fall of the mark
meanwhile, since the receipt of
your excellency's note a further fall of
German exchange has occurred, reduc-
ing the mark to 1-170 of it's pre-war
value. Germany makes every effort to
fulfill her obligations arising out Of
wars. This, however, presupposes the
restoration to health of her national
economy. Such economic restoration,
as we'll as that Of Europe as a whole,
can only be effected through the speedy
cerned. The policy of threats, however,
does not work constructively, but de-
structively.'