Norwich bulletin., 1922-10-21

to deal with a broad separations settle ment and allied debts and the question of German payments in 1923 and 1924 France would limit the powers of the reparations commission to the appiica- s stion Of new guarantees and reforms for Germany, leaving the more compre- hensiVe isues to an international meet ing.
 e The, proposiann would gradually put Germany on a gold basis. Beginning with an issue of gold treasury securities, M Barthou would have Germany pay her outstanding obligations in paper cur rencies, and he calculates that then Ger many's paper circulation would be 510,- 00O,000,000 marks, which at the present l rate of exchange are worth less than the reichsbank gold reserve.
 The moment has come, according to M. Barthou, when the allies must take en- ergetic steps or else be faced by a Ger many proclaimed before the world as a l ruined nation, despite the fact that her actual capital is intact.
 We don't accept the contention that Germany is totally incapable of paying 5 i says M. Barthou in. his plan. Despite Germany's enormous budget difficulties
 she retains tremendous riches and has
 great strength to continue production and ! maintain her national vitality
 1 The French plan would so interrret the theory of prohibition of interference
 in Gernlany's internal affairs as to per init the radical control of German fin ancss The budgets of the various Ger man states would be supervised thorough fly to prevent extra va ganceS, regulate ex- penditures and make provisions for in denlnity payments. A committee would
 be permanently esta ablished in Berlin Ion d ol,1 out of all new reforms. In case Ger many should refuse immediately to ob iserve the new demands, she would be de Jared Tn voluntary default by. the com
 mission under the provisions of thu
 treaty of Versailles.
 A minimum of receipts would be fix ed and a maximum of expenditures fo Germany would be set, and German.
 would be required to float internationa !. loans at an opportune moment. Neithe
 the government nor the states woul, float loans without allied authority. NJ ;i Barthous memorandum concludes wit
 seven proposals, as follows: First-To immediately place Germal
 public finances under control of Ger [ many's credits as previously outlined.
 Second-To take all measures neces
 sary to balance the budget and kee e l it balanced, meanwhile progressively in
 cluding in it's reparations payments nc
 otherwise provided for and the interes D on loans hoated for reparations pay I ments.,
 , Third-To forbid the German treasur 5 to discount any bonds of any sort wit
 the reichsbank, ,-and to require submis
 sion of all issues of treasury obligation either short or long term, to the allie q control authorities.
 Fourth-To place the reichshank ur !, der inter-allied supervision in order ,s see that it observes all allied requir, Q ments affecting it,
 Fifth-To strengthen to whatever d,
 gree the allied supervisory authoritit
 deem necessary, dispositions taken to pr,
 vent the export of capital and the hosrt
 ing of foreign exchange.
 Sixth-As soon as circumstances pc :, init, to begin the issuance of gold trea ury securities, the Notation of which II to be facilitated by certain fiscal al ls vantages, the receipts from these issu Il to be devoted exclusively to the strengtI II ening of the reichsbank. metal reserv le as far as necessary, so as to insure su III cess to currency reform and also to ps le reparations not covered in the budget IS Seventh - The German governme le would continue to collect in gold or e. foreign exchange at least 25 per cen r. on the value of exports. The receip ne from these collections, as well as GU
 toms duties on exports and import
 would be paid into a special reichsbal
 account in the name of the commit lE on guarantees. and under the comnitte, nt control the German government wou as dispose of this money as long as t h. reparations commission found the Ge he man government fulfilled obligatio Y. which had been, or would be, impos O. by the commission.
 he If at any time the commission fin ed otherwise" says the memorandum, tn ell the committee on guarantees will ta of possession of the sums to it's credit nd this account and the collections ma he thereafter, which it will see are reguls
 ly paid to this account"