New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-13
Berlin's New
Debt Demand
Stirs Europe
Financial Distress Greatly
Aggravated by Plea That
Allies Wait Till 1925 for
Further Cash Payment
hnvolves$l, 300, 900, 900
France, Officially Silent,
Regards Move as Sign
of Imminent Bankruptcy
By Wilbur Forrest
Special Cable TO The Tribune

Special Gable TO The Tribune
Copyright, 1872 New York Tribune Inc
PARIS. July 1.-THE extreme seri-
BUSINESS of Europe's highly complicated
and dangerous financial situation was
further aggravated late to-day when
Germany made formal demand on the
Reparation Commission to be relieved
from all cash payments on ,eparatons
not only for the remainder of 1922. but
for 1928 and 1924 as WELL
The total obligations of Germany TO
the Allies under the existing reparation
schedule for the time mentioned
amount to about s1,SO0, 900 900, be.
sides rs per cent Of all German ex-
ports In addition to the relief de-
manded on straight reparations, Ger
many, IN long note presented to the
commission, asks other arrangements
with respect to export payments, and
informs the commission that it will
take this matter up with the separate
governments with the hope Of the com
MISSIONS support.
Unless the relief demanded is OBJ
tanned promptly Germany holds out the
threat that the further depreciation of
the mark will lead to "the complete
dissolution of the financial end
economic life of the country" The
note is signed by DR.. Fischer, chairman
OF the War Debts Commission.
Retains Hope for Allied Loan
That Germany not only hopes to gain
relief from cash payments on her oh.
legations, but also hopes for Il renewal
OF the loan negotiations with the Allies
that broke down in Paris several weeks
ago, IS shown by her request for hur-
RED action from the Reparation Com
mission which "the government trusts
VIII be favorable to a resumption of
loan negotiations"
The note recalls that the mark began
to weaken when the bankers failed to
give expected relief" No mention is
maze or Gefmany's pledge to pay
her obligations in the form of goods
and from this omission it is considered
that she is ready to make good at least
on the deliveries scheduled. Although
the demand for cash moratorium has
been discounted in advance, it was ex-
pected that Germany would make some
oifer to make up the deficiency in kind
The note, however, carefully avoids
such proposition.
All France has counted heavily on
the German payments of 1928 and 1924
to serve as backing for budvetarv
needs as well as to reduce the present
annual deficit of four billion francs
due on PREPARATION expenditures since
the armistice. Officials here tonight
reserved comment, although it was
mi-officially declared that the Ger
man demand for moratorium was
equivalent to O. declaration OF bank
ruptcy
Commission Hit for Concession
Stern criticism is aimed at the Rep
aration Commission from French
sources for reducing the July payment
due from Germany from fifty million
to thirty-two million gold marks after
Germany had admitted that she had
the funds to meet the full payment.
The commission is called upon to con-
slider the consequences of German
bankruptcy to the Allies, especially
france. The reduction of the July
payment is referred to in some quar-
tiers as an encouragement to Germany
to make more sweeping demands
while the government is known to
be determined not to make any move
until the Allied committee on guar
antics returns from Berlin and makes
full report, it is regarded as un-
likely that France will submit tran
GULLY to being outvoted on the COM
mission in favor of Germany. French
students of the Versailles Treaty main
tain that before the commission can
consider the question Of a moratorium
there must be thorough investigation
to determine whether Germany acted
in good faith thus in the whole repara-
ton problem. France, according to this
view, is prepared to force a weighty
Interpretation of certain parts of the
treaty and may invoke this move to
delay action that threatens her own
bankruptcy.
No Help to England, Says Temps"
The semi official Temps" says to-
night: "This situation, so dangerous
to France and Belgium, is in no way
advantageous to Germany or England
Germany does not need simple mora
torium, and no service is being done
for the Germans by postponings the
payment of 100000 marks, or even
Of several hundred million. When the
figures of the German treasury are
examined it will be seen that Ger,
manys floating debt incleased by 1857