New-York tribune., 1922-11-01
Rip Expected
b Use Gold In
|leyiving Mark
hsh Acquiesces in the
Reparation Commissions
Project ii, First Meet
ing at German Capital
b Need No u. S. Aid
IIsp Would Raise Exchange
Rate to l,2OO TO the Doh
ar, Allied Experts Believe
asesel cabfe to The Tribune


2xERIiN. Oct. 3I.--A favorable be-
siassng, holding out promise of sat-
;Aattory outcome to the iraportan.
,sssteial negotiations now under way.
a. ,aade wben representatives of the
1.staaa government ai.a the Allied
usstsatson Commission met for the
ssss time here to-day and tackled the
no task of stabilizing the marx and
hSjsaeiag the German budget.
While this statement must not be re-
sS1aed as Justification for over-optin,
s1k expectations. it correctly, repre-
ssnts the opinion prevailing tonight
j bssh lnong members of the Reparaticn
(,onlsissior and OF the German govern
ma IS learned by The Tribune from
arsaoritative spokesmen for both.
fhe commission, headed by Louis
Hsrshou, of France, presented itself ~
,Ison before Chancellor Wirth at his
psIsee, and the keynote foreshadowing
srcsess for the object of the comniss
a;5r's visit was struck at that time hv
t4.h sides.
Wirth's Cards on Table
As q leading spokesman for the Brit
I'd put it; 'The Chancellor expressed
rssdlness TO put all his cards on the
satle and supply the commission with
al the information necessary to the
iulfilment of our task. This spirit
sps refecteSs in NJ. Barthou's reply.
he concluded an exceedingly concilia-
tory speech by expressing the commits
SONS desire to get right down to work
and BIZ yoicing the hope that the issue
of It's mission would be successful"
The first joint melting of the repre-
sensstiyes of the German government,
headed by Herr Andreae Hermes and
Minister Of National Economy Schmidt.
and the Reparations Commission was
held this afternoon at the Finance
Ministry. The preliminary ground
hesfing on the present condition of
German finances and industry was
then gone. over. Both sides were ready
10 bring forward many proposals. the
most interesting and important Of
which is the Commissions proposal for
utilization of the Reichsbank's gold
reserve TO stabalize the mark. This
pfcposal is similar to one recently
lnsde by the German Socialists. 1t
looks, according to The Tribune's in
fofnant from the British section of
toe Commission, to restoring the mark
to the rate of 1900 to the dollar, and
keeping 1t there.
To Stabilize the Mark
The paper circulation now current
in Germany, the Reparation Commits
sion maintains, has gold value Of
about 500,000,000 marks. or twice the
Reiehsbank's gold reserve. The COM
Missions idea is that "if this gold be
iuaiciously used it might result in
sasilizing the mark at the rate Of
!,2W to the dollar without aid from
america"
just how this is to be done was not
explained, this phase Of the problem
eeing regarded as secondary. 1t was
suggested that the Reichsbank might
issue new currency redeemable in gold
This, combined with strict Allied COM
trol OF sll future paper issues by the
keichsbank, could keep the mark from
siding down into an infinite chasm.
Ihe difficulty is to persuade some of
the German officials and fnanciers who
have regarded the Reichsbank's gold
reserve with fanatic awe, fearing to
encroach upon it an any way, of the
feasibility of this plan. Tonight,
however, there is distinctly hopeful
feeling that this persuasion can be
accomplished.
The official communique covering the
lsceesdings which was issued this
slsning Is couched in terms breathing
iAa hopeful spirit.