Evening star., 1927-11-06

little regard for the financial conse-
quences Of their actions
In The opinion of the reparat tons
agent, the riSIny level of public eX-
penditures is ?lready giving artificial
stimulus to tierma1 tcoromic life and
| threatens 10 undermine the essential
stability Of ru1;i, tina ices. Unless
these tendencies are curbed definitely.
| Mr.. Gilbert believes. they inevitably
will result in serious economic reac.
| ton and shock to German credit at
! home and abroad.
.AmplifitS June Report.
| The agent generals memora 1ium
constitutes a liberal amplification of
| Observa tions set down in his report
| June 10. II makes m specific prot est
against any pending legislative meas
sures, merely warns against possible
adverse redrtiGn on the budget il the
policy of constantly increasing eX.
penditures is unchecked and , orrcw.
ing is allowed to proceed without due
regard to the R%ich's availa bic and
prospective revenues. or responsible
ties assumed through it's acceptance
or the experts pla1 for reparation
payments
Mr.. Gilbert's structures are set
forth in frank. hut cordial terms. The
German reply equally seeks to main
tam the discussion on level of
strict objectivity. 1t constitutes
voluminous defense of German finan-
ciai procedure as dicta ted by and in
f1uenced through postwar financial
and economical developments and
repara tiOn commitments, and reaf-
firms its adhesion TO the experts plan
and the conditions on which it is
predicated.
Pending appropria tons for in.
creases in the civil service pay roll.
indemniflcati ton Of German nationals
for war losses and the cost of putting
the school reform bill into execution.
the German reply states, do not war
rant the agent generals apprehensions
that the Reich's budget is put in
jeopardy.
Activities Defended.
The German reply goes into exten.
sIve considerat ton Of the nation g
economy, the respective positions of
me nnances OF the Reich and those of
tne FEDERATED states and communities,
and pending legislative measures.
Tine Improvement in economic con.
dltlons since the tabiization of the
mark" says the reply, proves that
| German n economy has made fa tions
disposition Of the domestic and for.
elgn capital placed at it's disposal l.,
i ana that the amount of Gerns nv's
foreign indebtedness constitutes no
| occasion for alarm. in view of the
nature OF the securities pledged for
the protection Of foreign loans"
1he Statemen: reviews the pro.
/ gfesslve improvement in Gernla nv's
foreign trade since the abiliZation
or her currency, notWithsta nding the
: customs barriers opposing her in the
various foreign markets Neyert he.
I less, the German government, the
| statement adds. views with daep con.
Germ developments going on abroad,
Tor only through modification of exist. +.
ing customs Determinations can Ger.
/ many hope 10 achieve such an export
surplus as is indispensable ble to defrav
/ her financial obligations
In the way Of minimizing imports.
! the Reich realizes the necessity Of
| enhancing her agricultural produc.
.tNity Here, too, the reply asserts,
working capital is required.
Views State Relations.
The statement then takes IN in
| great detail the Reich'e relations 70
the federated states with respect 10
then independent financial policies
and preroga tiVes. and declares that