GERMAN FINANCE

Dominion, Volume 15, Issue 40, 10 November 1921, Page 5

GERMAN FINANCE

BANKRUPTCY IMPENDING REVISION OF TREATY AIMED AT “ ALLIES SHOULD INSIST ON PAYMENT OF REPARATION ” By Telegraph—Press Association—Copyright l London. November 8. "The Tinies,” in a leading article, says that Germany’s bankruptcy appears to 'bo impending at no distant date: but German business mon and financiers do not seem deeply concerned. They are reaping the profiteering advantages of tho rising prices, which are the result of heavy currency inflation. Some are looking forward to an early revision of tho Peace Treaty from the collapse of the mark, which may bo partially due to the reparation payments, but are largely due to Germany’s refusal to meet expenditure out of revenue. There is every reason to that Germany is able to pay tho reparations if she chooses, and it is tho duty of the Allies to insist on payment.—“ Tho Times.” Geneva, November 8. The newspaper “La Suisse" declares that Germany’s bankruptcy is inevitable and is near at hand. —Aus.-N.Z. Cable Assn. THE WIESBADEN AGREEMENT PREJUDICING EXECUTION OF TREATY OBLIGATIONS SIR JOHN BRADBURY’S PROPOSALS (Rec. November 9, 9 p.m.) London, November 9. Sir John Bradbury’s report as the British delegate to the Reparations Commission, has been issued in the form of a White Paper, and expresses tho opinion that the burdens which Germany undertakes towards France under the Wiesbaden agreements cannot bo borne without prejudicing the execution of her Treaty obligations. Sir John Bradbury proposes, firstly, a time limit for deferment of tho debit. Secondly, that the deferred debit shall never bo allowed to exceed four milliards of gold marks. Thirdly, France to pay into the general reparations account the amounts necessary to ensure that the other Allies, shall receive the proper sums due from Germany.—Aus.-N.Z. Cable Assn. I’M. Louchcr (French Minister of the Liberated Regions and Reparation) and Herr Rathenau reached an agreement, after conferring at Wiesbaden, on the subject of the German reparation payments in kind. The agreement provides that Germany shall furnish material to the value of 350 millions sterling to France yearly until 1926; and France agrees to forgo a portion of Germany’s annual indemnity payments. Germany is pledged t|o deliver goods and material to the full} limit of German production from October, 1921. to May, 1926. Tim aggregate value of payments in kind during the period, is not to exceed 7000 million gold marks. Germany will consider herself paid for such goods by crediting the amount with the Reparations Commission. Germany will open a monthly credit for fifteen years to France to the extent of 65 per cent, of the value of the deliveries, on which France will pay 5 per cent, interest.. British financial experts on the Reparations Commission have raised an objection to the agreement on the ground that it creates priority, enabling Franco to toceive more in four years f.Kan Uhe-agreo-ment between tho Allies provides.!

TREMENDOUS INDUSTRIAL POWER REPORT TO FRENCH CHAMBER OF DEPUTIES. Paris, November 8. The Finance Committee of the Chamber of Deputies has received a special report from Berlin on Germany’s financial Condition, which shows that, although the prodigal issue of paper money is heading the country to financial bankruptcy, it will ’ not bankrupt the country’s tremendous industrial power the leaders of which view tho idea of insolvency easiest means of avoiding the reparation responsibilities. The report suggests that the Allies should taken steps to curb Germany's feckless expenditure.—Aus.-N.Z. Cable hssn. BERLIN FINANCIERS’ STATEMENT TWO YEARS’ GRACE NEEDED BY PERM ANY. Berlin, November 8. Leading financiers, replying to French banking authorities’ inquiry as to how Germany proposed to meet her reparation obligations, state that Germany needs two years’ grace to enable her to put her economic house in order. This must be regarded as a basic condition of the country’s return to a healthier financial state A debate in the Reichstag revealed that the demands on Germany under the Peace Treaty would impose an annual tax of nearly 7000 marks per head, and that this was totally impossible of ac-complishment.—Aus.-N.Z. Cable Assn. slump fFthe mark 1250 TO THE POUND TOUCHED. (Rec. November 9, 5.5 p.m.) London, November 8. The exchange rate on Berlin closed at 1180 marks to the .£l, after touching 1250.—Au5.-N.Z. Cable Assn.