WORLD FINANCE.

Taranaki Daily News, 17 April 1922, Page 5

WORLD FINANCE.

THE EXCHANGE PROBLEM. TENTATIVE PROPOSALS. LOAN FOR GERMANY. By Telegraph.—Press Assn—Copyright. Received April 15, 5.5 p.m. London, April 14. The Australian Press Association’s Genoa correspondent reports that the Finance Sub-committee has made good progress, especially on the question of exchange, upon which a tentative draft was prepared to fix the standard of exchange according to the financial position of the various countries requiring assistance. Italy is quite prepared to accept the standard suggested for her, and will balance her budget accordingly. France objects to having her standard fixed. The committee is unable at present to arrive at a basis for Germany, owing to the reparations, but there is a suggestion to provide an international loan to enable her to recoup France for what the latter has expended in restoring her devastated area, Germany to pay interest annually. If something of this sort is done it will pave the way to fixing German exchange.

The Germans and Russians submitted amendments, the former’s not being by any means revolutionary, and the French delegates being quite satisfied with them. Herr Hermes explained it was not sufficient to balance the internal budget. They must balance external payments, which probably include the cost of the army of occupation, but not reparations. The French deduce from Herr Hermes’ speech that Germany is agreeable to leave the reparations outside the orbit of the Genoa Conference.

The Russian amendments are numerous, but mostly academic, except one asking for a special loan, and another > suggesting a division of the world’s gold, which is regarded as a joke. M. Rakowsky’s optimistic financial statement is fanciful even for a Russian. Experts estimate the Russian deficit at eight hundred million gold roubles. Mr. Lloyd George presided at a meeting of Allied Prime Ministers and discussed the Russian position.—Aus.-N.Z. Cable Assn. ARMAMENT QUESTION. FRENCH CO-OPERATION. Genoa, April 13. The first Commission does not meet until Saturday at the request of the Russians, who have not completed their study of the experts’ report. The Russians - have submitted voluminous documents dealing with currency and another on the cost of armies. The chairman reminded them that, while they were entitled to refer to the effect of armies on Budgets, they must not deal with disarmament. Rakowsky presented highly optimistic views to the financial sub-commit-tee on the Soviet’s financial position, which created surprise, in face of the reports of the Soviet’s (fantastic circulation of paper money. He declared that Russia since 1920 had reduced her army from five millions to a million. Rakowsky is credited with having suggested that the gold concentrated in some countries during the war should be distributed uniformly amongst all countries.

Rumors are current that Germany intends raising the reparations question. A competent authority declares that the statement is entirely without foundation, likewise the statement that Mr. Lloyd George, at to-morrow’s meeting of the first sub-committee, contemplates moving for a military holiday. The British view is to allow the committee to follow along the Cannes lines and if the proposition that nations should guarantee not to attack each other for a given period is agreed to, it will be unnecessary to specify a military holiday. M. Barthou, addressing British and. American journalists, disclaimed any desire to block the conference. He had no love for Germany, but no malice, if the Germans were present at the conference with a whole-souled desire to advance the economic reconstruction of Europe. He admitted he disliked Tchitcherin’s initial speech, but since meeting him on a sub-committee he had conceived a better impression. France had no desire to work adversely to her Allies. France and her Allies might be likened to those of a husband and wife who each suspected the other’s fidelity. He desired to impress upon England and America that France would do her utmost to help the conference to achieve success. FINANCIAL MATTERS. Genoa, April 15. Germany has accepted the financial proposals of the Allied experts, bift insists that reparation be considered in balancing national budgets. Paris, April 14. A member of the French Cabinet announced that, if land disarmament was discussed at Genoa, the French delegation was instructed to refrain from participation. The Cabinet view was that the matter should be left to the League of Nations. Genoa. April 14. Sir Basil Blackett, Controller of Finance to the British Treasury, has been called to the committee of financial experts to evolve a basis for report to the conference of the fimiuc.al committee on Saturday.