CHAOS AHEAD.
.COLLAPSE OF GERMANY. DISRUPTION OF FINANCE. RELIEF SCHEME URGENT. rfy Telegraph.—Press Assn.—Copyright. ■London, Oct. 26. The Times says the delays in the reconciliation of the divergent views of the British and French representatives on the Reparation Commission are surely leading to the wreck of Germany. A warning has now been issued from the most authoritative quarters that, unless something like a miracle happens before the end of the year, the collapse will be complete and- Germany, in a monetary sense, will join Austria. The visit of the Commissioners to Berlin is the outcome of a suggestion by Sir John Bradbury, who is convinced of the necessity of permanently making the headquarters of the Commission in Berlin, believing th£ impositiim of drastic measures will be useless and that the fall of the mark can only be arrested by co-operation between the German Government and the Commission.
The French are sceptical regarding the results. They do not agree that the present visit, which is likely to last for a week, may be rgearded as a compromise. It is believed Dr. Wirth (German Premier) will not be hostile to the Commission assuming responsibility for the finances, since it will be easy to expose it to blame for unpopular actions and any further aggravation of the situation. The essential condition to the restoration of credit is a clean-cut moratorium, nevertheless France is reluctant to forego payment and, when she makes up her mind, it will probably be too late. The Berlin Government has undoubtedly taken alarm at the complete loss of confidence in the home and foreign markets, its hopes resting on the assembly of foreign financial specialists it has invited to discuss the stabilisation of the mark.
Meanwhile prices keep pace with and even outstrip the exchange. The Foodstuff Wholesalers’ Association to-day made an all-round increase and retailers immediately imitated this. As usual, the rise was followed by demands for higher wages and increased allowances and bonuses, so the vicious circle goes on daily. Neither the producers nor labor admit responsibility and the industrialists are agitating for the abolition of the eight-hour day, while Labor insists on a prior sacrifice on the part of capital. The financial impasse remains.
REPARATION PAYMENTS. NEW PLAN AGREED ON. Berlin, Oct. 26. Representatives of the Allied and German clearing offices have reached an agreement under which the monthly reparation payments will be made in German gold bonds, beginning in July, 1923, and ending in October, 1928, aggregating £2,400,000. The Redshank will be trustee for cashing the bonds for the Entente. The agreement will be laid before the Allied and German Governments.
The Government decided, after conferences with the party leaders and financiers on a new exchange purchase order.
Leading bankers do not believe in the possibility of stabilising tlie mark. Herr Orbig of the Disconto Bank declared that all the conditions for stabilising were lacking. The questions of the occupation of the Rhine territory, reparations, and clearing office were a three-headed monster devouring every possibility of improvement. Paris, Oct. 26. The Petit Parisien says the Reparations Commission will consider the scheme prepared by M. De la Croix designed to effect a compromise on the British and French viewpoints. He prescribes as indispensable the immediate inauguration of control and proposes sending back the discussion on the moratorium to the Brussels Conference.
The Petit Parisien adds that Germany will accept this solution without raising difficulties. An American delegation will accompany the Allied representatives to Berlin.
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Taranaki Daily News, 28 October 1922, Page 5
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578CHAOS AHEAD. Taranaki Daily News, 28 October 1922, Page 5
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