IV

THE REPARA TION BILL

103

time President of the Separation Commission, in aKeport for the Brussels and Spa Conferences, put thefigure at 62 milliards on the basis of pre-war prices. 1In January 1921 M. Doumer, speaking as FinanceMinister, put the figure at 110 milliards. The actualclaim which the French Government submitted tothe Reparation Commission in April 1921 was for127 milliard paper francs at current prices. 2 By thattime the exchange value of the franc, and also itspurchasing power, had considerably depreciated, and,allowing for this, there is not so great a discrepancyas appears at first sight between the above estimates.

For the assessment of the Reparation Commissionit was necessary to convert this claim from paperfrancs into gold marks. The rate to be adopted forthis purpose was the subject of acute controversy.On the basis of the actual rate of exchange prevailingat that date (April 1921) the gold mark was worthabout 3-25 paper francs. The French representativesclaimed that this depreciation was temporary and thata permanent settlement ought not to be based on it.They asked, therefore, for a rate of about frs. 1-50or frs. 1-75 to the gold mark. 3 The question was

1 At about the same date, the German Indemnity Commission (Reichs-entscliadigungslcommission) estimated the co3t at 7228 million gold marks,also on the basis of pre-war prices; that is to say, at about one-seventh ofM. Dubois' estimate.

2 The details of this claim, so far as the} 7 have been published, are givenin Appendix No. III. The above figure comprises the items for IndustrialDamages, Damage to Houses, Furniture and Fittings, Unbuilt-on Land,State Property, and Public Works.

3 See M. Loucheur's speech in the French Chamber, May 20, 1921.