The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1918-11-21
INDEMNITY BASIS
BEING CONSIDERED
Germany's Ability to Pay Is the
Issue.
GREAT SUMS ARE INVOLVED
U. S. Government Expects Nothing, So
the Interest in Washington Is Not
Direct-Study of Germany's
Resources IS interesting.

undertaken by government agencies
here with view of throwing light on
the ability of the German nation TO
pay big sums as reparation for devas-
tation Of invaded countries. Unofficial
reports indicate that Germany's ma
tional debt, represented mainly by war
bonds held within the empire, is now
nearly $35,000,000,000, or almost two
fifths of the estimated national wealth
of eighty billions.
Must Pay Many Billions.
Although there has been no official
announcement or intimation of the ag-
gregate amount which the allies will
expect Germany to pay, it is certain
to run into billions of dollars and nee
essarily the terms of payment must
accord with Germany's ability to pay
This ability will be measured by the
nations power to revive her peace
time industries and trade and to tax
this for state purposes. Financial OBJ
servers here say some claims for res
toration and restitution set forth by
interests in a few allied nations are
extravaganza because they are beyond
Germany's ability, even though this is
estimated at the highest.
The victorious allies will not con-
Germ themselves primarily, it is be-
lieved, with Germanys redemption of
her own national debt, since this is
largely internal. Comparatively small
amounts of German war bonds are
owned outside Germany and perhaps
the largest sums are held by citizens
of the United States, former German
subjects
May Take Bonds for Taxes.
Officials here who have known in
ternal conditions in Germany in the
past do not believe the government
will repudiate the internal indebted
ness. but think rather that taxes will
be made so heavy as to force citizens
to turn In their bonds in settlement. In
this way the debt would be cancelled
without actual reputation.
There is some discussion in official
circles here of the ACCESSIBILITY of the
allies requiring payment of an indeti-
mite amount of reparation, this sum TO
be determined in the future by com
missions as the physical reconstruc-
ton progresses in Belgium and France
and the actual cost of the work be-
comes more clearly determined than
now. 1t is pointed out that future
t.A1xv
at present. Interest on the part of
American officials in the subject is
somewhat indirect, however, inasmuch
as the government expects none of the
payments to go to its credit.
Enormity of Task Shown.
Whatever may be the weight of the
final burden of PREPARATION and restitu-
ton to be placed on Germany. the enor-
nifty of the task ahead of her may be
illustrated bs comparison of her ma
tional debt with that of the United
States. Germany has 66,000000 popu-
lation and $4,000, 100000 of estimated
wealth to pay S35,000,000,000 of war
debt already created. The United
States has 100000 population ana
an estimated national wealth of $3.50
000,00O,000 to pay nearly $1S000,000,
600 war debt already created, which
may reach approximately $4,000, 600
600 within another six months. This
means that the per capita burden will
be ut least three times greater in Ger
many than in the United States.