The Barre daily times. (Barre, Vt.) 1897-1959, 1918-11-18
WELCOME GIVEN
AMERICANS ADVANCING INTO
TERRITORY HELD BY GERMANS
TO TEST GERMANY'S
ABILITY TO PAY
U. S. Government Agencies Are Studying
German Financial Situation.--Her
Debt Is Now s35poo, 100000.

Washington, D. c., Nov. ls.--Study OF
Germany's financial situation has been
undertaken by government agencies here
with a view to throwing light on the
ability of the German nation to pay big
sums as reparation for devastation of in
vaded countries. Unofficial reports indi-
cate that Germany's national debt, repre-
sented mainly by war bonds held within
the empire, now is nearly S35 100000 900,
or more than two-fifths of the estimated
national wealth of SS0,000,000,0 900.
Although there has been no official an
nouncement or intimation of the aggre-
gate amount which the allies will expect
Germany to pay, it is certain to run into
billions of dollars and necessarily the
terms of payment must accord with Ger
many'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 observers here say some claims
for restoration and restitution set forth
by interests in few allied nations are
extravagant, because they are beyond
Germany's ability, even though this is
estimated at the highest,
The victorious allies will not concern
themselves primarily, it is believed, with
Germany's redemption Of her own ma
tional 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 Officials here who have
known internal sconditions in Germany in
the past do not believe the government
will repudiate the internal indebtedness
but rather think 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 ac-
tual repudiation.
There is some discussion in official
circles here Of the advisability Of the
allies requiring payment of an indefinite
amount for reparation, this sum TO be
determined in the future by commissions
as the physical reconstruction programs
in Belgium and France and the actual
cost of the work becomes more clearly
determined than now. IL is pointed out
that future prices cannot be measured
accurately at present. Interest on the
part VI xtilltltEd uilGthiS III hue SuujSNt
Is somewhat indirect, however, inasmuch
as the government expects none Of the
payments to 90 to its credit,
Whatever may be the weight Of the
final burden of reparation and restitution
to be placed on Germany, the enormity
Of the task ahead Of her may be illus
trated by comparison Of her national
debt with that Of the United States
Germany has 66,00000O population and
$40 ,000. 100000 OF estimated wealth "a
pay $35,O00,000,000 of war debt already
created The United States has 10000.
900 population and an estimated national
wealth of S250,000, 100000 to pay nearly
SIS 000, 900 war debt already created
or approximately $23,0O00000Oo within
another six months. This means that
the per capita burden will be at least
three times greater in Germany than in
the United States.