Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-03-06
NATIONAL DEBT Of
GE RMANY LIKELY
To Be REPUDIATED
lndeIhnitieS Planned Would
Make 1t Impossible to Pay
Obligations Represented by
Foreign-HeId Bonds,
BY Herbert Bayard Sucpc.
(Staff Correspondent of the Albuquer-
que journal and New York Worid.)
Copyright, 1919, by the Press Publish
CThe New York WorldD
Especial Wireless Dispatch.)

Especial Wireless Dispatch.)
Paris, March 5.-Unsatisfactory is
the best word to use in describing theI
Italian and Jugo-Slavic situation to-
day, although the belief is strong
in the minds of the peace confereesI
that a way out of the tangle will be-
found before recourse to arms is had.
limitations that the economici
screws would be turned on had the ef-l
feet today of depressing the warlikeI
inclinations of both parties to the dis
pute, and efforts are being made now
to obtain an apology from the Jugo-
Slavs if it be shown that the Italian
contentious regarding the expulsion
of Italys military mission from Lai-
bach was offensive.
Reparation Is Cons dercd.
Although less in evidence than the
Italian matter, the question of rep
aration is one that deserves and is re-
ceiving the most serious attention Of
any now engaging the Thoughts of the
delegates. Upon the outcome of the
financial enactments will rest the
worlds future from the standpoint of
social and economic welfare. Realiza-
ton of the nterdependence of all ma
tions, whether friendly or enemy has
the effect of making the commission
ers responsible for having this phase
treaty proceed cautiously. Following
the outline of the tentative program
given in these dispatches some two
days ago, I can say that the biggest
problem that confronts the conference
is the most certain reputation OF
the entire German national debt in
consequence of payments that Ger
many will be compelled to make her
war creditors.
viii Postpone Payment.
That result is practically unescap-
able though some of the economists
seek to soften it by saying that the
discharge of the debt will not neces-
sarly be nulified, but merely post
poned. This outcome overshadows in
importance the other phases of the
peace making, and reaction upon the
credit of the world is feared.
I Germany's national debt-that is,
money she owes her own citizens for
loans they Embellishments to
about forty billion dollars in round
figures Almost half of this is held
internally, so the loss will fall upon
the Germans but with their loss will
come a shrinkage in their buying
ability and a reduction of their stand
| ard of living.
AS regards the possibility of Ger
| many taking up the obligations laIer
| on. the case of the confederacy is
| cited, when about 81 900, 100000 was
deferred" but was never afterward
| paid
| Reputation is inevitable because
- Ar;a ,f
/ must make before she could devote
any funds to the discharge of what
she owes to her own people. Her first
| available funds will be used to pur-
chase needed raw supplies, Her sect
! ond will enable her government to
/ operate. Her third will go to the dis
charge of the principal and interest
! on what she owes for reparations.
} This disposition of her yearly reve-
nues will leave to her nothing where
with to wipe out other obligations,
Cannot Avoid II.
So far no one has been able to de-
| wise an expedent whereby repudia-
| ton may be avoided. Second to this
velopment in its significance is a
statement made to me tonight that
Germany's first payments on account
! of Preparations will be made through
the utilization by the allies of all her
liquid assets lying in allied or neutral
| lands.
This sum will aggregate nearly
| SO, 900, 900, 900, and will he used to
apply on the claims of those countries
| which have suffered through invasion
The moneys will include those in the
hands of Allied Property Custodian
i Palmer in America and those in pos
4 session of other governments which
took over German properties.
4 1t is possible for the World to state
i definitely that Belgium will receive
the supreme preference in the matter
of reparation, on account of the fact
that she was not actually belligerent
when invaded and that her losses
came to her as an innocent neutral
| Although there has been no final