The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1919-05-23

This incident illustrates the
greatest difficulty OF the whole
peace conference. namely
How much OF a damage bin Ger
many can pay. and how 70 get II.
II isn't solved" yet--by a long
shot.
The bin Is stili TO be collected.
There are exactly six methods
OF collecting u. according TO the
financial experts here advising the
pcacemakers.
But will public sentiment tolcr-
ate the three biggest methods?
The financial authorities | have
interviewed all say that the big
stumbling block in getting the
damages from Germany lies In the
fact that the three methods that
would ne; the greatest sums bump
smack into strong anti-Gernan
feeling
FIRsT--Against anything Made
I'm Germany"
SEcOND--Against lowering OF
French or Belgian labor conditions.
wages or demand by taking part
of the debt in work.
THIRD-Against inviting Ger
man competition in dye and other
industries developed by the allies
during the war and expecting pro-
lection: in coal and other raw ma
terials.
TAX the Germans--every one of
them--to the last cent they can
pay" sounds good but 1t means
nothing.
The Germans will be taxed all
right. but that hasn't anything to
do with how TO collect the bill.
AS one peace conference econo-
mist put Il; "you have to think
In terms OF actual values that can
be lifted right out OF Germany:
and not I'm evidences OF values
such as currency"
There are six ways, according TO
all the financial authorities. TO get
the values.
Here they are:
Payment OF Gold
This IS the most direct method
But Germany's gold reserve is
about 10 per cent OF the currency
II supports. while so per cent is
considered the sound minimum to
keep up confidence. So the allies
can't take much OF tho bill in gold
especially as not only Germany
but neighboring districts formerly
under German occupation have pa.
per dependent on this gold reserve.
s-Merchant Ships
Most OF these the allies now
have. They can be valued and
formally turned right over. tho 1t
will be necessary TO keep certain
supplies flowing into Germany be-
fore she can get far with pay
ment That can be arranged. how
ever, and the ships form a simple
method OF collection-up to the
amount they're worth.
3--Foreign Property Owned in
Germany
This means property outside
Germany or securities on property
outside Germany, owned by the
German government or by German
subjects residing in Germany.
These can be turned over to the
allies. In the case OF private own
ership the German government can
reimburse the German owner I'm
CURRENCY. Possibly arrangements
viii be made which will stretch
this method out to cover German
subjects who arc not living in Ger
many. too. :
Raw Materials
Coal Is the principal raw ma
terlal with which Germany will
pay. Potash and dyestuffs was
mentioned as others. France was
formerly the best customer for Ger.
man coal. but France expects TO
have all she needs when she gets
the outpost of the Saar valley. about
10 per cent of tho German supply.
Germany. however, will still have
plenty to export. But--as pointed
out. France, the big customer. is out
Of the market; AND coal is also the
biggest raw export of the British
Isles. If Germany is permitted TO
sell too much coal she will cut down
the demand for Britain's coal!
Manufactured Products
Here would be one of the greatest
methods of collection. We're it not for
the boycott sentiment against goods
Made In Germany" Products such