Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-04-10
GERMANY MAY
NOT Be ABLE
TO PAY COST
New York; Bankers Expect
Allies to Exact Indemni-
ty in Commodities.

New York, April 10.-When the re-
port of the Peace Conferences COM
mittee Son indemnity is submitted.
many bankers and other financial ex-
perts believe the document will have
more to do with commodities and
services than with money. This is be-
cause Of the widespread belief that
Germany cannot continue to carry the
enormous burden of her war debt,
the same time give bonds to her en-
emies. The French are talking of "in-
demnity in kind" by which is meant
a replacement indemnity: German
machinery, and goods n animals for
French and Belgian machinery goods
and animals destroyed. The French
argument is that they must have the
lea for conducting business at
once. not at some future date, and
to this end they must have goods and
machinery now. It is also commended
that II any nation should wait until
money can be turned into goods, that
nation should be Germany and not her
victims.
Quite aside from the French claim
for consideration. there is the belief
that Germany simply cannot a in
money the debts the Allied nations
are presenting. Some bankers and
economists go even further than this;
they say it is a mistake to assess Ger
many's debt in terms of money, for
money values may fluctuate so ire
mendously as to make the obligation.
If set at a definite sum now, either too
much or too little later. when the
money is translated into. goods and
services for the benefit OF the nations
which have been harmed. These
cities think Germany might be re-
quired to pay a certain definite per-
centage of her national produce each
year to an international commission,
which would be charged with dis'rf-
buting it to the beneftting nations.
The suggestion has been made that
Germany and Austria turn over to the
Allies certain basic industries. like the
potash industry and hat of coal and
iron. The Allied commission. it is
pointed out, could administer these
industries and use thee profits for
whatever purposes were decided up
on. 1t would not be necessary to col
lect all of the profits from these trades
"a portion would be needed for re-
amount of German enterprise would
be necessary in order to continue the
economic effort which must be made
il any indemnity is to be paid.
The idea of customs administration
of Germany Inc Austria by the Allies,
similar to the way in which the Turk
ish debt was administer in the past.
is not finding many advocates, as it is
felt that customs are likely to be
greatly reduced, if not eliminated al
together under the League of Nations.
The extreme idea of requiring a GER
tain amount of imam effort" as it has
been called-the forced labo- of Ger
mans and Austrian men in other
countries-is not considered at all by
leading authorities here.
In all of the suggestions for exact
ing an economic indemnity from the
Central Powers, there is a certain
amount of police work by the Allies
presupposed. However. some of the
bankers who have. studied this phase
of the problem believe that within a
very short: time after the return Of
peace, the policing necessary would
amount to practically nothing. Ger
tainly, they contend. no huge army
of occupation would be required if,
in fact, the work required military
forces at all. Supervision of the in
demnity administration, it is believed,
would be entirely civil within a short
time.