Evening star., 1919-01-24
BY PAUL SCOTT MOWRER.
Cnbiegram to The Evening Star and
Chicago Daily News. Copyright. lViV.

PARIS. January 23.-I am able to
give herewith what I believe to De
the first reliable estimates published
of the damages which Germany can
really pay to the allies. The figures
presented, while perhaps not r1sldiy
exact are approximately SO. The fig-
ures on German wealth are those
given by DIR. Heifferich. director OF
the Deutsch Bank. in 1913, to prove
Germany's wonderful prosperity. They
are therefore, rather exaggerated
than minimized
Demands for Indemnities.
The demands for indemnities pre-
sented TO the peace conference by the
principal powers are as follows:
France. 30 900. 900, 900 francs (Soh,-
coo 600. .0n0l; England, 9oa,ooo,oO oOa,-
coo francs tS40, 900 900, ,0Oo): Italy,
100 900 600, 900 francs t$2o 5000, 900. e.oeo) :;
Relgium. 10000 .000. 900 francs ga, ,ooo,-
ouo.00oi: total. 10000. 100000 francs
$itf 600 900 Dnol.
DR. lelTerich estimated the total
alth of Germany in 1a1; thus:
Property insured against fire, 2oo,ooo,
oou.0nu marks t$:,0, ,ooo. 000 0oo>; real
estate 10000, 600. 900 marks fS11 400,
Quo ,oon); mines. 5000 5000 marks
ESl 800, 00o, ,00ol cargoes on route,
metal. money and ships, 10000, ,poo
marks (S1, 500 900 .ooo); public PROPERTY
including railways, a0.0oo,ooo, 900
marks Is. 10000, ,00Ol; investments
abroad. 20,U00. 900, 900 marks t$5.ooo.-
0o0, ,0ool. total 3d. 900. 100000 marks
(SS3 .0oo. 600 .o0n).
1t is thus seen that the total in
IDENTITIES demanded exceed the tota!
wealth of Germany.
When an Individual fails, his prop
erty is Hquidated by the creditors, but
in the case of Germany this system OF
settlement is impossible. for you can
not put seventy million people out OF
the country and confiscate their prop
erty. The idea of taking over Ger
many's national wealth is, therefore,
utterly fantasticai,
Income Offers Sound Source.
The only sound source of indemni-
ties is Germany's total annual income,
This was estimated by DR.. Helferlch
al maximum of 40,006,000.o00 marks
(s1e 900. .00n. .00o), but the entire reye-
nue. cannot be confiscated or else the
people will not be able to meet the
current expenses.
DR.. Helfferich's figures show that
%, 600, ,000.0 600 marks (s6,250,o00. .o0ol of
the national income were expended BY
individuals for current expenses; T.
100000 marks (s1,T500eo, 00o) by
the state. Only the remaining s,oo6,-
oO0. 900 marks fa,00o. o00, ,o00) repre-
sents the country's savings or net
profits.
This s, 600, ,O0o. .o00 marks can be taken
by the allies and by taxing the rich
people, and so forcing them to reduce
their personal expenditures, another
3,00o. 600. 900 marks 0.o06.o00) may
be added. The total. therefore, is H.
0oe. coo, 600 marks (s2.7so 900. ooo). All
these figures are on the 1919 basis, but
at the present time the purchasing
power of the mark is diminished by
half. Thus the 1900, 100000 marks
before the war may be taken to rep
sent 2a.000 900. 900 marks now.
However. from this sum must be
deducted Germany's war debt Of
1000 600. 900 marks ts1.o0o. .ooo,o ,o0o):
pensions debt, 5000, 900, 600 marks
ts750. 5000 extra expenses owing
/. 900. 900 600 marks ts250,ooo, ooo). 1t
is TO our interest that Germany
should meet these various debts
first, so as to get the money back into
the hands of the individuals from
whom we hope to collect in one
holshevistic tendencies among those
people who have suffered most, and
third. SO that German industries will
be able to function.
On Pre-War Basis.
Thus, from 100000 900 marks
(s5.5oo, 900 ,000) must be deducted
100000, 900 marks CSC 1000, ,000. .000),
leaving $4,000. .0oe, 600 marks ($3.50o,-
oe0, ,oe01. which is what Germany
might be expected to pay ua annually.
provided she has the same stocks OF
raw stuffs, the same ships, the same
railway shipment and the same mar
kets as before the war. This Is far
from being the case. and hence even
this sum of $4,000. 100000 marks is
an extremely doubtful proposition.
The result is that the allied govern
another to the American point Of
view-that the only way to make
ro~o,,,,, NOW ia N hahn CArmapv ~