The Bridgeport times and evening farmer., 1920-06-02
CAN GERMANY PAY HER DEBTS TO
 ALLIED NATIONS?
Dr. Bernhard Dernberg Gives German Side of
 Perplexing Question.

Perplexing Question.
 New York, June 2-what the heads of the German state will say to the Allied chiefs when they assem- ble at Spa within the next few days Cor weeks) to ascertain what de- mands upon Germany may be feasf- ble is forecast by Dr. Bernhard Dernburg in the current Century Ma gazine.
 Readers will remember Dr. Dern- burg in connection with German pro- paganda in this country before our entrance into the war. He was a great, and almost a romantic figure, in the Germany of pre-war days His ap- pointment Director of the German colonies in 1907 created sensation for he was comparatively young only forty-one-and not "geboren," his family being respectable but "of the people, This, for class-ridden Germany, was an event to marvel at. Also the young colonial minister gave up a. connection with a. bank at Berlin which brought him fifty thous- and dollars a year. His career up to this time had been in the financial world, and his rise in it was almost as remarkable as his sudden transla,- ton to a. great position in the state. Beginning in a comparatively small employment in a Berlin bank, he had become a notable character in the in ternationa1 financial world. He had spent some time in America, in con- nection with a. New York bank hav ing important German interests, and enjoyed considerable popularity here: as we'll as in England.
 From the arguments which this German financier and publicist fore casts, and which the Allies financial experts will have to combat, the fol- lowing are interesting extracts:
 ''The Allied claim would-be from thirteen to sixteen times the entire German wealth. In order to 1iquidate a capital within thirty years, an an- nuity, on five per cent. interest ba- sis, of six and one-half per cent. is required. So the yearly payments by Germany would amount to 260,- O0O.OOO, 900 marks, equal to the total value of all German property, state and private, before the war;
 '"The credit of a nation depends upon the stability and reliability of her government institutions. We now have a democratic republic with strong sociahstic 1eaningS-
 ''The coalition (of parties) is strong-though it has been weakened first by the conditions of the peace treaty, which were considered unfair and impossible, and which, with the pistol at it's head, the Government had to sign under protest; second, by enormous taxation. which surpasses, as business men believe, the capacity of the economic structure and cuts deeply into all capital. No parlia- ment raising taxation to from four to five times the former level can really remain popular"-
 "The present ministry-does gener- ally everything for higher production. But ity is imp ossib1e to expect very great results so long as the workman is not properly fed and clothed. The death rate from tuberculosis has risen from 1865 for every ten thous- and in 1913 to 22.S3 in 1918. This tells the whole story. Our people are willing to fulfill their share, but they must be assisted in food and cloth from abroad in exchange for other goods that we are able to send. How ever, here a new difficulty arises.' ~ ~. A low rate of exchange for . country means a Chinese wall around it. It cannot buy from abroad. and therefore cannot sell. All i can possibly do is to barter witt neighbors in a small way. This i: the case with Germany, and hel
 
 '"The quotation of one cent. for the mark means that the mark is wort1 about four per cent. of it's fac' value. Though we assume tha this state of things is only temporar. and a change for the better may per haps be attainable on certain condi tions hereafter, nevertheless. our fig ures show at a glance that our ques ton is most difficult of solution. Tn power of any one nation to pay in for eign exchange depends on its abilit to export in excess of imports an cost of living and on the possibflit of hquidating claims the nation hold in foreign countries or on goods an chattels foreigners will buy Now c claims - business credit, houses, Ian (including colonies), foreign securi ties-Germany has none. Everythin she had has been taken from her UT der the Versailles instrument withot compensation.
 Germany has under the treat been deliberately stripped of at lea: one-third of its coa1-producing are; and nearly all iron ore; nevertheless the Allies have imposed on the IT maining two-thirds the delivery France, Belgium and Italy of 40 100000 tons more. The avowe purpose is to cripple Germany as
 competing manufacturing nation Bl you cannot hit in two directions the same moment. .. If you wis
 her to pay an enormous fnden1nit ! you cannot strangle her activity 1
 taking from her the tools of con
 merce - coal, transports, raw m;
 terials. As the treaty stands today,
 is incapable of execution"
 HER CLEVER IDEA. e,