Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-02-07
ECONOMIST TAKES
ISSUE WITH ALLIES
OVER PREPARATIONS
Not Sure Business Men
Will Accept View
OF Entente.
AMERICAN MEMBER OF
RESTITUTION COMMISSION
Tax Against Hun Exports Is
Tax on America" He
Declares.
QUESTIONS WISDOM OF ACT
ttnancicr coidly Dissccts Eject
Demands Will Have on Com
mcrcc of World.
QUESTIONS WISDOM OF ACT
tinancicr coidly Dissccts Eject
Demands Will iiav" on Com
mcrCr of World
ny HAltnN B. HUNT.

WASHlNlTrON, Feb. s.-"ls ;ba
German PREPARATION agreement reached
by the allies within Germany's abI-
ity to pay. and. if SO, what will he
the effect on economic conditions
generally OF having the amount OF
reparations and the terms Of pay.
m"nt definitely iixcd?"
Bernard NJ Baruch. ccoromic adj.
visor of tho American peace mission
10 Paris when the treaty was draft.
ed and one of the American mem.
bers on the reparations commission.
didn't give any snapshot answer. He
did quite a bit of figuring and put
through several telephone calls be-
FOR" he answered
Has figuring was done to translate
into American dollars The amount OF
indemnity the allies now agree Ger
many must pay and to determine how
grcat capital charge would have to
be set aside by German industry in
order to amortize the 226,OOO. .O0O. oOo
gold marks in the next forty-two
years
Ills telephone calls summoned to
his aid expert statist!cians and also
put him in touch with officials from
whom ne obtained details of the
agreement, which have not been car
ricd by press dispatches
Well ne finally announced from
the facts IN hand, would say tha,
the total amount of the reparations
looks pretty stif
Merely because Germany may ac.
cept ii, and because the allies saw il
Is acceptable. does not mean that
business men generally throughout
the world Will so regard it.
The real story of whether In.
r"pnrations agreed on are reasonable
or excessive viii be told within tba
next icw days in the worlds markets
fha; viii be the real and ONLY dc.
pendabie gauge.
IF IL is IA sum within Germanv.s
ability 10 pay. and If she accents
TINS arrangement in good faith. ana
not simply because she has 10. and
further. II it meets the approval q,
business men and financicrs. thcr,
is sure to be an Improvement i,
worldwide economic conditions.
There has already been a rise :,
exchange in anticipation that the ser
tiemcnt would he reasonable. There
would be further rise. with a ten
dency over period OF time slowly
To approach normal
This would increase the credit
facilities OF all nations involved and
Improve their buying capacity and
their ability TO exchange commodi-
ties with ONE another. 1t would tend
to Increase the wealth of the world.
and, therefore. increase the ability
10 lessen the percentage of taxation
he 'usc OF the increased taxable
vol me"
The big load Germany must carry
IN meeting the reparation payments
demanded. Baruch points out. is not
10 amount OF cash she mus.
pay out
y capita! sum equal TO the debt
america Incurred In the war. at ;
per cent interest over forty-two
years. would just about equal the
,"ta! OF the cash indemnity
Eut by stripping Germany OF her
'hipplnc. ~ imposing i2l-2 per
cent tax against the total OF her ex-
ports. by requiring that she deliver
10 France large Quantities OF coal
Continued on Second PaseD