New-York tribune., 1921-02-11
Easy for Germany
Frances Burden of Reconstruction
Compared With the Indemnity

Compared With the Indemnity
To the Editor Of The Tribune.
Sir: Things have como to a pretty
pass when signed letter is sent to
The Tribune like that Of Russell J..
Clinchy, which appeared in the issue
of February 4, telling us that an
indemnity levied upon the German
people is contrary to the principles of
Christianity, and pleading the "teach-
ings of Jesus" and the wickedness of
Furnishing innocent German children as
reasons against Germany's paying for
the destruction she caused.
The truth seems to be that the Amer
the facts that there is some reason to
hope that this sort Of propaganda will
reach the hearts of some.
What are the plain facts Of the case
France, who lost more soldiers killed
than any other of the Allies, and who
spent more of her per capita wealth
than any of the Allies, also came out
of the war with a large part Of her
civilian population weakened, if not
dead, and with her principal Industrial
region ravaeed and destroyed.
The commissions of experts who
have been studying the problem state
that for France reconstruction of the
devastation alone will cost from 14o to
$50 billion francs (Andr6 Tardieu, LII
lustration of October 80, 1920. At cur
rent exchange this amounts roughly to
100000 900. This part of France
must be reconstructed or France will
be completely ruined and sink forever
from the list of great nations. Is it
Mr.. Clinchy's plea that the wicked
French children should shoulder the
whole of the cost of reconstruction so
that the innocent German children may
not be hampered? Germany has suf-
fered no destruction of her property in
Germany, and stands practically intact
to-day in property, except for the re-
turn to rightful owners Of territory
which she had previous taken by force
against the will of the inhabitants
thereof.
France owes over $6,000,O00 900 to
the governments of the United States
and Great Britain, credit which she
borrowed to fight our battles for us as
we'll as with us, and on which money
our people made profit. Germany
owes nothing worth mentioning to any
nation aside from the indemnity. Is it
Mr.. Clinchy's plea that the wicked
French children should pay this so that
the innocent German children may 60
scot free?
Mr.. Clinchy makes a point of the fig
ure of $52 100000, 900 as Germany's in
demnity Correctly it is $55,OOo,0o0,-
000). But money to be received thirty
of forty years hence is nowhere worth
day what it will be worth when
paid, since future payments must be
discounted at some rate of interest
to get their present value in cash. But
French reconstruction must be paid for
in cash: delay would be fatal.
The simple calculation of the dis
count value of the German indemnity
from Inwood's tables will show any one
that the face value Of the indemnity
to-day, with future payments discounted
at per cent, Is roughly $1S,300,000 900
(and per cent is not even CONNER
cial rate Of interest to-day. France,
with 4o,000,0O0 people, must raise $375
per capita Of its population to pay
s15,0oo,O0o,Oo0, the cost of reconstruc-
tion and her debts to the United States
and England. Germany, with 6O,000,0o0
people, need raise only $500 per capita
(present value) to pay the indemnity
And Germany is intact in her lands and
industries, whereas France has had her
most important Industrial regions de-
stroyed. HUNTINGTON ADAMS.
New York, Feb, 8, 1921.