Great Falls tribune., 1921-02-20
GERMAN RUIN
WILL DRAG ALL
EUROPE DOWN
Mutual Exchange of
International Credits
Only Plan Says Banker
50 Billion Gold Marks
All Teutons Can Pay,
Opines Big Financier.
N. Y. world-Great Falls Tribune Gable.
Copyright 1921 by The Press Publishing
Co. (The New York World)

Co. CIhe New 1ork w oTiu.)
Berlin, Feb. 19.-The sentiment in
America regarding Germany is chang
ing, said Marshal Won Hindenburg dur
ing the launching of the 15,OOO-ton
freighter Hindenburg at Bremen today
The German commander said he was
advised that Americans who fought
Germany wrote home, I'VE fought on
the wrong side"
Hindenburg, like many Germans. be-
lieves Americans are sorry they went
into the war, and will prevent the car
rying out of the reparation demands.
They get this viewpoint chiefly from
the failure of the United States to rat
ify the treaty and the change in the
national administration. They believe
that President elect Harding is on their
side. and say the entente is hurrying
to fix the demands before he takes OF
flee.
Both Appear in Uniform.
Both Gen. Hindenburg and Gen. Lu-
dendorff appeared at the Bremen
launching in their uniforms and deco
rations, followed by cheering crowd,
but the 300 workmen in charge OF the
launching held a vote first to see
whether they would permit the vessel
to leave the ways under the circum-
SIduCeS. ue party III IuVOI VI tHc
launching won by 30 votes.
Arthur Won Gwinner, director Of the
Deutsche bank, says in an interview
with The World correspondent that
the only feasible reparations plan is
the mutual exchange Of international
credits suggested by Frank a. Van
derlip. Herr Won Gwinner thinks Ger
many can pay total of 10000 100000
gold marks, having already paid %,
0OO,00O,OOO in goods delivered to the
allies. The bankers attitude was
intensely pessimistic as he said:
"a system based on mutual check
ing off of credits, letting Germany in
on the basis of considering indem-
mites as debts, would permit inter-
national commerce. 1t means that
every country will have an interest
in the good behavior of all the other
countries which is the foundation of
a durable League of Nations.
Since the war ended Germany's
currency has gone steadily down,
dragging all the others with it. Ger
many's currency deprecated 20 per
cent in 1918. Two years later the
best of the western European and
neutral currencies went down more.
Road to Financial Ruin.
I'VE are on the financial road which
ends in disaster unless checked
Germany is issuing 25OOO,00O,OOO pa
per marks annually merely to pay for
the deliveries of goods stipulated in
the peace treaty.
Before we can ever think of fixing
the amount Germany can pay we
must settle how she can pay it with
out driving her currency to nothing.
If Germany goes to complete financial
ruin the rest of Europe goes too"
Asked about the French and English
claims that Germany is not taxed as
heavily as they are, Herr Won Gwinner
replied:
England has little indirect taxa
tion. France has practically no direct
taxation; Germany has both. When
this is balanced up it shows that the
average German is more heavily
taxed. Rich Germans have their for
tunes taxed away. l used to be con-
sidered rich man, now / am poor.
Out of 100000 marks the govern
ment taxes 100000 as a tax on capi-
tai. There is nothing remotely re-
sembling such a law in France. Out
of the remaining 100000 marks the
income tax equals Englands, and the
remainder, if carefully invested, nets
10000 marks or $1,000
Thus the owner Of fortune that
was formerly worth 100000 now
gets $1,000 revenue"