The New York herald., 1921-05-03


ing to Germany's ability to pay IN
terest on those already out. Under
this construction of the bonds, they
are simply a trust deed deposited
with the Preparations Commission as
trustee.
The fact that there is no provision
Tor sinking fund. it is pointed out
in French circles, creates one Of the
most vicious features of that type of
security, unless the Allies agree by a
special device to credit interest to
principal and let it wipe out the total
debt. Even under this scheme, how
ever. some experts hold that the pill
ing UP OF interest, which would not
be paid. would founder the entire
scheme.
Occupation of Ruhr.
1t was agreed tonight, according to
a statement by Premier BRAND, that
the occupation of the Ruhr region
would start automatically without fur
ther allied conference If Germany did
not submit unqualifiedy. Her time
the schedule agreed upon. Outside OF
this the programme is frankly cloudy.
The bones of the plan have been de-
termined, but the experts frankly adj
NIT many of the important members
of the skeleton do not articulate.
Starting with Germany owing at
the present date $500, 100000, the
plan as outlined tonight exacts
heavier annuities from Germany than
any other previously made. These
ahnuities only provide ) per cent. on
a part OF the capital sum. She is to
issue Immediately a series of bonds,
which will be deposited with the
Preparations Commission, To an
amount of not yet determined maturi-
ties There is not yet word about
either the maturity of these bonds,
what is to be done about the interest
on the sum not covered by bonds or
q. single suggestion TO the public about
sinking fund provisions. 1t was said
in other circles. however, that the ex-
perts expect to straighten out all
these difficulties during the course Of
their work tonight.
The French are busy with the plans
for the occupation and are plainly
jubflant that this matter is settled
Marshal Foch was summoned from
the Carlton Hotel dining room when
Premier BRAND returned frem the Su-
preme Council meeting this evening
and he immediately went into con-
ference with the French Prime Min
lister.
; The Bclgians still seem TO think that
something can be worked out of the
bonding scheme. but tlley, too. admit
the bonds any more certain than the
Germans signature TO the Versailles
Treaty in the first place.
Italians in Dissent
The Italians do not like any OF it,
and there was more than an intina-
ton in authoritative Italian quarters
here tonight that Count Sforza, Ital-
ian Foreign Minister, would wash his
hands of the whole business were 1t
not for.his country's economic depend
epcefon France and England at the
present juncture. her supreme interest
being in getting coal while British
coal production is shot to pieces by
Industrial troubles.
In view of the apparent imperfec-
tions of the financial scheme, with the
clear understanding already attained
on the Ruhr occupation, the confer
ence here is considered a distinct vic
tory for Premier BRAND of France. 1t
is likely that Premier Lloyd George
will have a stormy time in the House
OF Commons Thursday when he an
nounces how Great Britain is com
mitted and on what issues, but he has
again and again shown his ability to
make stormy times in the House Of
Commons look like a teapot tempest.
and nothing seems in his way now ex-
cept difficulties essential to the finan-
cisl scheme itself.
Even these may be settled to ad-
vantage on the thesis that no scheme
In connection with German reparation
Is safe save occupation and collection
at the point OF the bayonet.