The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-05-27
GERMAN PREPARATIONS.

1
many of the allied terms. there has
been more or less confusion as to the
exact meaning, extent and effect of
the PREPARATIONS proposals. The PEN
alties to be imposed on Germany, ex-
pressed in marks, pounds sterling and
dollars made an entirely different
showing, according to the different ex-
perts making the analysis. The fig
ures Of the leading economists did not
agree. There were times when it
looked as if Germany would be loaded
with a debt of SO billions, then the
blow would be softened by the explain
alton that the sum meant only Is bils1
lions
There has also been more or less
confusion as to what was meant by the
tax on German exports as well as the
purpose for which 1t was to be levied
No one knew whether this tax was in
cluded in the fixed penalties provided
or whether 1t was a contingent sum
which Germany must pay in case her
industry and commerce revived suffi-
GENTLY for her to bear the burden.
In this connection Wollman's Review
says that the total sum fixed for Ger
many to pay is set forth in two Off
cial statements:
First, the protocol Of the Preparations
Commission which gives the amounts
and the manner in which the repara-
tons proper are to be paid; Second,
the explanatory parts of the speech Of
Lloyd George in the house Of commons
on May 5. The total Preparations which
Germany undertakes to pay consist of
$4,000 100000 gold marks, and in addi-
ton to this special Indebtedness due
to Belgium under the terms of the
treaty of Versailles, the precise amount
OF which is not stated, but is estimated
at not far from 5.OO0,0O0,000 GOLD
marks. In translating these terms into
dollars we have taken them at the gold
value which makes the amount ap-
proximately $4,000. 900. 900. 1t may be
stated that other calculations place the
total sum as equivalent to S32,O76,o00.
The terms under which this huge debt
is to be handled are as follows:
What Germany Must Pay.
1. Germany agrees to create S34.-
0Oo.O00.0o0 In bonds. These bonds will
be handed over to the guarantees COM
mission, a sub-commission of the repa-
rations commission.
2. These $34,000.O00000 worth Of
bonds are divided into three series:
Series A. 100000. 900 to be issued
July LIST, paying per cent interest,
plus / per cent sinking fund.
Series B. $4,000, 100000 to be issued
November LIST, paying per cent inter-
est, plus l per cent sinking fund. Sc
ries A bonds have priority on interest
over Series b bonds.
Series c. s21,50O, 100000 ranking
after Series b, to be handed over now
without coupon sheets. to be issued
from time to time in such proportion
as the reparations commission may de-
eide according to the ability of Ger
many to pay. AS soon as any portion
OF the s21,500. 100000 Series G bonds
mas been issued, then per cent in
terest. plus per cent sinking fund
has to be paid thereon.
Note-Of the 8 per cent Germany ;s
required to pay on the issued bonds
per cent is for interest and / per
cent for sinking fund for redemn-
ton or bonds by annual drawings at
par.
3. To provide payment Of interest
and a sinking fund for all bonds Ger
many has to pay (a) $500, 00o. 900
year In gold, the first half yearly nav
ment Of $250.000,O00 within twenty.
five days from May IL and the other
s25o.00o,000 at the end Of the year.
CD 20 per cent of the value Of the
total of German exports, of which 2s
per cent Is to be used for the paw
ment Of interest on bonds of Series A
and b. / per cent to be set aside for
Series c exclusively. In other words
the per cent from exports is to be
used for the purpose of providing in
terest on Series c bonds alone, so that
in all events Series c bonds will get
something and the debt will be kept
alive.
4. For the payment of interest and
sinking fund charges on bonds OF Sc
ries A and B which are to be issued
during the present year, $3.50, 700. 900
per annum are needed. or this
amount S5o0.o00.0Oo is to be derived
from the fixed annual payments above
unAnkk0nad, and $260.000.OO0 n expect-