Bisbee daily review., 1921-03-03

GCONTINUED FROM PAGE oNEJ demonstrate its true character. it isl sufficient to nOte: '-The German government assumcsI it is at liberty to calculate the pres ent vaiue or the fixed annuties on am eight per cent basis. This table is applicable in the Paris plan only toI discounts Of fiyed annuities made in the first two years.
 The German government ignores the value of the variable snnuities provided for in the Paris plan, the amount of which depends upon the value of German exports.
 ''The annuities payable under the Paris plan are in addition 10 what ever sums may be found to have been paid on account of reparatiOns.
 The German government assessed at 2O1OO 0OO. GOO in gold marks the value deliveries made by them. The reparation commission assessed their value at less than half that sum. The amount to be credited to the German government in respect to these deliy- cries in the reparation account will be found very small.
 How, Germany Figures
 "The German government uses an eight per cent able to arrive at the amount due from them: il proposes that the interest upon their debt shall be limited Co five per cent.
 The German government proposes that its securities shall be relieved of taxation in the country of issue, thus burdening the country of issue with part of their liabilities.
 'On the assumption that the amcuM which Germany will pay during the first five years will be 100000 900 and that the whole obligation will be discharged in 90 years. the amount she will have to pay for the p years following to provide for the interest on the sinking fund of her whole debt will be three billions a year. The present value of German payments on this reckoning will amount at the outside to September to about 2.000- 900 900
 Tt is only necessary to compare this sum with the value of the pay ments made under the Paris plan to expose the inadequacy of the German proposal. Under the Paris plan. on an eight per cent table, the present value of the fixed annuities alone is 53.O0O. 100000 gold marks. This table is. however. applicable only to dis counts Of future annuities. made dur inC the first two years. On an eight per cent table-the rate at which dis counts can be made after l925-the present value is over 5000, ,000. 900 gold marks.
 Difficult to Make Estimate
 IL is difficult to make an estimate of the value of the variable annuities under the Paris plan but a substantial addition should oe made to the above fiSures in respect to these annuities The sum which the German govern ment asks the allies to accept i'll sat isfaction of her debt amounts to a small fraction of the sum fixed at Paris
 The consequence would be that Gcrmany's external debt which is Tim tied to her rcp3ration liability. would correspond to small proportion on r. of th" external debts which the all lies were compelled to contract for inc war" tIK
 German Cabinet Meets
 IERLIN. March . The German cabinet met today and discussed re. ports sent from London by Dr. Sim Gns. Political parties met tonight to consider the situation arising 'out of fie pud0n conference. and accord 'r- iu th- NoSsischc ZcitunE. it is as .-tr,,.tl .t ucu- .tftcUnt will bo made to