The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-18

OF what and how Germany shall pay.
continues. 1t seems that even in
France there Is a tendency to the
view that a new scheme must be de-
vised and put in effect. In Britain,
OF course. this view Is well advanced
I The suggestions OF payments in kind.
OF a moratorium. OF a cancellation
OF class c Reparation Bonds. are in
ications OF the trend of thought.
There is no likelihood that the Ger
nan PREPARATIONS will be cancelled. as
" Is universally held that reparations
are Just and necessary. first. to make
good actual, physical loss. and.
secondly, as a punitive measure.
Fears German Hegemony.
Writing in the London Times on
november II, Sir Henry Strakosch.
chairman OF the financial committee
or the league Of nations. discussed
the reparation question. particularly
the current suggestions OF payments
IN goods. Sir Henry points out the
danger OF having Germany produce
goods which would compete with
goods manufactured in Allied coun-
tries, stating that such goods would
necessarily crowd out those produced
by the Allies. He mentioned the fact
that about $50. 100000 people in
Europe have but a fraction of their
purchasing power Of pre-war days,
emphasizing by this statement the
fact that there Is not a sufficient
market at present for the productive
capacity OF the Industrial nations II
exerted In the usual lines He then
suggests remedy. namely. that Ger
many's payments in kind should be
or a capital nature. that is. that Ger
plants and equipment Of plants.
especially such undertakings as would
provide outlets for labor in the future
and produce greater convenience and
comfort OF living. As a concrete ap-
plication OF this thought. he states:
Merely by way of example, the
equipment which in this connection
might come into consideration in the
hrst instance would be in connection
Win the cneapening OF power and
the Improvement and cheapening OF
the means OF transportatIon-for in
stance. the erection OF a number of
great central electric power-sta ton.
In the immediate neizhborhood of
some OF the large coalfields. the cleo
tr1ncatton of the busiest railways, the
Improvement OF the equipment of
haroors. etc. Germany should be
called upon to deliver not only the
machinery. etc. necessary to carry
through such schemes. but also the
pant required for the production OF
INC machinery, etc. which she de-
hvers Sir Henry believes that this
sCherne or Germany's creating wealth
OF capital nature for the Allies
should be extended not only to Great
Britain. but throughout the Empire
Inc Investors Guardian. com
mentng on the suggestion OF Sir
Henry Strakosch. believes that the
suggestions are valuable as offer
ing the way in which Germany can
make reparation with less injury to
tne industry OF recipient nations
pan had been thought possible.
Cariey Appreciate. Suggestion.
IN letter to the Westminster
Gazette OF November IS a Mr.. q,
Carley makes suggestions somewhat
similar to Sir Henry Strakosch. Mr.
Carley calls attention to the fact
that. by accepting reparations in
the form OF public works. the Allies
would be merely following the big
examples OF history. particularly OF
ancient peoples.
On November %. at a dinner OF
rhe political and economic circle Of
o.
T. Layton, well-knOwn economist.
who attended the Brussels confer
ence and recently was called to ad-
wise Prime Minister Lloyd George
on the subject OF Unemployment
mentioned the fact that British
manufacturing concerns had under
consideration a reparations scheme
by which the German industrials
should give mortgages on their en-
terprises. This, he stated. would be
in effect a tax on the profits OF
German industry, levied as divi-
dcnd-a much easier form than tax
alton. Mr.. Layton thought that II
a scheme which would prevent
monetary disturbance could be de-
vised, IL would be well worth the
while OF Great Britain to say moth
ing more about her share OF repara-
lions. his thought being that the
mortgage scheme would be princi-
pally to take care OF the French
and Belgian shares.
May Lighter Burden
The scheme OF accepting repara-
kfions in the creation Of new capital
wealth as suggested by Sir Henry
etrakosch and the scheme men
toned By Mr.. Layton both found
place in the report OF a special
committee presented at the annual
meeting OF the Federation OF Brit
fish Industries on November %. Tn.
committee maintained that Ger
many should not be freed from pay
ment, although II she were willing
to accept desired notifications II
might be well to tighten her bur-
den The committee then suggest
ed that German Industrial enter
prises might be required TO create
special class OF first preferences
shares as a FIRST charge on theii
business and that owners OF real
property might be required to Gre
ate similar first charges or under
lying mortgages. The same sug-
<.stion was offered as to German
railways. canals. shipping lines
and even banks. These securities
would be handed over by the Ger
man government TO the allied gov
,rnments. who could dispose OF
them. IL they so desired, TO indi-
vfduals In regard to the sugges-
ton that capital wealth rather than
Aconsumable goods be created as
Xr,parations. the committee believed
that CONSTITUTIONAL works in allied
countries or in other countries I'M
der allied direction. might be re-
ceived as reparation. They particu-
larIy favored works OF sort which
would probably not be carried out
otherwise in the immediate future.
Tbes. might include the restoration
Of works in undeveloped parts of
the world, such as railways, har-
bors. etc, in Africa. South America
- -. .-aotfop Of great suner-