Evening star., 1921-12-12
SEE PREPARATIONS
QUICKLY ADJUSTED
Settled in "TWo Hours" by
BRAND and Lloyd George,
Is Belief.
WORLD ECONOMICS ISSUE
View in Paris Germany Will Be
Unable to Meet Indemnities
on Present Scale.
By HIRAM n. MODERWELL.

By HIRAM n. MODERWELL.
By Cable to The Star and Chicago Daily News
Copyright. 1921.
PARIS. December 12.-The question of
the German reparations has become a
question of world economics and
power has become so concentrated
since the war that some believe a
few men can settle the matter in
short talk. Louis Loucheur. minister
of the liberated territories, belle Ewes
that BRAND and Lloyd George will
settle it "in two hours" when they
meet in London early next week. The
primary purpose of this meeting IS to
find some reparation formula which,
while preserving the essential inter-
eStS of England and France, Will pre-
serve Germany from collapsing, but
it seems inevitable that the whole
world situation resulting from the
war will be reviewed. Eventually the
United States must be called into
conference, for world settlement
without the American republic is un-
thinkable.
BY responsible men in Paris it is
accepted that Germany cannot pay
the indemnities on the present scale
after January, and perhaps then only
with foreign help. 1t appears that
neither France nor Britain has def-
mite plan for the coming conference,
the purpose of which is rather to
choose from the many suggestions al
1eady made. selecting one to present
to the next meeting of the supreme
council. a meeting of which will, 1t Is
expected, take place soon after New
Year.
Proposals for Ending Deadlock.
The current proposals for the end
ing of the reparations deadlock may
be listed thus:
/. A moratorium. This. it is recog-
niZed, would merely postpone the
crisis and not end the uncertainty.
. An international loan to permit
Germany to pay the January and teo-
ruary installments without SMASHING
her finances. Such d loan could be
raised only on the best security; that
is, by giving the lenders first mort
gage on the German assets. rms
might prejudice future payments
g. Payment of the reparations In the
form of preferred capital stock In the
chief German industries. This is look
ed upon as complex and daring ex-
pertinent. the consequences or "hlch
cannot be foreSeen.
4. Cutting the January and Febru-
airy installments in half. rms Is Jonn
NJ. Keynes plan for a breathing space
until a complete revision of the
reparations is possible.
). Extension of the Wiesbaden plan
for reparations in kind, while rs-
nouncing money payments. Ihere are
technical Limitation to such a Scheme
which might disturb the world mar
ketS. -.
Revision of Schedule Suggested.
6. Revision of the whole repara-
tions schedules. making Germany
responsible for actual physical
damages alone and not for
pensions. This. according to Mr..
Keynes. would make the total in
demnity less than one-third OF me me
gold marks ($31,416, ,oo9 .oo0). But
France as yet is unwilling to let Ger
many off so easily.
7. Permitting Germany to pay the
indemnities from the profits resulting
from the reconstruction OF Germany.
This involves international consent
and assistance in the formation of a
huge syndicate by which Germany
would furnish the manufactured
goods to Russia in return for raw
materials, the operation being sup
ported by interallied credits. This
plan was recently urged by Walther
Rathenau and Hugo SHINES in Lon
don. 1t is being studied seriously, but
it would presuppose international
recognition of the soviet regime.
s. Extension of the supervision of
Germany's economic life to control of
German holdings abroad of foreign
currency, insure an economical ad-
n,inistration and prevent the needless
depreciation of the mark through in
Hation This plan, in its extreme
form. is considered too expensive to
he workab able, but, in a greater or lesser
degree, it is being urged by the
French newspapers.
Allies to Guarantee France.
.. Any modification of the repara-
tions which the allies desire If they
will guarantee the sums due France.
One section of French opinion urges
the exaction of reparations to the
utmost limit with the frank purpose
of disarming Germany financially"
This means the ruin of Germany as
an industrial nation and to this Eng
land does not consent.
Each of these plans will undoubt-