Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-04-21
Colombian PACT RATIFIED
SENATE GRANTS WISH HARDING
MEANS PAYMENT $25,OOO,0O0
BANKRUPTCY AIMED
At BY GERMANY SAYS
FRENCH COM. HEAD

Boston, April 20-Discussing the at
titude of Germany and the allies to-
ward reparation figures, j. A. NJ. de
Sanchez, head of the economic divi-
sion of the French commission in the
United States. told the Harvard Club
tonight that "thc German state itself
is fast approaching bankruptcy and
it would seem that the German gov
eminent is deliberately working
with this end in view"
1T has squandered money in an
astounding manner" he said, eX-
planning that the government had
subsidized every conceivable scheme,
distributed funds to assist unemploy-
ment and cheaper food, run its ma
tional railways and all departments
at huge deficits and employed many
more persons than We're engaged at
the same tasks before the war.
In the last year, he declared, the
state railways showed earning def
cts of 16,000,0 900 900 Marks "a sum
larger than it cost to construct the
lines at normal exchange rates. The
state railways employ 100000 persons
compared with slightly above 100000
in 1914, and yet Germany compla' rs
she has neither wagons nor labor to
transport coal from the Ruhr to
France" he said.
Postal telegraph service employees
number 10000. compared with 10000
before the war and civil service ad-
ministration workers have increased
from $500, to $4,000, he added.
The finances of the German repub-
lie are indeed in a deplorable condi-
ton, but the German people them
selves are in reality prosperous eX-
cept those on fixed incomes" he con-
tinued. '"The Germans are living in
greater luxury now than ever be-
FORE
according to the League of Ma
TONS Germany pays l. per cent. of
her national income to the state in
taxes; the United States, eight per
cent; Great Britain 81 per cent. and
France IS per cent.
"It is, of course. not expected that
Germany can make the Preparations
payments entirely in gold; but if she
is willing to do so, she can meet all
of the sums demanded by paying in
labor. in goods, in raw materials and
to n certain extent in gold.
I'VE can find plenty of work for
German labor and German machinery
in France in new development which
will compensate us for our losses if
OF actually in the taskof reconstruc-
ton"
The Germans themselves. NJ. de
Sanchez asserted. had supplied def
mite grounds for believing they could
meet the Allies demand of $50. $500
100000 to be paid over a AZ year Pc
Rod plus a II IL per cent. tax on
German exports.
He quoted from q paper written in
1917 by DR.. Karl Helfferich, former
minister of finance and vice chancel-
Tor of the German empire. which
stated that in 90 years Germany
would have a national wealth of s130-
COO 600. 900 compared with $4,000 000,-
600 for France and s105,000, 100000 for
Great Britain"
He declared France, Russia and the
new states of Central Europe lost a
greater percentage of men in the
war than Germany, and reminded his
hearers that Germany's pre-war ar
my deprived her of an economic pow
er of 100000 now reduced to 100000
1.-THE more one familiariZes himself
with all angles of the reparations
questions he declared. "the more in
evitable in the conclusion that it's So
luton rests upon Germany's realiza-
ton of the fact that she has deceived
no one as to her real ability to make
reparations and that she will have
the sympathy and cooperation of no
one, until she shows some willingness
to repair the damage that she did"