New-York tribune., 1921-03-03

The seriousness of the step which is
oelng taken. both in refusing to dis
'euss the German counter proposals and
IN the action to follow. may be Judged
by the long and earnest consideration
the Allies gave to it. NJ. Brixnd favors
immediate action, on the ground that
the Germans are evading the terms OF
the treaty, while the British and
Italians have advised against precipi-
tate movement.
.. The Germans, who remained IN their
hotel throughout the day, eagerly scan
ming the tickers, questioning callers
regarding the happenings at st. James s
: Palace and communicating what they
could gather to Berlin, were despondent
tonight when their hopes that dii-er-
ences might arise between the Allies
to tighten their country's burden were
dashed by the finding of the conference.
One of them remarked:
We'll, perhaps that is the only way
out. II BRAND yielded his government
would fall; if we yielded our govern
course is for the Allies to impose their
terms"
Summary of German Proposal
After the meeting of the Allies a
statement was issued from the confer
S4tSc CulQVOv iHk a Oh tNe AcI-
man proposal and comment thereon.
The plan prepared by the Allies at
Paris for the payment of reparations,
says this statement, "relieves Germany
Of substantial proportion of the
amount payable by her under the
Treaty of Versailles.'
Then follows q summary of the Ger
man proposal, and the statement says
This proposal does not merit either
examination or discussion. To demon
stratc its true character it is sufficient
to note the following:
First-Ihe German government as
sumes they are at liberty to calculate
the present value of the fixed annuities
on an per cent basis This table is
applicable in the Paris plan only to
discounts of fixed annuitics made in
the first two years.
WSecond-The German government
ignores the value of the variable an
nuities provided for in the Paris plan,
the amount of which depends upon the
value of German exports.
"Third-The annuities payable under
the Paris plan are in addition to what
ever sums may be found to have been
paid on account Of reparations.
twenty Billions for Deliveries
"Fourth-The German government
RSScScS at twenty unions luc Nllup OF
deliveries made by them on account of
various obligations imposed upon them
by the treaty. The reparationS com
mission assesses their value at less
than half that sum. The amount to
be credited to the German government
in respect to these deliveries in the
reparations account will be found to be
very small.
"Fifth-The German government
uses an 8 per cent~tabe for the pur-
pose Of arriving at the amount due
that the interest upon their debt shall
be limited to 5 per cent
"Sixth-The German government pro
poses tnat their securities shall be re-
lleved of taxation in the country OF
issue, thus purdening the country OF
issue with part of their liabilities.
"Seventh-On the assumption that
during the first five years will be
s1,50O,OoO 900, and that the whole obli-
cation will be discharged in thirty
years. the amount she Will have to pay
for the twenty-five years following
that period to provide for the interest
on the sinking fund of her whole
debt will be three billions q
year. The present value OF. German
payments on this reckoning Will
amount. at the outside, to somewhere
about $27 7,000,0O0,000
Inadequacy OF Berlin Plan
ut is only necessary to compare
this sum with the value of the pay
ments made under the Paris plan tc
expose the entire inadequacy of the
German proposal. Under the Paris
plan, on an 8 per cent table. the pres
ent value of the fixed annuities alone
is $4,000, 100000 gold marks. This table
is, however, applicable only to dis
counts OF future annuities made during
the first two years. On an per cent
table-the rate at which discounts car
be made after 1925-the present value
is over 000,000,0U0 gold marks.
ut is, of course. difficult to make
an estimate of the value Of the vari-
able annuities under the Paris plan
but substantial addition, at any rate
should be made to the above figures
in respect to these annuties. The sun
which the German government asks
the Allies to accept in satisfaction OF
her debt amounts therefore to a small
Traction Of the sum fixed at Paris.
ii. "The consequence would be that Ger
many's external debt, which is limited
TO her PREPARATION liability, would cor
respond to a small proportion only Of
the external debts which the Allie:
were compelled to contract for the