Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-04-28
GERMAN OFFER
IS IMPOSSIBLE
u. S. Economic Adviser Says
Proposals Are Neither
"CIear Nor Frank"
MEAN A THIRD LESS
Denounces Suggestion That Germany
Will Assume Debts Due America
Would Entangle U. ;.

New York. April 2S.-Bernard NJ.
! Raruch, chief economic adviser to the
Anne can delegation at the Peace Con
| ference in discussing the latest Ger
man reparations proposals. yesterday
said they were neither clear nor
frank" and added that Germany IS
offering the Allies on" third less than
the natter demanded.
| He declared further that the e!ever- :
! tn section of the German offer. wh:ch
says that the private property OF
Germans abroad wculd bc cialso freed,
| is a ridiculous ani impossible" al
tempt by them to abrogate c@rtai-!
features of the Versailles treaty al
ready put into effect OF This partIcu-
lar section of the German proposal,
Mr.. Baruch said ITS fairsized Mig
ger IN the woodpile.'
OF the eighth section, which sag
gestS that Germany would Je willing
to take over the Allied obligations to
the Unitei StatetS. Mr. Baruch sa!1
that "thc United States cannot atforc
to be placed in the position of accept-
ing for its Allied obli~aticnS the bonds
of our enemy We than would be n
the position cf having to enforce tnt
tennis of the treaty-and quite alone.
Commenting on the first section o.
the proposal in which Germany says
il is wiling to pay $4,000 100000 gold
marks, Mr.. BarucE said that convert
ed into our currency that amount i
ABOUT .0OO.O00.0O0.
He thea cor.raSred this with the pr
posal maze by the Allies for "a gross
sum of $l4,O00,O 100000, the paynien:
CT whrh was spread over IL Tcar:.
which was equivalent 70 prcsenv
value of S2l 100000, 900 az. > pc: cent.
,s1S. 900 ,00n,0 900 AT t. per cert. and 81.
500, ,00O,0C0 at per cent, which :
about tn, going market rates that
foreign governments would have :"
pay in this market
I'm other words" ne said, "the Ger
mans are offering cne-third less at
ner cent than the Allies ask.
The inte, national loan proposed II
the second section is, according 10 NJ.
Baruch. quite Indefinite. He saii
that th.e best the Germans could do
would be to float this loan at a rate
of 8 per cent, and that "Germanf
could nit fIoa- large loan even at
| this rate
The German offer of $l2.OOO.O .OOo.-
OOO'' Mr.. Ealuch said, proposes tina"
this sum should be raised ioy an inter.
Allied loan, and that which canHot DC
raised in this manner should be carei
for by security bearing out 4 pc"
cent. interest. a German security
carrying hut per cems. would s'l al
! a considerable discount, and would noi
represent. capital value OF mote
than perhaps $S,0O0,0 ,0000C0." J."
Of this third section, which discus
ses the per cent. proposal sper'ficai-
". he sald that "the proposition OF
anv present sum on the bass Of ! pei
cent. is ridiculous in the extreme. e,
cause it is imp, ssible Of realization.
Germany cannot expect TO issue an OBJ
| legation 1T an interest rate Of one
half of what the Allies themselves
would have 10 pay in gold IN the
markets Of the world
Discussing the offer TO assume debt
due the United States. Mr.. Baruc,l
said there was nothing in common be-
tween the German obligations to tnC
Allies and the Allied Obligations to
he United States.
.'The American Government, hs
said. sis not going to mix the two uE
This confuses instead Of clarifies thf
issue, The United States ce17ta My is
nc. going to put herself IN the pos:
ton of taking tie German obligation
in place of the Allied obligation, fol
then if Germany is unwilling to meet
her obligations, the United State;
would !ose all or be forced 10 take
military measures Tbs is a high!i
unnecessary ENHANCEMENT.
| But it was the eleventh section
which specially aroused the criticism
of Mr.. Baruch; after saying that IN
whole nronosal TO free German prop