The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1921-05-12

Plans FlOtation With Berlin Sc
curity-AIlies' Guarantee
LAMONT is NEGOTIATING
Estimated Net Return of Issue
Is Placed at From 65 to
so Per Cent.

Paris, MAY II Following Ger.
many's acceptance Of the allied ultima
tum-an acceptance which was com.
muntcated to the Allies yesterday and
which the more optimistic observers
here hope foreshadows a real settle
ment OF the reparation quest on
there has been a quick transfer of in
terest from the military situation 10
Frances new financial position grow
ing out of Germauy's agreement to
pay the reparat on demanded OF her.
In this financial p0sit on will center
some OF the biggest and most intri-
cate financial negotiations bankers
have ever entered into.
Frances financial experts. who are
studying the best methods Of mobil u
ing the German reparat on debt as
soon as the bonds issued by the Ger
mans are distributed by the repara-
tion commission are basing all their
ca culations on the United States and
ether nations accept ng the German
promise to pay at Y per cent of the
face value of the bonds, allowing IS
per cent for brokerage and bankers
fees.
Some fore gn bankers have put the
confidence in Germanys promises as
low as 65 per cent but a majority OF
bankers who were asked for the +
opinion struck figure midway be-
tween this and the French official
view, wh ch is around so per cent
At III rate Frances share OF the
1872, coo 600, 900 marks gold( the other
8 ,000 100000 of the total being set
aside to pay Belgium's debt to the Al
lies.l ii imediately redemmed would
produce only 12105,200,000 but 1t
must be remembered that a consider
able portion OF the amount owed by
Germany is to be pa q M material and
labor for the devastated reg ons.
The idea Is to make use OF the
bonds as international money as soon
as they are issued but this would
seem to depend ON the value placed
Oh them by the United States and neu-
trails, France must realize as quick y
as She can on the arrangement just
accepted and her plans comprise
l. The issuance Of a large loan
IN the United States through bankers
" til the bonds as guarantee. This
lean win be undertaken Immediately
explaining the conferences which
Thomas W. Lamont and other bank
ers now here are having with the
French Ministry
? The holding by France Of as
many CT these bonds as she can use
as the basis of Interior looms, to save
discount loss, or to keep them pos
sibly to cover a new issuance OF paper
money. for which several projects BY
the indatiomsts are now before the
Chamber Of Deputies. although il must
be said that the American bankers
have pronounced against further
French currency inHat on, even on
this bass S.
3. The gradual use as the German
bonds appreciate Of these securities
in the form Of International money,
as was emphasized by NJ l4ouchepr,
IN settling debts and interest charges
thereby normali2jng exchange and
eventually using them N trade relat-
ions, just as any other International
security would be used, It is un-
loubtedly the French idea that the
United States and Great Britain Will
be Hing some day to accept these
5onds, not only for the interest
charges, bpt toward " ping out the
L,rnuob indebtedness