The Bridgeport times and evening farmer., 1922-09-02

{Written Expressly for the Interna-
 tfonal News Service).
 (Copyright, 1922, by I. N. S.)
 Berlin Sept. Zone dollar-2, coo marksi What Is the reason? Versailles reparations, war in peacei Not the German Revolution, not strikes, not unernpIoy1nent, not a German con- spiracy to deprecfate the marx IS re- spcfsbile for this development Eco homie laws violated by financial 1gnor- xnuses and political madmen, have 1aught their inexorable 1esson-to those who want to see But feW are those abroad who will see--The Ger man crash is the immediate and log1- cal consequence of Versailles and "reparationsi" ., Figures speak where arguments fali to tell.
 Editors Note-The Berlin cor
 respondent of International News
 Service asked Dr. w. D. Schwa-
 bacher a well known German
 banker, to describe the German
 economic situation, not in propa-
 Randist arguments, but with facts
 and figures The accompanying
 article is the result. The pessl- 'mistic view taken by the author of this article is almost unlversal
 in German financial circles.-I.
 N. s.
 what does Preparation" under the Versailles Treaty and the London ultl- matum imply?
 ", Germany is to pay 50,000,o0 900 gold marks or two-thirds of her en- Astira pre-war national wealth-When &Jhat national wealth included her en- Yttre soil and all the buildings and in dustrtal establishments thereon, as we'll as all the mineral wealth under that soil.
 Rich Provinces Are Taken From Her. She must pay this after having lost six of her richest provinces, including S5 per cent. of her entire iron ore, 40 per cent. of her coal, 90 per cent of her zinc and 20 per cent. of her agricu1ture, besides being deprived of every one of her colonies and all her foreign investments, the latter alone worth 10.00O.000,O 900.
 That is to say: Germany, after hay ing been crippled, wrecked and ruined. is to pay @ sum that is considerably higher than the total value Of every single asset, dead or alive, she and all her nationals possess in this world.
 It is clear to evidence that under such circumstances GermanyS futile effort to pay anything at all implies the endeavor to rnobolize her assets. That can be done either by credit that is, mortgages the German public wealth; by confiscatton of Ger man private wealth; by imitation, or finally by paying in labor-that is, by practically selling her nationals into slavery.
 Germany's credit is cut off by the general mortgage" which the Ver-
  sociated Powers, and also by the mere fact that the preposterous sums men tioned are demanded of her. She has bled white the capital of her nation als and her industries by taxes un- heard of in history-taXes which in reality amount to confiscat1on. She now by a forced loan has intensified that confiscation. thus depriving the home markets of the currency neceS- sary for trade.
 Big Increase In Imports Necessary
 The loss of her best provinces, her colonies and foreign investments i'm plies an enormous requirement. of i'm ports necessary for sustaining the lives of her nationals and for proVld- ing her nationals with raw material, This results in a hopelessly passive consideration the fifty billion gold marks to be paid for separations, Thus all the enormous sums she mas paid, plus her trade deficit have had to be paid by inf1ation-that is, by selling paper marks to the foreign markets.
 That was only possible because of the confidence which the whole world had in the regeneration even of a crippled Germany and the consequent mania to buy paper marks.
 Owing to the attitude-aboVe all of France-that Germany must fulfill what we claim are impossible condi- tions, the worlds confidence is hapid- ly waning and the thousands of mill lions Of marks nelo Dy HrlIlS dnO py all sorts of speculators, from New York to Constantinople and from Buenos Aires to Yokohama, are being flung on the markets with disastrous effect to the price of the mark.
 Thus Germany'S financial deficit and the paper mark sums necessary for paying the bills for reparatior payments are rapidly being not only increased but multiplied.
 Constant increase of all homt prices and wages results, and the ina crash is inevitable and imminent il the reparations question is not almost immediately revised.
 Must Pay In Stock As Well As Money
 Besides all the factors that are known to the public in general, Ger many's definite ruin is being hasteneo by other clauses of the Versailles Treaty. Germany is practically ex ecuting a double payment of all tha1 is demanded of her under the repara