The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-07-19

HSdSS iOSSi oCS1oSS IN AA.-S -
built a great many more post
Offices in the southern states"
The Reparations Question.
Discussing the recent report OF
the Bankers Committee to the
Reparations Commission. the Guar
anty Trust Company Of New York.
states that the report should not
halt the development of a more
feeling with regard to
the European situation, which has
been a conspicuous feature during
recent months. The report may
mark a turning point in the atti',
tude of Americans and others to-
ward the whole economic and po-
litical situation of the world, the
Survey says, as we'll as turning
point in the situation itself.
For the present at least, the
bankers committee has done no
more than to indicate that the con-
ditions do not exist which would
permit the early mobilization, by
means of a loan from private in
vestors, of German reparation pay
ments, now partially suspended
through a moratorium. The ques-
ton before the committee was a
purely financial one, that of the ex-
ternal credit of Germany, which
depends, of course, on the conf
dence of investors in the ability
and willingness of Germany to
meet her obligations.
: The essential conditions Of an
external loan to Germany, in the
opinion of the bankers committee.
are: {a) that Germany should
clearly show a desire to meet her
obligations; (b) that the total
amount of her obligations should
not be left uncertain, but should be
definitely fixed at sum which the
lending public could feel was well
within her capacity to meet; and
(c) that the proposed loan could
be made only at the unanimous re-
quest and for the benefit of the al
lied countries. The committee was
of the opinion that, should these
necessary conditions be met, the
external credit of Germany might
be revived and substantial loans
could then be successfully foated
in all the main investment mar
ketS.
The reparations obligation of
Germany was fixed by the London
Accord of May, 1921. at approx
mately $4,000, 100000 (132,0oO,.
o00,0O0 gold marks, and Germany
has given the reparations COM
mission bonds to this amount.
Some $50, ,o0o, 100000 of these bond:
however, were to be held in sus-
pense by the commission awaiting
time when recovery Of Germany
would permit her to pay interest
and amortization charges thereon.
The annual charges for interest and
reduction of principal on the re.
naming 1900, 600, GOO of bonds,
which were actually issued,
amount to approximately s715,0oo,-
900, which has proved so heavy &
drain on the German financial
structure, even with the aid of for
eign speculation in her paper cur
rency, that the creditors OF Ger
many have been compelled to
grant temporary suspension of part
of these payments.
The German funded debt. exciu-
sive of the reparations debt, is not
large-only 73,500,000.000 marks
on September 81, 1921-and is be-
ing gradually reduced by tender OF
the bonds in payment of taxes.
The floating debt, on the other
hand, increases about as rapidly
as the note circulation, having been
22S, 700. 100000 marks on Septem-
Der so. 1921, 2S1,14S.000,000 marks
on March 81. 1922, and 1926
600 ,000 marks on May 81, 1922.
About 96.5 per cent. of this floating
debt is in the form Of treasury
bills discounted at various banks.
At the end of March, the note cir.
culation amounted to 1861, ,000,.
0GO marks. and at the end Of May
to 151,e50,0O0.o00 marks. This
rapid increase of floating debt and
paper currency is helping to make
uncollectible the reparations obli-
cation, because of the progressive
disorganization of the government
finances.
Public opinion in this country as
reflected in the attitude of the gov
ernment is averse to reduction OF
intergovernment debts by cancel
lation. This is correct as far as it
goes, for, if possible, all real debts
should be paid in full, and pos
sibly the inter-government debts
may all be paid ultimately. Never
theless, for some time to come @e
in this country may find it quite
an difficult in most cases to collect
even the interest on such debts as
the allies find the collections OF
reparations. Accordingly, ,uncer-
tainty regarding some basic fac
tors exists and business is unable
to move forward with the rapidity
which all desire.
New Crop Sweet Potatoes
Mr.. w. H. Ramsey, of Wedge
field. sent the editor generous
sample of new crop sweet pota-
toes yesterday along with box
full of other fruits and vegetables