Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-11-21
Outlines Program
to Follow to Pay
Debts World War


specific program Of amortization Of the
inter-ailied debts and German repara-
tons which. if adopted, would wipe out
all debts in &C years by the payment
Of interest and an additional one-half
Of one per cent on principal annually,
was presented to the Southern CONF
mercial Congress in session here today.
This plan, evolved by DR.. Clarence J.
Owens. president OF the congress. and
his associates from material collected
by the International Trade Commits
sion which investigated conditions in
most European countries. is to be sub
mitted TO President Harding and Sec
retaries Mellon, Hughes and Hoover.
preliminary report already has been
submitted TO Secretary Mellon and he
expressed his desire for the complete
plan which DR.. Owens has had pre-
pared.
DR.. Owens, in submitting the plan
to the congress convention, Said il was
the opinion Of the International Trade
Commission that the period of mora
forum should be fixed for at least 1--WE
years and that the debts should be
y
The idea Of amortization was first
obtained from Europe in 1913. DIR.
Owens said, and Incorporated in the
Federal Farm Loan Act under which
almost $1,000. 000. geo has been loaned
to American farmers. While members
of the trade commission were study
ing post war conditions in Europe the
plan of amortization Of allied debts
and Preparations was preached and re-
ceived the approval of statesmen in
almost every European country. he
said:
Acting upon this idea, DR.. Owens had
prepared figures for the annual pay
ments of various debts. ranging from
S12, 200. 100000 down to $3.50, 600 900,
the interest being three per cent with
one-half Of one per cent added for
amortization. This annual payment. If
continued for 66 years, would wipe cut
each debt, he said.
Figures of the congress officials were
submitted to the University of Chicago
for verifcatlon and Professor Eliakin
II. Moore. head of the department of
Mathematics. declared the calculations
correct.
The table upon which computations
fer the separate countries were made
exhibited how $1,000, 100000 may be
amortized in &C annual payments at
three per cent. with one-half Of one
per cent amortization, the annual pay
ment to amount to $4,000, 600. per bill
lion per annum.
to the rate" DR.. Owens clared, hut
the commission suggested rate that.
in the judgment of its members. the
European countries would be enabled
to pay. It is the principle and not the
rate that offers the solution"
For Germany the amount to be paid
vas fixed at s1a,o00,O00, poo. This. Or.
Owens said, is not the amount provid-
cd in the Treaty of Versailles but II is
the approximate amount that virtually
all the experts agreed upon as the
amount that Germany can pay.
Under this plan Germany would pay
annually s4e0,000,h00 of which $780,
000.0 would be for interest and $780,
100000 would be for principal on the
first payment. Each year thereafter a
decreasing amount would be paid on
interest and an increasing amount on
principal. For the tenth payment Ger
many would give SS341.713G0S.97 for in
terest and SfS,2SG.391. 03 for principal.
At the 30th payment she would give
$27S, COS, 069.64 and $14l393, 93o.3G for
the principal, The final payment at
the end of C6 years would be S350,23b,-
56eGs of which S10.o0l. 0S5.92 would be
for interest ard s340034,530,76 for the
balance of the principal.
Great Britain, with debt of 81
COO 100000. would pay $40, o00.000 with
sl20,000.000 going for interest and
$50, 900 for principal, the first year.
On the tertn payment $113.904, 5000
would be for interest and $26.o95, 4G3.-
GS, for principal. On the so III payment
interest would total $92S6S.GS9.sS and
principal would be $4713l.310.12. The
final payment would be s116,745,1ss
with ss.40o,c45.31 for interest andsl13,-
3i4SA3.60 for principal.
France. with a debt of $4,000, 900, GOO
would pay annually $105.00e. 900. the
first year s90,000oG0 for interest and
SIS. 100000 for principal Italy would
pay annually s59500,000 on a debt of
ST. 700, 600, 600 with ISL, 100000. for in
terest and $500 900 for principal. Bel
GUMS debt of 1000. 900 would re-
Guire an annual payment of sl2,250.-
900 of which $10,500.00 would be for
interest and $1.75O,000 for principal.
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