The Washington herald., 1922-02-05
Present Status of Reparations.

A MERICANS read something daily about
- reparations to be paid by Germany. The
- reparstions should be reduced or should be
maintained, moratorium should be granted, or
Germany has announced that she is to default on
the January and February payments Germany
has made agreement to do physical restoration
in Frsnce-snd on, ad inhnitun. Many Ameri-
csns, seeing these daily items in the press, may
have come to the conclusion that Germany was al
ways on the point OF paying or promising, but
really paid anything. On December 81, the Finsn-
cisl News, OF London, published an article setting
forth the present status of German reparstons
which put the matter about as concisely as pos
sblc. The article includes the following:
BY the London agreement, signed last May,
Germany undertook to pay annually to the allies
ooo,oooooo,ooo gold marks payable in quarterly
installments of 5ooooo,ooo gold marks on January
IS, April IS July Is and October IS of each year,
plus sum equivalent to 26 per cent of the value
of German exports payable in quarterly INSTALL
ments on February IS, May Is, August IS and No
vcmber Is of each year). The total amount of the
reparation payments fixed under the agreement was
Ij2ooooooo 100000 gold marks, to the full value of
which bonds are eventually to be issued by Ger
many to the allies, and the annual payments, al
ready mentioned will go to the service of these
bonds, either by way of interest or sinking fund.
Before the London agreement signed Ger
many had made payments in kind on reparation
account totsllng about 4,4soooo,ooo gold marks
and about 100000 gold marks in cash. In add-
tion, Germany has since paid the sum of 100000
100000 gold marks in cash-the amount of the July
and October installments OF the annual payment
OF 100000, 100000 gold marks. From the total in
demnity of I32.oooooooooooo gold marks, therefore,
a sum of about 5oo,oooooo,ooo gold marks has to
be deducted representing the total of the three items
inst is ais fo
credit in respect OF further deliveries in kind since
May, together with the proceeds of the exports
credit tax levied in certain allied countries The
first instalment under the 26 per cent exports tax
fell due on November Is last, but the reparatons
commission stated that the amount was covered
by credits already in their hands, and, although the
exact sum has not been disclosed estimates, place
the figure at 2so,ooo,ooo gold marks.
"On this basis total of about s,Soo,ooo-
100000 gold marks have so far been furnished by
Germany towards her total liability of 1szooo,ooo
100000 gold marks, but it must be remembered that
the London agreement makes sundry provisions for
the payment of interest and sinking funds and
therefore, only portion Of future payments will 90
M reduction OF Germanys capital liability
The installmcnts due in January and February
are the third quarterly nstalment of 500 100000 gold
marks and the second installment in respect OF the
20 per cent tax on exports, the amount due in re-
sPcct of this item again being estimated at about
a5oooo,ooo gold marks The total involved, there.
iore is about 75o,oooooo gold marks against which
Germany is said TO have stated she can onlv fur
nish about 100000 to 2ooooo,ooo gold marks"
Since this article appeared in the Financial News
Germany has been permitted, by the reparations
commission, pending review of the whole repara-
tions question, which is expected, to make pav-
1nents OF 100000 gold marks at tcn-day intervals
Mt this date, two such payments shave been made
This is all she has paid toward the January and
February payments mentioned above