Alma record. (Alma, Mich.) 1878-1928, 1922-08-17
BAbS0N TALKS ON
GERMAN QUESTION
STATiSTiCIAN TAKES UP GER
MAN COLLAPSE AND AMER
ICAN BUSINESS.

The German question was discuss
ed today by Roger w. Babson, stat
istician, who has been entangling the
international and financial situation.
Germany has failed to meet her
obligations on the indemnity pay
ments,' says Mr.. Babson, land like
any other concern is judged bank
rupt. We face the same situation
that we find when a business can
not pay its debts. We either have a
reorganization and try TO get il
back on to its feet or we call in the
referee and judge it bankrupt and
sell its assets and put it out Of bust
ness.
"The world is now having a cred
itors' meeting to decide what is to be
done with Germany. Up to the pres
emit time France, the largest creditor
has been taking the pound of flesh.
1t is only within the past few days
that she has offered any other pro-
position. Now, however, France
sees that if she will let Germany off
that England will let France off. 1t
is understood that Franch Ambass-
ador is dealing with the United
States Government at this time, in
the hope that the republic may be re-
leased from some Of the debts she
owes to us. These later develop
ments are favorable indeed, and
strongly suggest that friendly re-
organization Of German finance is
possible.
IF France on the other hand were
to march an army TO Berlin, and to
collect the pound Of flesh by force,
il is quite possible that this might
align Russia, Italy and even possibly
Eng land with Germany and bring
about another war. This, of course,
would be an undesirable situation
from every point of view. Such
action would undoubtedly cause a
panic in our stock market, and would
seriously embarrass our big banks.
Ii would upset business generally.
We would not even experience the
business boom that we had at the be-
The new gases and chemical weapons
of warfare developed since 1918 can be
made just as we'll in Europe as over
here.
IF, however, Germany has a
friendly reorganization Of her fin
ance il would mean much and boom
American business. Such re-
organization would clear the air and
overcome the fear Of reputation
which keeps all our foreign trans
actions in muddle. 1t would do
away with the uncertainty of the stu
alton and if arranged to the mutual
satisfaction of all parties concerned
it would give the whole world the
confidence it needs at this particular
time. 1t would strengthen business
everywhere. The greatest part of
the benefit would be felt in America
certainly hope that this will be the
outcome.
I'm the meantime" concluded Mr..
Babson, 1--WE must remember one
thing more, there is a distinct diff
ference between Germany's govern
mental finances and the finances Of
German firms and corporations. The
credit of Germany's government is
almost nil because their cash assets
are Of very uncertain value. The
private firms of Germany, however,
hold real property, factories, machin-
cry, land equipment and merchandise.
Most Of them are in a sound con-
dition because things are of actual
and permanent value. The re-organ-
ization Of Germany's finance would
upset the German governments
financial bureau and might call for
considerable readjustment in Ger
many's banking circles. 1t need have
little affect on the real credit Of
private firms"
General business is maintaining
its recent Improvement in spite Of
unfavorable sentiment created by
coal and rail strikes. The index Of
the Babson chart shows that bust
ness is but go below normal. No
change since last week.