The New York herald., 1922-11-21
ASKS WAR DEBTORS
BE GIVEN 66 YEARS
Commercial Congress Head
Submits Specific Plan of
Amortization.
GERMANY IS INCLUDED
Mellon Opposes Proposal of
Three and Half Per Cent.
Annuities.

CHICAGO, Nov 20 (Associated Press)
"A specific program OF amortization
of the interallied debts and German
reparations which. IL adopted. would
cancel all debts in sixty-six years by
the payment Of interest and an addi-
cipal annually was presented to the
Southern Commercial Congress in ses-
sion here to-day.
This plan was evolved by DR.. Clarence
]. owens, president OF the congress, and
his associates from material collected
by the International Trade Commission.
which investigated conditions in most
European countries. and is to be sub
mitted to President Harding and Secre-
taries Mellon, Hughes and Hoover.
DR.. Owens said 1t was the opinion
of the International Trade Commission
that the period of moratorium should be
fixed for at least five years and that the
debts should be amortized over n long
period of years.
The idea of amortization was first OBJ
tained from Europe in 1913, DR.. Owens
said. and incorporated in the Federal
farm loan act, under which almost
81, 900, 100000 has been lent to Ameri-
can farmers.
Proposes Annual Payments.
Acting upon this idea. DR.. Owens had
prepared figures for the annual pay
ments of various debts, ranging from
s12, 600, 900, 900 down to 350,000,000,
the interest being per cent. with one
half of l per cent. added for amortiza-
ton. This annual payment IL continued
for sixty-six years, would wipe out each
debt. he said.
The table upon which computations
for the separate countries were made
showed how sl.Ooo.oo0,0oo may be
amortized in sixty-six annual payments
at per cent, with one-half Of ! per
cent amortization, the annual payment
tc amount to s35,000.0 900 per billion per
annum. For Germany the amount to be
paid was fixed at $4,000, 100000. I'm
der this plan Germany would pay an
nualiy $4,000 ,000 OF which 1850, ,000,-
600 would be for interest and 100000
coo would be for principal on the first
payment. Each year thereafter a de-
creasing amount would be paid on in
terest and an increasing amount of prin-
cipal. For the tenth payment Germany
would give $341, 3,60s.97 for interest
and s7s.2s6,391.03 for principal At the
6O6,06964 for interest and s141,393,-
9s036 for the principal. The final pay
ment at the end Of sixty-six years would
be s350,235, ,566.6S. Of which S10,2o1,
03592 would be for interest and $780,
034, ,53o76 for the balance of the prin-
cipal.
Great Britnin's Debt.
Great Britain, with debt Of $4,000
100000. would pay s140.o00,000, with
s12o, 900. 900 going for interest and $780,
600, 600 for principal the first year. on
the tenth payment s113.904, ,536.32 would
be for interest and s26,095.463.6 for
principal On the thirtieth payment in
terest would total 92.s6S. .6S9.SS. and
principal would be s47.131.510.12. The
Anal payment would be s116.745.1SS91,
with S3,400. .345.31 for interest and $113,-
344.Si3.60 for principal.
France. with debt of $4,000. 900. 600.
would pay annually S105. 900, 900, the
first year s90.00O.000 for interest and
$4,000. 900 for principal. Italy would
pay annually s59.5o0 900 on a debt Of
sf.7OO, 900. with s51. 200, 900 for in
terest and sS.500.00 for principal. Bel
GUMS debt of $4,000. 600 would re-
quire an annual payment of 12.250,O00.
OF which $40. 0.500,0 900 would be for inter-
est and sl.750.ooo for principal.