Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-12-16
j. s. FORMULATING |
!. PLAN FOR REDUCING
TEUT0N INDEMNITY
Worldwide Financial Reor-
ganization Scheme May
Hinge on Reduction of All
Land Arnaments
by DAVID LAWRENCE
Ueased Wire Service to The Journal)
Copyright, 1922


Ueased Wire Service to The Journal.)
Copyright, 1929
WASHINGTON, Dec. 15.-Ameri-
ca may be willing to forego the in
terest on the war debts of those
countries in Europe which are un.
able to pay, for everal years to come.
The principal will not be cancelled
or reduced.
This contribution to the stabiliza-
ton of the worlds financial crisis is
under consideration, but il will be
done only if European governments
pursue policy which this govern-
ment believes will accomplish the
desired re-adjustment in Europe. The
steps In the order in which they
should be taken are these:
First, all the powers should reach
at once a definite agreement as to
the amount of Preparations Germany
should pay annually.
Americas economic experts be-
lieve 100000, 900 is the limit of
Germany's ability, and that approx
mately twelve billion is the total
sum that Germany. can and should
be made to pay. France should be
willing to agree to renounce her
claim to any sum above that.
Second, once the reparation sum
is fixed, the world will be ready to
consider an international loan suck
as was proposed by the international
bankers committee a year ago which
J. P. Morgan and other financiers at
tended This loan would not neces-
sarily require the guarantee of gov
ernments but would need the assent
of the allied powers to regard it as
a prior lien on Germany's assets.
Would Assist Germany
Third, such a loan would assist
Germany in the purchase of food
stuffs, and would tend to raise the
value of the German mark and thus
hccp hCl \opAsoA ia 49, AAASAN-i =,
for self-development Instead of out.
side Germany in the investment mar
kets of the world.
The United States would not sub
scribe to the loan, but the Amer.
can investor would have the same
opportunity to buy the reparation
bonds at a good rate of interest as
he has today to buy other foreign
securities.
The value of such loan, however,
would be enhanced through the
moral support of America and, par
ticularly through such contribution
as the United States may make to
the easing of Europe's burdens
through the postponement or can
collation. of interest on the allied
war debt.
Fourth, cancellation of the inter
est would never be proposed with
out something in return, namely as
srrances that Europe would make
real effort to pay the principal 81
the :cn-billion dollar war debt, and
the only assurance which would be
convincing here would be reduc-
ton of land armament.
The American government cannot
ignore the fact that there are fresh
three to four million men under
arms on the continent of Europe,
and that 50 per cent are troops of
the allied powers. Reduction of land
arn1ame means more money avail
able for productive purposes and
more for the meeting of payments
on the principal of the war debt.
No Debt Cancellation
AS for cancellation of the pr:nci- {
pal, no doubt exists here that
steady propaganda has been conducts
ed by Europeans to impress Amer.
lea with the need TO! renting the
allied war debt as a means of adj
justing the reparations problem.
But the matter of reparat ons and
the war debt of the allies arc to be
treated separately, an3 the Ameci-
can government hopes that Europe
is by this time rid of the illusion OF
American sentiment, it is print
I'd out by officials, would not per-
nit it, and the most that can be
Foreseen is a willingness on the part
IF the people to continue to forego
he inter est as they have been do
ng since the armistice.
Some of the nations of EUROPE
)ne or two of the smaller ones par
can in few years begin
paying their interest and the prin.
;ipal
Some, however, can not. No gen.
eral rule can be established for all
rs local situations in each country
vary. 1t may be wise to forego the
interest in some cases altogether. In
others it may be necessary to can-
lei the interest for five and ten years
some of the interest al
'eady accumulated since 1918-and
start with a clean slate of annual
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