The commonwealth., 1922-08-12
Paralysis Of Transportation In
Various Sections Threatened
German Collapse And
Am erican Business

Wellesly Hills, Mass, Aug. IL.
The German question was dis
cussed today by Roger w. Bah
son, statistician, who Has been
entangling the international and
financial situation.
Germany has failed to meet
her obligation on the indemnity
payments says Mr.. Babson,
"and like any other concern is
judged bankrupt. We face the
same situation that we find when
a business can not pay it's debts
We either have a reorganization
and try to get it back on to it's
| feet or we call in the referee and
judge it bankrupt and sell it's
assets and put it out of business.
''The world is now having
creditors meeting to decide what
is to be done with Germany. Up
to the present time France, the
largest creditor, has been taking
the pound Of flesh. It is only
within the past few days that
she has offered any other prop
csition. Now, however France,
sees that if she will let Germany
off that England will let France
off. Il is understood that a
French Ambassador. is dealing
with the United States Govern
ment at this time, in the hope
that the republic may be released
from some Of the debts she owes
to us. These later developments
are favorable indeed, and strong
ly suggest that a friendly re-or
ganization Of German finance is
possible.
eff France on the other hand
were to march an army to Berlin
: and to collect the pound Of flesh
: ft@.s,ssfsz-ce-,,>;;tt 1T is quite possible thai
: this might align Russia, Italy ano
= even possibly England with Ger
. many and bring about anoth r
war. This, of course, would he
an undesirable situation from
! every point Of view. Such act
= ion would undoubtedly cause {
panic in our stock market, anC
would seriously embarass oul
big banks. It would upset busi
ness boom that we had at the be
: ginning Of the last European
: war. The new gases and chem
ical weapons Of warfare devel
: oped since 1918 can be mad
/, just as we'll in Europe as owe
here.
eff, however, Germany has ;
{ friendly reorganization Of her
e finance it would mean much an<
i boom American business. Such
I a reorganization would clear tn
. air and overcome the fear Of rep
: udiation which keeps all ou
fareign transactions in muddle
1t would do away with the un
certainty of the situation and
) arranged to the mutual satlsfae
d ton Of all parties concerned
l. would give the whole world tn
l. confidence it needs at this pal
t ticular time. 1t would strength
en business everywhere. Th'
greatest part Of the benef]
would be felt in America. [ Gel
tainly hope that his will be tn
outcome.
"In the meantime,' conclude
Mr.. Babson, eve must remembe
one thing more, there is a Oh
t;nct. difference between Ger
many's governmental finance
and the finances Of Germa
firms and corporations. TIL
credit Of Germany's governme1
r is almost nil because Of the tor
Of paper marks which it is obi
gated to redeem. The banks al
also in a rather uncertain pos
D, ton because their cash assets al
J. of very uncertain value. III
E private firms of Germany, hov
IS ever, hold real property, ia
tories, machinery, land equll
ment and merchandise. Most
+s them are in sound condltlo
al because these things are OF a
N tual and permanent value. II
" reorganization Of Germany
;o finance would upset the Germa
n government s financial burea
vs. and might call for considerab
nt read iustment in Germany ban
h. ING circles. It need have lit
40 affect en- the real credit OF pr
vate FIRMS
ey !.