New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1923-05-28
MORTGAGE GERMANY
To PROVIDE MONEY
This Is Basis Of New ReparatiOns
Oher Planned by IeuiOns
BIGGEST DEAL IN WORLD
Win Every Inch of German Soil A.
Guarantee, Tantry MHuld H. an
Firm Foundation for Rarron inc,
Aeeoniing 10 Present Estimates,

According 10 Present Estimates,
Ry The Associated PHsss
Berlin, May sk,-HeTmany's new
renarations program, az IL is now out,
lined, viii literally hN constructed
from 'the ground up," for II will resi-
primarily on a nationwide real estate
mortgage,
10 Year Period
What promises 90 become the great
est hypothetieation Of land In the his
tory Of economies will eventually en-
compass every square inch Of German
soil which will lee made "a pay irih-
ute 10 Germany's former foes for n
period Of 80 years. The assessment
will he on basis Of 30 per cent OF
the present gold values, Five hun.
dred million gold marks annually will
flow into the Relch's reparatians melt
Ing pot from this source during the
iirst few years. The ultimate yearly
total will approximate one billion gold
marks. the Increase depending upon
the promptness with which metropoii-
tan real estate can be subjected 10 the
mortgaglng process.
A beginning will he made with the
agricultural lands and the physical
properties OF the industriaisis.
Most Important Point.
The plan for the great mortgage is
the most important point IN the nro-
gram OF the German league of indus
triallsts as submitted 10 Chancellor
Cuno for the perusal Of the govern
ment. This organization Indicates its
readiness to assume payment of 40
per cent Of the Hypothetical sum of
500, 100000 gold marks which IL be
lieves the government can raise by as
sessment on the industrialists proper
ties. The remaining so per cent would
be guaranteed by the banking COM
shipping and agrarian inter
ests.
Reorganization Plans
Closely following its recommenda-
ton that an hypothetcatiou of real
estate on a gold basis constitute the
groundwork of the governments re-
parations policy, comes the leagues
plan for reorganizing the federal rail
ways, waterways, posts and tclegraphs /
profit paying institutions, the leaders
of big business believe would snggeaf
TO the government the possibility Of
realizing from them alone a revenue
OF 60o,0o0,0o0 gold marks.
Ready With Guarantees
Although no direct offer is made by
The league for taking over these utili-I
ties on an operating basis. the gov
arnment has been advised that
group of half dozen leading indus
,rialists Is prepared to guara ntee to
he federal government this amount /
IF gold revenue annually for the op-
,rating privilege. The Reichs title
n the properties would remain Sc ,
'ure
Estimates In Billions .
In the memorandum handed to .
Herr Cuno, the industrialists estimate ,
hat 1,10o,o00,0OO gold marks annual
y for the next few years could be de- ,
ived from the initial mortgage on the :
and and from the administration of :
he railways and other utilities by the |
BUSINESS interests. The memorandum
'npresses on the government the i'm
erativc need for the most rigid econ
my in the internal administration
nd urges assignment of revenues
rom customs and taxation for repara- !,
ons purposes by individuals who are
ossessed of movable assets" It is
dded that the revenue thus derived
'ould eventually enable government
} realize and establish definitely an
nnual provision IN the budget for
'parations revenue of 1,50o,O0o,oOO u
old marks. 't
Would Have Sound Rasis
With these annuties assured and p
iarantecd either Germany or the o
editor nations could invade the II
orld money market on sound Dor
wing basis. n
The government has not yet indi- d
ted its position on such important Z
atures as the forthcoming offer as !,
10 total amount Germany is willing %
pay and as to annuities it must de. y
rhine when they shall begin, if this .
rm of payment is finally decided on. "