New Britain herald., 1924-04-09
GERMANY CANPAY
 EXPERTS DECIDE
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 referred to the finance section of the league for arbitration.
 Germans railroads, estimated by she experts to be worth 2s,o00, ,000, 900 gold marks with a net earning capa- city as high as 1,000,000.eoo gold marks yearly, were found to be an available means for securing separa- ton payments and aiding German finances. The experts propose a tlanket mortgage of 11,o00.000,eoo gold marks on the entire German rail road system, bearing per cent inter
 st, with 1 per cent sinking fund an- .ually.
 The interest and sinking fund on the mortgage, they. figure, represent less than per. cent on the entire capitalized value of 26,o60, 900, 900. z Full interest will not be required dur ing the period of reorganization, but tile payment of s30, 100000 marks will be asked in 1924 and 1928, which the experts think ought to become nor pol years.
 German industry under the plan is sxpectsd to provide 5,000,000,O 900 gold marks, represented by first mortgage ponds bearing the same rate of inter- ,st as the railroad bonds. This mount, the experts explain, IS less han the total debt of the industrial undertakings in Germany before he Har.
 The interest on these bonds will be ,aid on q progressive scale, beginning , Tho second year with two and one half per cent; five per cent the third year and five per cent plus one per ,ent sinking fund, the fourth year. In Inc event of default in the payment of the interest on the sinking fund or principal upon either railroads or in (lustrial bonds provision is made for the recovery of he deficiency from the German government through the com missioner Of of controlled revenues
 Proceeds.
 Summarizing the proceeds from all ths provisions in the plan for treaty payments, the experts estimate that hey will produce 1.ooo,o00,e0o gold marks he first year. 1.2:o,ooo, ,ooo the ;econd year. 1.4so, o,o0e,Ooo the third ear, :.ooc.ooo,ooo the fourth year, md 2,5eo, 900, 800, the maximum pay nent to be required from GermA Aay annually, the fifth year, and there- liter.
 Murh Gold Abroad.
 Reginald MeKerna and his col- eagues on the second committee find hat the GermansShave six and three ,uarters billion gold marks abroad md that all this sum represents pur- ,hases of paper marks at dead loss sy million of foreigners. These es- inmates were made on mass Of de- tails and specific information which the experts regard as reliable. They find that. in addition to these assets abroad, there is in Germany foreign money approximately to the amount O. l,e0o, o,obo gold marks, while foreigners own in Germany property 10 the amount of i,500, 100000 gold marks, which is subject to special tax a,ion and consequently ought to be taken into account in an estimate or Germany's resources.e
 Must Attract Capital. As 10 how German capital abroad may be attracted back to Germany, the experts believe the only way is to eliminate this causes Of the exodus, that is to give Germany money g stable basis of value and make it tc Gsrmany's interest to pay her. obliga- lions. The only intermediate measure that promises results. in their opinion, is to grant amnesty for limited time from the penalties imposed for the ex- port of capital and to give special in- duccments for subscriptions 10 Ger man loans in foreign currency.'
 Germany needs help from abroad 10 the extent Of 500, 0,000.o0 gold marks, partly 10 capitalize the new gold bank of issue and partly to meet expendi- lures during the period required for her to balance her budget. The cx- perts say that extension of this help together with the share the German treasury will have in interest on inc roailroad and industrial mortgages, | will give Germany an incentive 10 ac- l cept the plan and carry it out.
 The idea that surplus revenue alone | can be supplied to the payment Of foreign debts is rejected | by the Experts, payments, they de- clare. ought to be made to her tax able capacity, and any deficiencies in | resources from mortgages must be Yade up from taxation. IL is sim- De principle of justice. they point ht. as contemplated in the treaty, fiat the German people should be | taxed at least as heavily as the peo- pie of the allied countries, and inc only limitations should be that Of 
 Distinction Made
 The experts make a distinction be- tween the amount of money that can raise for the separations account and the amount that can be transferred 10 foreign counties. Cur -ency and budget instability might re- ,ult from overwhelming of her capac- ty for making payments abroad. Rep irations. however, they contend may \ properly be included in the budget The index of prosperity as interpreted md applied by the 'commissioner" is o be relied upon to arrive at a pro- ger balance. The experts found that Germany .ad been spending without stint on .tnplcte installation Of her railroads tsstem, which lras been brought 10 a .oint of efficiency unknown before ia var. Tie transportation system , nd industries generally are provided { gith the most modern appliances. 1 nd ports and terminals have been xtended and improved furnishing ex- client sources of revenue and an .1eduate pledge. along with monop.