The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-04-09

liquid capital supply in Germany
and that a period should be provided
for its recuperation, we recommend
that the interest on the five mil
lizards Of debentures above referred
to be waived entirely during the
first year, that the interest during
the second year be 211 per cent,
during the third year per cent
and thereafter 5 per cent plus |
per cent sinking fund. In the event
Of default in the payment Of inter
est sinking fund or principal on
any of the said debentures, provi.
sion has been made for recovery
from the German Government
through the commissioner Of con-
trolled revenues.
Treaty Payments.
1--WE are now in \position TO
summarize the full provision we
contemplate for treaty payments:
Budget moratorium period: First
year-From foreign loan and part
interest GOO millions) on railway
bonds, total of one billion gold
marks.
Second year-From interest on
railway bonds Gncluding 1S0, 900, 900
balance from first year, and interest
on industrial debentures and budget
contribution, including sale of rail.
way shares; total 1920 million gold
marks.
Transition Period.
Third year, from interest on
railways bonds and industrial
debentures from transport tax and
from budget: Total Of twelve hun
dred million gold marks subject to
contingent addition or reduction, not
exceeding two hundred fifty million
gold marks.
Fourth year, from interest on
railway bonds and industrial debon-
lures from transport tax and from
budget: Total Of seventeen hun.
dred fifty million gold marks sub
Ject to contingent addition or
reduction not exceeding two hun
dred fifty million gold marks.
STANDARD year, fifth year: From
interest on railway bonds and In
dustrial debentures from transport
tax and from budget, total of two
billion five hundred million gold
marks.
THE first year will begin to run
from the date when the plan shall
nave been accepted and made efToc
tive. We must point out that the
total figures indicated for each
year must include the sums paid
by the German budget, the railway
company or the debtors on indus
the actual recipients of these sums
| Inc rAnQT Qfinn a.
capitalists who purchase securities
or even the debtors themselves IL
they have repurchased their bonds.
Nature Of Payments.
These figures clearly do not in
clude the proceeds from the sale Of
capital assets, which may be ef-
1ected by the creditor governments.
AS soon as the plan is put into az
ecut1on, the reparation commission
Will be in possession Of bonds for
sixteen millard marks, which NAV
be sold to the extent to which the
financial markets are capable of
absorbing them. Subsequently bonds
representing the transport tax and
the contribution from the budget
may be issued and will enable the
governments to realize the CAPITAL
of their claims.
I'VE desire to make it quite clear
that the sums denoted above in
our examination of the successive
years comprise all amounts for
which Germany may be liable to
the allied and associated powers
for the costs arising out of the war,
including reparation, restitution and
all costs Of all armeis of occupa-
ton. Clearing house operations to
the extent of those balances which
the reparation commission decide
must ligitimately remain a definite
charge on the German government
commissions of control and super
vision, etc.
Deliveries in Kind.
while we recognize the necessi.
| ty for the continuance of deliveries
in kind we think that unless they
can be confined to natural products
of Germany, such as those specif-
ically dealt with in the treaty local,
coke, dyestuffs, etc., and in the
second place to exports which do
not entail the previous importation
into Germany of a large percentage
| of their value, they tend to be
uneconomic in character.
"In the first two years of the
operation Of the plan the available
finance is so restricted that there
will be an automatic limitation OF
| deliveries but in the later period
| the program must be carefully and
periodically considered in advance
by the reparation commission in
conjunction with the committee re-.
ferred to in section thirteen IL ex.