The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-04-09

. A business matter bcrcft Of pol.
itics is how the experts describe the
task they have just completed. They
interpreted the object of their work
as tending to the collection of the
debt, rather than to the application
of penalties with Il purely economic
solution in view.
Recognize Obligation
Recognizing the obligation of Ger
many to pay and declaring that she
has resources with which to pay,
the experts insist that if Germany
does pay she must have her hands
free to exploit her economic re-
sources.
The experts carefully omit in their
report mention of the Ruhr, but
make it plain that the French and
Belgians must satisfy themselves by
leaving garrisons in the Ruhr, if
they see fit, but taking their hand
off the Ruhr and Rhineland railroad
and the Ruhr industries.
The first prerequisite to the pay
ment Of reparations, the experts as
sert, is sound money in Germany.
They propose to this end the estab-
lishment of new gold bank of issue
with 400 millions gold mark captal
in the organization of which they
make it to the interest and profit
of Germany as we'll as to the adv1n-
tage of the allies, to cooperate,
Can Meet Requirements
Germany's production, they say
will enable her to meet her own re
quirements and raise amounts to ap-
ply to reparations as contemplate
in the plan. These payments fixed
on sliding scale, run from 10 mil
lion gold marks in 1926 to two bill
lion five hundred million in 1923.
In order to prevent these payments
from affecting adversely Germany's
financial stability, an index of pros
sble to judge whether the amounts
of scheduled payments are or are not
beyond her capacity. The index is
to be based upon German exports
and imports, the total budget re-
ceipts and expenditures, railroad
traffic, the monetary value Of the
consumption of sugar, tobacco, beer
and alcohol by the total population
and the consumption of coal. Per-
centages will be fixed on the average
statistics covering these bases, first
for three years, then for six years,
the percentage of each of the six
groups compared with the base be-
ing separately computed with the
average of the six percent results,
forming the index.
Value Of Railroads
Germany's railroads, estimated b.
the experts to be worth 26 billion
gold marks, with a net earning CO
pacity as high as one billion gold
marks yearly, were found to be an
available means for securing repar~
tion payments and aiding Germs n
finances. The experts propose u
blanket mortgage Of l. billion gold
marks on the entire German railro; d
system. bearing five percent inter e.
est with one percent sinking fund
annually.
The interest and sinking fund on
the mortgage, they figure, represents
less than three percent on the entire
capitalized value Of 26 billion. Full
interest will not be required during
the period Of reorganization but tie
payment of 30 million marks will be
asked in 1924 and 1926, increasing on
a sliding scale to 660 million in 1927
and 1928, which the experts think
ought to become normal years.
Industry Must Aid
German industry, under the plan,
is expected to provide five billion
gold marks, represented by first
mortgage bonds bearing the same
rate Of interest as the railroad bonds.
This amount, the experts explain, Is
less than the total debt Of the III
dustrial undertaking in Germany be-
fore the war.
The interest on these bonds win
be paid on progressive scale, be
ginning the second year with twa
and a half percent, five percent the
third year and five percent, plus ore
percent sinking fund. the fourth year.
In the event of default in the pay-
ment of the interest on the sinking
fund or principle upon either rail-
roads or industrial bonds, provision
y \