The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-04-10
ALI PAYMENTS
BASED ON INDEX
Of PROSPERITY
Railroads. Expected To
Earn Billion Gold
B Marks Yearly
lContinued from Page Onel

laA average of the six percentage re-
s@lts forming the index.
Pay According To Index
4 When the. resources exceed the index,
supplementary payments on reparations
IRE to be made in proportionate
mounts; when the index proves def
sent, basic payments shall be made for
HE period on, which the calculations are
;aeed. But subsequent supplementary
fhSinents shall not become due until al
3}wance has been made for previous de-
{ciencies.s
AZ this point the League of Nations
brought into the plan; any disputed
mint upon the application of the sta
jsfics on this index is to be referred to
he finance section of the league for
|srbitration.
e Germany's railroads, estimated by
he experts to be worth 26.000,0 900, 900
old marks with a net earning capacity
Is high as 1,000,000,000 gold marks
early, were found to be an available
leahs for securing reparation payments
nd aiding German finances. The ex-
erts propose blanket mortgage Of
.00D, 000,000 gold marks on the entire
ierman railroad system, bearing 5 per
ent interest with 1 per cent sinking
md annually.
The interest and sinking fund on
he mortgage, they figure, represent
sss than three per cent on the entire
apitalized value of $4,000, 000,0 900. Full
1terest will not be required during the
eriod of reorganization but the pay
aent of $4,000, 900 marks will be asked
i 1924 and 1925, increasing on a slid
1g scale to 660,000,0O0 in 1927 and
CPS, which the experts think ought to
ecome normal years.
German industry under the plan is
xpected to- provide 5,000,000,000 gold
larks represented by first mortgage
0nds bearing the same rate of interest
Is the railroad bonds. This amount,
he experts explain, is less than the to-
IL debt of the industrial undertakings
l Germany. before the war.
Progressive Interest
The interest on these bonds will be
aid on a progressive scale beginning
be second year with two and half per
emit; five per cent the third year and
We per cent plus one per cent sinking
and, the fourth year. In the event of
efault in the payment of the interest
n the sinking fund or. principal upon
ither railroads or industrial bonds pro-
ision is made for the recovery of the
efficiency from the German government
through the commissioner of controlled
evenues.
Summarizing the proceeds from all
be provisions in the plan for treaty
ayments, the experts estimate that
hey will produce 1,000,000,00O gold
larks the first year, 1000, 100000 the
econd year. 1,45O,0O0,0OO the third
ear, 2,0O0, 900 900 the fourth year and
500, 600, 900, the maximum payment
3 be required from Germany annual
Il, the fifth year, and thereafter.
Has Money Abroad
Reginald McA.enn0 aud his col
sagues on the second committee find
hat all this sum represents purchases
uarter billion gold marks abroad and
hat al this sum represents purchases
paper marks at a dead loss by a
1ilIion of foreigners. These estimates
sere made ION a mass of details and
/ necific information which the experts
egard as reliable. They find that, in
EDITION to these assets abroad there is
n Germany, foreign money approx
aately to the amount of 1900, 900 600
old marks. while foreigners own in
4 NEfuuHy pEOpCLty " thC oHOuAb "a
4 500, 100000 gold marks, -,:hich is sub
gect to special taxation and consequent
IN ought to be taken into account in
/ d estimate of Germany's resources.
!. As to how German capital abroad may
attracted back to Germany, the ex-
3erts believe the only way is to elimi-
ate the causes of the exodus, that is, to
B i've German money a stable basis of
~ and make it to Germany's inter
to pay her obligations. The only
afermediate measure that promises re-
ults, in their opinion, is to grant
fanesty for a limited time from the
,enalties imposed for the export of
apital and to give special inducements
or subscriptions to German loans in
oreign currency.
Must Have Help
Germany needs help from aboard to
he extent of 100000 gold marks, partly
o capitalize the new gold bank of
ssue and partly to meet expenditures
nring the period required for her to
aIance her budget. The experts say
hat extension of this help, together
1 With the share the German treasury
will have in interest on the railroad
T nd Industrial mortgages will give Ger
fany an incentive to accept the plan
"a carry it out.
che idea that surplus revenue alone
be applied to the payment of Ger