Evening star., 1928-04-08
j. S. WARY Of NEW
PREPARATION PLANS
Scheme to Saddle Investors
Here With German 0bIi-
cations Is Scored.
BY FREDERIC WILLIAM VILE.

Prominent United States Government
ofncials scent in the latest European
plans for revision of the Dawes plan, a
subtle scheme to saddle the whole busi-
ness of German reparations on the
broad shoulders Of Uncle Sam. The
scheme pivots around the suggestions
put forth at Carcassone. France, April
/. by Premier Raymond Poincare, who
hltimated that 0ermanys heavy bur-
dens under the Dawes plan might be
eaSed by permitting her TO market Ger
man railway and industrial bonds in
the sum Of her annual payments. Be-
ginning this year, these payments reach
their maximum - 2.500, 100000 gold
marks. or roundly, $625. .000. 900.
Europe's inability TO absorb so colossal
yearly fiotation Of German securities
is well recognized. There could be only
one market capable OF taking them up.
That is the money market of the
United States. To 1t. highly placed ad-
ministratton perSonages at Washington
are convinced, 1t would be Europes pur-
pose 70 turn, should IL ever be decided
70 let the Germans pay their repara-
ton annuities In marketable bonds. The
net result would be that the United
states would have thrust upon II the re-
sponsibility OF seeing that reparations
were paid. We would become, In effect
the worlds bailid, as far as Germany
was concerned.
Would Transfer Troubles.
The whole financial aftermath of the
war would be transferred at a swoon
. from Europe. where Germany's chief
creditors are. across the Atlantic TO this
country, which has only an indirect and
minor Interest In reparations. All the
United States Is claiming from the Ger
mans In the shape of war costs is the
amount due for the expenses of our
temporary army OF occupation on the
Rhine.
This writer has authority for Sue-
gesting that as long as the Coolidge
administration remains In power, any
proposals by Europe thus 70 get rid OF
German reparations will fall on deaf
ears. II is not within the province OF
the administration TO listen to, or TO
reject, European schemes for linking
up feparations with inter- allied war
debts. As far as this country Is con-
cerned. war debts are exclusively within
tne JURISDICTION OF Congress and the
World War Debt Funding Commission.
Congress could make deal for inter-
locking reparations and allied debts TO
the United States Treasury, II IL wanted
TO. But there has been little sentiment
In that direction. and there is as little
likelihood that II will ever develop.
Congress has sanctioned liberal fund
Ing settlements with the eight or ten
European countries that borrowed war
funds from us. House and Senate are
not minded 70 go beyond that. They
would certainly not look with favor
upon any project TO entangie the United
States with 0ermanyg financial obliga-
tions TO her European adversaries.
Money Flows 10 Europe.
Europe's belief in the readiness and
capacity OF the American money market
To hold the reparations bag Is doubt
less due 10 the stupendous rate at which
our investments in the Old World are
mounting up. Df. Max Winkler, writing
few weeks ago on THE Ascendancy
Of the Dollar" for the Foreign Policy
Association, listed the total of the
United States foreign holdings al the
end Of 1927 At $l4,b00. 900 900 About
one e-seyenth OF that fabulous sum was
added last year. when American capital
was put into investments abroad 10 the
extent of &2,0TI, ,e64, ,i0e.
IL would appear 70 be all the more
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