Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-22

CONTINUED from First Page)
order their transportation back to Ber-
| lin. saying that the conference has
failed because the French demanded
more than they could pay. But finally
the picture OF that gold being laid on
the table will determine the day, plus
the eaeerneSs of the Germans TO get
this business settled SO that they can
make a real start on the path which
they think will lead to world trade
domination once they get going. with
all restrictions or
Politics in the United States pre-
sents the next most difficult problem
The vigorous objections made TO the
British debt settlement on the ground
that Britain was being let off too easy
found popular response In some parts
o. the country, Senator Fl. B. Howell
OF Nebraska, for example, made speech
after speech In his State. when running
against Senator Hitchcock. insisting
that the debts should be collected in
full and the money used TO pay SOL
der bonus. Mr., Howell believed firmly
that the British should have been COM
, PEELED 10 pay great deal more than
was provided IN the Mellon Baldwin
settlement.
Since that time there have been even
louder attacks on some Of the other
settlements. The Italian settlement
was peculiar case. due TO the bitter
opposition to the Mussolini government
| on the part of several strong American
organizations. Leaders OF these orgay,i-
zations figured that permitting the
Italian government 10 fund its debt to
the United States on such easy terms
would make II easier for Mussolini b.
lntreneh himself In power by getting
cheaper credit. This contention has
been justified. opponents OF Mussolni
here declare. by the fact that the rtal-
ians since have sold large blocks OF
bonds here at low interest rates.
The flnanciers studying the situation
are convinced tina, the attitude of the
American people would be changed con-
syderaoly II II were n question OF getting
the cash Immediately. They believe
that one of the chief causes OF d.strust
and objection 10 the debt settlement
has been that directors here believe the
foreigners" are merely using the debt
settlements az bait" 10 get a lot more
American capital. and that the Euro
pean borrowers will never pay back
either the capital they are borrowing
as result OF the settlements. nor con-
tinue payments on the settlements as
they have promised.
1t Is perfectly true. the f1nanciers ad-
| NIT, that II the whole scheme worked
out As II Is planned. private investors,
instead of the United States Govern
ment, would be holding the bag" but
This thought they insist. viii not dis
turb the people who have been doing
most OF the kicking about the debt set-
Elements, These kickers, the financters
assert. have no particular sympathy for
their fellow Americans who bly foreign
bonds anyhow, and would not worry
much as TO whether they were ever
paid or not
Actually. however. the nnanciers de-
clare that the German reparations
bonds. AZ proposed under this plan.
would be perfectly sound investment
They point 10 the fact that they would
underl!e all the normal German govern
ment bonds. including the bonds Of
German cities, which have had a fair
sale In this country. and they would be
secured by the same physical properties
which now secure the payment of
reparations under the Dawes plan,
under the Dawes plan.
-
Which brings ls 10 the question OF
whether there would really be a market
for the reparations bonds, on, which
the whole scheme rests On this point
the opinion Of MIR. Barlch should carry
| some weight. He proposed, In a nemo-
randnm prepared some time ago, that
the FIRST issue OF these reparations hondx
. might be between $4,000 900 600 and
| - 900 900 900. with balance. not 10 be
In excess Of So 600. 900 more, or a
total Of SIC. 900 600. 900, to be held and
sold when the Preparations commis-
sion should deem wise and feasible"
| Such n bond" he wrote. could be in.
sued on q per cent basis and perhaps
basis close IN 8 per cent" when
! asked about this i,ist before this article
was written. Mf, Bartieh was even more
| optimistic as In The low interest basis
on which The bonds would he bought
hv '"vsstoss Of the world
This bond he continued, would
be- good beyond peradventnrr beeausr
| IL IL u first charge upon Germany. and
~ additional seeuri,y II Ia frat
mortgage upon The property such a.
| railroads and industries NJ Germany,
which have always earned many tlmen
the intsfest upon these securities
i've &'tHbaft WNtu Nultlu he qua
bond isslle In dollars. pounds, gtilders
! kfohen, lire, the Belgian franc and the
new French ftane al It's new, stabilized
| value This would give an lntrrna
| tional market noa moi enjoyed by any
| security II only NJ 900 900 900 we're
sold. u would give France 81 .04n. ono. Sc
600. England about $500 900 900 and
each Interested country la proper $
| ton
|
! WIN the nincesds from these bonds
Inc allisd governments could dn a
number of thinss Undoubtedly II
would stabilize their eurreneies on a
gold basis. The English and French
could use the eaah received from thin
10 make u aash settlement with tbs
United HATES iar large part II
not all NJ their indebtedness car
iainiy the French receiving two bill
Iona and eighty mlliinns NJ doiIara In
raAh fion The sale al theAs bonds
VIII he able IN make a teadnihlment nj
ihsit Indebtedness In ths United
h,aiss ~ thew could ne, retire all