Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-14

accounted for in allied circles by the
fact that whatever may be the out
come of the efforts to settle the veXed
question of reparations, the demands
upon Germany Will be much reduced
from the $33,000,0000 900 which the
reparationS commission fixed in 1922
as the total the Reich must pay.
How much of that original sum will
be reduced, the experts themselves
were unable to tell, because the amounts
presented today as the creditors de-
mand, are still subject to discussion or
bargaining and they are likely to be
reduced still further since the Germans
ore felt certain to make counter pro-
posalS which would call for a compro-
mise between the PREPARATIONS debtor
and creditors.
Plans Of Germany.
The German ideas as to the final
amount are well known to be in the
neighborhood of $4,000. 100000. The
allies it is known, will certainly demand
more than that and as nearly as can
be estimated on the known elements in
the situation will ask somewhere be-
tween $4,000, 600, 900 and $12, 500. 900, 900
present value, payable with interest in
So annuitieS.
The interest, however. is a variable
quantity, because the annuities are so
fixed as to meet in advance as far as
possible and to foresee variations in
Germany'S economic situation. In fact,
there is no interest properly speaking,
but simply a series of annuitieS which
If valued at their present worth, less
interest for deferred payment, would
amount to $10,000,0 900 or $12.500,-
Ch k0l0 S&f Twin
varying rates OF interest, amounts are
added to the annuities to cover what
would be demanded in interest for de-
ferred payments.
The manner in which the total
amount will be distributed remains
secret, although there appears no doubt
that the annuities up to the end of 81
years are higher than for the following
81 years. This would indicate that the
allies have followed to this extent the
German desire to end the principal pay
mentS as soon as possible. The lighter
sums run along to the end Of SO years
that is to say, to the end of the period
for payments to the United States I'M
der the debt settlement. It was said in
expert circles, however, that no special
Significance should be attached to that
fact.
Versailles Total.
The grand total of $125, 900, 000, 900
claimed by the allies from Germany
prior to the peace conference at YER
saiIles seemed out of all proportion to
the delegates when they finally dis
cussed the figures over the conference
tables. It was decided to leave calcu-
lation of the total to the reparations
commission.
In June, 1920, the allies discussed the
question again and reduced their claims
to $67, 000, 000, 900. The respective shares
of the creditors were fixed at that time
as follows:
France, SO per cent; Great Britain, %
per cent; Italy, 10 per cent; Belgium. 8
per cent, with smaller amounts to other
creditors.
Less than month later the allies,
at Spa. considered a total of $60,000,-
600 600, payable in AZ annuities, out,
after the Germans had announced in
March, 1922, that they would default
in the payment due on PREPARATIONS May
l, the reparations commission fixed the
final total at $4,000, 100000 132,0OO,-
600 900 gold marks.
Move for Moratorium.
Three months later. however, Ger
many informed the allies that she
could not continue the payments pro-
yided for in the ultimatum and asked
for a moratorium This question of q
moratorium was to dominate repara-
lions problem for some time, with the
British supporting the Germans.
In January. 1923, Germany, who had
offered $4,000, 100000 at the peace
conference, reduced her offer to $780,
900 600, at the same time requesting
an international conference to fix her
capacity to pay PREPARATIONS.
The result of this demand for an in
ternatio1al conference was the organ
ization of the first Dawes committee,
which, while emitting to mention the
total that Germany must pay, fixed the
annuities payable at 1000 100000 gold
marks to begin with, progressively to
increase to 2,500, 900, 600 gold marks in
the fifth year of the operation Of the
plan.
The meeting of the second Dawes
committee. at which the allied dele
gates now have agreed among them
selves on the total of their claims, was
called in response to general desire OF
all the nations involved to make a final
settlement of the reparations problem
in the interests Of the financial stability
of Europe.
The compromise on reparations was
tacitly understood to include the COM
liberalization of a part OF the repara-
lions debt and the final establishment
of the total that Germany was to pay,
which had been left indefinite in the
scheme devolved by the first Dawes
committee.
rr,,I,a-t rrrorir chairman Republican