Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-16
YOUNG PLAN PUTS
GERMANY ON OWN
Provides Proper Stimulus for
Reich to Set Financial
House in Order.
ny LELAND STOWE,

PARIS, June 15.--Now that the
Young plan is finished and signed its
future significance may be approached
through many hannels-internation
European or nationalistic. In the long
run. none of these will be so important
as the Young plans international I'M
portance, but for the moment one phase
Of the reparations settlement should
not be overlooked. regardless of its al
most wholly nationalistic character
This Is wrapped UP In the query, what
does the Young plan mean for Ger
many?" All of the six nations experts
who have just left Paris entertained
very definite ideas on this subject IL
may safely be stated that In the minds
of most of them, and in the mind OF
Mr.. Gilbert himself. the Young plan
presents an opportunity to the Reich
for nnuch-needed changes in Germany S
financial structure and for overhauling
and speeding up of German economy
as a whole. It is not that the Young
report makes any stipulations requiring
fiscal reform in Germany. 1t is rather
that the Young plan at last gives Ger
MANY the proper stimulus to set her
house in order AS long as the Dawes
regime left Germany's total obligations
unfxed and her payments in political
form, no spur existed to prompt the
Reich's statesmen to take steps which
would only appear to make Germanys
capacity to pay still higher.
There was no reason for Germany TO
try to improve her machine so that It's
profits would Immediately pour In larger
streams into the pockets of France and
Britain and others. The Young plan
changes all that superficial relationship.
It puts Germany on her own.
Ferdinand EberStadt. specialist on
German loans expressed 1t to me. The
plan would cause no vital changes in
the German financial structure. The
Reich may now set up committee TO
supervise the German budget committee
with veto power over all expenditures.
There will probably be revision in the
financial relations between the Reich
and the States-what the Dawes plan
called the hole In the German budget.
I believe you can expect important i'm
provements in the German financial
machine In the next few years directly
as result Of our agreement in Paris" y
Provides Financial Reform.
Those closest to S. Parker Gilbert
know that he entertains the same hope
and that he believes one great achieve
ment OF the Young plan is that it pro-
vides Germany an opportunity for
financial reforms which were becoming
increasingly more essential. The sec
ond part of the situation is the question
of how Germany will receive the Young
plan. Experts such as Eberstadt, who
for years was in personal contact with
the German economic machine, antici-
pate serious opposition to the Young
plan in certain quarters, but they are
not alarmed over the possibility OF
Berlin rejecting the plan. In their
opinion the heavy iaduStrialistS of the
Ruhr will oppose the plan as will the
Nationalist everywhere, but they state
that the manufacturing OF electrical in
dustries-the smaller 1ndustrialtsts-
viii favor It because the Dawes in
dustrial obligations are swept away.
Likewise, they feel certain no serious
strain on the Young annuities can come
In the immediate future.
These factors, aside, there remains
one extremely interesting question in
connection with the new regime about
to begin In Germany. What will DR..
Schacht do when he returns to Berlin
and what are his intentions? DR..
Schacht today, as q result of the ex-
perts' findings, Is In q most unusual
situation In his colorful career. Al
ways man Of the Right, for the first
time in his life DR.. Schacht finds him
self supported by the Left and criticized
by his own party opinion. What will
Schacht do with this unprecedented
Left support? viii he ALLEVIATE the
Left again OF modify his course and
strive to become 'Germany's new mid
die man? There are those who be-
lieve that Schacl1t will take the latter
course, trying to hold the Left support
won to him by the experts accord, and
at the same time striving to win back
the Right favor which he temporarily
lost. II Echacht succeeds in doing
this, he will inevitably become a po-
htical power and in all probability his
friends will urge the Reichs Bank job
IS not big enough TO hold him.
Knew Future Was at Stake.
DR.. Schacht's denial that he would
ever hold ONCE, given to the Herald
Tribune correspondent. the night Of
the conferences breakdown In mid
April, can hardly be expected to hold
water IL fortune promises to make OF
him a per-Stresemann in German
politics. and it is not impossible the
experts accord may do that very thing
for him.
Schacht's choosing of the ways came
that night the conference broke down.
He was faced with the problem, "Shall
quit or 90 on and get the best agree
nent I CAM" Schacht courageously
decided to hang on, whereas Voegler
quit. But Schacht knew he was de-
nberately casting away the old Right
support and his entire future in Ger
many would be affected thereby What
Schacht's future will be is not the least
of the interesting questions posed by
the Young plans contamination. 1t is
not too late to pay tribute to Schacht's
chief assistants. Malchior and Kastl
Their unceasing efforts to find the
middle ground was an important con-
tribution to the experts success. 1t
should be added that in Eberstadt and
later in Sarnoff these German experts
found q man in whom they could have
complete confidence, and thus the Ger
man experts relations with the Amer
leans were never estranged or even
strained. Unquestionably. beyond his
own unique and unparalleled contribu-
ton, one of Young's great gifts toward
the success was the gift of having the
right man In the right spot. without
German confidence in the American
delegation and particularly in It's indi-
viduals. no agreement at any figure
would have been possible. II was not
by chance that Schacht. Kastl, Mel
cf1ior and Boden, chief of the German
experts, were all at the boat train the
other day saying bon voyage" to
Young, Lamont and all the other
American delegates
(Copyrisht, 1927