Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-25
GERMAN PEOPLE
SEE OBLIGATION
Ready to Do Share in Reor-
ganizing Finances Through
Young Plan.

Christmas news around the world may
be scant this year so far as momentous
happenings are concerned, but there is
one event overshadowing all else in
significance, namely, the ratification by
the German people of the reparation
plan which bears the name of owen D.
Young.
For several months experts worked
in Paris and then governments debated
details at The Hague, when all of a
sudden a monkey wrench seemed to be
thrown into the machinery of world re-
adjustment because the Nationalist
party in Berlin insisted on a referen-
dun. The Versailles treaty was never
popular in Germany, and an acknowl
edgment of reparations due has never
been put specifically to a popular vote.
The fact that the opposition to ratify-
ing the Young plan received only $780,
600 votes out of the necessary 100000
may be taken to mean that the German
people not only recognized their obli-
cation, but that they are ready to do
their share in rearranging the finances
of the world through the Young plan,
which has been hailed as means of
rescuing Germany from permanent
financial bondage.
The approval by the German people
means also that when the reparations
bonds are f1oated investors throughout
the world will no longer have any doubt
about the good faith of Germany or
possible reputation.
Plans for the flotation of an interna-
tional bond issue have been held up not
only until the outcome of the German
referendum, but until the money mar
ketS of the world were more receptive
to such a f1otation. 1t has been appar-
nT1t for hn fiS,,
bonds would not find a ready market
until cheaper money was available in
the markets of the world. The stock
market crash in America has had its
effect in all parts of Europe, as revealed
IN the declining rates for money in the
principal European countries.
The ratification of the Young plan is
expected to have an even greater effect
on the sterilization of finances abroad
though no large offering of interna-
tional reparation bonds is likely to be
made until the bond market in the
United States shows a better frame of
mind. This is expected to materialize
In the early part of 1880. So really the
delay in ratifying the Young plan has
not had any serious consequence. 1t
was a nervous moment, however, for the
international. banking world, because If
Germany had diSapproved the Young
plan 1t would have upset all the plans
Tor financing of reparations, something
which is calculated to improve the eco
nomic position of Europe to such an ex-
tent that its purchasing power. it is
believed. will be materially enhanced.
With the United States looking across
both oceans for more export trade to
take up the surplus over the needs of
domestic consumption, it may be said
that on the next steps in putting the
Young plan into effect the whole eco
nomic outlook of the world depends. It
is not the amount of money which the
American Government will get out of
the reparations settlement, but the vast
sums expected to flow here through in
creased trade that make American off,
Gals happy that the Young plan has
been finally approved by Germany.
ID. L.
Copyright. 1921