Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-05
BIG SLASH IN DEBT
WOMB GERMANY
Reparations Payments Are
Reduced From 80 to g
Billions.
BY JOHN F. SINCLAIR.
Special Dispatch to The Star.

Special Dispatch to The star.
NEW YORK, June 5-After three
months of hard work, during which
time Great Britain's chief representa-
tive, Lord Revelstoke, died of heart
failure, the reparationS conference has
closed its deliberations in blaze OF
glory.
Briefly, Germany'S reparation debt
has been reduced from $4,000, 10000
to $4,000. 600 900, a real drop. 1t may
be even more than that, for the final
reparationS plan of Owen Young, which
was adopted, provides for an average
annuity to be paid by Germany to the
allies of 2,0500 100000 marks ($487 ,000,-
O0O) over 81 years. This is for interest
and principal together. Thereafter, for
2l12 years, Germany is expected to pay
$408, 900, 900 annually, in order to meet
exactly the allied debt to the United
States. But of the total amount to be
paid annually, only 660,000000 marks
($l57 .08O. 000) is the fixed, constant sum
that must be paid. The balance, $780,
100000 marks 1880, 820,000) is to be
paid providing Germany is able to pay It,
In other words, Germany will pay
this additional amount If she can. The
test is whether by attempting to do she
debases and demoralizes the interna-
tional mark exchange.
So, while the reparations are settled
the only amount that the allies can
commercialize is about 500 600 900 marks
$ll9 600 ,OOO) over a period Of 81 years
This fact it is we'll to keep in mind In
future discussion OF the reparatlonS
problem.
Should the United States ever change
heart and cancel any part Of the debts
owing by the allies, o-thirds of the
total reduction will go to reduce the
German payments and one-third will go
for the benefit of the allies
Only one problem Is left unsettled.
The Belgians contend that 5000, OO0,O 600
paper marks we're cashed in Belgium
during Germany's possession OF the
country, while Germany asserts that
its army only left one-third Of that
amount. nominally only $500 100000,
brought into Belgium by spectators.
Germany believes she shouldn't be
made to pay this two-thirds. Belgium
insists that she must. DR.. Schacht,
chief German delegate, pledged Bel
GUM that Germany would reach an
accor with dBelgium on this question.
So for the present, at least. the prob
lem of reparations has been brilliantly
solved under the leadership of Owen D.
Young. More than any other man in
the conference. he brought the experts
back again and again to working
plan after 1t looked as II the whole
conference was hopelessly smashed.
Young was ably supported by his
American colleagues, but great credit
is due to three other men-Sir Joshua
Stamp Of England. who wrote a large
part Of the final report, as he did the
FIRST Daes wplan; Emil Moreau, the
tactful governor of the Bank of France,
and DR.. Hialmar Schacht. the IRON
willed president of the Reichsbank.
When ]. Ramsay Macdonald, 81.
takes over the British government in
the next few days, Philip Snowden,
chancellor of the exchequer in the
last Macdonald cabinet. will probably
be in charge of the country's finances.
What will this pale little man with
the dark burning eyes do about the Bal
four note? This frail. delicate states
man to whom the British Labor party
looks as the champion of their fiscal
policies. II is probably true that no
British statesman since the days OF
Gladstone has shown greater ability in
deadly problems Of finance and taxation
than has this Labor leader. But during
the campaign just closed he thoroughly
condemned the British settlement of its
war debts with the United States. de-
claring that there should be a revanp-
Ing of the whole war debt settlement.
Philip Snowden, 65, entered the gov
eminent service as a clerk at ~, and
remained as q clerk for seven years. At
90 he quit that and went into journal
ism and lecturing, specializing particu-
larly in subjects dealing with fiscal mat
tiers and the tariff He was chairman
of the Independent Labor party from
1903 to 1906, and again from 1917 to
1920.
The steadying hand Of Scotchman
Macdonald may hold Snowden from
taking an extreme position on the war
debt settlement with the United States
But, maybe not. If not, the war debt
settlements may be anything but
settled.
(Copyright, 1929. by North American News
paper Alliance