Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-22
i. S. IS AFFECTED
BY DEBT SESSIONS
American Investors Hold
Most German Bonds; France
NeedieSt of Allies.
nv Cable to The star.

By Cable to The star.
LONDON, January 22.-No less task
. than drawing up proposals for COM
rations problem" awaits the financial
experts Of six nations who will assem-
bic in Paris next month at the behest
Of the allies and Germany.
During the last few weeks it has
been widely assumed that the forth
coming experts gathering would prob
ably extend its terms of reference-aS
did the original Dawes committeeman
discuss means for the conversion of
the German obligations from political
into private ones. The American men,
bers of the experts committee have
already declared that this will not be
the case, and Owen D. Young is quoted
here as saying that the experts will de-
termine only the total amount Ger
many must pay and the number of
years in which she will pay it.
Two Problems Untouched.
This, therefore, will leave untouched
two particularly important problems
the manner in which the German pay
mentS are to be transferred to the
allied governments or. their nationals
and the means by which the govern
ments, in the first instance, can pass
on the German obligations in such
fashion that they will become pos
sessed of immediate hard cash.
European public opinion anticipates
with mixed feelings the forthcoming
experts session. It is quite true that
considerable pessimism - which, as
events proved, was i'll founded-greeted
the appointment of the Dawes COM
mittee in November, 1924.
With such conflicts in more or less
influential political circles, an examina-
ton might we'll be made of the motives
leading the various nations to send
their experts to Paris again.
Germany'S motives are obvious She
wants to know where she stands as re-
CARDS her external debts, and she wants
the Rhineland evacuated. But she does
not want TO pay annually more than
she is now paying and indeed hopes to
convince the allies that she should pay
even less, over a comparatively short
period of years.
Moreover. if the debts are not to be
commercialized, Germany is unwilling
to forego the protection now afforded
her currency and credit by the exist
ence Of the transfer committee. OF
COu1SCs OccS tIldL IlCI CICUlG
on the world markets would be i'm
proved if the reparations problem were
settled, but many feel that loyal dis
charge of the Dawes annuities would
still keep her national credit good.
France Needs Money.
OF all the interested nations, France
has the strongest reason for desiring
settlement. She needs money. Her
war debt settlements are not ratified,
and in August she is due to pay the
United States $400, 900 for Ameri-
can war stocks purchased.
Moreover, France has started work
on a vast system of Notifications along
her eastern frontier, as defined by the
peace treaty, and when this is COM
pleted will be able to contemplate with
more tranquility the evacuation of the
Rhineland.
So long as the Dawes plan continues
to work Great Britain, Italy and Bel
GUM would have no very great in
centive to desire any change. The first
two already have limited their demands
sufficient to cover their war debts,
while Belgium is not especially in need
of such ready cash as might be gained
by capitalizing and discounting her
share Of the Dawes annuities.
The United States perhaps has more
cogent reasons than any of these three
countries to desire the success Of the
Paris conference. BY far the great
est portion Of the non-governmenta!
German obligation held abroad is held
in the United States. This gives the
American investor direct interest in
German prosperity and in seeing that
a final reparations settlement assures
its continuance.
(Copyright, 1920