Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-09

man government processes to be act
ing in a warmly conciliatory spirit; If
so, settlement should be quickly
forthcoming.
The plan evolved by the experts has
been made by the world the Young
plan (after the American chairman,
Owen D. Young, and the name will
stick
Its chief features are as follows:
/. schedule of annuitieS payable
by Germany to date, as from April
l, 1929, and to run for So years. (The
operative until August 81, 1929, and
collections Hereunder to be credited
to the first Young plan annuity These
annuitieS to be In two groups: The
first Of 81 years, the second of 81. The
average annuity of the first group to be
1850, 600, 600 marks (about $488 900 000)
and these annuities to cover the debt
installmentS payable by the allies OF
the United States over those 81 years,
the service of the Dawes loan (about
61,000,000 marks yearly, payments to
the United States upon the account of
the costs of our army OF occupation
and to liquidate the awards Of the
Mixed Claims Commission (about 3d.
100000 marks yearly, and finally. pay
ments to the allies toward reimburse
ment of sums expended to repair war
bulk. OF each of these annuities, $780,
100000 marks will be unconditional
that Is, will have no benefit Of mora
forum and, therefore, can be CONNER
cialiZed. My understanding is that this
unconditional block will take care Of
service of the Dawes loan and the di-
rect American charges and will provide
a fiat 100000, 900 marks for France
against reconstruction, the remainder
to go to other allies for like purpose.
1t is estimated that through these pay
mentS the French internal debt will be
reduced by about the equivalent of two
billion dollars (about quarter OF the
total cost of French reconstruction.
The second section of annuities covers
81 years and comprises 20 annuities of
LOO, 000,0 900 marks each, and final
annuity Of 100000 marks Cthe mark at
gold par is worth about AZ cents)
These annuities are to cover the debt
installments payable by the allies to the
United States over those 81 years; only
that and nothing more"
2. An international bank of payments
is substituted for the reparations COM
mission and the Dawes plan machinery
of collection, supervision and diStribu-
ton.
3. From any reduction in the debts
of the allies to the United States,
Germany shall benefit to the extent of
tWo-thtrdS.
4. Should at any time prior to April
l, 1865, the condition of the reich re-
quire 1t, a complete moratorium of
German payments over two years will
be granted as to the protected" part of
the annuities. eve have yet to learn
what authority shall decide whether or
no conditions neceSsitate such q
moratorium. AS regards suspension Of
transfers, the authorities of the bank of
payment will perform the functions of
the old transfer committee.
5. Those prominent features Of the
Dawes plan-the railway bonds, the in
duStrial debentures and the transport
tax-go to discard, but the rail-
way corporation is called on to pay into
the bank Of payments sums correspond
ing precisely to the interest and sink
ing fund payments on the discarded
bonds chat is, 660,000,000 marks yearly,
corresponding to the unconditional
block; very interesting and ingenious).
The allies cannot bring it to book; but
the German government must make
good any defaults.
ments is fixed at $100,000,000. Its
profits will be applied to Germanys
benefit, and it is hoped that they will
hquidate large part of the second sec
ton annuities.
According to the latest computation
the total of the annuities lover So
years. corresponds to present value of
$685., 100000 marks (about $8,782 ,000,-
000). The experts formally recognized
that Germany had already paid the
equivalent of $4,000, 200, 900. Now note
that the A and B bonds of the London
prpgram Of 1921 aggregated 10000. 000.-