Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-12

lows the section on collateral guar
anteeS.
"The wording of all issWable bonds
shall be identical, except 1br the part
of the text fixing the value Of the bonds.
This value may, according TO the cir
cumstances, be expressed in dollars
equivalent to SO many pounds. Reich
marks. francs, ETC., always provided
that the principal of any bond issued
in particular market shall be payable
only in the currency of that market
at the equivalent Of its gold value.
"The coupons shall be expressed in
dollars, pounds, francs, etc. and shall
be payable at the rate Of the day on
all markets on which the bonds are
quoted. In the event of an issue, the
amount and form Of the bonds to be
created, as well as the specification OF
the currency In which they will be is
sued shall be fixed by the bank in ac-
cordance with the requests 1t receives
from creditor states, taking into ac-
count the desiderata Of the issuing
bankers.
After a period of-years the bank,
in agreement with the issuing bankers
and the creditor governments may con-
slider the issue of bonds, the service OF
which may be paid in different cur
rencies at par at the bearers option"
Final international Obligation.
The section Of status of mobilizable
portions of annuity coupons" follows
The outline states that "the service
of interest and amortization of mobilize
able or modified portions of annuity
coupons shall be paid to the trustee
| in foreign currency by the German
Reich without any reservation, that Is
! to say on it's own responsibility. The
| financial service of these mobil1zable or
modified portions Of the annuities shall
constitute a final. absolute and uncon-
ditional international obligation in the
ordinary financial sense Of the words"
| The status of the mot yet mobiliZable
portions" of the annuity coupons is
! then treated. It is stated that the
payment of this portion Of the annuity
coupons shall be made to the trustee by
| the German government in the same
! conditions as that of the modified or
mobilizable protions Of the annuity
coupons. Then follow two reservations:
% Bonds representing the not yet
mobilizable portion of the annuity cou-
pons can not be created except by the
concent of the German government.
and 90 it Is in respect OF the not yet
mobilizable portion of the annuity cou-
pons that the German government may
avail itself of the right OF transfer de-
lay granted elsewhere in the plan.
Consideration is then given in the
outline to the functions Of the bank in
connection with class / and 2 obliga-
lions. These functions are six in num-
Der: % Supervision Of agreement. The
bank shall supervise both on behalf Of
the creditor states and the bondholders
and on behalf of the debtor state, the
strict execution of the agreements con-
cluded between them on established
bases.
Credits Shares to States.
(2) Distribution without priority.
The banks shall distribute moneys in
payment of modified or mobilizable
portions of the annuity coupon among
the whole of the bondholders and
credit the creditor states the proper
tionate rights Of each to a share in
the portion of the annuity coupons not
subject to transfer delay without al
lowing priority of any kind to any por-
ton or any claim. "It will distribute
moneys relating to the not yet mobi-
lized portions Of the annuity coupons
among the creditor governments, the
transfer Of these moneys taking place
only after the transfer of moneys re-