Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-19
Preparations Problem
Chief German Worry
By Oh. GUSTAV sroLPER.

BERLIN, October 1es--Through Cham
cellcr Brueniue's speech before the
Reichstag the discussion on revision Of
the Young plan was ofticiaIly opened
this week. At the start Of his remarks
the chancellor declared that the gov-
eminent has rejected the policy Of ad-
venture. His statement obviously was
addressed to the FascistS, who would
repudiate the Young plan as wei as the
Versailles treaty..
But since the experts last concluded
their report an economic crisis of un-
precedented proportions has broken out
over the whole world, and with especial
force Ia Germany. Unemployment has
reached neVersimagined proportions Ia
the most Important countries, and the
chief products sof the world have eye
per1enced . decline in prices OF an ex-
tent unknown to the present generation.
The Dawes plan provided for change
u annuities II the value Of money
should shift over 10 per cent. The
young plan contains no such clause. but
since 1t was signed the price index Of
the whole world has fallen almost one.
tniro. Germany, a. the heaviest In
0epted country, il the hardest hit for
German economy and the financial re-
Turns OF German production are, like
those everywhere, rapidly Shrinking,
and the annuities Of the Young plaT,
would, even II the situation were normal.
amount 70 almost . half more than
tnoSe OF q year ago. Amidst the world
Crisis they amount to endlessly more.
Tariff Walls Raise Troubles.
Other conditions on which the Young
plan was based have disappeared. IT'S
makers expressly acknowledged that
GeruaaIly's ability to pay reparations
was dependent on the extension of
world trade and on more intense CO.
operation In the world, and that Ger
man reparations are an international
problem. International cooperation
has not become visible in the last wear.
The United States and many Euro
pean countries have raised their tariff
walls; the distribution of gold in the
Worid mas become quite uneven, and
the interrelation Of the capital markets
has been leSsened.
For months the international capital
market has not flInctioned. America
has her own troubles and France, which
SWims In surplus money, still refuses TO
grant credits to other countries. The
elections Of September II showed how
profoundly the German people have
been stirred. The more earnestly and
conscienttously one studies the German
situation the more understandable It
becomes that, In q country where mill
lions are unemployed and where those
employed must accept reductions in
wages; where even civil servants for the
nrsC time In Germany's history must
accept reductions in salaries; where
millions Of people are fighting for ex-
1stence, and where the BourSe suffers
losses OF capital Of unheard-of di-
mensionS, the whole people from right
70 left realize the morStrousness of the
fact that they must pay yearly almost
1000 100000 reichsmarks (about $780,
DOC. 0OO) 70 peoples who are much richer
and In part much less affected by the
economic crisis than are the Germans.
Germany Claims War Damage Paid.
Germany knows that the actual DAM
age due to the war has long ago been
paid by her. Unparalleled witnesses in
creditor countries, especially In France,
testify to this. It Is no wonder and
by no means the fruit Of reckless elec-
ton agitation that the PREPARATIONS,
problem now occupies the chief place In
the German consciousness when the
ReichSbank Is obliged to surrender ale.
most 1,000,000.0o0 reichsmarls in o
month as result Of the calling Of
credits by foreign countries and the
flight of capital.
It Is remembered that the Young
plan provides for the possibility Of .
transfer Of q moratorium which the
German government can demand on 90
days notice. In such case tbs special
commission provided by the Young plan
must meet with the Bank Of Interna.
tional Settlements and make proposals.
II matters had gone 50 far, the new
Young commission would now be busy.
But thus far merely q beginning has
been made at making public opinion
throughout the world understand that
the repagations problem has not been
settled, but IL stili open.
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