Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-30

the terms Of the Young plan for the
settlement Of the reparation problem.
II merely proposes moratorium
holiday for one year--in respect to
payments OIL all intergoveInmental in
debtedneSs. operation under all existing
agreements tO be resumed at the con-
cIISion VI the period II suggests that
all concerned be wise creditors and
good neiE hbors."
World Depression Felt.
The President makes the p"JpoSal to
the world Oh behalf VI the UElted States
Government and offers subject IA the
approval OF Congress 10 postpone all
payments upon debts OF foreign gov
ernmentS to the American government
conditioned on ike poStpouement Tor
one year OF all payments On lntergoV-
ernmental debts owing the important
creditor powers"
The forces which have led 10 the
proposal need no emphasis. The capac-
ity 10 pay III normal times Is not
capacity To pay III those wnlCn are sub
normal. The effects VI worldwide de-
preston IN the United States have
been apparent to all Its effects
throughout Europe have been even
more distressing. Almost no country
has escaped. Almost every country has
suffered severely. In agriculture, III
industry, In trade, Ia widespread un-
employment In conditions VI credit,
and currency. In budEetary deficits, III
political unrest and ia other ways the
effects OF the depression have been
manifest.
In Germany, which has suffered Sc
yerely, the situation became partlcu-
larly acute. With confidence shaken.
-. x.ytIla .lt Il
the reserve vi the ReichsUank was
driven almost 10 the legal minimum.
Some action Was called Tor immediate
ly X disastrous consequences were 10
be avoided. The proposal by President
Hoover was made i'll time Its an
nOuncement IN itself served TO check
the results which threatened. Its adop-
ton should prove 10 BE- decisive fac
tor Ia their elimination.
The larger purpose OF the proposal
is TO give the forthcoming year ~ the
economic recovery OF the world" and to
contribute to the forces OF regeneration
in the United States and abroad. III
that general purpose the more impor-
tant powers appear to BE- i'll hearty
accord There remains the adjustment
through negotiation now In process OF
certain questions raised in connection
with the practical application Of the
plan.
1851 .O0O. 900 Is Due.
The sum VI roughly 600. 900 900
marks, or 1881 900 000, payable by Ger
many under the Young plan during the
suggested period VI postponement Is
composed Of two items the FIRST
amounting to eco 900 900 marks, or say
SAC 900 900, being in fact made avail
able by the German Railway Co. the
remainder being provided directly by
the German government.
The second item may. under certain
conditions be postponed OH the initia-
live OF the German government for q
maximum Of two years. The first item,
however consists VI the sO-cal!ed non
postponable portion vi the annuity,
some 400 900 900 marks Of $95 ,0OO,-
900 being allOcated to France III relm-
LuTSement VI damage suffered during
the war In devastated regiSns. Shall
the two portions OF the annuity receive
the same or different treatment?
or the total payable by Germany,
during the period In question, about
TOO 900 OUO marks, OF $l67 900 900, Is
intended 10 lie used under the Young
plan tor financing deliveries in kind in
IaI &c ASI tLaC TSAClIl VI
These deliveries include large projects
tor public works. the construction OF
which is being carried Oh over period
VI years. Shall these deliveries con-
tnue TO be financed by the German
government on reparatlon account? II
not, what provision is to be made in
respect to them and those engaged i'll
the construction referred to?
The adoption Of the Presidents pro-
posal will require arguments for the
payment Of the sums postponed. In
what manner is it equitable that they
should be repaid?
Copyright. 1891. by the North American
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