Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-07
PREPARATIONS DRAW.
WORLDS INTEREST
Declaration That Annuities
Are UnbearabIe Excite
Comment.
BY ALEXANDER H. UHL,


NEW YORK, June 6,-Almost thir-
teen years after the historic signing OF
the armistice in railroad train in the
forest of Compiegne, where Marshal
Foch laid down terms to defeated
Germany war reparations again have
plunged the powers into discussions OF
great international import.
Twice have the terms and amounts
of these reparations been revised since
the London Conference of 1921, once
by the Dawes plan in 1924 and again
by the Young plan in 1929.
Now on the eve Of the second ami
versary of the signing of the Young
plan. the word reparations again Is to
the fore as the German Government
today issued a manifesto declaring that
the menace to the Reich's economic and
financial situation is such that liberia
ton from "unbsarable" reparations
burdens is imperative.
Discus World Economics.
While this manifesto. calling upon
the Georman people to make new
financial sacrifices, was holding the at
tention of the world, Chancellor Bruea-
ing of Germany and Prime Minister
Macdonald of Great Britain were walk
ing arm in arm in the garden at Che
quers, discussing world economics with
reference to Germanys position.
The treaty of Versailles. while 1t did
not deal directly with the financial as
poets of the reparations problem, did
place upon Germany moral responsible
ity for the damage done to the popula-
tions in the allied countries. For two
years the allied powers discussed what
reparations could be levied, and in April,
1921, the Preparations Commission
placed the figures at $4,000, 900, 600
gold marks, or about $S1 900 900, 600.
Almost immediately difficulties began
to arise regarding the payment of an
nuities. There were numerous confer
ences. The Ruhr was occupied by
France, and finally Germany suggested
an international conference to deter
mine her ability to make further pay
ments. Finally a committee was ap-
pointed which later became known as
the Dawes Committee" after its chair
man, Charles @. Dawes. now American
Ambassador to Great Britain. Owen
d. Young was the second American
member Of this committee.
Payment System Created.
The Dawes report did not set any def
mite total of reparations, nor did it fix
the time limit for the duration Of pay
ments. However, 1t did set up q sys-
tenn of payments by which Germany
could meet her annuities through a
moratorium period over the first year,
transition period. and, finally, in the
fifth year. standard of payments.
It was in this fifth year that a new
commission of experts was appointed
which met under the Craftsmanship of
Mr.. Young. unofilcial delegate from the
United States. j. p. Morgan was the
second American delegate, while Thomas
N. Perkins and Thomas w. Lamont
were alternates. The Americans had
been invited by the Preparations Com
mission to sit on the committee.
On June 7. 1929, after months Of
negotiations, the Young plan" was
signed IN Paris and it is under the
terms of this agreement that Germany
is now making her reparations pay
ments.
BY the Young plan the German repa-
rations debt was placed at approx
mately $4,000 600, 900, extending over a
period of SO years with varying annui-
ties, bringing the total amount In goods
and money to nearly $4,000, 600 900, in
GLIDING interest.
Annuities Reduced.
Under this report the German an