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


Representative from Massachusetts.
President Hoover'S proposal for the
pos tponement during the period of one
year VI payments otherwise due In Ie-
Spect to intergovernmental indebted
less appears to command the support
Of the Nation.
The response it has called forth is a
tribute 10 MIR. HUoverS capacity for
leadership In times VI emergency It's
adoption should not only prove TO be
y decisive factor in alternating condi-
tiOnS Of crisis in Germany but should
also contribute TO the forces vi re-
cuperation in America and la the world
generally.
After the World War the United
States was owed some $ll 900 900 900
by some IL nations OH account VI ad-
vances under the Liberty loan acts sales
OF surplus war materials and relief OBJ
legations. or this more than IS 500
OO0. 600 was owed by Great Britain and
France.
1t was obvious that repayment OF
debts vi this character could only be
made over Y period Of years. Each Of
them except that due from Russia, was
accordingly refunded Oh y basis calling
Tor Seml-hnnual payments OH account
OF interest and amortization over 4 pc
riod Of 62 years. having regard IN each
instance ~ the debtor cuuntrv'S Ca
pacity 10 pay. Vast sums Were also
owed to other creditor powers Similar
agreements have been concluded III re-
spect " these obligations.
keparatiOn Problem Different.
Reparation Indebtedness presented 3
distinct and far more difricult problem,
involving the amount which II former
enemy power could pay Ia Its own cur
rency, the amount which could be con-
verified with safety into the required fol-
eign currency and the distribution ii
sums made available as among tbs sew
ersl nations, creditors, Oh repatriation
account
Settlements were finally concluded.
however. III respect to the TepaI alton
Indebtedness OF Germany, Austria,
Hungary and Bulgaria.
German Indebtedness Of this charac-
ter. originally fixed by the Reparation
Commission at 1872 900 900 900 marks. OF
more than $3l 900, 900 900. affecting di-
rectly no fewer than II nations with
total population Of over $50 600 900 peo-
pie and indirectly u all even greater
extent required almost II years for It's
ad JuStment
During this period the world saw the
occupation Of the Ruhr by the armies
of France and Belgium in January OF
1928; Germany threatened with disaster
after unparalleled imitation reduced the
value Of its currency to such All extent
as to require 1000 600 marks 10 equal
The pre-war value of a single mark: Eu-
rope, AS whole. III the absence OF All
adjustment Of the reparation problem,
racing situation OF the utmost srav-
lty: the commencement VI operations
under the Dawes plan In September,
1924, designed " extend I'm its appli-
cation over SUFFICIENT time To restore
confidence and at the same time TO ia
cilitate final and conclusive agree
ment as TO all problems Of reparation
and connected questions AS soon
as circumstances make this possible:
and finally, III the Spring VI 1880. aft
er months OF the most difrlcult nego-
tiationS, the Inauguration VI the Young
plan designed IN the light Of experience
gained AS u definitive settlement Vt all
outstanding questions in respect to the
reparation problem which had previous
ly detied solution and jeopardlzed the
cause OF world reconstruction and
peace.
Fixed Payments Set.
Under the terms Of the Young plan
- AAHNN oSAASNNN va POJhASiSS NhASP
for by Germany over q period of 81
years. averaging annually about 1000
000, 900 marks, or $476000.00 During
the period Of postponement referred to
in the Presidents proposal the sum
payable by Germany for the benefit of
IL creditor nations amounts to some
thing more than SOC, 000, 900 marks, or
about 1881 10000
1t is impossible. in the time and
space available, to describe in detail the
terms OF the several agreements re-
ferred to and those Of certain other
agreements Of less Importance which
determine the periodical payments To
and by the principal pow rs VI the
world in the satisfaction Of existing In
Indebtedness.
Sufficient TO say that. with the adop-
ton VI the Young plan. provision had
been made for the adjustment Of sub
stantially all such Indebtedness on the
basis in each instance Of estimated
capacity OF the debtor government to
pay.
The proposal made by President
Hoover contemplateS no change i'll the
terms OF any Of these agreements. 1t
involves no change in the settlements
in respect 10 debts due the
United States Government or any other
government. 1t looks to no change in