The Waterbury Democrat., 1931-12-24
Financial Experts
 In Europe Present
 Ideas On War Debts
Claim New Deal on Payments Must Be Made After the
 Moratorium Has Ran Its Course

arations in the year following the Hoover debt holiday.
 The committee would not have considered that 1t had fully ac. complished its task if 1t had moi called the attention of the inter. ested governments ito the unprece. dented gravity of the crisis, the magnitude of which undoubtedly exceeds the relatively short de. pression' which the Young plan en' visa ged."
 Transfer of payments from one country to another on the prese nt scale can only accentuate the finan. cial crisis.
 The release of a debtor country from a burden 1t is unable to pay may merely transfer the burden to the creditor country which in turn may be unable to bear 1t.
 Adjustment of all reparati Ions and war debt settlements to har. monize with the present troubled world situation is the only lasting step toward world of confidence.
 The linking of war debts and separations definitely raised the question of the policy of the United States government which has res garded the two issues as separate
 "This adjustment should occur without delay if new disasters are to be avoided" the committee re. ported. The report urged an in- ternational conference of the wid- est scope to deal with the entire situation.
 The committee pointed out that the Young plan contemplated Il steady expansion of world trade. whereas a shrinking volume of trade, and the exceptional fall of the gold value of commodities had added greatly to the burdens of commerce. not only to the German annuities but to all payments fixed
 "Action is most urgently needed in much wider field that Ger many alone" the report stated.
 The committee doubted Ger many's ability to continue n sur plus of exports at her recent levei' pointing out that Germany's indus- trial production fell one third be- tween 1928 and 1881. The com. mittce believed that tho burden ot taxation had become so high that there might be no margin for fur- ther increase.
 The report estimated that Ger. many had received 1S,00O, O,oo0,o0o marks (S4.225.000.0OO) In ioreign capital and paid 10000, 100000 marks in reparations during the borrowing period.
 The committee cited the series of emergency decrees issued m uer- many as convincing evidence Of the German governments resoiute oe- sire to meet the situation.
 Points included in the German summary were
 Since 1924 Germany has spent 22,OO0, 100000 marks on educa- tional and public works projects short term loans from abroad made Germany vulnerable: abandonment of the gold standard by other ma . tions caused 40 per cent of Ger manys losses; a catastrophe Is in- eyitable unless the interested na- tions treat the situation immedi- atcly in the light of economic laws namely a combined debts and rep arations conference; a moratorium of longer duration than the two year minimum provided by the Young plan Is necessary.
 Dr Walter Stewart of New York' member of the committee said. linking in the report of war debts and reparations "lt is broadly within the scope of the Hoover moratorium proposal"
 The summary of the report issued by the American delegation sup ported the German declarations.
 Berlin, Dec 24.-(UP)-The re- port of the Young plan advisory com mittee was interpreted here as confirmation of the German thesis that reparations were mainly re- sponsible for the disturbance or the world economic system.
 Under the Young plan Germany must pay an average of about $47s, 900, ,OO0 a year until 1888. One third of the amount Is uncondi- tionai separations. which still must be paid.