The Waterbury Democrat., 1931-06-12
BY LOUIS F. KEEMLE (Unfted Press Cable EditOr)

N
 New York, June 12.- CUP )-The pocketbook of every American, is affected by the reparatoins ques- tfon, which rose in Europe this week with full vigor from the grave in which it was supposed to have been laid att he Hague early last year.
 There has been a lot of talk about payments in kind, conditional annu- ities, transfers, guarantees, mobili- zation and other phrases which make the average American yawn and turn to the sports page.
 Quitting the technical details, however, the question resolves it. self to this: Germany has been as hard hit as most other nations by the world economic depression; in addition, she has the heavy burden of reparations to pay. Germany says she can't continue to pay the sums agreed upon. Therefore. she wants her burden lightened.
 A bankrupt Germany would have a disastrous e fleet on general world economic conditions and 1t would be felt in the United States. In addi- ton, the money which we lent our allies in the war is being repaid out of Germany's payments to the al-
  sisted that Germany's repaartions and the allied war debts to the United States cannot be considered as interdependent--that is, the al- lied debts must be paid whether Germany pays up or not. Neverthe- less, if Germany defaults. the United States would have more difficulty in collecting than she was now.
 The history of reparations has been that of an insoluble problem, tackled in vain by the best financial minds of the world since the war. Germany has paid considerable, but most of it, except the coal timber and other natural resources squeezed from her by the allies as payments in kind," came from loans obtained in the countries which she was pay ing.
 The armistice and the treaty of Versailles provided for reparations, :, The original allied demands were preposterous-Germany could not Payments in kind were being exact- ed, however, while the wrange over the money payments went on.
 In 1923, Germany was declared in default of coal deliveries and the all lies occupied the Ruhr to force her to comply. Then came the col lapse of the mark. In April of that year, 1t fell to 30,000 to the dollar and finally disappeared.
 The mark was stabilized and the Dawes plan was established in 1924. Four four years, Germany paid cash and goods under the Dawes plan.
 The nations got together again in 1928 and agreed on the Young plan, which was eventually accept ed at the Hague in January of 1880 .-after bitter wrangling-as "a com- plete and final settlement of all fi- nancial questions arising out of the war"
 Under it, Germany agreed to pay a amm which, with interest. would have a present value of more than s1O,O0O, 100000. It wuold be paid in installments until 1888. Ger many's solemn word to pay was ac- cepted in lieu of occupation or other coercive measures. It was provided, however, that if she defaulted or tried to default, the Hague court couldt empower the allies to act as they saw fit. The International bank was established in Switzerland to handle the financial matters.
 Part of the German annuities was made unconditional-that is, they haiid to be paid in foreign curren-