Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-31
CALL YOUNG PLAN FAILURE.
Germans Feel Complete ReparatiOns
Holiday Is Necessary.

M EDGAR ANSEL MOWkER.
BY Gable TO This star
BERLIN, Germany, October 81
mo action taken within the Young
plan can be adequate to the German
situation. We are not competent, but If
we were, we should urgently recon-
mend the prolongation of the Hoover
PREPARATIONS holiday"
That, in the opinion of responsible
Germans, Is what the Bankers Com
mittee Of the Young plan will have to
report when Germany calls it together,
as the Young plan provides
For the Germans believe that within
the Young plan there is no room for
any action drastic enough to save Ger
man finances. Therefore the Germans
are in no great hurry to call the Young
Plan Committee, although they will
discuss the matter with the French
after Premier Pierre Laval reaches
Paris from his Washington visit.
An even more urgent cause is the
fact that the Germans consider 1t
essential for them to obtain the pro-
lonRation and possibly the transforma-
ton of short-term credits before the
Young Plan Committee meets. There
fore within the near future the ReichS
Bank will again open negotiations with
creditor banks for the prolongation of
short-term credits.
Plan to Be Advanced.
At the same time the Germans will
put forward a plan This plan will in
clude at least two points; First. that
a portion at least OF the Short-term
credits be transformed into q long
term loan at reduced interest, second
that the Germans begin Immediately
TO repay portion OF the short-term
credits according to the established
plan. So far as can be learned, this
plan will have the support of American
bankers
Furthermore, settlement of the
"standStill arrangements" for credits at
least three months before the present
agreement lapSeS next February 29 has
advantages allowing the banks to plan
in advance, Once the short-term
credits are arranged 10 their SatiSfac-
ton, the Germans expect to call the
Young Plan Committee TO decide what
should be done concerning future
reparations.
They believe this committee will
necessarily find Germany temporarily
unable TO pay any reparations whatSo-
ever, especially II she is already en-
gagged in repaying short-term credits
according TO the established plan.
! But. according 10 the Young plan
the so-called unconditional part of the
1 reparationS annuitieS must be paid. 1t
is being paid today, but being relent
| to Germany. This arrangement was
not. however. made under the Young
/ plan. but by the powers Independently
/ at President Hoover's initiative.
Complete Holiday Seen Needed.
Nothing less than a complete repars-
/ ton holiday will fit the situation, the
1 that the Young Plan Committee will
/ declare itself incompetent. but. per-
haps. recommend solution outside the
Young plan.
! The Germans would like 10 see a
4, man like Albert H. Wiggln Of New
! York represent the United States on
| the Young Plan Committee because, as
| head OF an American bank with large
| frozen short term credits within Ger
many. it is expected he would show
An understanding Of GermAnyS present
inability TO pay further reparations.
preparing Official plan for world
/ wide cooperation to fight the economic
crisis which threatens TO swamp the
capitalist system. The cabinet al
ready has several schemes before II,
which it Is compiling and choosing.
and win eventually come before the
world with a definite proposal for
price raising. tightening the debt bur-
! den ana standing vast credits, such
as IL believes necessary 10 restore gen.
icoBxrish,, 1881