Evening star., 1932-04-07
II POINTS OUTLINED
TO- AID PROSPERITY
EoI Levinson of Chicago Pro.
poses 7Ian to Cut
Worlds Debts.

Proposing plan to "equitably tighten
che after burdens Of the war; reconcile
the nations of Europe, drastically re-
duce the staggering costs of ornaments,
revive for Our farmers and manufacturers
a normal foreign market, and make POS
sible a return of prosperity and an era
of genuine peace" Sol Jevinson of Chi
cago today laid down comprehensive
program of IL points, the crux of which
he declared to be an adequate reduc-
tion of indebtedness"
Mr. Levinson is the author of pro-
gram for outlawing war, and has de-
voted. himself in the last few years al
mos. exclusively to public work.
His new plan follows the analogy of a
Ebusiness organization. It seeks to
take account Of the most acute interna-
tional factors, Mr.. Levinson explained,
s'and to do substantial justice to all in
terested nations without unduly shifting
the burden to the American people"
Analysis Of IL Points.
The Levinson plan would scale down
payments made by foreign powers to
the United States under a refundtng
extending over IA years, by which the
United States would collect 40 per cent
of the original loans European inter-
allied debts would be Cancelled and re-
leased, German reparations reduced
and the treaty of Versailles reason
ably revised" to conform 10 the pro-
posed readjustment.
Briefly anaiyzed, the II points of
the Levinson program are as follows:
/. Readjustment Of debts owed to
the United States, from original S10,-
poo, 100000 down to s4,013,000, 600,
which would be about so per cent of
the 1923-28 debt settlements.
2. The United States would receive
$40. .000.0 cash. payable $4,000 900 a
year for IA years, for account due on
the American Army of Occupation and
mixed claims; making grand total
3n cash to the United States of S4,-
OS5, ,00O0
Inter-Allied Cancellation.
8. ALI old disputed ana vexatious
claims in foreign nations against the
United States, or its constituent States
especially those asserted by British
subjects against some of the Southern
States would be cancelled.
4. All inter-allied European debts,
the original principal of which was
about $4,000 900, would be can
celled.
5. German reparation payments to
The allies would be reduced from their
present annual level of S413 900 900 to
$3.50 600 900 payable In gold over IA
yearly instalmentS. This is estimated
to yield the allies, after paying the
United States S100.000,000 annually,
balance of S50,00o.000 a year, in rep
arations for IA years-a total of $780,
900 ,000
6. Germany would pay principal in
terest and sinking funds on her out
standing Dawes and Young bond is
sues, originally $4,000, 900 and $780,
600 600, respectively.
z. Reduction in the annual rate of
interest by the holders of all Germany's
external commercial bonds and notes,
from their pre-moratorium general
average of about per cent per year
to 5lz per cent.
Progressive Disarmament.
8. Defer and omit sinking fund or
amortization payments on all the Ex
ternal German loans, including the
Dawes and Young bonds, for a period of
three years, same to be resumed there
after.
9. A general plan of equitable, pro-
gressive but drastic disarmament"
would be evolved and accepted by the
nations at the present Geneva Disarm-
an1ent Conference, both to promote
world peace and TO effect enormous
financial savings by all nations now
30 vitally needed. Levinson estimates
that the world has been spending
s1o,00o,oo0 day for peace-time arma-
ments during the past few years.
TO- The Treaty of Versailles would be
reasonably revised to conform to the
spirit and purpose of the proposed re-
adjustment in order to bring about po-
1itical appeaSement and a@1ity among
European peoples.
II. I'm view of the great relief from
present conditions afforded Germany
under this plan," Mr. Levinson says in
his last point. "and doubly to insure
her permanent acceptance thereof, a
legal plebiscite would be held in Ger
many ratifying the entire program OF
readjustment, thereby binding the pres
ent and future German governments
to its validity and permanence regard
less of political changes hereafter in
the reich"
Took Nothing in Peace.
"The United States" Mr.. Levinson
said. lis apparently making the great
est sacrifice In the proposed program.
But in reality the sacrifice was largely
made years ago and with our eyes open.
We voluntarily entered the war with
great enthusiasm, shared by the writer
and his two soldier sons. Our Govern
ment spent $38 8O00, ,000, 900 in the 19
months we were in the war We asked
nothing and took nothing from the
peace table in 1919 while we watched
all the others revel in the spoils of
war"
Explaining that the proposed plan
would yield the American people 40
cents on the dollar, Mr.. Levinson asked !:
s'Do not the manifold advantages of
such settlement entirely outweigh the
possibilities of ultimately getting more
out Of this remnant Of our war invest
i ment?"
Mr.. Levinson quoted the statement
that "the allied and associated powers
won the war but lost the peace" and
made an appeal to the allies to put an
end to the economic and political
chaos resulting from the war and to
form solid European phalanx for that
4 purpose"
The theory behind the financial read
tustment, Mr.. Levinson explained, has
Il been to make Germany pay not 'the
most she can" but the least she must
n to accomplish an equitable liquidation
OF the war mess"
n Common Benefit Of All.
The plan. its author points out "at-
II tempts to disentangle and simplify the
snarl of international war debts and
to reduce them all to point of mod
Grafton and assured payment. 1t re-
n oures American and foreign bankers
" and their clients to contribute $l45,-
100000 a year by reduction of the in
q terest rate on German bonds and notes
4 TO 5l2 per cent.
Il "A business reorganization" it was
N pointed out, "is occasioned by an ex-
cess of debts. But for the inability of
a corporation TO meet its matured and
maturing Indebtedness, no reorganiza-
ton would be necessary. Hence it is
obvious that no sound reorganization
can take place unless there is an ade
s. uuate reduction of indebtedness - the
crux of the situation. But all inter-