The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-01-14
U. S. MAY LOSE
BILLIONS BY
GERMAN ACT
Reputation Of ReparationS
Means Nonpayment of
Staggering Sum.
SCALED DOWN OFTEN
Allies at First Planned to
Collect More Than Foes
Whole Value.
BY WILLIAM PHILIP SIMMS
scripps Howard Foreign Editor


WASHINGTON, Jan. 14.-If Ger
many sticks to her threat to re-
pudiate reparations, it means the
almost certain loss to American
citizens of more than $4,000, 10000
in war debts.
Unless Germany pays the allies,
It is admitted here, there is small
chance that the allies will pay the
United States.
Under the thirteen debt-funding
agreements signed by the United
States and the nations Of Europe,
$11, $50 100000 is to be paid us in
the next sixty years, along with
Sl0,621 100000 interest, or total
of 500 ,143O0O,0O0.
That is 500 principal and $84
Interest," total of $184-for every
man, woman and child in this
country, approximately $3.50 per
family-the price of a fine, new
automobile or six months wages.
Wanted Germany to Pay All
The history of German repara-
tions has been a mixture of asking
for the moon, and of disappoint-
.ment over not getting it from the
very beginning.
At Versailles, the allies talked Of
making Germany pay the entire
cost of the war. But somebody fig
ured that it would come to upward
of 100000, 100000, or more than
twice what Germany would bring
were she sold, lock, stock and barrel,
to the highest bidder ana the prof.
ect was dropped.
In January, 1921, the allies fig
ured that Germany would have to
pay 225 billion gold marks, Or $685.
000,000000. This also proved fan
tastic, being so per- cent of Ger
many's national wealth at her rich
est moment before the war.
Later in the same year, at Lon
don, however, the committee on
reparations got down to brass tacks,
or so it thought. lie decided Ger
many would have to pay $33,000,-
100000, only to have her default two
years later.
Offered Huge Loans
France then occupied the Ruhr
and tried to collect for herself. Bat
the German workers struck and the
occupation proved a failure. Even
payments in kind, from Teutonic
mines and mills, virtually ceased.
The next move was to set up an
international commission to de-
termine Germany's capacity to pay.
This was headed by the Americans,
Brigadier General Dawes and Owen
D. Young.
1t was decided that Germany
would have to be made going con-
Germ before she could pay, and for
this loans amounting to some
$500, 100000 would have to be
made.
Germany got the loanS-moStly
from the United States-and for
the next four years she paid &C
cording to a sliding scale and with
borrowed money-the payments
ranging from $3.50, 100000 in 1925 to
$500 ,O00,OOO in 1929. This was the
Dawes plan.
Then this plan fell through. Ger
many still complained. Owen D.
Young went back to Europe and a
Young plan superseded that of
Dawes. Instead of payments OF
5000 100000 annually, the new
schedule called for average install
ments of approximately $475,OOo, 900
for about sixty years.
Again Germany Can't Pay
In 1881 Germany sent out another
S o S. Again she could not pay.
Her credit was exhausted. She
could not borrow, SO she could not
pay. If forced to pay she would
go on the rocks, then nobody,
neither governments nor private
lenders. would get anything.
Thereupon, the Hoover morator-
lum was instituted for one year.
It expires next July.
Now, six months in advance,
Councillor Bruening has warned
the world that Germany can not
pay any more reparations. In France
and elsewhere it is taken to mean
Reputation. Even if Bruening
doesn't repudiate the payments,
Adolph Hitler and his Fascist fol-
lowers will.
France, Britain and the other
countries which have promised to
pay Uncle Sam the $22, 000,000,000 in
war debts, therefore, are frankly
warning that unless Germany pays
they cantor won't. Which
amounts to the same thing.