Evening star., 1932-04-10
URGES U.S S. TO REDUCE WAR
DEBTS TO FORTY PER CENT
Author of ll-POint Plan Would Scale
Down Payments of Both Germany
and Allies.

quate reduction of indebtednesS-the
cruX of the situation. But all interests,
not merely one, should join In making
concessions and sacrifices for the COM
mon benefit of all.
Debts Had Common Origin.
| Whether or not there is legal rela-
| tionship Gin law called privity) between
reparations and debts is immaterial. For
either way we would face the same
practical problem to be solved by the
business method of rational adjust
mentS. But certainly reparations and
| debts had common origin. Both arose
from the caldron of the World War
The real question is, therefore, what is
the best solution of this perplexing
problem? For upon its solution the
other half of our hopes of early eco
nomic recovery depends. The proposal
herein contained is respectfully offered
in the hope that it may help to remove
the storm clouds of our depression and
to restore the sunlight of developing
prosperity.
II
The proposed plan is as follows:
/. Procure for the United States, in
final readjustment of the allied debts
owing us, a total aggregate cash settle
ment amounting to a little over $4,-
000 100000 as follows:
Cash already received from the allies
up to the moratorium of June 20, 1881
(report of our Secretary of the Treas
ury for 1881, page 55D, $2,615 ,000, 600.
Additional cash to be received from
the allies under proposed plan, $l,400,-
100000, at the fat rate of S100,000,0 900
a year for IA years, commencing De-
cember IS, 1882, 81, ,400, 600, 900.
Total cash payment of allies to
United States, $4,015, 100000.
AS the original principal of these
debts was about $4,000 900 900, the
United States would thus receive 40 per
cent thereof, or, if computed on the
principal as reduced in our 1923-28
debts settlements, we would be receiving
| about go per cent thereof.
2. In addition, the United States will
receive $70,000,000 in cash, payable
$5,000,000 a year for IA years, COM
mencing December Is, 1882, in full set
tlement of the unpaid balance owing
on our Army of Occupation costs and
the mixed claims governmental award
of $42,000,00 (both these are direct
German obligations).
This makes a grand total in cash to
the United States of $4,085 900, 900.
81 All old disputed and vexatious
claims in foreign nations against the
United States, or its constituent States,
especially those asserted by British sub
jects against some of our Southern
States, to be abandoned and Cancelled.
Cancel Interallied Debts.
4. All interallied European debts. the
original principal of which was about
| $1,000, 100000 (mostly owing to Great
Britain by her European allies) to. be
Cancelled and released. Among these
debtors to Great Britain are France,
Italy, Belgium, Rumania, Czechoslo-
vakia, Jugoslavia, Poland, Greece,
Lithuania, Finland, ESthonia and Lat
via. These with Great Britain consti-
tute our main allied debtors.
| 5. German reparation payments to
| the allies to be reduced from their
present annual level of $413 900 000
| (including both conditional and un-
conditional payments) to $50, 900 600
annually, payable Internationally; that
| Is, In gold. The period of reparation
payments to be limited to IA annual fiat
| installments of $50, 0,0O0, 900 each, COM
mencing December Is, 1892, making a
total additional reparation payment by
Germany of $2,100 100000. Payments
to be made 70 and through the Bank
| for International Settlements. This
would yield the allies, after paying the
United States 100,0o0,o00 annually, a
balance of $50, 600, 900 year in repara-
tions for IA years for distribution among
themselves, or a total of $700, 900, ,00O
6. In addition, Germany to pay prin-
cipal, interest and sinking funds on
her outstanding Dawes and Young
bond issues, originally $4,000, 900 and
100000 900, respectively, subject to in
terest and sinking fund notifications
IN sections 7 and 8.
Z. Reduction In the annual rate oi
interest by the holders Of all Germany's
| external commerSial bonds and notes
lContanusd on Fourth page.y