Evening star., 1932-10-17
German Goods for Debts.

Chancellor Tcn Papen has not chosen
Q very propitious moment for announc-
ing hat-footedly that Germany's pri-
vate debts owed abroad, amounting to
some twenty billion marks, or about
81, 500 600, 900 in American money, can
only be liquidated in the form Of goods.
This would not be possible, the chan
cellor is disarmingly candid enough to
add. unless the countries to which these
debts are payable agree to let down
their tariff bars SO as to permit whole
sale entry of German manufactures on
easy terms.
Possibly when Col. Won Papen spoke
at Paderborn on Sunday he was not
aware that at this very time the Sen
ate Finance Committee at Washington
is staging an exhibit of three hundred
imported articles to illustrate the de-
structive competition which American
labor encounters in foreign cheap labor
The United States has long been ia
miliar with host Of wares Of varying
degrees of excellence produced in Ger
many and landed in this country, even
under existing tariffs, at rates which
domestic producers find it difficult to
match.
No single country has so extensive a
stake in Germany's privately owed cbli-
cations as the United States. The total
sum due to American investors from
German states, municipalities. indus
trial corporations, public utilities and
banks is estimst ted to be in the neigh
borhocd Of 81 s75 900 900. To the ex-
tent that these obligations are repre-
sented by either long or short term
credits, the Reich chancellor now pro-
poses that, Germany having reached
the end Of her tether in capacity to
pay in actual funds, there is nothing
left to her but to offer payment in kind
by the dumping of goods in the home
markets of her creditors. He argues
that ito expect repayment of debts
while confronting us with trade bar
riers suggests both Grass and indefensi-
BILE violation of all economic logic"
During the past year there have been
circunstantial reports that the Reich
would declare a moratorium on private
debts. But promise was given to AL
bert H. Wiggin, New York, chairman
of the Foreign Creditors Bankers Com
mittee, that such action would not be
taken without thorough canvass OF
the situation with creditor interests.
Whether the payment-in- kind plan has
been discussed with the foreign bank
ers is not yet disclosed.
At the moment Germany's private
debts are protected by the so-called
"standstill agreement" effected last
Spring and which provided the Ger
mans breathing space which does not
expire until next March.
Chancellor Won Papen is bent upon
taking time by the forelock. He has 1t
definitely in mind, he announces, to
bring before the impending world eco
nomic conference the virtual ultimatum
Germany now submits-"take our goods
or nothing" The United States ac-
cepted the invitation to the economic
conference on the strict condition that
tariffs would not be discussed. II the
Reich insists upon inclusion of the
Won Papen scheme in the agenda,
American participation in the confer
ence will automatically become prob
lematical. With millions of its indus
trial workers idle, the prospect of
widened unemployment as the newt
able result of letting Germany pay her
debts with goods admitted under low
cred tariffs or without any tariffs at
ali will not make much OF an appeal
to the Government or people of the
United States.
So much can be said-Germany Is no
longer backward in coming forward
with far-reaching demands" She
achieved at Lausanne the practical
cancellation of her public debt-repara-
tions. She followed up that accom-
plishment by a claim for equality In
ornaments. Now she seeks q new
tariff deal throughout the world, to
ease the payment of her private debts.
1t is a program, like that Of the man
who said he could click anybody on
earth," that covers a good deal Of ter
rtory.