The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-03-11

S., 300,000,0OO in II annual
instruments Of S275, 100000
each.
Britain and other debtors have
served notice they viii pay Moth
ING unless and until Uncle Sam
takes the initiative with a new
plan.
IustaIlmcnts would be due every
June Is. No interest would be
charged II payment were made on
time. Otherwise interest. at ; per
cent. would run from the date Of
each delinquency.
The settlement would be cOntin-
gent upon an arms holiday. The
plans sponsors contend that in the
Il wears covered by the settlement
the United States would benefit 10
an amount about equal 10 the total
debt due this country.
Administration Is Silent
on the other hand. the Allies and
Germany-whose PREPARATIONS pay
ments 10 the Allies would be in
cIldcd IN the plan-wOuld only have
10 find about Is cents on the dol
lar OF the colossal inter-Allied debt
total Of 30 billions demanded at the
time Of the June. 1881. moratorium.
The Administration maintains a
puzzling silence on the whole sub
icct of war debts. the above sOlu-
ton included. The problem, how
ever. Is causing concern. High ON
cials are aware that unless some
satisfactory formula IS soon found.
the debts viii have to be charged
of to profit and loss.
The plan. sponsored by a group
of Chicagoans. is the work of Sal
mon o. Levinson. internationally
known counselor and father Of the
so-called Kellogg Pact.
Author No Dreamer
Mr.. LevinSOn's life-wOrk has been
the reorganization of big industries
and railroads. He reOrganized West
inghOuSe. the st. Louis q San Fran
cisco Railway and other great
American businesses. His approach
10 the war debts problem. therefore,
was not that Of a dreamer, but Of
a hard-bOiled business man.
Two Of the cardinal assumptions
of the plan are.
/. That the World War and the
two postwar paniCs have so Shrunk
the wealth. 50 stagnated the bust
ness. so burdened tie budgets. and
so crippled the paying power of the
nations that a new. comprehensive
and mutually advantageous read
juStment Of the war legacieS is made
necessary IN the common interest.
, That the United StateS-being
the only clear creditor among the
nations. and having expended 80
billion dollars exclusive Of our loans
and credits to the Allies in the war,
without asking or receiving any
compensation therefor at the peace
table-has the right and faces the
duty to make these proposals and
demands IN the name OF Justice,
stability. suffering humanity, and
world peace"
German Payment Soon Due
II the adjustment were to be
made effective next June IS. this
would be Just at the close OF the
three years of grace given Germany
under the 10 per cent Lausanne
conditional settlement between the
Allies and Germany Of 1892. There
would be owing to the Allies from
Germany. under the Lausanne set
Element. 500 million dollars.
Payment Of that sum by Ger
many would discharge all the Allied
claims for reparatiOnS against her.
This would reduce the sum needed
10 be raised by the Allies for pay
mentS TO the United States TO
Se.500.O00OO or about 200 millions
a wear for u year@as against the
previous debt settlements which
called for similar annual install
mentS for 90 years.
Ths LevinSOn plan calls for a
lump sum or joint settlement. The
Allies would determine their respec-
tive percentages Of payment among
themselves relieving the United
States Of the burden and delay Of
protracted negotiations with a dozen
or more nations.
Similar Plan for Germany
The United States. according to
the plan. would accept on the same
bu per cent basis a settlement with
Germany on account Of Army Of
OCCUPATION costs and the Mixed
ClSims Commission.
SINt. DER cent Of the $3.50 900 900
Army o. Occupation costs would
come 70 $50 millions. Less IS mil
lions cash paid. the amount to be
paid would be 50 millions. Similar
~ figured. the balance due on Mixed
Claims Commissions settlements
would be 81 millions.
The total amount OF German set
Element with the United States. over
the Il years. would be l66 millions.
or slightly less than Il millions a
year.
The inter-Allied debtS-that Is.
debts owing by the European Allies
among themselves such as from
France 70 Britain. Italy to France
and so forth-would. according to
the plan. all be cancelled.
Five-Year Arms Holiday