Jasper County Democrat, Volume 21, Number 67, Rensselaer, Jasper County, 20 November 1918 — ABILITY TO MY INDEMNITY BASIS [ARTICLE]

ABILITY TO MY INDEMNITY BASIS

Study of Germany’s Financial Situation Is Undertaken in Washington. MANY BILLIONS INVOLVED Interest on Part of the U. S. Officials Is Indirect, Inasmuch as Government Expects None of Payments to Its Credit. Washington, Nov. 19.—Study of Germany’s financial situation has been undertaken by government agencies here with a view of throwing light on the ability of the German nation to pay big sums as reparation for devastation of Invaded countries. Unofficial reports indicate that Germany’s national debt, represented mainly by war bonds Meld within the empire, is now nearly $35,000,000,000, or almost twofifths of the esMieated national wealth of eighty billions. Must Pay Many Billions. Although thqra Las been no official announcement or intimation of the aggregate amount which the allies will expect Germany to pay, it is certain to run into bHllons of dollars and necessarily the terms of payment must accord with Germany's ability to pay. This ability will ba measured by the nation’s power to' revive her peacetime industries and trade and to tax -this for state purposes. Financial observers here say some claims for restoration and restitution set forth by interests in a few allied nations are extravagant, because they are beyond Germany’s ability, even (hough this Is estimated at the highest Yjtfbrtous allies will not concern themselves primarily, It is believed, with Germany’s redemption of her ox’n national debt, since this Is largely Internal. Comparatively small amounts of German war bonds are owned outside Germany and perhaps the largest sums are held bj citizens of the United states, former German subjects. May Take Bonds for Taxes.

Officials here-who have known internal conditions in Germany in the past do net believe the government will repudiate the internal indebtedness, but think rather that taxes will be made so heavy as to force citizens to turn in their bonds in settlement. In this way the debt would be canceled without actual repudiation. There is some discussion in official circles here of the advisability of the allies’ requiring payment of an indefinite amount of reparation, this sum to be determined in the future by commissions, as the physical reconstruction progresses in Belgium and France and the actual cost- of the work becomes more clearly determined than now. It is pointed out that future prices cannot be measured accurately at present. Interest on the part of American officials in the subject is somewhat indirect, however, inasmuch as the government expects none of the payments to go to its credit. Enormity of Task Shown. Whatever may be the weight of the final burden of reparation and restitution to be placed on Germany, the enormity of the task ahead of her may be illustrated Ujr comparison of her national debt with that of the United States. Germany has 66,000,000 population and $80,000,000,000 of estimated wealth to pay $35,000,000,000 of war debt already •reated. The United States has 110,000,000 population and an estimated national wealth of $250,000,000,000 .to pay nearly $18,000,000,000 war debt already created, which may reach approximately $23,000,000,000 within another six months. This means that thp per capita burden will be at least three times greater In Germany than in the United States.