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Show AWED TERMS DISCUSSED BY SAB - Financier Says World Markets Will Determine Soundness of Paris Judgment y HARRY B. HUNT. (Copyright, 121, Newspaper Knter-prlso Knter-prlso Association.) WAXHINOTON, Keb. 6 "Is tht Cerman reparation agreement, reached by the allies, within (Jermany'a ability to pay; and. if so, what will be the effect ef-fect on economic conditions generally of having the amount of reparation snd the terms of payment deflnitelj fixed? Barnard M. Harnett, economic adviser ad-viser of the American peace mission to l-aris when the treaty was drafted and one of the American members on the reparations commission, did not give any snap shot answer. He did quite a bit of figuring and put through several telephone calls before-he answered. His figuring was done to translate Into American dollars the amount of Indemnity the allies now agree Grr-mimr Grr-mimr must par a'"t " determine hew great a capital rhanrn woutd hare to be set aside by tierman Industry in order to amortise the S2.000,000.0ou gold marks In the next forty-two years. ills telephone calls summoned to hla aid expert statisticians and also put him In touch with officials from whom he obtained details of the sgree-ment sgree-ment which have not been carried by nress disnatches PRETTY STIFF PRICE. Well." he finally announced, "from the facts In hand, 1 would say that the total amount of the reparations looks pretty stiff. Merely because Germany may accept It. and because the allies say It Is acceptable, does not mean that business men generally throughout through-out the world will so regard It The real story of whether the reparations agreed on are reasonable or excessive will be told within the next few days In the world's markets. That will be the real and only dependable de-pendable gauge. If It Is a sum within Oermany's ability to pay. and If she accepts this arrangement In good faith, and not simply because she has to, and, further, Jf It meets the approval of business men and financiers, there Is sure to be an improvement In worldwide world-wide economic conditions. Thre has already been a rise in exchange in anticipation that the settlement set-tlement would be reasonable. There would be a further rise, with a tendency ten-dency over a period of time slowly to approech normal, "This would Increase the credit facilities fa-cilities of alt nations Involved, and Improve their buying capacity and their ability to exchange commodities with one another." It would tend to Increase the wealth of the world, and. therefore. Increase the ability to lessen the percentage of taxation, because of the Increased taxable tax-able volume of the big toad Oermany must carry In meeting the reparation payments demanded, Baruch points out. PAYMENT DIFFICULT. "A capital Biiim equal to the debt America Incurred In the war, at & Pr cent interest over forty-two years, would Just about equal the total of the cash Indemnity. But by stripping Germany of her shipping, by Imposing: a 12 l-' per cent tax against the total of her exports, by requiring that she deliver to 1-Yunce large quantities of coal, and by similar limitations on her industrial expansions, the difficulties of making payment - axe multiplied many fold. "A capita I sum of 1,1 5S0 000,000 frnld marks.' said Baruch. turning through memoranda brought him by his statisticians. statis-ticians. "If placet! on Interest at 5 per cont for forty-two years, would amount to Z26.OO0.OOO.O0n marks, the amount of carh Indemnity." That amounts, tn round figure, to twenty-one billion dollars. Ormany already has paid about $3,500,000,000. That makes a total capital Investment of a little less than U5 000.000.060 or approximately that amount of bonds Issued by AmerirA for the war, including in-cluding the loana to allies. U. 8. WOULD LOSE. "Is there any dependable basis on which to estimate the amount that will be produced by the 13 1-2 per cent tax on exports?" Baruch was asked. "No dependable basis,' he replied. "Of rourne. If her exports returned to the prewsr normal, or thereabouts, ft would mean perhaps a billion and a quarter or a billion and a half marks! annually. This tax, of course, affords I j a tariff protection against goods ex- ported from tiermany. This becomes, however, a tax on the American consumer con-sumer of goods. "The wisdom of this action may be open to criticism because of the tendency ten-dency it would have to lessen the volume vol-ume of Herman business and to make the amount Indeterminable. "Incidentally. It might be pointed out that America stands in a different position from any of her associates in the war. I nder this export tariff provisions pro-visions the tariff must be paid by America on German made goods purchased pur-chased and the money goes lo the allies. al-lies. Kngland and rtance. however, purchasing the same goods, pay the tariff, of course, but get it back in the form of reparation payments from Uer many. "If Germany accept voluntarily and proceeds in good faith, and if she can carry out the obligations. Baruch continued, con-tinued, "there should bo a gradual stabilisation of economic conditions In all central Kurope. This would spread, after a lime, even to Russia, which will mean a slow but sure widening of the markets and after awhile an im-I im-I provement in the condition of the un-I un-I employed. gives tax base. The fixing of definite reparations will make it easier to form some adequate ade-quate base tn a stem of taxation and give a better Judgment as to any tariffs that the party in power may have In mind." "Win it help Kurope repay us our war loans?" "It wilt give the allied nations a better understanding of their ability to meet .their indebtedness to us. The sgreement necessarily is of vital interest in-terest to us. but, of course, America, by failing to ratify the treaty, re-, re-, moved itself from any direct participa- . tion in the settlement of reparations. I I "Whether it is a wise settlement or not. and what benefits and advantages' may come from it. will depend upon the spirit tn which It Is entered Into I by the parties to the contract, and whether or not Germany can make the payments. "if this will end the war and each and everyone will earnestly at rice to make it do so much more than the monev settlement will have been gained |