GERMANY: Ruler Reports

Like a bulging pulverwurst is the latest semi-annual report of Agent General for Reparations Seymour Parker Gilbert.

Issued at Berlin last week, this bulky document of 126 printed pages drew from the reactionary Deutsche Zeitung a resigned comment: “Germany is ruled by an outsider … by a Yankee lawyer. All the bargaining of our politicians over a new Cabinet (see p. 20) cannot blind us to the fact that our true master is Herr Parker Gilbert.”

Keynotes in the report of Germany’s tall, young fiscal Ruler & Master are:

Reich Can Pay. For the first time, Agent Gilbert now expresses a conviction that the German Reich will continue able to make its scheduled reparations payments in full even after dreaded Sept. i, 1928.

From that to-be-historic day will date the so-called Standard Reparations years, in each of which Germany must pay to the Allies 2½ billion gold marks ($595,000,000).

Less than two years ago Mr. Gilbert reported that “no man can know” whether such huge payment could ever be made. But this year Germany is paying approximately 11 billion gold marks without financial dislocation and the Agent General is finally optimistic about years to come.

Total Must Be Fixed. How many crushing, toilsome Standard Reparations years are coming has never been settled between Germany and her conquerors. The Dawes Plan merely fixes the annual sums payable, leaving open for negotiation the total sum of German reparations. Striking was the insistence of the Agent General in his last report (TIME, Dec. 26) that this total be speedily fixed; but Allied statesmen have not taken heed. Therefore the present report sounds a note of dignified warning:

“If this problem is not solved in due time it may be assumed that investors all over the world will become less willing to lend their savings to Germany and will do so only at rates high enough to insure them against uncertainties involved. In this sense, if for no other, the final determination of the reparations obligation becomes a matter of growing practical importance.”

Wildcatting Curbed. Ruler Gilbert’s recent fiat against wildcat borrowing by German municipalities has been heeded, according to this present report, which points with satisfaction to an elaborate system whereby States of the Reich now strictly ration the foreign loans of their municipalities.

Exports and Wages Up. That the volume of German exports is now greater than at any time since the Dawes Plan went into effect is chronicled with approval. But the Agent General deplores a partially consequent general wage increase of 6%. Writes he: “In Germany, particularly in the last year, wage increases quickly found their way into higher prices and so tended sooner or later to cancel themselves.”

Appeal to The Hague. In a supplemental report Mr. Gilbert flayed, last week, the attitude of the German Government in recently refusing to permit the German State Railways to increase their rates in accordance with the Agent General’s recommendations. If pushed to extremities, the report warns, the German railways are empowered to appeal over the head of the German Government to the World Court at the Hague.

A significant incident in this connection last week, was the wreck of an express train near Nuremberg. “Due to worn and obsolete equipment” ran the verdict; and railway officials hastened to point out that new equipment cannot be bought unless the fare increases advised by Mr. Gilbert are granted. Since 25 passengers on the wrecked train were killed, the lesson taught by Death seemed likely to sink in.