Experts' Plan

Last week, Seymour Parker Gilbert Jr., Agent General of Reparations, made the first extensive report on the operations of The Experts' Plan, which was put into effect at the conclusion of the London Conference last year (TIME, Aug. 25, Sept. 8).

Mr. Parker, 32 years old, tall, slender, brown-haired and blue-eyed, once Under Secretary of the U. S. Treasury (a special post created for him) is one of the most important men in Europe and perhaps the most powerful man in Germany. Under the title of Agent General of Reparations, he is responsible for the collection and distribution of moneys paid under the Experts' Plan by Germany on account of reparations. The degree of his power can be gauged by the fact that these moneys, amounting to hundreds of millions of dollars, are credited to a reparations account in the Reichsbank at Berlin ot which he has the sole drawing power.

The report which he issued last week covered the period Sept. 1, 1924--Apr. 30, 1925. Mr. Gilbert was not enthusiastic over future prospects; but concerning the past he stated that two of the principal objects of the Experts' Plan had been accomplished: The budget had been balanced, showed a small surplus; a stable currency had been maintained.

During the first year, Germany was required to pay $250,000,000 to the Allies. Of this sum about $160,000,000 was used from a loan of $200,000,000 raised by international subscription. Of the remaining $90,000,000, half was paid in February; the second half is due on Sept. 1 next. But, under the Plan, Mr. Gilbert has received to date $155,000,000, or 50% more than was necessary.

On the dark side of the report, Mr. Gilbert reminds the world that next year there will be no loan proceeds to aid Germany's payments; and that eventually these payments will reach a minimum of $625,000,000 a year. The budget for 1925-26 shows an estimated deficit of $34,000,000, but this is expected to be remedied by increased taxation of beer and tobacco. Inter-State financial arrangements come in for criticism. Under the present system, 90% of the income and corporation taxes collected by the Reich are transferred to the German States. The Experts recommended a reduction of this percentage but nothing has been done concerning it. Lastly, he laments that, since stabilization, foreign trade has been heavily adverse.