nstrates more
clearly the misunderstanding of the indemnity. The non-experts have
not learned financial technics, but common sense tells them that the
golden nimbus which has been trailed before their eyes is only a thick
cloud of smoke that is slowly dissipating.

I have already said that the real damages to repair do not exceed
40 milliards of gold marks and that all the other figures are pure
exaggerations.

If it be agreed that Germany accept 20 per cent. of the inter-allied
debt, the indemnity may be raised to 60 milliards of francs at par, to
be paid in gold marks.

But we must calculate for Germany's benefit all that she has already
given in immediate marketable wealth. Apart from her colonies, Germany
has given up all her mercantile marine fleet, her submarine cables,
much railway material and war material, government property in ceded
territory without any diminution of the amount of public debts, etc.
Without taking account, then, of the colonies and her magnificent
commercial organization abroad, Germany has parted with at least 20
milliards. If we were to calculate what Germany has ceded with the
same criteria with which the conquering countries have calculated
their losses, we should arrive at figures much surpassing these. We
may agree in taxing Germany with an indemnity equivalent in gold marks
to 60 milliards of francs at par--an indemnity to be paid in the
following manner:

(a) Twenty milliards of francs to be considered as already paid in
consideration of all that Germany has ceded in consequence of the
treaties.

(b) Twenty milliards from the indemnity which Germany must pay to her
conquerors, especially in coal and other materials, according to the
proportions already established.

(c) Twenty milliards--after the payment of the debts in the second
category to be taken over by Germany--as part of the reimbursement for
countries which have made credits to the belligerents of the Entente:
that is, the United States, Great Britain and France, in proportion to
the sums lent.

In what material can Germany pay 20 milliards in a few years?
Especially in coal and in material for repairing the devastated
territories of France. Germany must pledge herself for ten years to
consign to France a quantity of coal at least equal in bulk to the
difference between the annual production before the War in the mines
of the north and in the Pas de Calais and the production of the mines
in the same area during t