GERMANS SAY THEY CANNOT MAKE REPARATION PAYMENTS
Berlin (JFK+50) It was announced on December 15, 1921 that the government of Germany "has informed the committee of guarantees that it is impossible for Germany to pay the sum due in reparation* January 15," and, therefore "asks a moratorium**."
The Evening Star reports Germany's reparation payments amount to 500 million gold marks due January 15, 1922 and another 500 million due February 15, 1922.
If a moratorium is not declared, German government officials say they "will be compelled to have recourse to a credit operation to procure the necessary funds by means of loans."
*Reparations were levied on the Central Powers at the end of WWI to compensate the Allied nations for part of their war costs. Each of the defeated nations were required to make reparation payments.
**Moratorium is a legal authorization for debtors to postpone loan payments to creditors.
SOURCE
"Germany Cannot Pay Reparations; Asks Moratorium," The Evening Star, December 15, 1921, Chronicling America, Library of Congress, www.loc.gov/
