Worth

The German Government gave notice, last week, of a bill to revalorize $17,500,000,000 of War and pre-War Government loans (Federal, state and municipal) at $875,000,000, or 5% of their original value. This was a reminder that Germany has not escaped the cost of the War; the Government is to pay 5%, the people 95%; for, to the latter, such partial revaluation is all but equivalent to repudiation.

In making this offer, the Government expressly stated that it recognized only its moral and not its legal responsibility. The bill provides that those investors who have held bonds since 1920 or before are to receive 5% interest on the new issue and the Government is to redeem annually $6,250,000 of the converted loan at par. Those subscribers who are practically destitute are to receive a "social rental" (apparently a small annual repayment of principal in addition to interest) of 2% of their holdings, in no case to exceed a total of $150 per annum, the annual sum of $10,000,000 to be earmarked for this purpose. All others holders--this part of the law being designed to avoid rewarding speculators who, since 1920, were active in buying the bonds at a fraction of their original value--are not to receive any interest and must wait the 'pleasure of the Government for the 5% redemption.

The bill was much criticized in the Opposition press as being an election expedient to gain votes for Dr. Jarres, the Nationalist candidate. The Nationalists (Monarchists) hailed the bill with enthusiasm, as they had for months been telling their supporters that the bonds would be partially redeemed.