he Reparation Chapter. There is
also an obscure provision by which interest may be charged "on sums
arising out of _material damage_ as from November 11, 1918, up to May 1,
1921." This seems to differentiate damage to property from damage to the
person in favor of the former. It does not affect Pensions and
Allowances, the cost of which is capitalized as at the date of the
coming into force of the Treaty.

[115] On the assumption which no one supports and even the most
optimistic fear to be unplausible, that Germany can pay the full charge
for interest and sinking fund _from the outset_, the annual payment
would amount to $2,400,000,000.

[116] Under Para. 13 of Annex II. unanimity is required (i.)
for any postponement beyond 1930 of installments due between 1921 and
1926, and (ii.) for any postponement for more than three years of
instalments due after 1926. Further, under Art. 234, the Commission may
not cancel any part of the indebtedness without the specific authority
of _all_ the Governments represented on the Commission.

[117] On July 23, 1914, the amount was $339,000,000.

[118] Owing to the very high premium which exists on German
silver coin, as the combined result of the depreciation of the mark and
the appreciation of silver, it is highly improbable that it will be
possible to extract such coin out of the pockets of the people. But it
may gradually leak over the frontier by the agency of private
speculators, and thus indirectly benefit the German exchange position as
a whole.

[119] The Allies made the supply of foodstuffs to Germany
during the Armistice, mentioned above, conditional on the provisional
transfer to them of the greater part of the Mercantile Marine, to be
operated by them for the purpose of shipping foodstuffs to Europe
generally, and to Germany in particular. The reluctance of the Germans
to agree to this was productive of long and dangerous delays in the
supply of food, but the abortive Conferences of Treves and Spa (January
16, February 14-16, and March 4-5, 1919) were at last followed by the
Agreement of Brussels (March 14, 1919). The unwillingness of the Germans
to conclude was mainly due to the lack of any absolute guarantee on the
part of the Allies that, if they surrendered the ships, they would get
the food. But assuming reasonable good faith on the part of the latter
(their behavior in respect of certain other clauses of the Armistice,
however, had not been impeccable and gave