In Effect

The States of Europe descended from the mountains of animosity from which they have long been accustomed to glare at one another, went down the rugged mountain paths of doubt, crossed the bog of misgivings and set foot on the great, wide road that leads to a true economic resettlement of the War-torn Continent.

Germany. The Monarchists in the Reichstag followed a policy of obstruction to the passage of the legislation necessary to the operation of the Experts' Plan and involving its official approval by Germany. Except for the extreme members of the party, it was clear that many Monarchy men were only holding out for better terms, such as a definite determination of Germany's capacity to pay the total of reparations, earlier evacuation of the Ruhr, etc. Also, it seemed not unlikely that much of their opposition was due to the promptings of the powerful industrialists.

After several days of tangled and futile discussions, the Reichstag met to take a final vote. The galleries of the chamber were crowded to their maximum capacity with diplomats, distinguished visitors and breathless journalists. On the floor of the chamber, 441 Reichstag members assembled. A two-thirds majority, or 294 votes, was needed to enact certain parts of the Experts' Plan legislation--the mortgaging of the Reich railways to the Allies, for example. Failure to obtain the required majority would have meant dissolution of the Reichstag and a general election.

As minute after minute joined the legions of the past, excitement grew higher and higher. At last the time came for announcing the result of the ballot. Baron Wallraf, President of the Reichstag, rose from his seat. There was dead silence, presaging a mighty storm. Would it be a storm of applause or a storm of indignation? Said the President:

"The number of members voting was 441. The votes in favor of the Railroad Bill number three hundred ..."

Torrential cheers cut his statement short. It was clear to the heaviest and dullest mind that 300 votes were enough. "Accepted!" roared the supporting members. "Accepted!" roared back the galleries. "Accepted!" cried the Ludendorffists (extreme Monarchists) with dismay. "Accepted!" roared the Communists in anger. The noise of mad cheering grew wilder and wilder. The Communists fairly danced and shrieked with rage. The Ludendorffists turned about and fixed the Diplomatic Gallery with a cold, calculating glare of insolence, shook their fists at the assembled diplomats. But nothing served to alter the cheerful mien of M. de Margerie, French Ambassador to .Germany. Pandemonium fit for a madhouse continued. In vain did the President rap his desk and tinkle his bell. Some minutes later he succeeded in reducing the noise to an excited drone and announced that the finals-vote on the Railroad Bill was 314 to 127. The Experts' Plan was virtually in effect!

Analysis of the voting showed that the 127 oppositional votes; came almost exclusively from the Communists and Ludendorffists. Among the 42 Monarchists who supported the bill were Grand Admiral Alfred von Tirpitz and Prince Bismarck, grandson of the Iron Chancellor.

London. All the diplomatic representatives of the Powers who had affixed their initials to the London Agreement assembled, 20 minutes before the luncheon hour, at the British Foreign Office in Whitehall. Large, curious crowds watched the entrance and the exit of the Ambassadors and Ministers whose Governments had approved the Agreement and, ipso facto, the Experts' Plan.

The ceremony of signing the documents of the Agreement was simple. No speeches were made. Six Eyre Crowe, Permanent Under Secretary of State for Foreign Affairs, presided and affixed his signature for Great Britain. The order of signing was alphabetical: Belgium, France, Germany, Great Britain (here the five British Dominions signed: Australia, Canada, Irish Free State, New Zealand, Union of South Africa; also the Indian Empire), Italy, Japan, Serb-Croat-Slovene State (Yugo-Slavia). It was announced that the Experts' Plan was in effect as from Sept. 1, 1924.

Appointments. Several appointments of interest were made. Owen D. Young, colleague of Gen. Charles A. Dawes on the First Committee of Experts, was nominated ad interim Agent General of Reparations. Explaining his inability to continue in that office for more than three months, he said: "Only by personal sacrifice can I accept the job, but my interest in the plan is so great and my belief in it so deep that I am willing to do anything I can to get it well started."

S. Gilbert Parker, Jr., ex-Assistant Secretary of the U. S. Treasury, 32-year-old genius hailing from Manhattan, was considered as a possible successor to Mr. Young.

Leon Frazier, noted French lawyer, for some time legal adviser to the Reparations Commission, was appointed legal adviser to Mr. Young.

Georges Leverve, eminent French engineer, was made Commissioner of Railways. His job will be to lead the board that is to rule the mortgaged German railways.

Ex-Premier Leon Delacroix of Belgium, a member of the Reparations Commission, became trustee of the railway securities furnished by Germany.

Signor Nogara, famed Italian engineer, was given the post of trustee of 5,000,000,000 marks worth of German industrial securities.

Hope was "entertained" that Sir Robert Kendersley, Director of the Bank of England and member of the First Committee of Experts, would accept the post of Commissioner General of the new German Gold Bank.

Genesis. The growth of the settlement of the vexatious Reparations problems can be traced thus:

In December, 1922, at New Haven, Conn., U. S. Secretary of State Charles E. Hughes declared:

"Why should the nations concerned with reparations not invite men of the highest authority in finance in their respective countries, men of such prestige, experience and honor that their agreement upon the amount to be paid and upon a financial plan for working out the payments would be accepted throughout the world as the most authoritative expression obtainable? Governments need not bind themselves in advance to accept the recommendations. ... I have no doubt that distinguished Americans would be willing to serve on such a commission."

His words were unheeded. Exasperated France and exasperated Belgium marched into the Ruhr on Jan. 11, 1923, in the hope of forcing reparations out of an evasive Germany. Britain protested, Germany used passive resistance; later, made many offers of settlement that were unacceptable to France.

In November, 1923, Lord Curzon, Secretary of State for Foreign Affairs, wrote to Mr. Hughes, asked him if his New Haven speech still held good (TIME, Nov. 5, NATIONAL AFFAIRS and FOREIGN NEWS). Mr. Hughes made an affirmative answer. Lord Curzon then invited the Allied Powers to issue a common invitation to the U. S. to participate in a reparations conference. All the Allies agreed, but Premier Poincare of France limited the scope of the proposed conference. The plan "fell through," although a door was left open for future discussion (TIME, Nov. 19, 26, REPARATIONS). Premier Poincare later suggested the formation of two committees of experts to enquire into and make suggestions upon the Reparations mess (TiME, Dec. 10, REPARATIONS). The Reparations Commission sent out invitations which were accepted by all the Powers (TIME, Dec. 24, 31, REPARATIONS). The personnel of the two committees arrived in Paris and started their work (TIME, Jan. 21, 28, REPARATIONS). In April they presented their report (TIME, Apr. 21, REPARATIONS). The reports--the most important was the so-called Experts' Plan--were accepted in principle by the Powers concerned (TIME, Apr. 28, et seq., REPARATIONS). In June, Premiers MacDonald and . Herriot calle'd the Premiers' Conference to consider and settle the means of putting the Plan into operation (TIME, June 30, et seq., INTERNATIONAL) .