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 to make an effort to make the payment demanded, these fears became one of the burning topics of the day.

It will be remembered that by the terms of the Allied ultimatum Germany had to acknowledge a liability to pay £6,600,000,000, with another possible £150,000,000 to cover unadjusted claims and accounts. Even in the ultimatum, however, the chance that Germany would be able to pay any such sum was by no means taken for granted. She was ordered to create and deliver partly by July 1 and partly by November 1, "A" and "B" bonds for £2,500,000,000, and she was to pay £100,000,000 a year and a sum equal to 26 per cent. of her exports. It was estimated that this sum would produce another £50,000,000, and so she would be paying £150,000,000 a year in all, which would provide 5 per cent. interest and I per cent. sinking fund for the extinction of the debt, on the £2,500,000,000 imposed on her. The balance of £4,100,000,000 odd was to be represented by "C" bonds to be issued and handed to the Reparations Commission, but they were only to be handed over by the Commission to the countries receiving the indemnity, as and when it was satisfied that Germany was able to provide for interest and sinking fund.