The “economic dictates” were no less disastrous than the territorial ones of 1921. At the end of January a conference at Paris formulated a plan by which Germany was to pay 226 billion gold marks in forty-two fixed annuities from May 1, 1921, to May 1, 1963, and in addition forty-two varying annuities each equal to 12 per cent of German exports. This demand was communicated to Germany, with the threat that non-acceptance would involve the occupation of the Ruhr. The foreign minister, Herr Simons, told the Reichstag that these demands were impossible of fulfilment, infringed the Treaty of Versailles, foreshadowed the dismemberment of Germany, and meant the economic enslavement of the German people. Germany refused to entertain them. Seeing that economists the world over, in France as well as in other countries, regarded the proposal as absurd, the German refusal was not answered by military steps, but a new conference was called in London, at which the Germans were to be allowed to submit counter-proposals. These were unsatisfactory, and the occupation of Duisburg, Ruhrort, and Düsseldorf by French, British, and Belgian troops followed. Germany protested to the League of Nations, but without effect. Appeals were made for intervention at Washington and the Vatican, but they were received coldly. The American Government pointed out that Germany should “at once make directly to the Allied Governments clear, definite, and adequate proposals which would in all respects meet its just obligations.” There is no doubt that Germany at this juncture ought to have recognized the inevitability of making supreme sacrifices in order to live up to her obligations. Whether the effort to do this was possible under existing conditions was another matter. The cabinet evidently thought that there was nothing to be done, and presented to President Ebert its resignation. In the meantime the Reparations Commission had fixed the indemnity at 132 billion gold marks, this sum coming due, as provided for in the treaty, on May 1, 1921; and a further sum of twelve billion gold marks was demanded for the reconstruction of demolished industrial works. As a guarantee, the German Government was to send immediately into occupied territory the gold reserve of the Reichsbank and other banking-houses. The Entente Powers issued an ultimatum giving Germany until May 12, under threat of occupation of the Ruhr Valley, to accept unreservedly all the demands of the Reparations Commission and to obey its orders without delay. Allied armies were massed on the Rhine with headquarters at Düsseldorf. After many efforts a new cabinet was formed on May 10 under Herr Wirth, a man of great ability, who gathered good men around him. It was just in time to accept the ultimatum and prevent the further invasion of Germany.