The Washington herald., 1919-05-18
During the Next Ten Years Five Men Dele
gates From France, Italy and America
Will Be Virtually Sitting on the Lid of the
Entire Civilized World.

Saare Valley will Just about supply
the needs OF Alsace and Lorraine, with
perhaps two or three million tons TO
contribute to the French shortage
Naturally Germany should make up
this shortage, and it will be the bust
ness Of the reparations committee 70
see that Germany does make up this
shortage but only up TO a point
That point, Of course. is the point
where Justice to France works an In
Justice to England or Italy or Belgium
4 II il easily conceivable that IL France
takes all the coal Germany has in
excess OF her own frst needs. France
might injure one OF her aIIies And
then again what are Germany's first
or primal needs?
Shall Germany be allowed enough
coal TO grow and develop industriaIlyr
II so. how far shall her industrial de-
/, she shall invade the trade Of Eng
land?
Or II to lesser point. Just where
shall Germany's industrial develop
ment stop? These are questions for
| the reparations committee TO decide
as a legislature. Others Of a like ma
ture suggest themselves such as the
rights Of Germany to export in com
petition with the allies.
In fact this reparations committee
is legislative guardian Of Germany
in her interior affairs. in her foreign
commercial relations and in her in
dustrial development. The COMMITTEES
is the receiver OF a nation. Now a
nation does not long submit 70 foreign
| intervention when it believes that fn-
tervention is unjust. A protectorate
| as a dangerous thing to establish
over an unwilling people. There is
| real danger OF war in the world
every day that this protectorate rules
Germany. IL its rule is not abso-
lutely fair 20 Germany and also fair
TO the victors who have conquered
her. The position requires super
human wisdom Yet ii is a ueces-
sary establishment II is the only
contr1vance which will keen the fruits
| OF victory IN the hands Of those who
; won the decision
Now in addition 70 these relations
with Germany. the committee on
reparations will be in fact the COM
nlercial and financial dictators q the
1 civilized world.
| The committees rrst Job will lie
TO see that exchanges arc stable.
This means that the mark must be
Kept fairly close to par value with
the other currency of the world
For after all the value Of the Ger
man mark is only a symbol of Ger
many's ability To pay. an indication
OF the status of Germany's prtf-
perity; and upon Gcrmsny's pros
perity, in a large measure. will de-
pend the prosperity Of the world
I The German mark cannon Rs down
with Germany cwip- tGc slI.s BIZ
lions Of dollars. without = slump "a
/ the credit Of th.- ether uationy ~ thr
!, world who hold CeeIuar CecSritiss-
So as banker toe reps rhtions corr
mittee must sec hat It's acnlin5strs
tive and legislat o sC' vftieS 90 not
! impair the value ~ the money Of n"
nations over which the committee is
exercising guardianship.
Definite Announcement.
II NAV be announced definitely that
the committee will have the power 10
| take Germany's bonds from time -
time. These bonds will be taken not
for any one large final definite sum.
but will be taken from year TO year
as Germany seems able to issue these
bonds conservatively and 10 pay them.
These bonds will be held by the re-
parations committee in trust for the
allies for a further time until they are
clearly safe paper upon which 20 bank.
They will then be used as the basis
OF rcissuing certificates TO the various
nations practically UNDERWATER by
the reparations committee. And these
certificates. is Jed in proportion to the
claims OF each nation may be disposed
of by the nation receiving them as IL
sees fit.
For instance. il the United States
should receive these certificates from
the reparation committee. the Ameri-
can government could issue the Ger
tificates directly 10 the persons who
had certified claims against Germany
for losses. say on the LUsitsnia: or N.
American government could hold the
certificates as a reserve and issue
currency against the certificates. and
thus pay the claimants, or could ah-
sorb the certificates into the Amer
can fiscal system in any way which
seemed feasible when the certificates
came along.
But the reparations committee
would have to he the judges OF
when the certificates should he is
sued. in what amounts and against
what amounts of German bonds.
The committee therefore becomes
the greatest banking organization
! in the world. the arbitcr of credits
to be issued against perhaps 50.
perhaps 100. perhaps S2OO. .oO0.-
O0O. 600. whatever the cost of the
, war and the German ability TO pay
may finally be found TO be
: Court. administrator. legislator.
banker with an untold sum to find.
an untold power to yield. and un-
i dreamed of sphere to move in free
lly and without restriction!
No other such body ever was
= created before. 1t makes the mere
/ business OF being a king or q
benevolent despot dwinGie into in
/ significance.
IT is literally n place on the lid
: of the world And under the lid
, arc all the eggs of civilization in
) one basket.
The curious thing about this civil
? lization which we call modern is
| that We cannot conceive another in
its place. We who maintain this
, modern civilization feel that il is
= based upon the capitalist who owns
: the tools, the landlord who owns
, the land. the laborer who does the
; work. the dealer who sells the
goods and the man who buys.
: Capital. our land system, our labor
market and commerce itself for
, the civilized world are all in this
: rcparation basket. Take the lid on
5 the basket. break the eggs. let
: Germany run amuck and the world
, will suffer deep wrongs-alI the
: world. America with the rest