The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-02
GERMANS CAN'T PAY
ALL, SAYS BARUCH
r. 8. Will Not Take Position
of Damage Creditor, He
Tells Senate.
NAY EASE UP ON TERMS
American Delegations Dom
mating Position at Peace
Table Shown.
srecial p.spatcA % Tnn svN.

Special Despatch 10 The Sun.
WASHINGTON, Aug. 1.-The assess
usnt Of damages Of war against Ger
many amounting under the treaty stipu-
n,,ons to $4,000. ooo.o 900 win not be ex-
nec,ed to be paid in full, Bernard M.
paruch to-day told the Senate Foreign
Relations Committee at its rpen session.
The announcement was received with
great surprise by the Senators. but the
exclamation Of the situation quickly fol-
lowed.
Pressed for information on the point.
Mr.. Baruch explained Germany was not
expected to pay the whole amount by
reason OF the fact that the United States,
although a participant In the framing of
the treaty of peace with it's obligation
on Germany to settle the war bill, was
MOI at the same time intending to occupy
the position OF damage creditor.
'Tf we do not take our share OF this
whe bsnefts?' demanded Senator Knox
an Pennsylvania. "win II result In an
sa,nr I'D on Germany in that measure
mr. will some other nation get the benefit
OF our munifcenceT'
Mr. Baruch replied that It would prob
ably result in an easing up on Germany.
I'VE do not expect her to pay the full
AMOUNT" said he. Then Senator Knox
pursued the point by asking IL there had
been a disposition manifested at the
peace table to make Germany pay more
than she was able.
Poor Business Policy.
Undoubtedly there was" replied the
witness, ''and that was because Germany
owes SO much more than she can pos
sibly pay"
Senator Knox then asked tho financier
II he did not think II was poor business
policy to press a debtor to pay more
than he Is able.
ct is" replied MT Baruch, "and fur
tbermore think you will find that II
was the unanimous opinion OF the Amer
loan delegation from President Wilson
down that Germany should not be forced
to pay more than she was able"
This statement brought the question
from Senator johnson (Cal): rs. Ger
many then incapable Of carrying out the
treaty?"
mot that" replied Mr.. Baruch
promptly: ''as a matter Of actual fact
the reparations commission has the power
and eventually will lfix the amount Ger
extreme care was taken in drafting thes,
sections SO as to make them workable
and believe they win work."
You mean they viii work II the bill
against Germany is scaled DOWN." Sem
ator Johnson interposed. "Or in other
words. you rely on the good sense of the
reparations commission to make these
sections work."
Mr.. Baruch told the committee, that
from the first to the last the American
commission had insisted at the Peace
Conference on establishing definite
amount that Germany should pay. Ow-
ing to the inability of the largest cred
itor nations. France and Belgium. quickly
to determine how large their bill would
be. II had not been possible. he said,
for these nations to agree on a fixed
claim.
The recent suggestion of the President
conveyed to IL. Senate that he be per-
mitted to appoint an American member
Of the reparatiors commission In advance
Of treaty ratification was then taken
up by Senator johnson. who wanted TO
know what purpose there could be in
placing an American on that commits
sion when the United States has no in
tention Of participating In the splitting
Of the Teutonic melon. To this Mr.. Ba-
ruch replied that 1t was a matter of self
interest to the United States. He said
that on the spirit which prevails in car
rying out the general scheme of repara
tons and the wisdom which the COM
mission shall exercise depends the sta
hility Of The whole financial world.
United States Part I'm Peace.
This statement awakened the commit
tee TO a spirited discussion Of the whole
part played by the American delegation
at Paris, Mr.. Baruch insisting that he
had first hand information that in most
decisions on the fundamentals of the
pace pact the American delegation had
played predominating part. He refused
70 admit, although pressed by Senator
Johnson. that the economic sections OF
The treaty had been inserted almost ex-
actly as written by the British delega-
ton.
The Interpolation Of a suggestion by
ssnstor Fall IN. NJ that the United
Gstes was getting nothing out of the
operations settlement brought a re-
loinder from Mr.. Baruch that the Uni.ed
states was getting a great deal.
We are putting on their feet 100, OO0,-
wv Of people with whom we have had
business relations" he said. I'VE are
ewing them a chance, helping them to
get started, and thereby helping our
selves"
The 1aO. 900. 900, he said, included the
people OF Germany. Austria, Bulgaria
and Turkey.