The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-13
The Indemnity Question is Not
Dead but Sleeps.

1
Old World diplomacy Immersed for
the moment in tranquility is indulg-
ing in thoughtful Contemplation of
Europe's irritating economic and po-
litical problems. which are as far as
ever from satisfactory settlement. Be-
meath the surface calm SINNERS the
German indemnity question and sends
up an occasional bubble as reminder
that 1t must yet be boiled down to n
lump sum, picked and put on the
pantry shelf before Europe can settle
into solid peace.
AS between LLOYD GEORGE of Eng
land and Premier LEyGUEs of France
there is no sign of real agreement
on the amount of the indemnity. II
now seems unlikely to be fixed def
nitely at the Geneva meeting begin
ming Monday.
England has been kite flying to find
out how far France will modify her
/ indemnity terms. The British an
nounced their decision to forego the
right Of confiscating private German
property France remained silent on
that proposition. But after some spar
ring Premier LEYGUEs sent few
crlories of nOurishment across the
Channel by agreeing to the English
proposal to meet the Germans ut Brus-
sells and engage in frank discussion
of indemnity possibilities. Other an
nouncements are made. but they carry
with them no conviction as to a con.
crete agreement.
While this has been in progress the
German Minister of Finance has con-
trihuted his bit by stating that the
budget deficit this year would be TO-
600, 100000 marks. This herculean
burden piled on top of previous def
cits must he lifted one way or another
before indemnities can be paid and
before the 10000, 100000 marks In
gold" bonds just delivered to the
Preparations Commission by Germany
will he worth pfennlg. The deficit
might be erased by a capital levy I'M
disguised or whitewashed as q forced
loan. But some way must he found
| 70 collect an average of 1.029 marks
from every man. woman and child in
Germany TO pay Off the deficit without
n rebellion against still larger con-
tribution TO the indemnity.
These bewildering problems of pub
Tic finance have not robbed the lead.
ers In private German business of all
their confidence. The Deutsche Bank
has just increased its capital from
275.000.000 TO 400.OO0.O00 marks 20
absorb the Hanover Bank. the Privat.
bank Of Gotha. the Privatbank of
Brunswick and the verelnsbank of
Stuttgart. Behind the merger Is the
incentive which moved English banks
10 combine In preparation for COM
petition with the new creditor nations
in the international field. German
iron interests have formed n big COM
binntion headed by the Gutethoff.
nungshuete. leading Westphalian
concern. which will add 100,000.0W
marks TO Its share capital to complete
the deal.
This obvious contrast between the
hopelessness Of German public finance
and the confidence Of private German
business Is the key TO the indemnity
situation. Public moneys, are ex-
hausted and the future Is shrouded
In deficits Private business could not
surmount these obstacles, so Il bur-
rowed underneath and Is struggling to
regain daylight. LLOYD GEORGE sees
the wisdom Of encouraging private
business In Germany and eventually
getting from Il the indemnity through
taxation. lie would tell German bust
ness Just what it had TO pay and let
II get to work to pay.
British and French statesmen both
promised their home constituents after
the armiStice that they woul1 extract
y large cash indemnity with an
tlonal indefinite payments In the 4