Every evening, Wilmington daily commercial., 1920-05-24

New York, May A.--RsaAing tho cable
dispatches from Hyth, il bscom e. mani
fest that tho British and French confer
oes are engaged IN sending up another flock
Of triAl balloons. like those flown 70 often
during he peace conference at Paris.
Always the actual situation remains tho
same. The whole purpose Of ths European
nation. on the financial side OF tho peace
settlement u to find some way OF bringing
the credit and tho capital uf tho United
States into the operation Of restoring con-
ditione.
So far there have besn two well defined
proposals. for the financial adjustments.
The better known suggestion, 80 Tar az the
United States il concerned, is that advo-
Gated by Keynes and the so-cnlled
liberals" Of Great Britain, Who proposed
that the United States should cancel the
debts owed it by the nations with which
1t was associated in the war with Germany
Worked out in detail Keynes PROPOSE
ton was this: The restoration OF Ger
many, on the economic side, is essential
TO health Of the world. This restoration
will be impossible if the conquerors de-
mand huge indemnities. But given Ger
man destruction and the debts incurred
by the European nations IN defeating
Germany, huge indemnitses ore inevitable,
unless some way can be found to lessen
the burdens Of the French, IN particular.
Moreover, the fact that the European
nations owe each other large sums, prom
ises to create grave animosities IN the future
But every possible condition would be met
if the United States would make big
sacrifice.
This sacrifice was to be the renuncia
ton of the 10000. 900, 900 borrowed
from us during the war by Britain, France,
Italy, Belgium and the smaller nations
which fought Germany. Following SUIT
Britain and France were to cancel the
debt owed TO them, but succeeded by
their Indebtedness to the United States.
When the whole transaction WAS accom-
plished Britain would come out even,
France would gain upwards OF "a, 00O,-
000, 900, Italy almost as much, Belgium
and the smaller States the balance up
to the $4,000, ,o00,o 900.
Spared the necessity of meeting her
obligations to the United States and to
Great Britain, France, the principal
creditor of Germany, could then consent
to the reduction of the German indemnity
to figure which would be within the
easy capacity of the Germans to pay,
something like $4,000 900, ,O0Oi Keynes
computation Thus the British Lib
erals proposed TO shift from German TO
American shoulders very considerable
part of the costs of the war. II AIperica
consented, then the necessity to watch
Germany, TO enforce the treaty terms,
would be greatly lessened, the whole
problem of European peace would be
simpl6ed.
Now the French proposition was
slightly different form, but carried with
it the same implication. At first the
French proposed general pooling of
debts and assets for the whole alliance
against Germany. Out of this would
emerge a division OF the debts which would
greatly increase the American response
bility and reduce that Of the French and
the Italians. But at Paris, American
representatives promptly rejected this
idea
After many mutations the same idea
now reappears In the Hythe conference.
The size oi the German indemnity Is
TO be fixed at upwards of $50, 600, ,oO0,oOO.
But Germany cannot now or for consider
able time pay anything. Therefore she
Is 10 be required to issue bonds covering
her debt. These bonds will be distribut-
ed among her creditors, So per cent going
to the French and % to the British, Bel
GUM receiving a somewhat more modest
share.
The next step is logical. France and
Belgium owe the United States and
Britain much money. Britain owed the
United States upwards of $4,000, ,000, 600.
Instead Of endeavoring to pay these
debts in money, Britain, France and
Belgium would turn over to the United
States German bonds to the amount
represented by their debt TO us. In addi-
tion France would transfer to Britain
bonds equal in face value TO her debt TO
the British.
When the whole transaction was COM
p.eted the United States would hold up
wards of sl0,OO0,0O0 OF German