The Washington herald., 1920-12-31
DECLARES GERMAN
PREPARATION DELAY
HALTS COMMERCE
All Europe Awaiting De.
cision, Says New York
:. Authority.

world prosperity depends upon
the speedy determination by the al
lies, of the amount of German rep
arations and we cannot expect to
readjust international trade rela-
tions until this question is settled. /"
was the statement made yesterday
by James G. Mcdonald. of New
York City, chairman of the execu-
tive committee of the League of
Free Nations Association. an or
ganization formed after the sign
ing Of the a-mi-tire by university
professors and humanitarians.
That Europa rust be set TO work
II the trade of the world Ia - be
stabilized Is the conclusion reached
. by Mcdonald after al extensive
survev Of EuropAsn conditions. Nc
Donald has just returned from EG-
rope. fsving gone as far east as
Berls-: in his work of making OBJ
servations for the association.
Tho American people have no
idea Of the enmity which now ex-
lists. between France and England
over the amount of German indem-
mission Is attempting to set at
Brussels" said Mcdonald. "An Eu-
rope is eagerly awaiting the out
come of the deliberations which
will be resumed January 10. the
result of which will mean either
the establishment of a definite sum
to be demanded of Germany, or
complete failure. Failure will prob
ably result in French occupation
of the Ruhr Valley in an attempt
TO collect on her own account what
she deems due her"
England for Moderation.
Although France is still adaman-
tine in her demands for impossible
sums. asking as high as $4,000. .ooo,-
900, Mcdonald points out that Great
Britain, on the other hand, realizing
that the prosperity Of Europe rests
upon the prosperity of Germany, is
more moderate in her demands, ask
ing only SO, 900, 100000
The French are bitterly reproach-
fng England for setting trade possi-
oilities above the Importance of
French reconstruction, claiming
they have been deserted by their
former ally, according to Mcdonald.
TT must be remembered" said
Mcdonald, "that the French gov
ernment has led its people to ex-
pect SO much that at the present
time, even though leaders like
President Millerand and his minis
ter, Leyges, are willing to modera-
ate their demands in accordance
with the desires of the French peo-
pie. they cannot reduce the sums
that they are demanding Germany
shan pay.
Men like Poincare, the former
President. Tardieu and BRAND all
make ii difficult for Millerand to be
moderate" Mcdonald explained.
The extremists in France urged the
complete dismemberment of the
former German empire. But the
English can see in this only a dis
tinct disadvantage, for TO them a
dismembered Germany means the
loss Of trade.
z. 8. Action World Aid.
y The United States could relieve
the situation by demanding that
the commission set the amount of
the indemnity at once. without a
fixed indemnity Germany has no in
centive~ to work. The Germans feel
that should they attempt to expe-
dits the rehabilitation of their in
dusfries before the amount of the
indemnity has been set the COM
mission will increase the amount so
far as they receive evidence that
German resources warrant, McDon-
aid pointed out
,"At the present time" he said.
Germany is a bad risk: No one will
furnish her credit, because it is i'm
possible to determine Just what her
financial status is. The effect Is felt
in this country, for were the bank
ers of the world able to extend
credit to Germany thousands of
German cotton mills now idle would
buy American cotton. American
farmers are also anxious to sell
wheat to Germany" Mcdonald said.
The matter of fixing the amount
OF indemnity is entirely out OF the
hands of the league of nations. Nc
Donald explained, since that body
IS powerless to discuss problems
engendered by the treaty of YER
'aailles