The Washington herald., 1920-05-09
Her Attitude IN German
Reparahon Settlement
Check to Progress.
CONDITIONS SERIOUS
European Situation Hinges
On Permitting Germany
To Make New Start.
CWashinEton HeraId-PGbIie Ledger
Service, Special Cable Dispateh.)
By SIR GEORGE PAIsH,

London. May S.-The approaching
visit Of N. MilIerand to this country
10 discuss the financial situation is
awaited with considerable Interest.
especially as the attitude which the
French government Is likely TO
adopt Is believed to have been cor
rectly described by NJ Poincare in
the article which he contributed TO
recent issue OF the Matin- In
that article the former President OF
France expressed his opposition to
final settlement OF the sum which
Germany should be called upon 20
pay for reparation. .on the ground
that the present condition OF Ger
many does NOT provide a true indi-
cation OF her power TO make repara-
ton
Poincare suggested Germany
should pay in gold bonds the ac-
counts specified in the treaty and
that the question OF additional pay
ments should be left over until ex-
perience is gained Of her ability 20
make payment when her productive
power has fully recovered. While
English opinion is sympathetic TO
France in so far as French claims
are just and reasonable, neverthe-
less there is a very common feeling
that the French demands are not
practicable and that what is re-
quired by the situation Is an imme-
diate settlement on the basis OF a
sum which enlightened opinion in
all countries regards as practicable
and which the German people are
expected to do their best to nav.
II is held that the European sit
uation will become more and more
difficult until the sum for repara-
tions is fixed and Germany is able
TO obtain the credit she needs for
the purchase OF food and raw ma
terials so that her people may pro-
duce the things required to render
them self-suppOrtinE, as well as To
pay reasonable annual sums on ac-
count of reparation. The question
OF agreemeSt between the members
Of the Supreme Council and Ger
many is, il is held. absolutely do
pendent upon statesmen and people
realizing the real nature Of the eN-
listing economic and financial sltus-
tion and the course which events
are likely to take. When the peo-
pie and statesmen understand the
full import Of existing economic
events. then. but not tin then. will
an eQulLaDle ana workable EeLlAe-
ment be arranged.
The recent action Of bankers in
this country in the restriction of
accounts had become inflated has
for the moment checked the ad-
vance in prices and is causing q
certain amount Of goods 10 be Of
fered at more reasonable figures.
Moreover, the budget. with its
heavy burden Of taxation coupled
with the example Of American con-
sumers in restricting their pur-
chases OF excessively dear goods
has brought curtaiIment Of demand
for many commodities.
There is a good deal of discus
sion here as TO whether or not
prices have passed the zenith. Ger
tsinly public opinion is more Ia
vorable to economy in government
al expenditures than It has vet
been. 1t is held that the alternative
to an increase in taxation. more
particularly to an increase in the
excess profits duty. Is reduction ~
expenditure. il is, however. clear
that only pressure Of CircumStanc"
will bring about such a reduction
and cause taxation to be lishtcu"d-
Inc evidence OF private economy -
not very strong. The dissppolnt-
inEly small demand for new hous-
ing bonds in various localities IS
said TO be due to the underlying
desire for both national and mu-
niCipal economy.
u is becoming increasingly clear
that II new house are to he built
or new works to he done involving
expenditure Of fresh capital. IL must
be done by private enterprise. The
report that the total American
wheat crop for the current year is
likely to reach only about 700 00O.-
0NO bushels is causing much anxiety
in circles which understand what
such a small crop means in the OK
isting depleted state of world pro-
duction. European crops or the cur
rent year will, IL is hoped be better
than last year because of tho OPEN
ness Of the winter and an Increased
acreage, but the Improvement viii
stiII leave Europe with a deficient
food supply.