Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-10-10
PAVES WAY
FOR SAVING ITSELF
Whole Financial Scheme of Thines May
Be Revised to Aid Revival of
Economic Life.

ment. Some countries can do no more
than exchange the manufactured
product for raw materials used in the
making. they keeping a portion OF
the profit, as pay for labor. II this
scheme is worked out it may be the
salvation of eastern and southeastern
Europe. but until exchange is stab
ilized and there is a concrete work
ing basis with clearest of understand
ings. any credh scheme is certain to
break down or react in favor of the
few as against others.
Lnbor Has Had No Voice.
1t is a significant fact that in the
financial and economic conferences in
Brussels. European labor has not had
a voice. Whether or not this will be
resented is question, inasmuch az
labor on the continent has been in
sistent upon greater voice in the re-
construction processes. Labor, it Is
known. demands that governments
take charge and control of the distri-
button of raw materials. The finan-
cial conference in Brussels has gonc
upon the hypothesis that there should
be a normal working out of all re
Mobilization schemes. through eX-
change and capitalization of poorer
countries through credit systems
The active part of governments them
selves in handling raw products
through which nations are expected
Grafton. II one were socialist he
might dub the Brussels conferenc-
entirely "capitalistic." That in the
settlement of the problems of the day
the economists and financiers of thu
continent have gone about their task
ignoring the preachments and pana-
ceas offered by the socialists Is sig
nificant. 1t may stir up much clamor
against the league.
Credit Plan Opposed.
In the establishment of interna-
|tional credits it is proposed that all
extensions of credit shall have first
call over prior obligations. and this
scheme is meeting bitterest opposition
in Belgium and France, who see there
! in the RELOCATION Of reparations pay
lments. France, however. is beginning
to see that IL Germany continues to
pay her reparations through period
iof years, as is provided for under the
day changes in the worlds financial
and economic situation may lead to
constant difficulties and endless red
tape in payment of sums to be ex
acted. 1t is not in the Leaf surpris-
ling to see the Paris foreign office con-
lposal that the fixed sum plan of rep
larations be accepted by France. Pres
lident Wilson and Lloyd George in the
Paris conference strongly advocated
this system. but the French and Bel
gians so bitterly opposed it that other
| ly capftulated. Now that France and
Belgium undoubtedly see that Ger
many cannot pay without extensive
credits and the resuscitation OF her in
Idustries. and that this process is pred
Heated upon credits. which in turn
may take priority from time to time
over reparations. the spirit Of lenienc"
with which France greets the German
proposals is significant.
Atmosphere Would Clear.
But there is so much suspicion. well
justified, 1t is true, of German aims.
There is SO much fngraiRed hatred O
the Teuton, that it may be several
weeks, If not months, before French
opinion swings definitely in favor OF
the lump sum reparations idea.
Unquestionably with lump sum rep
larations, the atmosphere would clea =
lin the allied world as well as within
the central powers, for the latter def
linitely would know how much they
lwere to pay and could rearrange their
financial system and schemes accord
ingly and work to the future with a
degree OF surety that is never posi-
bio under present conditions where
Preparations grown with the hours b.
virtue Of the retention of expensivg
ma asptailed in their coliec'
| A movement has been started look
ing toward the resumption of direc'
economic and financial relations be
tween Germany and France, and II
this comes to pass much will have
been done to smooth away the difficul
ties that now prevent free intercours
and definite understanding between
the two nations. which in the f1na
analysis is doing much to proven
general concord and united endeavor
toward the one aim desired by all
the salvation of Europe