South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-02-08
TO j. s. ARE
BURDENING ALLIES
British Expert Says Economic
Disaster is Faced by En-
ropean Nations.

LONDON. Jan. THE financial
structure Of the whole world. we are
assured. is 10 be forthwith consid-
cred at Paris" says Sir Leo Chiozz0
Money. financial expert and former
under-secretary in the British cab
met What Is there for cousidera-
tion7 When America came into the
war Europe had already reduced It.
self 20 financial impotence Ameri-
lean Intervention came not a moment
too soon: II came almost TOO late.
The United Kingdom had mortgaged
ITS resources and staked its most
precious asset, its mercantile marine,
n Feep its allies IN the war. After
TIE American Intervention we Dor
rowcd from America 20 lend to our
allies, 60 that our debt 20 America is
really the indirect debt OF our allies
20 America.
The allies now find themselves in
p desperate economic plight with
their transport systems out OF gear
their industries disorganized. and
their territories SCARED BY the in
vader- Germany has been placed IL
economic bondage. and what were
her main assets are broken and dis
persed. The distributed German as
sets are placed in the hands OF new
and old states who, in the nature Of
the case. cannot yet make good use
OF them.
Revolution Possible.
such is the Europe which. day
by day. is increasing its indebtedness
to America What Paris must con
slider is this. So grave are the eco
monte difficulties that IL the various
governments Of Europe, good, bad
ond Indifferent. old and new. stable
ana unstable. find themselves made
the Instruments Of unbearable taxa
lion and the responsible administra-
tors Of cruel. economic hardships. il
viii be difficult TO save Europe as a
81 hole from revolution and castas-
trOphic disaster
Although our own position is so
favorable as compared with that of
any European country. we are suf-
fering from many shortages which
VIII rot. and cannCt be repaired un-
I'll Europe is at work again. and
" hich will be gravely accentuated if
the European economy suffers fur
her deterioration.
Production Worlds Wage.
The production Of the world is
he worlds wage. The European
contribution 20 the worlds wage has
been enormously reduced. Europe
Row feeds at the American table
This process, representing the piling
cf debt upon debt. cripples those
who are compelled to resort to it.
"One nation holds the key to the
institution, and has the power 20 re-
lress the economic disabilities of
Europe. America came late into the
war, and fortunately saw its termi-
nation before she had been called
upon TO make any considerable sac
rifce This is not uttered 10y way Of
Ieproach. The spending Of cur sub
stance TO sustain our allies. like the
soccCds of the sale of our dollar Sc
rurities. went to America 10 enrich
her before she came into the war
and the economic upshot OF the
whole matter IS that today America
is i'm the position of a rich nation
which has invested $4,000. 600. 900
in Europe-the impoverished and
bleeding Europe which, so far from
being able TO pay interest on the
S10,O 100000. 200. is as the above
cures show. not even able 10 pay
lor it's current subsistence.
Urges Cancellation.
1T was a great American who first
suggested that. as it had not been
The privilege OF America to sacrifice
much i'm human life. the least she
could do was 10 cancel the European
justice.
THE cancellation OF Europe's debt
10 America would enable us i'm our
turn 10 cancel the debts OF the allies
10 ourselves This is the first neces-
sary step IN the rehabilitation Of.
Europe That step taken, il would
then he reasonable TO talk Of a big
peace loan TO finance Europe in her
present difficulties and 10 enable her
TO resume her old part as the worlds
greatest producer OF wealth. Nor is
this merely a European interest
1T is being borne I'm upon thought
ful Americans that the trade of the
United states cannot indefinitely
consist OF the expectation Of loaned
products. If world commerce in its
real sense Is to be resumed. there
must be a reasonable basis of eX-
change. and that cannot again exist
until Europe is economically conva-
lescent"