The Sun and the New York herald., 1920-02-18
AMERICA HOLDS
'EUROPE'SFATE
IN HER HANDS
Tense Feeling Abroad Re-
garding U. s. Attitude on
Economic Questions.
YIELDS FINANCIAL KNIFE
One-eighth Central EurOpe's
Population Unrelieved, Must
Emigrate or Die.

EmigPate or Die.
Special cable Despatch TO THE srS AND New
ToRK HERALD. Copyright. 1870 By The SuN
AND New YoEK HBRALD.
LONDON. Feb. 17.--At no time per-
haps since President Wilson was
drawn into European affairs by the
German submarine warfare has there
been so tense a situation as regards
the attitude of America toward Eu-
rope as there is at present. The atti-
tude Of the United States at that time
was important from the political and
military standpoint; il is even more
important to-day from the financial
and economic viewpoint.
An Italian newspaper yesterday re-
marked that so far as the economic
future OF Europe was concerned
America holds the knife by the ham
die" Even the sanest and soUndesi
bankers Of England. who through
years OF experience and centuries Of
tradition have become accustomed TO
immense financial problems are won
dering how America is going to WELD
that knife" symbol Of her financial
power.
From the press despatches from
America that are printed here and
the recurrent official statements, sup
plemented by private advices. the con-
clusion the leading bankers have
drawn is that Al present it is the dt-
termination OF the United States 20
maintain as separate an attitude as
possible toward Europe, allowing the
nations on this side Of the Atlantic to
work out their own salvation.
Finances Greater Problem.
This does not refer to the political
salvation OF Europe Regardless Of all
the noise made about trying the former
Kaiser and settling the destiny Of Fiume
the biggest nut that Europe has to
crackhs the financial one. She undoubt-
edly is willing and able to solve her own
political puzzles. but financially Europe's
position has become a world problem
which, II the opinions Of the greatest
financial and economic authorities count
for anything. no nation in the world can
afford to ignore. The leaders OF the
Governments here and in France realize
this and their daily statements about
political phases Of the peace treaty and
probable notifications TO be made are
simply side play leading to the main
feature, which will be the revision OF
the economic sections Of the treaty.
European economics have become as
involved as a Chinese puzzle from the
politicians viewpoint, but II IL a simple
matter OF balancing purchases and sales
when the realities are faced and is
therefore a matter that the bankers will
have to settle. That means the problem
OF exchange rates the international
financial congress to stabilize them and
the tremendous power that America can
WELD II she wishes,
Premier Lloyd George was returned to
his post as Prime Minister on a platform
pledging that every ounce OF commercial
blood would be squeezed out OF Ger
many to help pay the cost OF the war,
and the power OF the present French
Government also is resting upon that
foundation. The revision OF the
economic features Of the treaty. there
fore. is a problem calling for the utmost
skill. I
100000 Must EmiKrate of Die.
II has been demonstrated. so far as
cold figures can demonstrate anything,
that by the strict enforcement OF the
peace treaty at least one-eighth Of the
population of central Europe. or about
10000. 900 persons, will be compelled to
emigrate or die; Germany would
retrograde into an almost wholly agri-
cultural nation: the Allies OF course
would not get any indemnity. but she
would be rid forever of the German mill
tary menace ind England would be re-
Iieved Of German commercial competi-
ton. II can be stated without any
reservation that England no longer fears
German competition. at least for some
years to come. neither is there any
great ciamor here for an indemnity to
England from Germany
Many influential persons believe that
England probably will waive her claims |
for an indemnity in favor of France !
and Belgium. Alec It can be stated that ,
English bankers are much dispieased by !
frances negligent taxation policy. be-
lieving that France has been pressing |
for a strict enforcement of the treaty !
not because Of military fears but to ,
avoid a revision which would scale down /
the indemnlties and thus compel her
TO inauguiate sensible taxation policy. !
An Ensllsh banker. who returned
from France yesterday, said that the |
leaders OF the French financial world !
realize that there is no hope Of collect !
ing the full cost of The war from Ger |
many. hut through the misguided policy |
that unfortunately has gone too far in |
France the public will not countenance |
heavy taxation because IL still believes !
that German indemnities are assured. |
French financiers are in q dilemma. since |
the imposition Of taxes to make the |
cOHtinHed on TtiIrd Page.