The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-19
Argument in the Keynes Book
Demand to Cut Indemnities

Demand to Cut Indemnities
IL will be recalled that precisely this pro-
posal underay all the argument in the vol
ume of John Maynard Keynes which was
denunciation of the actual treaty made with
Germany and a demand that this treaty
should be revised downward; that is, to the
advantage Of the Germans. The real sig
nificance of the proposal was yelled by the
description of the necessary process of WHIP
ing out the allied debt as one of mutual cam
collation.; France was to forgive Italy and
Belgium, Britain to forgive France. Italy,
Belgium and the smaller countries their
debts, while at the same time the United
States was to forgive every one all the debts
cwed to her.
would come out ahead by some four or five
billions, Italy by an equal sum, since the bor
rowings of these countries were so much In
excess of their loans. AS to Britain, she
had loaned eight billions and only borrowed
four from us, but Keynes conceded that the
present value of the eight billions did not
exceed four and the cancellation Of the debt
owed to us would leave Britain even.
When the whole transaction was COM
pleted we should have sacrificed our loans,
amounting 10 ten billions. Then the claims
Of the victorious nations against Germany
were to be scaled down by ten billions, giving
Germany a chance to get on her feet by tho
transfer from German to American shoulders
of this burden of debt
Obviously this proposal found no favor in
the United States, which read the Keynes
book with delight so far as its picturesque
and destructive criticism was concerned. but
skipped the pages which discussed remedies
for the evils which Keynes saw in the YER
sailles pact But what was not made clear to
American readers was the fact that Keynes
did not in reality. invent his solution for
the trouble. but only took up and elaborated
n proposal which had been before the Paris
conference and had been accepted in prin-
ciple by President Wilson and by his finan-
cial advisers.
Close Affinity in Ideas
When Result Is Considered
Now II is Obvious that between the Italian
proposal az Geneva to share the economic
resources of the States belonging to the
League OF Nations and the Paris proposal
repeated by Keynes. TO shift the burden or a
portion Of the burden Of the war from Euro
ptan TO American backs, there is very close
affinity. We are. in fact, here touching upon
ono OF the most significant circumstances of
the whole Paris conference, although one
which was for n variety OF reasons very in
completely presented TO the American public.
We are also touching upon the detail which
gave Mr.. Wilson, throughout the Paris con-
Ieience MS most potent weapon for enforcing
his views and procuring or compelling Euro
pean agreement with his decisions.
This would not be important now were II
not for the ideas which were thus set aioat
in Europe. The conceptions as 10 America
view of her mission In the world. the pos
sibilities for the world of American partioipa-
tion in the league and in world reconstruc-
ton remain and are disclosed again and
again in just such circumstances as the
Tittoni proposal at Geneva and In the
Keynes repetition Of the debt cancellation
scheme.
Thus it is not 100 much to say that Europe
still looks forward TO American entrance into
the League Of Nations in some fashion az an
event which will In a great measure revivify
the Paris hopes OF American generosity
Now the best possible indication Of what
Europe expected of us, and still In some
measure expects Of US, is contained IN the
separate proposals which were advanced by
various nations during the Paris conference
and are the natural forerunners OF the Tit
toni proposal al Geneva
Thus one Of the financial plans most ur-
gently champoned by the French contem-