Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-05-17
ALLIES REACHING
| NEW AGREEMENT
AS TO GERMANY
United States on Outside.
! Review of International
Situation.
BY DAVID LAWRENCE.

SjludllUtt.
BY DAVID LAWRENCE.
Europe is getting down L" brass
tacks-or. rather. economic sense IS
overcoming the sentimentalism winch
has kept the allied word from recoE :
nizing that until the amount ~ tie
Germany indemnity was fixed and
ways were discovered OF assisting
Germany to pay the same recon
struction would be held back .'den-
nitely.
That is the Interpretation which
our officials put upon the latest con-
ferences between the allied nreFlers
prior to the conference with the Ger.
mans at Spa. Hut it must be SAID
at the outset that whatever views
are expressed the TreasG"F l'e-
partment where TIE writer made seN-
eral inquiries today concerning the
momentous decisions being made IN
the European conferences, ar" bassd
entirely upon reading of the morn
ing newspapers. Significantly anu
indeed. regrettably. the United states
government does"'t know thfas
about what is going on in those I'M
portant financial conferences WING"
indirectly relate to the wfo.- eco
nomic future of the United states.
the value of it's bonds and Other s''''u'-
tiles and the opportunities for lore. Sn
trade.
L. 8. Not in Council.
Treasury officials said it was An un-
fortunate confirmation of what they
had been saying right along: namely
that Europe was being compelled t'
settle the worlds financial affairs
without having the benefit of Amer
ica's advice or suggestion.
while it is true" said one OF III.
Treasury officials. that the United
States need not accept the settlement
when it is made. We Will hardly -
able to raise much of q clamor Whcf
indeed we rejected the opportunity
that was offered US To become mem
Der of the league of nations and he
represented in these important cor
ferenceS.
Some stories Doubted.
To be sure. our officials take with 4
grain of salt some OF the cablegrams
which imply that a new principle %
payment of interallied war debts j.
to be introduced. For instance. one
press dispatch declares that France
will not be obliged to pay Engla nd
what she owes the latter until tht
Germans make their payments ON tho
war indemnity. This might conceiv
ably be extended to apply to America
Indebtedness. thus making the United
States wait for German payments be-
fore England or France pays us.
But Treasury officials say this is
absolutely no relationship between
reparation and war Indebtedness.
They recognize that payments Of Ger
man reparation money might ac-
ceierate the payment of interallied
debts and insist that the reparation
money was never intended to pay the !
bills of the war itself. but rather to
rehabiiitate France and Belgium and
England and assist in the domestic
situation of each. To the extent,
fhArafnrn (lormapV'a money
helps France internally. il will i'm
prove the whole world situation.
though il is feared here that there
will not be much Improvement in re-
spect of France until the latter ceases
issuing much paper money and
begins to make her budget balance.
Incidentally. some of the talk "f hav-
ings American investors absorb Ger
man indemnity bonds. which are to
be issued with the reparation money
as security. is pronounced Impractical
here America. it is asserted. cannot
absorb any such bonds as she hasn't
the money.
New Attitude rs to Germany.
Broadley speaking. there is the ut
most satisfaction here that the al
lies are endeavoring to agree among
themselves before they approach the
Germans at the Spa conference. II is
felt that the allied p-emiers enter
the conference with changed atti-
tude toward Germany. Fully year
has had to pass. unfortunately. be-
fore the allies have been brought
around to a realization of the cor
rectness of the viewpoint expressed
by President Wilson and his financial
advisers a the Paris peace confer
ence. namely. that the sooner a def
mite sum was fixed for the Germans
to pay and the sooner arrangements
were made 10 help Germany earn the
money to pay her debts the quicker
the world would get back to its feet.
Three Factors Hinder.
Three factors have prevented Eu-
rope from doing twelve months ago
what she is accomplishing today.
First. Prime Minister Lloyd George
had maze an election promise to the
general effect that Germany would re-
nay England for her whole war c,$,.
This raised high hope in England and
kept Lloyd George in power This
election promise is probably tie mos.
famous in ali history and was vaguely
referred to by President Wilson in his
conference with the St0Gt. foreign re-
lations committee. The publication of
the sensational book by y. NJ. KEYNES
British financial adviser who ,p,.aled
the secrets of the Paris cout.rerce
has had tremendous effect or Eng
lish public opinion. which realizes Tow
that the indefiniteness of 'ha frGrnl-
nifty question has kept and would
keep Germany from beginning 10 earn
the money to pay her :, liz. The allies
know they must acc-.r' = much snail
er indemnity than IN advertised
they would collect.
.Second. France w another bar
rier-or rather. Pre- i."r ,-lemanceau.
who shared the view .s a multitude
OF Frenchmen that Germany should
promptly rehabiiitai.. France before
any money should 90 elsewhere
Clemenceaus ignorance of economies
is spoken OF by American officials as
one of the lamentable obstacles to an
earlier agreement or the indemnity
question.
Third. The United States got
tangled up in party politics and Eu-
rope waited hopefully for the ratihca-
ton of the peace treaty and Amer
tca's entrance into the league of ma
lions
L. y. sim ON Outside.
All factors have now been removed
except one. England is ready To
agree 10 a sxcd sum for the Germans
10 pay and n method of financing the
Germans. France and Italy are in ac-
cord with the British viewpoint The
United States alone is outside the
conference chamber and this country
holds $40. oGo.0no. 900 Of European oh
ngattons But Europe has decided
fhat she can wa; no longer II Amer
lea suffers as result Of the settle
mont that Is her lookout. Europe has
had enough OF election promises and
tAngles In fhe case Of England. She
dossn't eap~ct definite policy from
America until after our presidential
election = certainly not till next
March. CnqusstionahIy she will ad-
wise the United states of what IL
done-but thus far not q syllahle of
omciai Information has come. for the
good reason that America has nobody
ar h. TN IL L.