New Iberia enterprise and independent observer. (New Iberia, La.) 1902-1944, 1920-03-06
HELP FOR GERMANY MEANS
VITAL STEP.

London, March 3.-The decision
by the Supreme Council of the
peace conference that Germany
must be rcadmitted on the broad
est terms into family of CONNER
ciaI nations and without regard
to a sentiment of revenge. is the
first momentous step which will.
lead to the unraveling Of the
knotty economic problems which
have, until now, been practically
impossible of solution.
In a cable dispatch to the Sun
and New York Herald some weeks
ago, it was pointed out that the
huge indemnities imposed on Ger
many by the Allies never would be
paid. simply because they were
beyond the bounds Of economic
reason. Thus, when the Supreme
| Council comes out with a state
ment of formal approval of prior
lien international loan to Ger
many, it will be a blow to popu-
lar sentiment in France, who has
continued to delude herself with
the hope of collecting the entire
cost to her Of the war from Ger
many. On the other hand, it will
not have a depressing effect on
French economics or exchange,
because the French financial posi-
ton long ago passed the point
where any hope for indemnlties
could have had any effect.
Germany Crux of Problem.
Germany is the cruX of the
whole situation, just as bankers
and sound economists have been
contending all along and the Su-
preme Council has now come
around to that point of view. In
deed it is obvious that, with the
German mark worth less than
penny, all trade with Germany is
reduced to a system of barter. An
international loan will not mean
that her position will be redeemed
at one fell swoop, but rather that
it will enable her to debate her
currency to such an extent that 1t
will again bepossible to use It as n
medium of international exchange.
There are some political stunt
ling blocks, particularly in
France, in the way Of overriding
the treaty indemnities. but it is.
safe to say that, from now on,
every effort by European states
men will be directed toward con-
vincing the public Of the folly of
carrying out policy against the
old Central Empires which would
only react against the Allies
themselves.
The fact that the international
loan would enjoy a prior lien OH
German assets, as against the trea-
ty indemnities, may make unnec-
essary a formal revision Of the
treaty, since even the extremist
element is ready to admit that
Germany cannot provide security |
for an international loan in addi-'
ton to paying indemnities. The
alternative to a formal revision
Of the economic clauses of the
treaty will be in just forgetting
them and in allowing Germany
to pay what she can, with no at
tempt to collect the balance.
Gives Hold on Germany.
One Of the advantages of such
course is that it will permit the
keeping Of strong hold on Ger
many for many years to come, or
at least until public sentiment in
Allied countries has died down |
and the formal cancellation of the |
unoaid indemnities can be effee- |
bed.
But the mere fact that Ger
many may get outside aid will |
make more probable the payment |
by her of a considerable amount
of indemnity to France, especially !
in view of the fact that, once her
industries are started I'D again.
her tax revenue will increase anil
her surplus fund will be larger.
Therefore, while it is accepted re-
luctantly by France, the policy of
giving aid to Germany and the y. !