New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-18
The German Indemnify


Paris dispatches say that Lloyd
George and Millerand agreed at
Hythe to fix the German indemnity
at S30,000,00 900 This sum rep
rosents compromise between the
French demands, which sought to
cover the major share of the dam
age done to France, and the Brit
ish view that it is more important
10 the future of Europe to restore
Germany as a going economic con-
corn than to exact the full penalty
for her devastations and savagery.
1t is evident, however, that Lloyd
George has drifted away again from
the counsels of Mr.. John Maynard
Keynes. The latter and his school
# pacifist economists are more in
terested in restoring German solv-
ency than they are in recovering
The just debts due the Allies. In his
nropagandist book, "The Economic
Consequences Of the Peace" Mr..
Keynes advocated a reduction of the
German indemnity to $fo,000,00O,-
coo. Of this 100000 was to
be covered by the surrender of mer-
chant ships and submarine cables,
Of war material under the arnistice,
state property In coded territory,
German public debt claims against
such territory and Germany's finan-
eial claims against her former al
lies. The remaining S7,50O,000,0 900
was to be paid in thirty annual
$3.50, 100000 installments.
Keynes held that the treaty I'M
posed on Germany total payment
Of $4,000, 100000 or over, and that
this sum couldn't be reduced except
by. the unanimous action of the
Preparations Commission. How open
to contrary interpretations the treaty
is is shown by the fact that David
Hunter Miller, legal adviser of the
American Commissioners in Paris,
has maintained that the treaty i'm
poses an indemnity Of only $14,000,-
600, 200, and that this sum can be
added to only by the unanimous &C
ton Of the Preparations Commission.
The British and French Prelniers
ave inclined toward Mr.. Keynes's
estimate rather than toward Mr..
Niller's; for the $30,000,OO0, 900
compromise involves a writing off
Of some of the claims which the
French believe were clearly recog-
nized in the language Of the treaty.
Great Britain and France evil
IDENTIFY don't intend to remit the in
demnity, in the Keynes sense, for
the sake Of getting Germany on her
feet within relatively brief period.
But Germany's ability to pay de-
ponds on her ability to Dor
row. Lloyd George and Millerand
have hopes Of inducing the neutral
countries and the United States to
accept German bonds issued in
payment of treaty obligations. The
German indemnity would thus be
financed outside Germany. Mr.
Keynes ingenuously suggested that
the United States should cancel all
her loans to the Allies, as one means
of reducing Germany's burden
since if France could be rid of her
debt to this country, and also hel
debt to Great Britain, she could at
ford to let the Germans down easily
Great Britain, according to this
program, was to cancel her loans
to the other Allies if the United
States should cancel her loans to
Great Britain.
The Hythe conference didn't adopt
this highly imaginative solution. II
is too soon to talk about the world
going to Germany's rescue. The way
of the transgressor is hard. II
would be better to let the Germans
show what they can pay and what
they can't pay before releasing
them, as the Keynes propagandists
want TO do, of about rs per cent
of the damages justly assessed
against them.