Evening star., 1920-05-23

ELAY in sett e ment OF
European ills today is rend
ing the economic fabric OF
the continent. Should finan-
cial and industrial chaos continue for
a protracted period there is little
doubt as to the result-chaos will be-
come utter anarchy and the entire
treaty of Versailles will be escaped by
the Teutons and their allies.
The treaty already is being made
over through secret diplomacy of
various statesmen of the supreme
allied council, who are relegating the
league of nations in agreements i'm
mediately necessary to promote nor
NAL progress.
Many treaty provisions today have
been found inapplicablc by virtue of
circumstances changed since the Paris
conference The treaty possibly will
be revised. if not in wording, through
application, as the result of the allied
conferences in recent weeks. The
greatest tacit changes may come at
the forthcoming session of allied
statesmen at Spa. where the finishing
touches are expected to be placed on
the allied plan to fix a definite in
demnity for Germany and at the same
time formulate some scheme of fund
ing Europe SO that the continental
countries may go forward.
May Escape Treaty.
The premiers of England and France
fuI well recognize that Germany will
escape the treaty provisions in case of
Europe's economic breakdown AS a
consequence of this, schemes of not
only financing Germany that she may
pay to France. England and other
peoples such reparations as have been
exacted by the allies but those look
ing to the handling of interalIied
debts are being considered
Many plans have been devised by
the allies from time to time look
ing toward financial rehabilitation
but the latest proposal that Germany
be funded through instrumentality
of bonds guaranteed by allied ma
TONS, the payment of which will en-
able Germany to settle her indemni-
ties. the definite amount of which
likely. though the allied statesmen
find themselves somewhat at sea in
pressing such a scheme without the
assistance of the United States.
France. it is declared. has made def
mite proposals that the United States
defer payments on her obligations to
this country. predicating payment
upon payments by Germany. Under
the present plan France would pay
nothing on her debt to England un-
less Germany pays the demanded sum
TO France. All other allied obliga-
tions would be arranged likewise.
But as time goes on it becomes in
creasingly apparent that the United
States will resist any effort to make
this country practically underwrite
the war debt of the old world or per-
nit European payments to this coun-
try to be predicated upon the sue
cess of the allies in exacting the de-
sired sums of Germany.
The reticence of the United States
in readily falling in with such plans
will materially affect European
schemes of equalizing Europe's war
obligations. but as the allies are de-
termined on some way out. they may
yet find it possible to .underwrite
Germany's obligation as we'll as make
successful settlements among them
selves. 1t is exceedingly significant
of the state of things when it is an
nounced that although France asks
the United States to defer payment
on obligations to this country. predi-
eating them upon the size of the Ger
man debt, England announces that
her obligations to this country will
be paid whether or no. the German
indemnity being left entirely out OF
the consideration.
Ready to show Ability.
Germany, it is announced, is ready
to enter the Spa conference with full
data showing the exact amount which
she can reasonably expect to pay In