Every evening, Wilmington daily commercial., 1920-05-24
TRIAL BALLOONS AT HYTHE
Copyright io7oBy Tbe Mcclure Nov spapsr Syndicate
BY rrsak H. SimondS


bonds, Francs would be freed from al
outside debta, Belgium would be In the
same position and the British would have
turned over TO the United States tho Ger
man bonds paid TO her to discharge the
indebtedness OF tbs nations allied with
her against Germany in the recent war.
Roughly speaking Franco, Great Britain
md tho United States would then hold
some $4,000, 100000 German bonds
apiece and would thus be equally inter
ested in the ultimate redemption OF tho
bonds by the Germans.
IL will be manifest at once what Tor
Europe are the advantages Of the Hythe
proposal which is the familiar French
proposal in slightly changed form.
First OF all immediate financial difficulties
will be met. The exchange situation
will be improved because instead Of hav-
ing to meet American obligations in gold,
the French and the British can pay ia
German bonds. In the second place
possible quarrels between the recent allies
over mutual obligations will be escaped.
Finally and most important Of all, the
United States will be placed in a position
Of having great interest in seeing the
Treaty of Versailles enforced, since nom
enforcement, that is non-pnyment of the
German bonds, will cost us $4,000, ,000,-
900.
Briefly, the choice now offered the Unit
ed States by the two concrete proposals.
which have been advanced in Europe,
that of the Keynes school Of British lib
eraism and that Of the French is between
cancellation of the allied debts TO us and
the acceptance of German bonds as pay
ment for this Indebtedness involving a
close partnership with our recent asso-
cietes in the task Of making Germany
redeem her bonds. This, in turn means
q thirty or forty year intermixture in the
political situation of Europe.
Form the European point Of view these
two soutions are about the only remedies
for the present economic chaos. Still,
In Paris the American representatives
urged third, which consisted in fixing
the German indemnity much lower, low
enough in fact to insure German payment
without the constant application Of force.
American figures for the total Of German
payments In few cases exceeded $4,000
100000, or approximately half Of the
Hythe sum. At the same time the
American representatives argued that the
whole of this sum should be applied to
the restoration OF France and Belgium
and denied British claims altogether,
tAaFt btONshN bAAF ptLAAY
even under the Hythe estimate down 10
s22, 500 600, 900.
In the American view the possibility
Of collecting from Germany enough money
To meet any part of the costs Of the war
was non-existent. The maximum Of
possibility was represented by extracting
from the recent enemy the costs Of re-
building the devastated areas. Lloyd
George rejected this American advice,
because he had promised the British tax
payers to tighten their burdens by Ger
man collections. But 20 obtain French
support for such plan he had to consent
to corresponding expansion OF French
claims.
At Hythe the British obviously continu-
ed to insist upon their fraction Of the
German payments This explains the
size of the sum tentatively fixed, that IS
$50, 900 900, 600 But in insisting they
evidently listened 10 French arguments
that the United States would come IN
and absorb the German bonds. AS long
as this impression continues 10 prevail
In Europe, the financial settlement will
be postponed, for it is too obvious TO
require argument, that the United states
uill rot digest German bonds, will
not accept the bonds as substitutes for
allied promises to pay, will not become a
party TO q rev thirty years var, which
IS what the Hythe proposal actually con-
templates.
Keynes proposal that the Z nited
States cancel the indebtedness Of our re-
cent associates in the German war has
nowhere found anything but contemptuous
criticism in responsible circles in the
United States, but, impracticahle as il Is,
it seems to me preferable to policy which
plunges the United States into European
politics for an indefinite period, not in
the service OF mankind, but in the defense
of It's bonds, that Is Of the bonds issued
by Germany to France and Britain and
turned over by those nations to the United
States to pay their debts TO Us.