The Washington herald., 1921-02-05
Gain not base gains; base gains are the
same as losses-Hesiod
Entanglements.

"A The implications OF the plan tor the col
- lection OF the German indemnity adopted
by the Paris conference become clearly
realized even the most enthusiastic advocates Of
American isolation must recognize that this policy
is about to be subjected to d very severe strain.
One does not have to 90 far to discover some OF
the ways in which this strain will be applied
1t will certainly be necessary for France to
borrow money on the strength of German repara-
tions 1t doesn't matter how great or how small
is the total German indemnity agreed upon, it
can't be paid all at and the FIRST installments
must be relatively small Unfortunately it is now
that France needs the money most
Even under the Paris agreement if in the
next five years Germany pays 1000, 100000 gold
marks in annuitics and another 3,oooooo,ooo is
realized in export duties in the same period,
Frances share would amount to not than Io,-
oOo,oooooO gold francs or some 10000 paper
francs which is s,oooooo 900 less than the number
bi paper francs She has already expended without
receipts.
As France is with the greatest difficulty rails
ing enough to meet her current budget, She would
hays nothing ior reconstruction in the next five
years without borrowing
The question is will France be able to sell
in, the United State, German rcparation bonds
based on the Paris plan OF settlement. Judging
from the statements OF our financial experts these
bonds not likely to be acceptable to American
investors because there exists considerable doubt
ul Germany ability to make these bonds good.
France Is in an exceedingly critical condition,
and We must decide whether We are to turn d deaf
to her appeal or make our aid to her con-
tingcnt revision OF the rcparations plan in &C
COrdance with what think Germany can pay.
Not only Is thi, something OF blow to our
ISOLATION policy, but any disposition on our part to
insist reduction OF the German indemnity is
likely to involve in other complications For
instance there i the $4,000 100000 owed Us by
the alhCs If VIC press them for payment and at
the same time insist that they mitigate their claims
against Germany with which they expected 10 meet
at least in part, their obligations to US, they may,
with good deal OF justice, charge us with dc
mandng that they grant to Gcrmany-out late
cncmy-conCcssions which will not grant to
them-Our allies
At Paris Lloyd George is reported to have said
apropos OF the allied Indebtedness: IF my
creditor docs not press me, l will not press my
debtor" The implication is plain. If America
his creditor, does press him, he will be forced to
press his debtor, who in must press Germany
If this results in d condition Of instability in Ger
many it is not difficult to whom Europe will try
10 hold responsible
The and substance Of all this is that what
ever may be our professions OF policy we are
involved in the European settlement both through
the past and in the future We are the nation
to whom great OF money are owed not only
by the allied nations but probably in equal amounts
by individuals; the nation having great un-
saleable surplusscS OF commodities that they need
These facts entail economic and moral and polit-
ical responsibilities which we cannot escape
Washington did not his country confronted
by situation just like this when he warned us
against foreign entangements-for we are already
entangled.