The New York herald., 1921-03-03
ITALY SEES PERIL
IN HASTY ACTION
Financial Mission Urges Ca
pacity to Pay Be Test
for Germany.
WAR DEBTS A FACTOR
DR.. Giannini Says America
Can Effect Financial and
Moral Aid.
WAR DEBTS A FACTOR

specal Cao,s to THE NEW Yorx HsaALD.
New York Herald Bureau.
Loodsn, March 2.
A report was current here tonight
that it was the Italians who prevented
precipitate action by the Allies in favor
of enforcement of the reparations
sanctions after an impassioned plea
had been made by French experts
this afternoon. In this connection the
Italian view Of the general situation Is
important
At the Carlton Hotel the Italians
said the whole financial world and
not Europe alone is concerned over
the two neutrality-suspicious. and
war debts. These two questions are
so linked that they are practically in
divisible. The creditors Of Germany
are debtors Of the allied and associated
Powers, said DR.. Giannini head OF the
Italian financial mission. who has been
attached to the peace conference since
1918.
he said, .is TO De found in the Lords
Prayer As a matter Of fact. Ger
many is only asked to pay according
10 her capacity in making reparations.
But the Allies are requested 10 pay
their war debts in full without re-
gard to their capacity This is not as
il should be. II should be question
OF capacity all around. Under pres
ent conditions the position of the
world is disastrous. as the world Is 60
ing through an enormous industrial
crisis and an expression Of this crisis
is TO be found in the state of foreign
exchanges.
'In order 70 put this right the world
needs some financial arrangement which
will be not only a financial help but
also a moral aid. The United states
really has the key TO the whole situation
in her hands. The ideal method. OF
course, would be a mutual cancellation
OF debts italy 10 not asking this to-
day but she does hope that some ar
rangement may be quickly made which
will ease the situation. OF course II is
not known. but It may be that Mr.. Har-
ding will have something to say in his
inaugural speech Friday regarding the
question of war debts. But the sound
preliminary principle would be for every
one. including Germany. TO pay accord
ing to their capacity.
''Thc question OF mutual cancellation
OF debts was discussed b.. the Allies in
t,, a.-ata rya Nj
very ssd feelings that we saw when the
plan was not adopted. although the Al
lies had been fighting together and had
worked in mutual cooperation for their
supplies, that even before the treaty with
Germany was signed the prices Of Amer
ican goods TO the Allies were raised. and
this at the very moment when the need
OF supplies was extremely urgent.
Not only were the shipping rates aud
the price OF raw materials increasi sing but
the credits across the water were being
shut down.
When / speak of the capacity Of the
nations 20 pay. including Germany. do
not mean simply that the present offer
OF Germany should be accepted. 1t IL
absurd. 1t IL as though a man owes
twenty pounds and offers to pay a
penny. You will see from the figures
that Itaiy's share OF the indemnity,
amounting to 2.sso, 100000 gold marks.
even II II we're dovols that amount pay
able yearly. would not pay Itaiy's debt in
a hundred years
"Germsny's foreign debt is practically
comprised Of rcparations. while the Al
lies all have big foreign debts contracted
during the war. Germany's present Of
fer Ia ridiculous. but she should. for the
sake OF the world in general. be made to
pay only according TO her capacity"
VOTES To BURY "UNkNOwN."