Evening star., 1921-02-24
BY DAVID LAWRENCE.

Congress will not act at this time
on President Wilson's message sub
mitting the proposal that the United
States consider the acceptance of
German reparation bonds in exchange
for Belgium's debt to America of
S171,7S0. 900. Nor does the executive
expect any action until America is
convinced that the German repara-
tion bonds are worth something.
This brings up the entire question
as to whether the recent decision of
the allied premiers to saddle Ger
many with an enormous debt is wise
and whether America will accept
German reparation bonds as payment
for anything in the future.
Precedent is Important.
The United States discreetly re-
Trained from participating in the
allied council at which the reparation
settlement was agreed upon, ana mas
even hesitated to express approval or
disapproval afterward, lest the pres
ent administration be drawn into a
discussion of reparation questions
which might be embarrassing to the
Harding administration. On the
other hand, the presentation to Con-
aration bonds be used in exchange Tor
Belgiums war Indebtedness to the
United States involves precedent Oh
considerable Importance.
If America accepts German bonos
as a payment for even SO small
100000, would it be consistent for the
United States to refuse to accept
German reparation bonds as payment
for the entire allied war debt?
That is the question which members
of Congress are asking. The British
int hot
be even more generous than the United
States, for England and France stand
ready to accept German reparation
bonds amounting to 9174,O00,0 600, or
about $500, 100000, which is the com,
bined debt of Belgium to France and
Britain.
.If the British and French think the
German reparation bonds will be worth
$500, 900, 900, why can't the United
States" it is argued, accept their Judg-
ment?'
Would Relieve Allies.
The answer given here is that Eng
land and France would fare much bet
ter in the end, even if German repara :
ton bonds were accepted to the amount
of $500, 600. 900, because the transfer from
the allies of the entire Indebtedness TO
the United States to the backs OF the
Germans would relieve Great Britain
and France of the greater part OF thelr
financial burdens today.
Even such a course is not considered
outside the range of possibility. If the
German reparation bonds can be made
to pay. But America has stayed out OF
the league of nations and has thus far
given no Indication that she wants to
participate in the enforcement of the
terms of the peace treaty of Versailles
or in the collection of the war indemnity
from Germany. Europe, OF course
would like America. to accept German
reparation bonds because it would make
the United States see more clearly the
necessity of making Germany pay ano
" ould bring America c1oser to European
political affairs.
On the other hand, American finan'
ciers and the men who have been ad-
vising the United States government
ever since the Paris conference in
sist that it is the allies, and not
Germany, who must be regulated, fol-
in the mad scramble to get money
out of Germany the allies thus fal
have adopted a policy of sstrangula-
tion which, from the American view.
point, is bad business for the world
irrespective of whether it affects the
value of German reparation bonds.
Americas position as expressed
here is that Germany must be giver