New-York tribune., 1921-04-21

IAe versailles tiSaty ploVlueS
that Germany may be Justly asked to
pay for all the direct damage done
by her and that she shall pay up to
the limit of her ability. As the first
sum, as ascertained by actual sur
veys, is in excess of her ability, the
second provision is the one of imme-
diate practical consequence.
What is Germany able to pay?
Varying estimates have been made,
their totals being affected by general
views of the war. The pro-German
bluntly says it is beyond Germany's
power to meet the bill presented to
her and offers little to support his
conclusion. The other side responds
with similar oracularity, saying that,
Of course, Germany can pay if she
would. It is worth while to consider
the issue without any controlling as
sumption either way.
Statistics bearing on the collecti-
bility Of reparation bills are meager.
The leading precedent is in the rec
ord of what was squeezed out of
France in 1871. Germany exacted
from France s1,Oo0,oOO,OOo, and, in
addition, the French people paid for
the cost Of rehabilitating the regions
devastated by the invading German
armies. Counting the two items as
one, it is low estimate to say that,
besides the cost of maintaining the
French field armies, the French peo-
pie after the armistice contributed
100000 on account of the 1871
war.
Leaving out Alsace-L Lorraine, the
French population was 35,000,OOO
fifty years ago. So the French war
bill was $50 per capita. The same
per capita applied to the German
population of 100000 would pro-
duce $4,o0O,ooooOo.
But in the fifty years there has
been a so per cent decrease in the
purchasing power of gold. So $8,-
0OO,O00,000 now is no more than half
that sum in 1871.
In addition, besides the change in
nominal values through the decline
of gold, an absolute increase in pro.
ductive power has come through i'm.
provements in industry. This incre
ment is variously estimated. In this
country, for example, the amasset
wealth per inhabitant is now $4,000
against $500 in the '70s. Part O.
this is ascribable to lessened golt
values, but another part, probabl.
more than one-half, has come from
an increase in absolute wealth.
seems reasonable to double one
more the sum Germany can pay
making it $16,000,O0
Other factors are to be taken int
consideration. For example, the wa
was fought on non-German soil
while in 1871, besides actual damage
the chief industrial region of Franc
was disorganized for two wears
Again, France paid her bill With,
six months-bought evacuation s,
quickly that plainly the limit of he
resources was not reached, leadins
bismarck to regret he. had not asket
-. for much more.
The Allied bill as it now stands
n committed into present value, is an
proximately s21,oOO,OOO,o0O. Thi
places on the German people per cap
TIA, In view of their greater popula
ton, greater accumulated wealth an,
greater wages of present-day work
ers, about the same burden Franc
successfully carried in 1871.
Moreover, it should not be forgotten
that $4,000 debt of a person VIII
possesses $4,000, or income that ca,
De capitalized into $4,000, is not a
heavy load as is laid on perso,
having a debt of $1,000 with onl,
$4,000 against which it is a lien. I,
one case he has a margin Of $500,
and in the other margin Of bu
$1,000.
Finally, throwing a food of ligh
on the merits Of the whole repara
ton question, is the striking fact
brought out in recent discussion. tha
the taxes that the German peopl,
will need to pay per capita to NEE
a $4,000, 100000 imposition will b
less than the tax per capita that the
people Of France must pay to meet
their obligations even after the re.
ceipt af their full share of the repa.
ration award. Surely elementary
Justice requires that the French, on
whom war was forced shonld not