The New York herald., 1921-07-17


This week hope Of the Dukes aid
was raised when he was asked by tele-
graph while he was in Derbyshire If it
or for that matter the world. has ever
known. And 1t was one of the ironies
of the situation that when the coal
strike was at its height British ships
were compelled to go to French ports
and buy German coal, which had been
sent to France in payment Of indemnity
charges and was reaold by the French to
the British.
Eject ON British Shipping.
Something OF the same sort, rather
more direct has resulted from the
seizure by the British Of practically all
of the merchant marine of the Germans
in repayment for submarine depreda-
tions during the war. Many hundreds
of thousands of tons of shipping was
thus taken over. but the result was the
prompt paralysis OF the British ship
building industry. To-day the London
Times. for example, carries long lists
of German ships, offered for sale by the
Government for which no buyers have
yet been found But given this supply
OF tonnage. there is no demand for new
construction. The result Is unemploy-
ment in the great shipbuilding indus
tries Of Britain.
Returning to the coal question, for a
moment. it is plain that the repercus-
sions have been felt generally. All the
industries depending upon coal have
been compelled to reduce their opera
tions and many to shut down altogether
Railway service has been tremendously
restricted. the whole life Of the United
Kingdom has been seriously crippled
by what must be recognized as one con-
sequence of the effort to collect the
German indemnity.
But there are political as we'll as
economic consequences. Where Britain
has suffered France has manifestly
benefited. for France, lacking in coal
has been able to obtain vast amounts
or coal at a low cost amounts not alone
sufficient to meet French demands but
to enable France. as we have seen. to
sell coal to Great Britain--and she has
also sold It to other countries. notably
Italy.
French coal mines have not been COM
PEELED to shut down because OF German
inlportations. because French coal pro-
duction was totally inadequate to French
needs before the war, and German
destruction during the war still further
reduced French production. Moreover
given the French coal situation. with
every French mine working. France can
still absorb more than 10000, 900 OF tons
OF German coal annually.
Further than that, there are many
other things which France can take
from Germany. Beyond any doubt Ger
many will presently begin to deliver fab
ricated houses for the devastated area /;
AV1A ~ so - ~~k
being discussed. But such deliveries
will not in the least affect the normal
French market, because they represent
abnormal demand. To put the thing
simply, then, France can afford to make
Germany pay, because German payment
will not in the main be made in COM
modfties which are themselves COM
pettive with French production. Here
is the key to all the French insistence
that Germany must pay. and pay to
the limit of her capacity.
Represents British Loss.
For Britain. on the other hand, Ger
man payment represents British loss, as
the example OF the coal deliveries has
we'll demonstrated. France was a very
important customer of Britain In coal
and in other things before the war. but
now France can get coal and other
things from Germany both more cheaply
and on account OF the indemnity-the
result is the immediate restriction of
the British market IN France. and the
same is true to a lesser extent in Bel
GUM and in Italy.
II follows, then. that French and Brit
ish policies toward Germany clash inces-
sanity. Britain desires to see the Ger
man payments fxed at low sum, both
In the interests OF peace and because OF
the consequences TO the British work
ingman of having his production de-
prived Of market, because that market
is filed by the cheaper German output.
taken as a part OF the German indem-
nifty payment France. on the other
hand. demands that high indemnity to
which she is morally entitled and in the
absorption of which she will suffer no
injuries.
so much for the German indemnity.
Now IL must be plain that there Is a
parallel between that and the European
debt TO the United States, Like Ger
many. Europe must pay US in goods and
services there is no question OF money.
As for paper money. already at high
discount. IL would become of far less
value II Europe undertook to turn over
TO US billions In script AS for gold
supply now. and our European debtors
have not enough left 20 pay one years
interest on what they owe US. together
with the sinking fund addition.
Great Britain might pay US a certain
sum by selling In this country the hold
ings which remain 20 her OF her vast
investments IN American railways and
industries before the war. But since the
Government does not own these securi-
tics the process would be difficult. and
tho effect upon tho American stock mar
ket. for example. would be disastrous.
But France. italy and Belgium certainly
could not pay vs. In that way. since they
have no considerable investments. and
we shall hardly be able 60 demand Sc
verer terms OF the British than OF other
debtors
FancffuI ISOLATION.
II is fashionable In certain quarters
10 suggest that the debt be discharged.
In part at least. by the transfer OF Brit
ish and French colonies. Italy and
BELGIUM have none In our part OF the
world But does any one suppose that
Canada. for example. would consent TO
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