The Washington herald., 1921-04-10
Congress is not an unmixed evil. The last
one killed something over 2s.ooo bills.
Baekfle from German Rep.rations.

r AN address given at luncheon of the League
Of Free Nations Association and published
in the New Republic. John Foster Dulles. who
4. was legal adviser on economic and financial mat
tiers at the Peace Conference and member of the
Supreme Economic Council, said number ! of
things regarding the reparation problem which pro-
vide food for thought. They are especially worthy
Of note TO those who this problem as simply
case Of putting on the screws until Germany pays
to the allies whatever amounts they decide she can
and should pay. Mr. Dulles considers only few
4 aspects Of this complicated question, but he -illu-
inmates side Of the question which needs llami-
nation. ssess
At the time Of the Peace Conference, Mr..
Dulles points out. the allies were interested in OBJ
tanning BY way Of reparaton all the ships that Ger
many had or could produce. and therefore the
shipping clauses Of the treaty were among the most
severe. While these shipping clauses were drawn
particularly for the benefit of Great Britain. the
J British government have found that these are Of
doubtfnl value.
Their attempts to sell German ships have de-
pressed the market, and have caused many of their
old and established ship owners to be driven out Of
business by the competition of those who have
bought German ships At Avery low price. About
100000 Of British shipping said to be idle
In addition, the building Of ships by Germans to the
British account has seriously affected the British
shipbuilding industry thrown labor out Of employ
ment, and diverted capital to other industries
s German ship owners, on the other hand, are
doing Aourishing business and German labor is
employed The effect Of this has been to cause
recommendation that further shipbuilding by Ger
many for the allies be discontinued and that some
!. of the tonnage already delivered be returned
Mr. Dulles believes that coal Is one Of Ger
] many's assets which may be employed to the full
Z extent of German capacity For the time being this
Is probably true. but after the French coal fields
restored and German coal comes in competition
with French, as il now IS in competition with the
British, there will be another story. The free
port Of German coal very seriously affects the Brit
ish coal prices and has been opposed by that gov
ernment. 9eees '1s.ss 4 n
Al significant fact which Mr. Dulles does not men
ton Is that Belgian coal operators have already petit
toned their government to waive further repara-
tons IN coal The French have, with very good
reason declined to accept machinery and other
construction supplies from Germany for the devas-
tated areas since is obvious that this would
that all future requirements, spare parts and en-
largements would have to be supplied by Germany.
The offer of the Germans TO provide labor for re-
construction work was declined by the French be-
cause of the protest of French labor unions.
IT, as il appears, the allies are willing to accept
economic values directly from Germany as repara-
ton, there remains, according to Mr.. Dulles only
one way by which the allied demands can be met,
and il is in that America is involved This plan is
that countries other than the allies shall buy Ger
man economic values and the profits which accrue
therefrom shall be transferred to the allies in
rency of such standing that IL be easily con-
vered into currency OF the allies to meet their
construction and pension budgets.
The country which naturally would contribute
most to this plan IS the United States, which alone
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