The Washington herald., 1921-10-18
LEAGUE FAILURE
BLAMED FOR CHAOS

That the present chaos in Europe
should serve as a warning to the
United States to keep out of the
league of nations, is the belief
OF James Speyer. New York banker,
who has just returned after three
months spent abroad. On his recent
arrival in New York he said:
Europe is still in a very unset
tied political and economic condl-
ton. There are four little wars
being carried on now. with a pros
pect of one or two more. A large
part of Russia remains cut Off
MANY are beginning to realize
now the dangers of political and
economic strife due to the creation
OF so many small Heterogeneous
states, which were supposed to be
able peacefully to govern them
selves. We ought to be very CRATE
full, Indeed, that we are not a mem
Der of the so-called league of ma
tions, and the spectacle that Europe
presents ought to strengthen our
resolve not to be drawn into this
complicated political -cauldron and
not to assume any guarantees
whatsoever for protecting or main
tanning any foreign boundaries.
TN Great Britain and other
countries the policy that France is
pursuing toward Germany is not
considered a wise one. 1t is not
calculated to allay animosities or
to help restore normal conditions
in Germany and economic equi-
librium in Europe. To this might
be added that nothing has been
done to correct the Versailles
treaty which ignored the economic
interdependence Of large sections
so essential to the welfare of their
people"
AS to the financial outlook, Mr.
Speyer said:
People are beginning to realize
what Keynes and other calm OBJ
servers stated two years ago. that
the reparation payments imposed
on impoverished and diminished
countries are beyond their capacity
to meet, and that the efforts they
are asked to make to comply there
with are largely responsible for
their deprecated eurrencies.
"As the great creditor nation of
the world, we have now a very di-
rect and substantial interest in the
economic affairs of Europe. 1t is
rather curious to hear Frenchmen
claim that they cannot even pay US
the interest on what they owe US
when at the same time they declare
that Germany is able to pay about
ten times the amount of the princi-
pal OF their debt.
of course we are bound to be
affected unfavorably by the depre-
citation of foreign currencies. Their
decreased purchasing power natur-
ally must curtail our export of raw
material. This is particularly true
of the decline in the value of the
mark, Germany having been one of
our best customers. This has the
further disadvantage for us that
Germany, paying her workmen's
wages in the low priced marks, can
and must undersell in the markets
Of the world, our manufacturers,
who pay higher wages in dollars.
Great Britain is already feeling
the effect Of the low mark, and the
great number of her unemployed is
largely due to this cause.
while the unfavorable export
situation exists for us, we should
do everything possible further to
improve and stimulate our home
trade. No doubt lower prices for
food and other necessities will in
due course bring lower wages, and
that viii help. But lower cost Of
living should always precede lower
wages. One sure Way of stimulat-
ing home activity will be to settle
accounts between the government
and the railroads and thus enable
them to give larger orders for
equipment and improvements.
But the settlement of these finan-
cial and economic, questions is only
one phase of that great and funda-
mental pfoblem-how. tie restore
peace and good will among men.
American public opinion 10 espe.
cially important at this time when
distinguished foreigners are to
visit the United States as the dele
gates to the disarmament confer
ence * WASHINGTON"