Evening star., 1921-09-25

peoples property for reparations
purposes. After this the bitterest
Frenchman could not doubt Ger
many's honest desire to pay her debts.
more solid resources to government
whose only credit is on paper.
It soon will be seen whether this
plan is feasible. whether the consor-
tium can be found amid the unem-
ployment and trade depression in the
worlds richest country, to grant so
tremendous a loan.
State Poverty and Private wealth.
Several times in these dispatches
I have pointed out the wide discrep-
ancy between the states increasingly
Impoverished condition and at least
the apparent fourishinS condition OF
private~wealth. And have said that
some day an attempt would be made
to substitute the one for the other.
If this should succeed, the peoples
party which represents industry and
commerce, would come into power and
the government would be carried on
prise and socialist trade unionism.
The peoples party, which represents
huge wealth and is, therefore. for
midable when in opposition, has thus
far been for q return to monarchy
hut under this plan would be won
for the republic. and the nationalist
party. made up Of noisy monarchists
would be isolated. Such q union OF
capital and labor In this time OF
great distress would be, blessing.
It Is clear to everybody that present
methods In Germany are economically
impossible. To pay the entr"t"
first gold billion Germany was com.
PEELED to further alinii.sn nS. -,
gold reserve and raise three hundred
millions on short-term notes at g
high rate of interest. The conse-
Quence was an unprecedented drop
in the value of the mark. This droI
automatically increased our indebe.
edness, increased imitation prices ant
foreshadowed dangerous develop
ments in the winter.
What will happen to the worlds
economic situation If successive gold
billions are to be squeezed from
country whose only money is depre-
ciated paper? This Is a world ques'
tion and not German only. This IL
q question which hoped personally
to recommend to Americans for seri.
Gus consideration during. the first OF
the October days. But Just before
my intended departure illness and
orders Of the doctor forced 2 post
ponement of my trip-a postpone
ment which childish ISLANDERS have at
tributed to unfriendliness to the Ger.
man and European causes.
Execution Of Treaty Impossible.
But to resume, let me say that two
figures should convince any reason
able person Of the impOssfbi1ity OF
the execution Of certain engagements
of the treaty of Versailles. For the
support of allied troops occupying
our territory Germany has had to pay
one hundred and twenty billion marks
This is totally unproductive ex.
pense. The second is not less i'm
portant The best German workman
gets 100 marks daily, or less than y.
The wage of the masses are muef
lower. This discrepancy between
German and foreign production costs
causes dumping" >whfch this time
unintentionally does much more dam
age than that which England cursed
before the war. -.
Germany is loaded with work, but
If the business man does not know
what values will be even q week
ahead and fears he may have to pay
thirty marks per dollar more on I'm
ports while receiving the same
amount less on exports? How can
world trade revive II Germany and
all of middle and eastern Europe are
English manufactures, while their OWE
cheaper than America and England
can produce? Just the other day q
German firm undersold English steel
rails by twelve sterling pounds.
Is there no Meme, tekeP' here? II
would be wonderful, indeed, II some
reader with one hundred million to
invest should lend 1t to the tormented
German government on the proffered
mortgage. It. would be still more
wonderful II the earth's greatest peo-
pie recognized before It. Is too late
that this matter threatens their very
roots and can be solved only with
their help-and the, solution can't
wait longer.
The discussion as to whether the
treaty OF Versailles is just or unjust
has always seemed o1me to be fruit
less. The important question is
whether its execution is compatible
with the worlds economic recovery
It is high time to examine into this
Copyright, 1871