New-York tribune., 1921-11-30
Artificial Poverty

Artificial Poverty
When is an agreement not an agree
nent? When it Is one to which Ger
many is party. Germany agreed to
respect Belgium and didn't; to pun
ish her war criminals and didn't; to
pay for the havoc she worked on
civilians during the war and didn't;
and last May promised to pay in a
series Of years sums having approxi-
mately the present value Of S13, 3,000,-
000,000, and is now asking mora
torium.
Is the burden laid on Germany
more than she can carry, or is she
merely, according to the habit of
debtors, trying to wriggle out Of her
obligation? After prolonged investi-
CATION by experts who made the most
careful examination of German re-
sources the conclusion was reached
that payment Of $4,000, ,00o, 900, If
the payments were distributed over
a long term of years, was not beyond
Germany's ability. This estimate,
representing a so per cent scaling
down OF original Ally demands and
being much less than so per cent Of
the ascertained damage done by Ger
many, does not differ much from the
Keynes tpro-Ger,nan) estimate Of
$4,000, ,000,0 and the SIS 100000
900 Baruch estimate. It is only S3
per cent more than the German dele
gates to ar1s offered to pay.
Spreau over a population of CO.,
600 600 and with an annual payment
of $4,000. 600, 900 a year, it calls for
per capita annual payment Of $33.
This is less than each person in the
principal Allied countries is now
payingto meet interest on war debts.
Moreover, measured against the total
of German property the $13,OO0,-
100000 is approximately only 10 per
cent Of the total. France, in 1872, in
a year, paid 5 per cent on her then
property, and, in addition, endured
more than 5 per cent destruction
of her total property. So far no one
has seriously attempted to explain in
a satisfying way how a load that
France quickly was able to lift is too
much for Germany.
The truth IS that Germany has re-
fused to levy taxes to meet the repa-
ration payments. There has been no
substantial subtraction from Ger
man wealth and conversion Of the
revenue into liquid forms Of capital.
We have the amazing spectacle Of
Germans paying only one-third the
per capita taxes Of the British and
the French.
Even as to the reparation payment
of last summer Germany grimly
perpetrated the great mark joke.
She raised the gold credits to meet
the payment chiefly by selling paper
marks beyond her borders. She sue
cessfully transferred to alien mark
spectators the payment Of her bill.
Germany hears from foreign lands
that she can't pay. Naturally she
echoes the statement and tries to
create conditions to give it plausible
support. Should a moratorium be
granted she would, Of couyse, at the
expiration of the period, have new
set OF excuses-that is, provided she
saw chance of getting them ac-
cepted as valid.
The devastated regions still lie un-
repaired except so far as France has
repaired them by selling her own
securities. What does Germany care
Let France sweat. Germany does moi
intend to pay if she can avoid 1t. The
question OF what is her ability to pay
does not interest her. What she
wants is outside belief in her pov.
erty, and so she beats her breast and
puts ON rags-all except her untaxed
profiteers who have filled European
resorts this summer. clamoring 70,
the best rooms.