Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-12-07

bankruptcy, they would have to take
possession of all the insolvent deb
tors property and divide it among
the creditors in the proportion of
their just claims. That is not exact
ly what they did under the repara-
lions agreement, because in that case
they first divided what Germany had
agreed to pay according to an arbi-
trary arrangement of their own, and
they they trusted her to pay the
claims. If she does not pay them, the
real bankruptcy proceedings Will have
to begin. The Allies will have practi-
cally to take over the German repub-
lie. and then divide such resources as
they can discover in proportion to the
debt that each can prove. What re-
sources or property" of the German
republic will the receiver in this case
be able to discover? Certainly not
enough to pay the just debts of a sim
gle one of the late enemy nations.
Not even the fantastic League of Ma
tons provides the machinery for
such process, and it would soon and
simply resolve itself into a new war,
in which the creditors would newly
waste their own resources, and per-
haps get nothing in return except
palaces and offices they could not oc-
cupy, few railways useless to them,
undoubtedly certain national obliga-
tons that they would themselves
have to meet--and lot of future
promises, in the case of which the
whole process of enforcement might
have to be begun over again.
1t is really q new situation in the
history of the world. This does not
mean. of course, that rations have
not been bankrupt befor6.f Many ma
tons and governments have been
bankrupt. Rome was bankrupt after
the punic wars, and, dishonesty es-
capped the consequences by reducing
the "as" from twelve ounces of cop
per to two ounces, thus paying what
it owed with the sixth part of the
debt that it had incurred. France
was bankrupt after the Revolution,
and gradually scaled It's obligations
down from "assignats" to "mandats,"
and then to nothing TO ALL Austria
was bankrupt after the Napoleonic
iZe its bankruptcy with an official
decree that left it's creditors whistling
for the forms they had lent. But
these bankruptcies were so to speak,
in the face of the countries own cit
liens. The debtors had no recourse.
1t was left for the New World openly
to cheat its foreign creditors. Peru,
Venezuela, Mexico and other Ameri-
can countries have repudiated their
just debts, and so, alas! have all the
American states south of Mason and
Dixon's line Except we believe. Ken
lucky and Texas and also Minneso-
ia, and In the case of certain bonds,
Indiana and Michigan also. The
United States cannot coerce a state
into keeping its pledges. The repudi =
ated bonds of a large number of
American states are kept as melan-
choly curiosities in many European
counting houses. And we have q no.
table instance of national bankruptcy
and reputation in full progress in
the case of Russia-and no bankrupt
cy court at hand that is willing to
assume the task of enforcing pay
ment.
Germany may well be bankrupt.
but so far as can be judged she is
not the only European country that
IS or may be in the same condition.
The debts owed by certain European
Governments to the United States
appear quite hopeless of Rllection.
And what DO the debtor nations plead
as an excuse for not paying even the