Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-02-02
Wednesday, February 2, 1921.
German Reparation

because the Peace Conference
neglected to fix the terms OF the
financial penalty to be imposed
on Germany the problem remains
and because of the uncertainty
these many months business all over
the civilized world has been seriously
injured The United States being a
creditor nation is among those that
suffei.
If possible Germany should have
been compelled to make good the loss
occasioned by the war she started.
This is said to be an impossibility.
What is possible? The Allied Su-
preme Council has agreed on the
terms, but as these are not covered
by the treaty with Germany the lat
ter must be consulted. That she will
intelpose every possible objection is
to be expected. Already her goods
are finding markets all over the
world at prices with which the other
countries cannot compete. The low
rate of exchange favors Germany in
this, as also does the fact that she is
absolutely compelled to sell for what
she can get and has q big stock of
some commodities accumulated dur
ing the war. She is offering, for one
thing, magnetos for five pounds that
England makes and sells for twelve
pounds. Her dyes are being used to
club the dye-makers of other coun-
tries out of existence. She is enter
ing the South American markets with
goods at prices calculated to kill
competition. Before the war she was
able TO do this; now she is not only
able but is compelled to do it. For
it mus. be borne in mind that the
only way she may get the money to
pay the war damages is from the sale
Of her goods.
The trade situation undoubtedly
had something to do with the adjust
,nent agreed upon by England and
Franco, which included q tax of 12a
cents on her exports. Germany is
expected to howl vociferously against
this. The free traders in this coun-
Try are likewise lifting up their wall
that consumers of German goods will
have to pay more for them. With
regard, however, to the other terms
of rcparation, there appears to be
general approval outside Germany.
Paying grand total of two hundred
and twenty-five billion marks in a
period of forty-two years is big
undertaking. though it will fall many
billions short of just reparation.
Germany is entitled to absolutely
no sympathy. She should have
placed on her the utmost burden she
can bear, but she must be allowed to
live in order to bear it. If she does
not attempt to support a big army
and navy and cuts off the pension she
is paying the Hohenzollerhs it is esti-
mated she can save three hundred
millions of her pre-war expenditures.
She ought to support this debt, which
practically amounts to twenty billion
dollar debt at 3 per cent with a one
per cent sinking fund. and thrive I'M
der it. Meanwhile she will watch
her opportunities. Already she is
profiting from those. The divergent
impulses of England and France have
already helped her and further differ
unces Of opinion among the allies may.
also prove to her advantage. She
must however. convince the powers
that loan money of her ability and
disposition to pay the reparation
which shall be fixed. because loans
she must have to successfully de-
veiop and fit herself for the under
taking that is ahead of her. J.