The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-02-01
AMERICA TO FIGHT
PREPARATIONS PLAN
Sees Failure in Attempt to
Impose Big Sums.
Special Despatch to THE NEW YoaK HERALD.
New York Herald Bureau,
Washington, ID. c., Jan. 81.

Special Despatch to THE NEW YoaK HERALD.
New York Herald Bureau,
Washington, ID. c.. Jan. 81.
The United States Government is ut
terly opposed to the scheme for Ger
many's PREPARATIONS payments adopted by
the Supreme Council IN Paris. The plan
is regarded as lacking In political and
economic wisdom. as not susceptible OF
fulfilment and 1t is believed If any
attempt is made to carry II out the
world will be in danger Of a recurrence
So far as the United States is affected,
1t is held that scheme has been ar
ranged by which the people of America
are to be called upon to aid in paying
the allied war debt.
For the first time in the series of de-
velopments growing out of the Versailles
treaty the Administration and Congress
appear to be in sympathy. Senate for-
eign Relations Committee members,
speaking for both reservationist and ir-
reconcilable groups on the treaty. said
the agreement furnished proof of the
wisdom of the Senate In refusing to
ratify the Versailles treaty. Had IT. been
ratlIeu, tney Sdlu, Tie OHlteu otdtcS
would have had no more voice In the
settlement than 1t has now and would
have been placed in the situation OF
pulling Europe's chestnuts out of the
fire.
1t generally is agreed that world con-
ditions demand that decision shall be
reached as to the exact amount that
Germany shall pay, but there Is be-
lief here that Germany cannot. and
probably would not II she could, pay so
large an amount as that fixed at Paris,
and that the 12h per cent export duty
leaves the total amount OF the repara-
tons as indetermnate as ever.
The situation Is so fraught with pos
sibilities of danger that the Administra-
ton Is seriously considering expressing
itself officially not only on the question
of reparations hut on the entire matter
of the rehabilitation of Europe. 1t Is
realized that domestic policies entered
largely into the settlement reached
Neither the British nor French Gov
eminent could have done less and sur
vived. and this belief applies especially
to the Cabinet of Premier BRAND.
The effect of certain sections OF the
Paris agreement, which must be accept
ed or rejected by Germany, is believed
here to handicap the United States In
dealings with Germany.
! The attitude Of the Senate leaders Is
that the United States has deep inter-
est in the matter of German PREPARATIONS
because of It's bearings on German mar
kets for our goods and because Of Tho
huge allied debt to the United States.
They believe that the American remedy
lies in the arrangements 1t may make u
a separate peace treaty and that the H.
lied debt can be used as a leverage TO
make the proper arrangements.
The allied Governments will find diff
Guilty in floating loans here upon the
certificates of Germany indebtedness.
| This view is based on the assumption
that American bankers will not accept
| fictitious values as actual security. and
1t is in this way they will regard any
promise on the part of Germany to pay.
The ADMINISTRATORS official view
point is that the Allies should consider
the reparations problem from three
viewpoints:
/. Considering the amount they think
Germany can pay.
9. Considering the amount they think
they can afford that Germany shall pay.
g. Considering the amount the bank
ers of the world think Germany can
pay.