The Washington herald., 1921-12-20
GERMANY NEEDS
FOREIGN CREDIT,
SAYS BERNHARD
Would Enable Her to
Stabilize Currency and
Meet Reparati0ns.
BY GEORGE BERNHARD.

BERLIN. Dec. 1.-THE members
of the international commission of
reparation have been in Berlin for
the last few days. Nobody could
tell the reason why. At his hrst
reception. NJ. Dubois. who not only
sion. but is at its head, told the
chancellor that the only thing the
commission did not intend was to
rebate grants of respite.
IF we may believe these words,
the commissions journey has been
undertaken for the chief and per-
haps the only reason that the MEM
bers might have look at Germany.
This looks like a kind of local sum
mons where the jury is taken to
the place of the murder SO as to
get the impression necessary for
the verdict.
Distant Treatment Good.
In order to give a verdict on Ger
many. however, a local summons Is
not necessary. Germanys ailment
is to be seen from far off, and the
case" of Germany Is one of the
few medical cases where not only
distant diagnosis, but distant treat
ment, is able to effect a cure. Ger
many can be cured from London
and Paris-always in case London
and Paris have an interest in get
ting money from Germany.
The treatment of the patient
ought to begin with the physicians
getting rid OF their mistake. All
the world takes Germany for an
obstinate malingerer. In reality,
the country is in a state of the
gravest physical sickness. y
The Wirth Cabinet has the ear
nest intention of carrying out the
conditions of the covenant. But 1t
lacks one thing, especially as re-
CARDS matters 'of finance. 1t lacks
the great man, who, by his sug-
gestive powers. is able to show the
people that it is possible to carry
out the conditions. and that, by
carrying them out methodically.
| the necessary alterations of the
burden of reparation may be gained.
gained.
No Worse Than Others.
The Cabinet does not possess the
necessary power to replace the lacr
of conviction in the German sub
jects by high pressure. The Ger
man people see that immense taxes
are to be extorted. Most Germans
are not one whit worse than peo-
pie in other States. fanatical tax
payers excepted. They would end
by paying their taxes like other
| subjects elsewhere. If they had not
to bear the blows of cruel woros
as well, which come pouring IN
from abroad.
A brain versed in politics has no
difficulty in understanding why
French politicians have to tell
their people every week that Ger
many will have to be thoroughly
shaken and that in case 1t refuses
to pay. France will have recourse
to repair her losses by the private
property of the German subject.
The German subject is willine
TO pay the taxes but he does not
want to run the risk of losing mis-
private property. And as he scents
this danger when he reads the
speeches made in France and the
| articles printed in the French
press, he tries to bury his treas
| ures.
buy bOiIdT NOTES.
In the war times of former CEN
turtles, the peasant who heard the
enemy approaching took his silver
and gold to his field and buried
1t. Today more up-to-date forms
have been found. People buy dol
lar notes for their German money,
CT try to get their money to scan-
dinavia or other states by the help
| of friends, and invest it in foreign
money. All this is taking place to
very great extent in Germany at
present, but not at the inducement
Of government or with its permits
sion, but, on the contrary, in spite
of its strong resistance.
What is government to doo 1t
threatens the spectators with
heavy punishment. Still, in Ger
many, as elsewhere, You can only
punishment the felons you have in
custody.
There is only one remedy on a
large scale-a rise of the German
rate of exchange. The minute all
those who have bought dollar notes
or foreign securities begin to sec
that these measures involve them
in losses, all the fortunes invested
In foreign moneys will be changed
into German money, the exported
money will flow back to Germany. the
German government will have
plenty of foreign bills to paw its
reparations in way which will no,
have disastrous effects on foreign
rates of exchange and on the
money markets of the whole world,
Big Medicine.
THE epic Madyo;nou =:
prepared in tha drug store of Ger
many alone, however. Germany's
balance Of trade is not active: Ger
many wants an international loan,
AS soon as the great international
powers of finance are ready to al
low credit to Germans from their
own means, the readjustment of
values which is necessary in order
that Germany may become solvent
will surely take place.
This readjustment of values will
not take place when Germany
gains new means from the loan
mentioned, but will begin the moment
1t is really promised. 1t was in
teresting to notice the panic on the
German money market which be-
gan when the action of cred,, n,
the German trade rendered the
probability of such a loan less dis
tant.
At once the announcement caused
slump of the dollar from 32O IN
240 marks. The perfection of such
credit would most likely bring
the dollar down to about 100 or
even 100 marks. And thus the Ger
man MISUNDERSTANDING which the