The New York herald., 1922-06-21
Rehabilitating Europe.
The Only Basis on Which Economic
Reconstruction Can Proceed.

To THE NEW YORK HERALD: Your
editorial columns recently set forth the
only possible grounds upon which the
economic situation of Europe can be
improved, aside from the restoration Of
international commercial credits. the
only means by which the latter may be
brought nearer to the standard Of gold
acceptances:
The people of America and the rest
of the world in position to lend to
Germany for reparation or other purposes
r will not put their money into loan that
the international bankers cannot recon-
mend to them. The bankers will not
recommend thu loan II 1t has no prime
security behind 1t. and IL none of the re-
sources of Germany be employed as
a pro. obligation in paying off the loan
because all these resources are de-
manded for reparations to the Allies In
addition to the ,oan. chiefly going to the
Allies.
1t is a fact and vital consideration
which ought to be most determinative
of American foreign policy or economic
participation in floating the repara-
ton obligations of Germany, that the
Preparations Commission, together with
the International Financial Commission
created under the provisions Of the
Sevres treaty, as we'll as other mixed
arbtral tribunals, have impounded. not
only private and public debts of the
Central Powers or their nationals. but
so far as possible, and with sovereign
prerogatives to do so by virtue Of the
mandates. vast oversee possessions and
private properties. railways. mines and
other concessions Of immense potential
wealth.
There is no disposition on the part Of
the mandatory Powers to permit the
participation of the United States In
the beneficial exploitation Of these latter
accessions. The "open door" has but a
most limited theoretical application
with respect to prior rights of American
nationals. nor, as before pointed out. has
this Government. without act of Con-
gress. any power to extend the national
interest Of the United States or the
rights of any asset, even by virtue Of
the recent treaty with Germany, ac-
quired by the armistice terms as against
peoples with which we were never at
war so as to stand upon a parity with
Powers exercising mandates derived
from the League of Nations. But 1t Is
clear that it's policy and traditions die
tate quite different policy. that its
voice be heard in favor OF the ultimate
restoration of these private properties,
II not an amelioration Of the situation
OF those nations which by reason Of the
conquest of their territories have been
convulsed by racial and religious war,
America may with propriety insist that
the Preparations Commission by its SUBJ
ordinate boards submit these great as
sets as security for international loans.
open them to the exploitation of the
nationals of all countries upon terms
which would permit the funding of rep
arations and the beneficial enjoyment of
surplus profits by investors and nations
or nationals whose property they for
merly were, provide for their ultimate
restoration. and thus open wide the
gates of credit and commerce, allaying
the political unrest everywhere appar-
ent. JOSEPH WHfrLA SrINsoN
NEW YORK, June 90.