The New York herald., 1922-04-16


Copyright. 1899. by TIE NEW YonK HERALD
New York Herald Bureau.
Paris. April Is.
John Maynard Keynes, whose eco-
| nomic theories in respect to Germany
have kept the European capitals more
or less in an uproar for the last two
years. finds a worthy antagonist In
Raphael Georges Levy, a Senator OF
| France. No sooner had Keynes pub
lished his first volume, "The Eco
nomic Consequences of Peace" than
Senator Levy. who is recognized as
one OF the foremost bankers and stu
present day France, replied with sta
tistics equally as incontestable as
those of the British economist.
The latter however, has developed a
new thesis: that Germany is unable
TO pay 132, 900. 900 600 marks gold and
that reparations must be cut down to
not more than 36,000,000 900, which he
considers enough to pay for actual
damage caused by the war
Just as Senator Levy advanced. in
the case OF Keynes's earlier work, a
counter thesis which has become the
official position on the issues Of peace,
the Senator now intends to reply to the
English professor, voicing his protest
against such Limitation as is proposed
by Keynes in his second book
In an interview granted TO THE New
YORK HERALD correspondent Senator
Levy has outlined the general PRINCIPLES
he will follow In a new volume, wherein
ho will hold up to ridlcule the contcn-
ton that Germany is unable to pay.
But before any other promises can be
considered he insists that there must be
a willingness OH Germany's part to
carry out the pledges made at Versailles.
"The schedule of payments accepted
by Germany last May amount only to
5000, 100000 gold marks year he
said. Mr.. Keynes must remember thet
tho total OF Germany's naval and mil
tary budgets for 1913 almost totaI'ed
this sum. That was the year when the
Reichstag voted special contribution
Of more than 1,000.000.000 marks for
military expenses: but to-day the treaty
has reduced Germany's military ex-
penses to almost nothing and therefore
she has got TO make only comparative
" small effort in order TO disburse u
the Allies the entire sum she has reccg'
nized as her debt to them.
Under present conditions. to inscribe
upon her budget huge sums for food
subsidies and cheap transportation for
her people constitutes a veritable swim
die. as article 24S. accepted by Germany,
provides first lien upon all property
and resources OF the German Empire
for meeting reparations and other ex-
pcnses resultant from the treaty.
This viii be Frances constant opposi-
ton to the fantastic theories OF Keynes
after paying 3.000000.0o marks be-
fore the war for the army and navy
only how can any one contend that she
il unable TO pay the same amount To-
day."
senator Levy. like the majority OF
French financiers. cannot support
Keynes's solution by counting upon the
abandonment Of the debts due between
the Allies and the United States even
by the remission OF sufficient German
type G bonds to cover. as all the In
formal negotiations along this line until
now have failed to achieve anything.
Ignorant of Prices.
As IL is considered here. Keynes's dis
cussion OF the cost OF repairing and re-
building houses and making tlto agricul-
tursI regions productive IL based Upon
total ignorance OF the existing c.a.s gcs
IN France. For instance. says Sen.
Levy:
"NTr. Keynes finds f1, ,00O, 900 IN excess
for rehabilitation and f600 900 fer homes.
but this makes only slightly mere than
9.000f. gold or 4s.000f paper to .hc house
and II the expense Increase cc-fiicient Is
taken as 4, II represents only pre-war
value OF 12,000f building. Likewise
Mr. Keynes's contention that the fertility
H.. t..r 49, ~txs..
over TO which IL was subjected during
four years Is unreasonable, % It does
not take into account the tran endous
cost of removing barbed wire and the
dangerous remnants OF the war. or kill
ing the growth OF weeds in oreer TO ena-
bic even an initial production"
As to Keynes's theory that pensions
must not be taken into consid ,-a, 'oil. the
French long ago have admitted that
these cannot be covered by th3 80, ,000,-
900. 900 gold marks demanded Of Ger
many. though the treaty plainly gives
her the right 10 makea supplemental
charge for them.
"It Is impossible for France 20 follow
Mr.. Keynes's reasoning. because they
take different bases" adde1 Senator
Levy. I'VE consider the treaty n spite
OF It's diminutions, as the char. for new
Europe. and II the nations which have
signed 1t renounce Its execution II Is
hard to sec upon what BASIS the Euro
pcan edifice can be reconstructed. We
have shown constantly that the burden
imposed upon Germany unde~ the May
schedule OF payments is far fron In ex-
cess OF her capacity: and we arc con-
vlnced that II impartial obsr- crs, es-
pccially tho Americans. only vii. investi-
gate the r5ai situation they will under
..r l,of ISraf i, az nYNI. no
fact that she IL suffering mere than
other nations as result or the war. is
not relInquishing her habituil modera-
tlon IN demanding to-day some satisfac-
tion for the obligations Ger',any has
rnnfrn cfed with hnrn