The New York herald., 1922-12-26

sum OF reparatlonS Wnlch Germany shai
pay and can pay. If they cannot agree
among themselves and with bankers and
investors upon plan which will stabil-
tie German currency. we may expect the
franc and the iira 10 start down the de-
clivity In pursuit of the mark, the crown
and the ruble.
'The terms of the new reparations
settlement manifestly ought to include {:
(a) priority Of payments for the recon-
struction OF the ruins of northern
France (b) a moratorium to Germany
for several years. conditional upon an
adequately secured bankers loan TO
stabilize the mark. to balance the cur
rent German budget to contribute 10
French reconstruction this year; (c) the
prompt withdrawal of the barbarian or
semi barbarian AIohammedan troopstrom
the Rhine nd the progressive withdrawal
of other troops as the terms of the NOR
atorium and reparations agreement are
fulfilled by Germany.
"A plan devised upon these general
bases Is Indispensable to the solvency
and credit OF the state in France and
Germany alike, to the rehabilltatios OF
industry In Germany and so TO the re-
covery of reparationS by France.
More important TO the rehabilitation
of Europe than any conference, than
any agreement by statesmen and fnan-
ciers can be, is the exercise of the exor-
cism OF the spirit OF hate which ami
mates Governments and peoples. Iniess
the peoples are moved by Chiistiap
will to peace and by Christian comfy
there can be no real peace in Europe.
MIR. smoot's Prediction.
Senator Smoot predicted that the
Borah amendment would be defeated
when the time comes for roll call on
Senate sentiment He said:
II do not think that the conference
proposed in the amendment to the navy
appropriations bin offered by Senator
Borah would accomplish any good pur-
pose We know in. advance what the
other nations want and we are not in
position TO grant II. II we called
conference, invited these nations here
and then. when they came, turned down
their requests, the situation would not
be improved and the United States
would be placed in false position. |
em opposed to it and | do not think
that the amendment to the navy bill VIII
be adopted"
Senator Borah. author o, the amend
rient is not a whit dismayed by the
lineup against him. Not even the posi-
ton taken by Senator Hiram johnson
(Rep Cal). who was his brother in
arms In the league fight, has alarmed
the Idaho Senator. He characterized to-
night as ridiculous the confusion be-
tween American participation in IN
economic conference and participation
In Alliances of political character.
The degree of his divergence from the
Administration on the settlement Of tht
reparations issue is manifested by ais
Willingness that this country should, II
called on be ready to assume the roe
OF umpire and mediator lin the crisis.
Its ability TO act as such in this enle'-
gency. in his opinion. would be q great
manifestation cf the advantage accruinS
from the decision TO remain independents
OF the League OF Nations and the bodies
created under it.
The United States. he asserts. is al
ready involved to the hilt in the world
economic situation and cannot avoid
being i'm It, conference o. no confer
cnce. This line of argument he will pre-
sent in the coming debate in the Senate
Ee will have the support of the agricui-
tural group or at least of the majority
Of its members. who believe that on
American leadership and initiative de-
pend such settlement and solution as
viii open the markets to American sir-
plus farm products.
Mr.. Hnrding's Probable Course.
Should the proponents OF AN interna
f.onal conference under American au-
spices carry the amendment 20 the navai
appropriations bill as it now sands
there is every reason 10 believe that
President Harding would net give II any
Immediate consideration.
The amendment merely authorizes
: him to take the step, and he would prob
sbiy put his siguature to the naval an-
rropriation bin Notwithstanding su,'h
Al. of t4p
Administration leaders, however. 20
modify 1t i'm such away as to relieve the
President Of what might be interpreted
as a Congressional mandate on foreign
policy.
Two vital objections 20 the calling OF
o conference at the instance OF the
United States Government would be:
First, the certainty OF the European
debt 10 this country being thrown into
the caidron OF international contro-
versy round the table. and second. the
practical impossibility of separating in
such a conference the question of rep
arations from the French nationalistic
demand for new political and territorial
guarantees in case the guarantees of
the versailles Treaty are revised or dis
car1ed.
The Administration has never lost
sight OF this in course OF its exploration
ci AVENUES oi anu va th' h'uio iopedh tHe'
2cncy. 1t has taken the position that
France must see for herself that the
economic sections of the Versailles
Treaty are impossible of fulfillment. but
they involve French treaty rights and
rights OF consent. which. it is pointed
out. this Government could not request
br suggest should be abrogated unless
II Is prepared ogo further with Ameri-
can guarantees and concessions than the
foreign policy of the Administration or
the sentiment of Congress would permit
Everything. therefore. awaits on
French acceptance OF the principle that
the treaty should be revised 10 accord
with the economic. realities OF the situa-
ton. This is the crucial question at the
moment. and on the decision is con-
tingent American aid In the secondary
stages OF European reconstruction.
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