The Washington herald., 1922-07-23
Reduction Of War Debts
Only Solution, Says Gibbs
France and America Must Follow Britain's
Lead If World Revolution Is to Be
Avoided, He Declares.

be stopped or accounted for. But,
broadly. the truth IL that German
workmen are taxed 10 per cent on
small wages. against which prices are
constantly rising. middle-class folk
are severly pinched. people living on
their incomes and dividends paid In
marks are ruined and. however much
the German people are squeezed by
the tax collectors. neither France nor
any other country can collect the
debts due under the Versailles treaty.
Now, bankruptcy in Germany. fol-
lowing the financial death Of Austria
and decay In all the center and east
of Europe Is. II 1t is allowed to
happen without relief, an absolute
checkmate to all hopes Of recovery
and tranquility on this side of the
world. 1t Is for that reason that Eu-
ropean statesmen and peoples who
have refused to face realities hither-
TO are damnably to blame.
The ruling out OF all considera-
tion of German reparations at Ge-
noa made that conference barren
of results. The natural but short
sighted policy of France In thwart-
ing all efforts to adjust the penal
ties OF Germany to more reasonable
dimensions has wasted years of val
liable time. II passions are still
allowed to rule and arithmetic is
ignored next year, 1t will produce
anarchy and revolution in Europe
comparable only to the tragedy of
Russia, involving higher types OF
civilization.
stfIl One Way Out.
Fortunately there is still time to
avert all that. and at last there Is
general recognition, even by
France. that the painful truth must
scientific way.
The French people are ready to
postpone Germany's future pay
ments, to reduce their ultimate
amounts by enormous figures. on
one condition, which I think is right
and just. 1t is that France should
be guaranteed the money necessary
for the reconstruction of the de-
wasted districts and relieved of the
debts to Great Britain and the
United States in proportion to the
amounts by which Germany is re-
lieved. She insists that the whole
problem is one and indivisible. that
any revision Of the Versailles treaty
must in part be a general readjust-
ment and settlement of information
ed indebtedness.
My opinion is that France has an
unanswerable argument on those
lines. and l believe the problem of
Europe could be made enormously
more hopeful IL II were dealt with
in that way. 1t would be scan
dalous IL Germany were given re-
lief denied to France, IL she was
let off her debts, while France was
pressed to pay. But It is absolutely
necessary to grant Germany relief.
not for her sake alone, but for the
sake OF Europe as whole. so that
France must be eased of liabilities
such as her debts to Great Britain
and the United States.
Up to United States.
Beyond any doubt 1t is for the
United States to make the first move
in consideration of this matter.
There must be another Washington
Conference: entirely devoted to tGat
purpose. The English people have
no intention of asking America to
cancel their debt or any part of 1t:
and arragements have already been
made to pay a heavy installinent
this year. II We bleed ourselves to
death we shall pay. But 1t is not
beyond the wit of man, certainly
not beyond the wit of Hughes. to
devise a plan by which there shall
be cancellation of debts all round
so far as they balance each other.
between one country and another.
and an international arrangement
among the European peoples based
on mutual concessions in methods
ct payment and the wiping cut OF
old scores which have no present
reality.
Black as things are because OF
the situation in Germany. I cannot
help thinking it has been such a
shock to the public imagination and
political leaders that II has broken
the last illusions and brought us
face to face with the real issues in
a way that will result in common
sense arrangements. On the other
hand. IL such arrangements are de-
layed, there will be a crash in Eu-
rope which will shake the utter
most parts Of the earth. That Is
no fancy language, but the sober
truth.
Copyright. ls9a.)