The New York herald., 1922-07-23
GIBBS WOULD CANCEL
DEBTS TO SAVE EUROPE

ly, the truth is that German workmcn
are taxed 10 per cent. on small wages.
against which prices are constantly
rising; middle class foik are severely
pinched. people living on their incomes
and dividends paid in marks are
ruined and, however much the Ger
man 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, If 1t is allowed to happen
without relief. an absolute checkmate
to all hopes of recovery and tran
quillity on this side of the world. 1t
is for that reason that European
statesmen and peoples who have re-
fused to face realities hitherto are
damnably to blame. The ruling out of
all consideration OF German repara-
tions at Genoa made that conference
barren of results.
The natural but short t-sighted policy
adjust the penalties Of Germany to
more reasonable dimensions has
wasted years OF valuable time. II
passions are still allowed to rule and
arithmetic is ignored next year, 1t will
produce anarchy and revolution in Eu-
rope comparable only to the tragedy Of
Russia. involving higher types Of
civilization.
Fortunately there is still time to
avert all that, and at last there is gen.
eral recognition, even by France. that
the painful truth must be acknowl-
edged and dealt with in a scientific
way.
France Needs Relief.
The French people are ready to post
pone Germany's future payments. to
reduce their ultimate amounts by enor-
nous figures. on one condition, which
I think is right and just. It is that
France should be guaranteed the
money necessary for the reconstruc-
ton Of the devastated districts and re-
lieved 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 of
this problem is one and indivisible,
that any revision Of the Versailles
treaty must in part be a general re-
adjustment and settlement Of interna-
tional indebtedness.
My opinion is that France has an
unanswerable argument on those lines
and believe the problem Of Europe
could be made enormously more hope
full il 1t were dealt with In that way
It would be scandalous II Germany
were given relief denied to France, II
she were let on her debts while France
was pressed to pay. But It is abso-
lutely necessary to grant Germany re-
lief, not for her sake alone. but for the
sake Of Europe as whole, 80 France
must be eased Of liabilities such as her
debts to Great Britain and the United
States.
Beyond any doubt It is for the United
States to mako the first move In con.
sideration Of this matter. There must
be another Washington conference
entirely devoted to that purpose. The
English people have no intention Of
asking America to cancel their debt o,
any part Of Il; and arrangements have
already becn made to pay a hoavy In,
stallment this year. II we bleed our.
selves to death wc shall pay.
hut Il II not beyond the wit Of man
certainly not beyond tho wit ot
Hughes, to devise plan by which
there shall be cancellation Of debts nj
round no far as they balance each
other, between one country and an.
other, and an international arrange.
ment among the European peoples
based OH mutual concessions In meth.
DDS Of payment and tho wiping out OF
old scores which have no present real.
lty.
Black Rs things are because of thu
situation in Germany, I cannot hclr
thinking It has been such q shock ts
the public imesination and politica
leaders that It has broken tho last Il.
lusions and brought us face to fact
with the real issues in way that will
result In oommonsense arrangements
On the other hand, if such arrange
ments are delayed there will be a crasf
In Europe which will shake the utter
most parts Of the earth. That Is M
fancy language, but tho very sobel
truth.
Copyright, 1922, by The Mcclure Newspape
Syndicate.