The Washington herald., 1922-07-23
First Reparations Move Up
To England, Ayers Simonds
European Hopes of American Cancellation I'm
founded, He Declares-Sees Single-Handed
British Action as Only Alternative.

and the French rs per cent rather
than So per cent.
Advocated Reduction.
Accordingly, to anticipate for a
moment, when the British later
came to the conclusion that the
Germans could not pay the total of
fixed at Paris and made
up of both devastation damages and
pension charges. they advocated a
reduction. but a proportionate re-
duction. In other words the French
saw that instead of situation
where their ruins would be re-
stored and their pensions paid. they
were not going to have money
enough to reconstruct their devas-
tated areas. while the British, hav-
ing no devastated areas would still.
even If the reparations were scaled
down get something for pensions.
But to return to the Paris situa-
ton. America said. in substance,
Germany can pay approximately
s15.OO0,00 of which one-third
or one-f1fth will be in kind and rel
atively immediate. This means that
Germany can only pay for recon-
structfon of the devastated area.
therefore. since this sum is the
whole and 1t no more than covers
France is interested
in preventing any other items from
being added, If only reconstruction
Is included. she will properly get
most for her ruins"
The British said to the French
There Is enough money for eyery-
thing, there is no limit to the sum
Germany can pay. which makes IL
necessary to exclude pensions. and
We can together make Germany nav.
therefore come in with us and block
ths american ideas and you will not
ohiy get all your reconstruction
paid for but your pensions as well
and the French. quite foolishly as
the event has demonstrated, ac-
cepted British reasoning.
This vital point should then he
clear. namely. that the responsibil-
ity for the fixing of reparations at
the present high figure was not
primarily French but British. Mr..
Baruch. who was one of our fnan-
clal representatives at Paris. has
published an article in the current
worlds Work" in which he saws,
quite equivocally. that it was the
British who were mainly responsible
Tor the failure of the American ef-
fort to keep the sum of reparations
down to the point which has later
been recognized as the maximum OF
possibility.
Paris. however. and Lloyd George
emerged from the shadow of too re-
cent campaign utterances. il becam.
clear. first, that British interest Law
not in the direction Of COLLECTING In
IDENTITIES by allies, since payment
in goods would exclude British
goods, but in the reduction of the
total Of reparations; secondly. that
Germany could not and would NOT
pay and that refusal TO pay wa,
bound sooner or later to lead TO
French military intervention.
Began Campaign.
Accordingly. Britain began a CAM
paign for the reduction OF the sum
total Of reparations. which has en-
dured to the present hour. But, in
urging a reduction. she has found
herself in the presence of France.
which continues to quote the argu-
ments officially advanced by the
British to enlist French support
AGAINST American moderation AT
Paris Then and for obvious rea-
sons George wanted reparations
high and did not hesitate to assert
British conviction that GERMANY
could be made to pay for everything.
Now. for equally obvious reasons.
ne desires a reduction of repara-
tions, and he is endeavorine to dis
suade the French whom he per
suaded in Paris.
hou miss the whole point of the
reparations controversy II Won do
not perceive that it was Britain. NOT
france. which at Paris pressed most
vigorously for a large reparations
total and for reasons which I have
emphasized. From the French point
OF view the British were eager TO
have reparations high and were con-
Vinced Germany could pay lust as
long as British interest Law in hay-
ing them high: when the interest
shifted the British were quite as
convinced Germany could not pay
and. quoted moral texts against
France just as freely as they had
previously against Germany.
Determined Not to Pay.
"' IN inc meantime the Ger
mans. when the reparations total
was fixed. determined not to pay.
They had devastated France with
the express and deliberate purpose
to erase her from the number of
going nations; If France had to bear
the burden of reconstruction her.
self, then what had been lost in the
f1eld might be regained elsewhere.
You had then the deliberate German
pIan TO evade all reparations pay
ments by systematically Initiating
currency. exporting capital and sub
sidizfng national industries.
German strategy was based upon
THIS thoroughly sound conception:
German payment must be. in the
main. in goods. and even where IL
was in gold 1t could be only with
the proceeds Of the sale OF German
goods abroad, after her small gold
reserve was exhausted. Therefore
Germany. to pay. would have TO sell
enormously abroad and her sale
would be of goods which would
compete with British. Thus the
more Germany paid. the worse the
British situation, for British work
men would be thrown out or en-
ployment. because of the restriction,
Of the markets both at home and
abroad
Demonstrated Accuracy.
This reasoning soon demonstrated
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