The Washington herald., 1922-06-11
Ready Cash Halts Perils
Of World, Says Simonds
Suggestion of Loan to Soviet Russia at Hague
Stops Attack OH Border States.
By FRANK H. SIMONDS.


Genoa conference. a prospect of
ready money has halted all the pro-
eession of perils which threatened
world peace. At Genoa IL was at
least postponed by the suggestion
that at The Hague there might be
some possibility of an international
loan to Russia. Now IL is the inti-
nation coming from an internation-
al bankers conference which has, at
Ieast for the moment, led to the ac-
ceptance of the German proposals,
or rather submission to the repara-
tions commission.
We have, then. lived through May
81, which was a date of utmost evil
portent for Europe without the
moving Of a single battalion. The
French have Joined with the other
allies in giving Germany that NOR
atorium which she had demanded. a
moratorium which interrupts money
payments on account of repara-
tions for the current year. Pro-
vided Germany keeps faith and OBJ
serves her pledges. the question of
sanctions and military operations
will not come up again during 1922.
various steps RecapItuIated-
In view OF the new discussion Of
reparations. however. II seems q
good time to recapitulate the vari-
Gus steps up to the present hour,
particularly as certain phases are so
little understood in this country.
Before doing this, IL is necessary to
deal with the situation raised by
Mr.. Lloyd George in his recent
speech in the house of commons in
the course of which he laid at our
door responsibility for the break
down OF the. treaty OF Versailles.
His statement amounted to a dec
laration that IL We had participated
in the reparations conference the
breakdown would not have taken
place. The inference was that our
policy, uninfluenced by any mate
rial interest. since we laid no claim
to any share of the reparations
materially to induce a policy of
moderation, such as Great Britain
herself had championed.
In reality this statement comes
with very poor grace of Lloyd
George, in view Of the actual occur
rences at the Paris conference. on
this occasion the merican delega-
tiOn took a very decided stand on
the subject of reparatiOns. They
argued that as a matter Of right
under the armistice terms and as
matter Of fact given Germany's re-
sorces. il would not be possible to
demand that she pay anything be-
yOnd the sums which would cover
her actual destruction of property
or injuries to civilian populations.
Amount Relatively Restricted.
This would have meant that Great
Britain would have been entitled
only to sums covering the destruc-
Of her shipping and the damage
done in air raids. a relatively re-
stricted amount. 1t would have
meant that France and Belgium
would have received payment for
their devastation. In a word, Ger
many would have been required to
make good destIuCtIon but not to
meet any of the costs of the war
to her victorious opponents. This
was the American contention and
the maximum of German repara-
tions under this system would have
been somewhere between 10000
900 and s12.50O. 600, 900 or rather
less than a third of what was
actually demanded in the treaty of
Versailles. as actually signed.
This American policy was bitter
ly contested by the British. sup
ported unwisely by the French and
the Belgians- In the end by
clever bit of sophistical argument.
Jan SHUTS persuaded Mr.. Wilson to
agree that the pensions should be
included in the things Germany
must pay for This. at one stroke.
more than doubled the sum total
Of reparations and was the chief
cause of all the trouble which later
followed. Had the British sup
ported America at Paris, much Of
the later trouble would have been
avoided and II is entirely inexact
time forward and claim that our
tion after Paris caused the trouble.
Came to Squeeze Germany.
British failure to support Amer
lean moderation at Paris was due
to the fact that Lloyd George came
to the conference after having con-
Quoted his Khaki election. in which
he had promised to make Germany
pay the costs of the war. to squeeze
her until the pips squeaked" and
to hang the Kaiser into the bargain.
He was thus stopped at the out
set by his own words from advocat-
ing or accepting any policy of
moderation. Hughes. Prime Min
lister of Australia and Jan SHUTS
Of South Africa seconded this policy
OF extreme riEor and it was SHUTS.
as I have said. who actually put
the thing over" with Mr.. Wilson.
In point of fact, however. nothing
he
policy pursued by both the British
and the French at Paris. viewed In
the light of later history. 1t was
the very essence Of wise British
policy to keep reparations down to
the lowest point, for the simple
reason that with very few excep-
tions all German payments would
have to be made in goods. On the
other hand, IL Germany were re-
quired to pay more than she be-
lieved she could or was willing to
attempt, then nothing was more
certain than that the French would
have recourse TO arms to compel
compliance.
Either contingency was of utmost
peril to Britain. For, II Germany
undertook to pay her reparations
accounts In goods she would per-
force replace British manufactures
not only in Britain but all over the
world. You would then have an
enormous stimulation Of German
manufactures and of German coal
production. British factories wouiu
be idle while German were busy
and when the reparations payments
were made Germany would still re-
tain her enormous machine ana
have made markets for her goods
everywhere.