The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-01-02
BY ARTHUR w. KIDDY.
Editor Of Bankers Magazine and Financial
Editor Of the London Morning Post.)

EDITOR OF the LONDON Aorulnk fost"g
LONDON, Jan. l. In consider
ing the prospects for the new year
which prevail in this city with re-
gard to the political outlook both
international and local. AS regards
the former, l would preface my
observations by saying that
doubt II the city is as we'll in
formed as in pre-war days con-
corning matters pertaining to inter-
national politics. OF course, even
to the insider the outlook is OBJ
scure enough, but ! think that gov
eminent by coalition makes for
greater secrecy than ordinary party
government, and although we are
now some way removed from the
war. the methods of secrecy which
prevailed during the war period
are rather difficult to dispense.
Therefore. you must regard the
views ] am about to express as be-
ing simply those of the keen busi-
ness man in the city without pre-
tence of any kind of official in
spiration.
Obviously, one of the first events
of Importance will be the ratificaS-
ton or otherwise of the Pacific
treaty by your Senate. Rightly or
wrongly, business men here believe
that your country is behind the
President, and behind the treaty.
but. Of course, politics are tricky
things, and ii is rather difficult to
reckon upon what may be the de
velopments in this particular direc-
ton. Assuming, however, for the
moment that the Washington con-
florence proves to be really fruit
full through the ratification OF the
Pacific treaty. there can be little
doubt that the present economic
situation in Europe must still have
a profound effect upon information
al politics themselves. 1t is GER
tainly likely to affect international
politics in Europe itself, for while,
on the one hand. We have the de-
termination of France to enforce
her reparation claims over Ger
many-a determination naturally
strengthened at every turn by the
sight of the devastated countries
we have another large section, in
Guiding bankers and traders, in this
country who feel that the financial
and economic resuscitation of Ger
many is undoubtedly necessary for
the economic wellbeing of Europe
as whole.
European Cooperation Foreseen.
How these two ideals are going
to be reconciled remains to be seen.
but If I were disposed to prophesy
l should say that before long II
would be found that the economic
situation of many parts of Europe
is so desperate that such countries
now apparently poles apart, as
France and Germany. or Germany
and. England, will all have to CO.
operate in an endeavor to evolve
order out of the present chaos;
otherwise that chaos will become
universal.
Whether in these DEVELOPMENTS
America will take a hand remains
10 be seen, but I should say that
some kind of cooperation is highly
probable on purely business
grounds. Setting aside altogether
the question Of the extent to which
your export trade is affected by
European conditions. the amounts
owing to you in the shape Of war
debts by Europe are SO great that
America cannot afford to allow
France and Germany and some of
the other countries to drift to
bankruptcy when there is no need
for such result II certain co-opera-
tive credit schemes are put into
force. Great Britain would play
her part in commencing to repay
her debt to the United States, but
there are limits even to Great Brit
aims power to aid the situation