The New York herald., 1922-08-04


man indemnity, in return for proper
was perfectly fearless and unafraid in
facing the opposition of the Chamber
but even he would have shrunk from
going 10 the Chamber and urging France
to accept a figure which at the present
moment might be regarded as quite
acceptable.
Indemnity Boards Powers.
| Both for political and financial rea-
\ sons ii was essential that you should
have some machinery like the Repara-
tions Commission which would give its
time to the examination and adjuiica-
| ton of claims and above all. to allow
| the passion temper and ferocity that
was TO subside. i want &c emphasize
again what said 10 the Chancellor that
the amount was fixed at $500 100000
pounds sterling, subject TO adjudication
from time TO time by the Reparations
Commission. And that Is IN the treaty.
Critics of the treaty, always conven-
iently or from lack OF knowledge, have
refused to refer TO that essential part
of the treaty, its vital part. The COM
mission can sit to-day and say that
Germany for such and such reasons
| cannot pay the amount adjudicated last
/
| it were an alteration of the treaty. IL
! is not. The provisions were incorpo-
! rated in the treaty and the Repara-
tions Commission in declaring a mora
| torium and reducing annuities Is acting
entirely under the authority given 1t
/ by the treaty.
! There are two considerations l want
! 10 put before the house. Ny friend
says that 1t would be undesirable to
\ yxyif
the French Prime Minister and the
Minister OF Finance after committing
ourselves to particular proposals--ac-
ceptance or rejection of the political
proposals. / am glad that Poincare's
proposals were put before us and l
trust the house will allow us to go
there with a free. hand to examine
them and do our best to come to an
arrangement.
"If you press Germany too hard you
may get nothing Put 1t at the lowest,
what will be the damage TO Europe apart
from general disturbance of peace?
Take II merely from the point OF view
of reparations. You would get nothing.
That Is what happens when you press
debtor too hard under any conditions.
There is also the danger that you may
drive Germany into despair. Whether
she would throw herself into the hands
very little TO choose between them from
this point of view. There would be no
reparations from either. There would
be lots Of trouble but no cash.
Peril In German Revolt.
"a revolutionary Germany right In
the center OF Europe is very different
thing to a revolutionary Russia. Rus
STA at best is a very disorganized coun-
try In many respects II has n hope
iessly helpless population. They have
run ever the revolution badly. They
have run II In such way as to dis
credit the revolution, which in itself
is an advantage. IL has been blessing
10 Europe that the first outpurst OF
communism took place in Russia. In
that respect Lenine and Trotzky nave
been the saviors of society.
"That revolution has been run so
badly that II does not encourage others.
and there are others to follow the ex-
ample. Germany is different. 1t would
be a revolution in well organized
country with highly trained intelli-
gent population. and would be a real
peril to the world. From that point OF
view agree that II would be mistake
to press Germany beyond the limits of
her endurance or capacity But / want
70 put Il from another view. I am
bound to put It.
"It is a mistake because of these risks
and dangers 10 run from a fair and just
claim Germany quite understands that
she is 10 pay. II lis what happens be-
tween individuals. The noble lord says
that the vice OF the reparations is that
the people are treating II as IL II we're
punishment OF Germany. Not in the
least When somebody puts you into
court and brings an unjust claim against
you and you get your verdict 10 recover
your costs you are not doing IL for
vindictive reasons. You are doing II be-
cause you are out of pocket and want
cash paid.
Germany has inflicted damage by the
decision she took and the action which
followed II. She has inflicted damage
on country and wantonly driven 1t
into a suit. We have a debt of over
| f7, 600, 0O0, 900. Frances debt is f6, ,00O-
100000. She still has reparation to pro-
vide for and she says that the party
which has inflicted this wrong must con-
tribute to making UP the reparations.
This is not revenge and / want to get
rid of the idea that X IN revenge. We
are not claiming the whole cost. We
have only claimed a part Of the dam
age. That is because. you see. there
w no use claiming the whole cost There
Is no country in the whole world that
could pay the whole cost.
Cites Two Extremes.
But supposing you 60 from one ex-
trerne to the other. There Is the ex-
treme OF overestimating the capacity
Of Germany, but suppose you 60 60 the
other extreme and underestimate H.
Germany like every other country In
the world is suffering from the fact
that the world cannot trade This is
not the time to estimate her full ca
pacity. Supposlng you put her capacity
nj a thousand or fifteen hundred mis
/ lion and let her off with that. What
would happen? Germany has wiped
out her national debt. The fall OF the
mark may have very Injurious effects
and no doubt will on the trade OF
| Germany, but Il has entirely wiped
out her national debt. 1t has con-
fiscatory effect on debts OF all kinds.
Germany would then be In this posi-
/ tion.
"Shc would not have national debt.
| She would have an internal debt OF one
thousand to fifteen hundred millions
and not a single factory damaged--many
OF them reequipped. She has undoubt-
edly in the last few years been using
| this imitation for the purpose OF equip