The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-04-28
PREPARATIONS MUST
Be CUT, SAYS PAISH
Continued from First Page.

Continued from First Page.
the money is raised, so long as the in
stallment is paid. But the fact re-
mains that Germany cannot pay rep
arations in cash, except by borrow
ing, until Europe's power to buy her
goods is restored. Thus the injured
nations are waiting for Germany to
| pay in order to get restored. while
Germany cannot pay so long as the
nations are unable or unwilling to buy
her goods.
| While these conditions remain all
hope of European restoration must be
Abandoned; all resolutions passed at
Genoa must fail to become effective.
In view of this position 1t is evident
I that reconsideration of the whole ques-
ton of reparation already is over
due. Indeed, the refusal of France to
permit it's consideration at Genoa Is
another blunder OF the first magni-
| tude, as, alas the French people are
/ likely to discover from experience.
But refusal to permit the matter to
be discussed officially cannot prevent
discussion unofficially and privately;
and the matter has been much dis
cussed. / propose therefore to deal
with the matter as simply as possible.
| The Germans have promised to pay
| E6, 900 .000, 900 and have given securi-
| ties therefor. These securities are
valueless because the interest Is I'M
paid, because no responsible person be-
lieves it ever can be paid and because
no one is willing to buy them. The
interest on the sinking fund of these
/ bonds would call for more than $780,
100000 per annum. a sum far greater
4 than any nation can pay other nations
for interest and principal and far
4 greater than all borrowing nations
b con- bsned ever paid their foreign cred
4 itors. Both the capital amount and
4 the interest charges are impracticable
sums for any nation to pay to other
nations.
The proposals the Bolsheviki
brought to Genoa, wonderful as they
are, are not as fantastic as the deci-
sion of the Entente statesmen to COM
pei single country to pay such sums
annually to foreign countries. Indeed
their magitudes give color TO the sug-
gestion Of some Entente statesmen,
who are believed to hdve greater un-
derstanding of financial matters than
others. that they never intended them
to be paid, preferring to keep their
debtor eternally In jail because OF her
| inability to pay what Is clearly I'M
4 possible.
j But the ever increasing poverty OF
Europe renders this idea also impos-
sible. Germany cannot be kept in Jail
without disastrous results to the
whole world, including France. The
annual payment demanded OF her
must be reduced to sums which she
can willingly pay in order that she
may earn and pay these practicable
sums. Republican France need have
no fear of republican Germany.
Moreover. the world will no more
hermit the new, liberal and pacific
I German republic to conquer France
I than II allowed monarchist Germany
to do so.
Germany would Break jail.
4 Sooner or later Germany, allied with
Russia. will break Jail and France viii
take her place Every consideration
political financial, economic or hu-
anitarian--demands the readjust-
ment of reparations on reasonable
basis. Reasonable reparation would
at once render practicable the restora-
ton of Europe and permit whatever
credit Europe needs to be raised. 70
cause trade TO become active instead
of depressed; would remove the poiti-
cal dangers arising from unempioy-
| la
tirely change the atmosphere of In
ternational politics from one of dis
trust and danger TO one OF confidence
and safcty--safety for the world and
safety for France.
The outside annual sum Germany
4 can pay, even after Europe is restored
lis not greater than f100,000,000 per
annum; but this sum, IL paid willingly
would enable Europe to be repaired
and restore the world, including
France, TO prosperity. At relatively
high rate OF interest on the sinking
fund 1t would permit long credit OF
f1 500, 900 900 to be raised, and at a
low rate OF interest on the sinking
/ fund it would permit a credit OF
| f2, 000, 900, 000---a sum fully sufficient TO
repair completely the physical damage
caused by the war and restore the cur
rency OF every nation to a gold basis.
Thus the question Of reparation by
Germany II left in the present unsat-
isfactory state. will vitiate all the
plans SO laboriously devised at Genoa
for the reconstruction of Europe and
plunge the world into still greater
poverty and distress: whereas read
justment of rcparations on reason
able basis will at once render those
plans effective, and thus restore the
world. not only to prewar standards OF,
prosperity. but to still higher level
Of well being.