The New York herald., 1922-06-19
Problem Is to Secure Pay
ments Without Infring-
ing Versailles Clauses.
EXPORT TAX is FEASIBLE
Scheme of DR.. Schacht Urges
Government Monopoly Of
Sales Abroad.
By OSCAR T. CROSBY.

tee in Paris on which Mr.. Morgan
served is grandchild OF the Versailles
treaty. The mother is the Repara-
as one of the most abnormal of the
Versailles brood. Its father is that
we'll known polygamist and multi
tudinous sire, Political Expediency.
He belongs to the compromise family,
particularly families in Anglo-Saxon
countries. Sir John Bradbury. British
member of the Preparations Commits
sion, suggested the formation of the
committee. 1t is to do the work of its
mother.
Why this new generation? Because,
being of mixed blood-American and
Dutch, as well as allied strain--it may
say things to the French public which
the mother commission. straight from
the womb of Versailles, by Clemen-
ceau, could not say without being as
sailed by the cry "Nous sommes
trahis." And, in the bcfuddled mind
Of the dear public. the Poincare Gov
ernment would be identified with the
commission. That would never do, If
So Mr. Morgan and Mr. Vissering,
instead of appearing before the COM
mission with others. to advise as to
the terms of possible German loan,
are asked to play the role of irvesti-
gators and judges and reporters. They
are known to be more or less Franco
phile. But, presumably as prospective
lenders. they may be constrained TO
burst the bubble of hope for large and
immediate German payments. Their
task will be twofold-first, to weigh
the borrowing capacity of the German
Government under existing trade and
treaty conditions; second, If a bor-
rowing capacity can be inferred only
In connection with treaty changes, tC
determine whether the committee i:
within its rights in proposing sucl
changes.
Can the grandchild recommend tha
Its grandmother be submitted to ar
operation? Whether or not Mr. Nor.
gan and Mr.. vissering so conceive it
certainly many prudent potential lend.
ers will hold that money cannot safely
be lent to an unarmed borrower who
is continuously threatened by another
man, pistol in hand. Such a borrower
Is Germany, such a pistol is the army
of occupation in the Rhine country
So we are brought face to face with
what is now popularity called French
mllitarism.
Mflftarism Condemned
1t Is harshly condemned by thos,
who are in no danger and by those
the Germans. who must live under it.
menace. Like another modish word
propaganda" the term "militarism" /.
vague and misleading. If we call Il
national defense, then the character o.
the thing represented is at once i'm.
proved. To the Frenchman the mill
tarism charged against him is nationa
defense. In no country can logica
Or necessary limits (save those of ex
pense) be set up as exactly fulfilling
the requirements of the case. Mucl
less can any nation hope to satisfy al
It's neighbors in this respect. No par
tcular solution of the problem is tht
only just and wise solution. 1t mus
remain a matter of estimate.
Now 1t happens that the French es
innate of what should be done fo,
French national defense is the world,
present problem--its chief problem
Nothing is gained when others an.
proach 1t with predetermined condem.
nation Of the French view.
To me 1t seems so serious that
can~well understand responsible states.
men in,~France refusing the heneft
OF German loan, If that can be ha4
only by the surrender of all the mill
tary advantage gained at The end NJ
four years of desolating war To thi.
phase of the situation shall recm
In another communication. Just now
" Is sufficient to say that it may b;
found impossible to make an accom-
mediation between safety OF invest
ment for the lender to Germany. ane
safety of national life for France a.
estimated in France. It remains tc
consider terms of possible loan Other
than those involving drastic change.
in the military situation created b,
the Versailles treaty.
American Money wasted.
One hears from American banker.
passing through Berlin, and one see,
in American press dispatches, thai
there IS a great lot Of money at home
rsacy to be invested. And one knows
that general impression prevails
that American money should "do some
thing for the rehabilitation OF Eu.
rope. with incidental benefit TO our.
selves. The forces represented by
both these statements were hard al
work in 1919 ard 1920. This resulted
In lot Of easy money" for Europe.
As usual in such cases. extrava.
e-nnces by the borrowers wasted {
rccS part Of the loans. Almost ever,
boulevard In Europe has had, and nov
has, its silk stocking parade. Nov
silk stockings rate very highly--bu
to the calculating eve, the Joy of then
IL diminished If one knows that they
are borrowed--or even that they com,
from unborrowed funds that shoiilc
he saved for more prosalc needs is
the future.
1t is to be hoped that Mr.. Morgan