The New York herald., 1922-02-02


reace Conference fixed the terms OH
which Germany should make financial
restitution for war damage they reck-
ohed without Prof John Maynard
Keynes, whose address is Kings College.
| Cambridge. England. but whose fame as
an economic prophet and ruthless
critic of the peace treaty is circum-
scribed only by the limits of the equator
and all the territory on both sides of It.
In his book called '"rhe Economic Con-
sequences of the Peace published in
1919, Keynes set European statesmen
in a turmoil by stating that Germany
never could pay all that was demanded
in the treaty of Versailles. The King S
College professor had been an economic
adviser to the peace conference. but re-
| signed when he could not persuade the
big Four" that the terms they were
! framing could never be enforced.
| His book was the cause of one debate
fter another in the British House of
Commons and in the French Chamber
Of Deputies, and his name was banded
about for months. But he had submitted
facts to prove his arguments. Srbse-
qucnt events, the latest of which was
tho default of Germany In the repara-
tons payment Of 100000, 900 gold marks
keynes's protests were based on more
than whimsical or prejudicial founda-
| ton.
| The Kings College professor, whose
gift of economic prophecy is now looked
upon as almost uncanny even in the
high counsels of statescraft and finance
has just published another book, sequel
To the first. entitled "A Revision of the
| Treaty." and the present volume, which
las just been released in America by
| Harcourt, Brace & Co, a week after It's
| publication in England. is loaded with a
tor of destructive nitroglycerin for every
grain of black powder contained in the
earlier volume.
Prof. Keynes comes out this time in
favor. virtually, of taking the Versailles
treaty. League of Nations, reparations,
! pct. cabbage and all and dumping it into
| the ocean. He would then set the fixed
sum of $4,000, 100000 or about $4,000
| 600, 900 gold German marks as the def
mite amount that Germany should be
required to pay in place Of the $33. 3.000,-
| 100000 or 132.000000.000 gold marks
fixed by the Preparations Commission
| last year and imposed on Germany in
the ultimatum oS May 1921. which fol-
lowed what has become known as the
Second London Agreement between
Franco and England.
Sees Paradox I'm League.
His opinion of the League OF Nations
! is expressed as follows
THE Wilsonian dogma. which exalts
and dignifies the divisions of race and
nationality above the bonds of trade
and culture and guarantees frontiers but
rot happiness, Is deeply embedded in the
conception of the League of Nations as
at present constituted. 1t yields us the
paradox that the first experiment in in
ternational government should exert its
| influence in the direction of intensifying
rationaism."
His main suggestions for the revision
of the Treaty of Versailles are contained
in Chapter Z, from which the following
excerpts are taken:
THE Preparations Commission have as
sessed the treaty claims at 1873 millard
gold marks, of which 1872 milliards are
for pensions and damage and milliards
for Belgian debt. They have not stated
| in what proportions the 1872 milliards
are divided between pensions and dam
ages. My own assessment of the treaty
claims is 10 milliards, of which "a
millards are for pensions and allow
ances, 80 milliards for damage and 6
millarda for Belgian debt
The arguments Tin preceding chap
teri make it incumbent on those who
are convinced by them to abandon as
dshonorable the claims to pensions and
allowances. This reduces the claims
to SO milliards. sum which 1t may
not be in our interest to exact in full,
but which Is probably within Germany's
theoretical capacity to pay.
apart from clearing out of the way
various clauses which are no longer
operative or useful, and from terminate
! ing the occupation on conditions set
forth below, / should limit my revision
OF the treaty to this simple stroke OF