Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-01-27
PROPOSEDCUT
IN INDEMNITY
FAVORED BY u. S.
Experts Think Versailles Tax
on Germany Was EX-
ceSSiVe.
Special to Indiana Daily Times
and Philadelphia Public Ledger.
BY FREDERIC WILLIAM VILE


BY FREDERIC WILLIAM VILE
WASHINGTON, Jan. 27.-The propos
al to scale the German indemnity down
to $500, 600, 600 or virtually one-sixth Of
the Versailles assessment, advanced by
John Maynard Keynes in his new book.
Revision Of the Treaty" strikes Wash
ington as that Of approaching the orig
inal American plan for German repara-
lions at Paris
There is at the capital this week, as
a delegate to the national agricultural
conference an American, Bernard NJ. Ba-
ruch, who fenced with Keynes through
out the Paris peace conference when they
were economic experts, respectively, for
the United States and Great Britain.
Belated British attempts to bring down
German reparations to basis of reason
ableness are seen by men like MIR. Baruch
as an effort to de bambaozle" the French
whom Lloyd George "bamboozled" at
Paris. Mr.. Keynes newest book, indi-
Gates that the author of Economic
Consequences of the Peace" himself has
decided in a picturesque idiom, to take
an eleventh-hour hand in the game Of
"debunking the bunk"
AMOUNT ASSESSED
BEYOND POWER TO PAY.
The United States Government and
American economic experts agree, in gen
eral, with one feature Of the latest
Keynes proposal, but demur as to the
other. They share his apparent belief
that the original Versailles assessment
against Germany of $50, O00000,O00 Is
Enthusiastically beyond the demonstrated
capacity Of the Germans to pay, but they
do not support the Keynes theory that
reparation readjustment ought to include
oP oil ind dT1Q
the United States except the British loan.
The Harding Administration has not al
tered its position that the allied debt is
q "collectible asset which must continue
to figure on the credit side Of Uncle
Sans ledger. The fact that repayment
cannot be prompt is certain, indeed, to
be long drawn out, does not alter Amer
ica's view. Whether we go to Genoa or
not our position On cancellation is fixed
and definite 1t Is a categorical negative.
American economists who saw the con-
tortions of the British delegation at
Paris-gyrations instigated by Prem r
Lloyd George and internationally aided
and abetted by John Maynard Keynes
are not surprised at the latter's latest
volte-face Then and since, it is declared,
his viewpoint has shifted with a sudden
ness that has led some observers Of his
vacilliation to say the activities Of a
kaleidoscope are static by comparison.
Keynes at length is now approaching the
original American plan for German rep
arations at Paris.
COULD SETTLE
FOR SIS 600, 600 900.
It was the American belief the Ger
mans could and would pay an indemnity
of $4,000, 900 0O0 They had already paid
So 900 600, 600 or 81, 00000O0O0 in cash or
IN Ii
900, 900 900 of the first named capital sum
to be accounted for
In 191S-1919 Americans saw the Brit
ish ludicrously tnsistent upon German
reparations that reached, in some cases,
the dizzy total Of S120, 900, 100000. It
was primarily, in American opinion. such
insensate recoknings hat dazzled the
French and resulted in the eventual
imposition of $50 .0000 100000.
The Keynes proposal to assign virtu
ally the entire reduced German indem-
nifty to France and Belgium, with smaller
aallocations to Poland and Austria, ls
considered feasible by American authori-
ties. American program Of reparations
at Paris assigned France AZ per cent
of the total, Belgium p per cent and
the British empire 10 per cent Also
Keynes suggested dropping of the de-
mand for pensions and separate allow.
ances, Inserted primarily at the behest
of the British, IS approved The prin-
cipal weakness IN the latest Keynes PROT
ect, as viewed in Washington, Is that
whereas the British IN 191s-1919 went
absurdly too far, they are now, in a
belated fit Of remorse, seen as not going
far enough How far Keynes may be
speaking for Mr.. Lloyd George is NOT
known. But his latest reasoning is IN
doubtedly water on the mill of Downing
street policy to bring France to reason
on parations.-Copyright 1922, by Pub
lie Ledger Company.