The New York herald., 1922-10-05

sun. These spots may affect the weather
and. through the weather. the harvest,
but wider knowledge Of banking and
Of currency requirements has taught us
how TO escape their malign influence on
credit
"A better understanding of interna-
tional trade and OF the possible limits of
international payments will quickly en-
able US TO find a remedy for the evils
which now distract us. The public on
both sides of the Atlantic are beginning
to take a more rational view than was
possible three years ago, and II the lead
ers of opinion direct our footsteps along
the right path 1 believe the world is now
prepared to follow 1t.
'"Fo sum up, the conclusion to which /
am driven is that Germany can only pay
now whatever she may have in foreign
balances, together with such amount as
she can realize by the sale of her re-
naming foreign securities; that this
payment is only possible IL all other de-
mands are postponed for a definite
period long enough to insure the stabili-
zation OF the mark; and that future de-
mands at the expiration OF this period
must be limited TO the annual amount OF
Germany's exportable surplus at that
time.
Otners tunHOt ny his
Further, that ENGLAND has the ca
pacity to pay to the United States in
terest and sinking fund on her debt;
but that the other debtors are none OF
them in a position to meet more than
small part OF their external Liabilities,
and in the existing condition Of Europe
a definite postponement of any payment
by them is desirable In the interests of
all the parties. The actual amount
which the other debtors could ultimately
pay should. as in the case of Germany,
be ascertained by inquiry into their ex-
nortable surplus at full and frank con-
ference between creditors and debtors.
"It remains only for me now to thank
YOU for the patience with which you
have heard me. l have strictly con-
fined myself to consideration or the
economic aspect of Reparations and In
ternational Debts, how they are payable.
the general capacity of debtor country
TO pav. and the effect of payment.
"If I have become convinced that an
attempt to enforce payment beyond the
debtors ability is injurious to the In
ternational trade of the whole world,
lowers wages, reduces profits md is
direct cause of unemployment the con-
clusion is founded solely on economic
grounds and Is uninfluenced by any po-
litical considerations or any regard 10
the moral obligations of the debtors.
know very well that there are other con-
siderations affecting these debts. but
these are matters Of statecraft 20 be
determined by the rulers of the cred
itor countries according to their view of
wise policy which covers many inter-
ests besides those of trade and finance.
"The fact that debtor cannot pay
does not of itself discharge the obliga-
ton. The debt may become the sun1ect
of nerotia ton and bargain by which If
the debtor obtains relief. the creditor
may still recover some advantage to
which he may be justly entitled. But
I conceive it to be The duty Of bankers
to help so far as they can in forming
sound public opinion upon the financial
and commercial aspects OF these inter.
rational debts, and it is in pursuance OF
this duty that | have ventured to make
these observations to-day.