The daily banner. (Cambridge, Md.) 1897-2008, 1922-12-26
KAHN PUTS BLAME
ON FAULTY TREATY
Banker Says Pacts Are Respon-
sib|e For Europe's Woes.
WOULD COMPROMISE DEBT
Outlines Plan For American Aid
Without invoIvemnt in League OF
Nations


Nations.
New York, Dec. 2G-The committee
of American business men gave out q
letter written by Otto II. Kahn to
Senator Reed SmOot, member OF the
debt refunding commission, in which
the banker offers plan whereby, In
his opinion, America can consistently
aid toward relieving the European
situation and at the same time meet
the sentiment OF the country, which
appears opposed 10 the cancellation or
the allied indebtedness TO the United
States government.
He suggests practical means for eff
fecting a compromise between the Eu-
ropean and American point of view
and shows bow, without taking upon
itself the obligations and involve
ments" Of the League Of Nations and
without entangling itself in the politi-
cal affairs Of Europe, America can
take her part in helping in the solu-
ton of European problems. Mr.. Kahn
says:
"The blight Of those baneful and
ill-omened instruments, the peace
treaties of 1919, lies upon all Europe
Grossly faulty from the economic,
political and ethical point Of view, they
have been the cause Of inceSsant trOu-
bic and of overcoming crises. So
little were these treaties consonant
with the realities that from the day
of their PRONUNCIATION to this day they
have been continuous objects of heated
controversy, of reimbursement, Of inter-
pretations, of conferences, of haggling
and whiting down.
"rhe contention persistently put for
ward in Europe and frequently echoed
here that responsibility for the exist
ing unsettlement, dispeace and quarrel
ing in Europe is largely attributable
to our absence from the League Of
Nations seems to me to be little more
than an attempt to unload the blame
for the consequences which were
bound to spring, and did spring, from
the fatal faultiness Of the peace
treaties.
"In contemplation Of the European
situation, what should America do2
81 believe the United States should
be officially represented on the
reparations commission. Our govern
ment should also take official part in
the work of other commissions Of
similar character, destined to settle
controversial questions and aid the re-
cuperation of Europe. These commits
sions, in their conceptions and func-
lions, are essentially akin to arbitra-
ton bodies.
"a vast majority of the American
people at the last presidential cleo
ton pronounced their emphatic IN
willingness-in my opinion, rightly too
to subject this country to the obli-
cations and 'involvements,' actual and
moral, of the League of Nations as 1t
came to us from Versailles. NOtwith-
standing the political reversal regis
tered at the election Of last month, 1t
seems to be generally conceded that
the preponderating verdict of the cleo
torate continues to be opposed to
Americas joining the existing League
On the other hand, there are indica-
tons of an ever-growing undercurrent
Of popular feeling that a 'betwixt and
between policy, acting through the
1nstrumentahty Of observers" is one
which hardly accords with American
dignity and which meets with intuitive
dissent from the sense Of fitness and
fair play Of the American people.
THE United States should deal in
q practical, broad-gauged and liberal
manner with the indebtedness of the
allied nations to the American govern
ment. These debts are justly due.
The contention that these loans to the
allied nations should naturally be con-
sidered and treated as a contribution
to the common expenses Of the war
does not appear warranted.
"The intrinsic circumstances of
Americas joining in the war were es-
-sentially different from the conditions
and considerations which determined,
or compelled, the course Of the allied
nations when they entered the con-
flict.
America made no secret treaty or
bargain as almost all the allied nations
did. She asked for none Of the spoils
of victory. Each one of the allies
took material compensation from the
vanquished, to the full extent that
there were assets to distribute Amer
lea, on the other hand, demanded moth
ing and received nothing. She is car
rying the immense burden Of her war
expenditures without any cOmpensat-
ing tangible return whatsoever.
"Of the ten billion dollars advanced
by America to the allies, a consider
able proportion-about 2& billion dol
lars, as far as can ascertain-were
advanced after the war was won, af-
ter the armistice. Ut must be recog-
MED, though, that part Of this sum
was needed and no doubt arose out of
commitments entered during the war,
and was used In connection with the
settlement for contracts entered into
for the purpose of the wary
"Of the remaining say, seven and
quarter billion dollars, certain por-
ton was spent by the recipient for
purposes not connected with the war;"