Evening star., 1922-05-21

attainment. there win have to be
Of economic federation superimposed
upon antagonisttc ethnic divisions
Transpostation Paralyzed.
Fourth-There II at present in the
world a. total indebtedness by various
governments to various other goy-
ernments, aggregatipgs roundly 325.-
080 200, 900. A formula for adjusting
those intergovernmentai debts into
practical feasible burdens must be
found. 4. ~ :. a..
sFtfth-Having reached the political
and economic readjustment MENTION
ed under the preceding heads,: it will
then be necessary to find credits to
reconstruct the transportation eys-
teme Of Europe This will aid in sta
Fbilizing currencies and temporarily
assist. countries short of food sup
plies to feed themselves until the In
ternatfbnal exchange of goods has
been SO resumed as to make 1t posei-
hlssfor M them to balance their foreign
what shouId BE Amerfca's Roles
With this summary Of aims made
h6uid. now be Americas. role. All
these aims cannot be attained at once.
The most pressing matter Is to so
adjust the German indemnity as to
free Europe from the constant fear OF
an upset which would be occasioned
or by: military invasion by France.
made in order to compel observance
Of the Impossible terms of the treaty
Of Versailles
America is brought into direct con-
ference at the Paris meeting on May
80 of the reparations commission's 8
committee to study the possibilities
Of an international loan.
Two Proposals Up.
to the indemnity. Sir Robert Horne
proposed to reduce the indemnity
from 1872 1000. 100000 to 10000. 1000. 900
gold marks. He would place in a
postponed. indefinite category 65,000.-
100000 and have Germany fully ac-
interest upon $4,000, 100000 gold
marks.
The Germans believe that Is an
impossible financial burden to assume
Immediately. Their counter proposal
is to create a bond issue having a
claims specially secured by the Gus
toms, and to pledge the state-run
undertakings and taxes on all large
scale industry and landed property.
1000. 900, 900 Marks Loan.
They propose loan Of 100000, 900
gold marks, amortized at 1 per cent
per annum and devoted to the follow
ing purposes: 2.5O0.000, 900 handed to
the allies as anticipatory Of indem-
payments for four years: 100000. 900
to stabilize exchange; 500.000,000 to
meet claims arising out OF impounded
property Of foreign nationals; 500.-
100000 to meet earlier demands for
service of the loan.
The 2.500,000,000 for anticipated in
demnity payments would go to the
allies in the same proportion that the
indemnify Is now distributed-52 per
cent to France; 1t is a portion of this
America.
U. 8. Investors to he Slow.
American investors will undoubtedly
be slow to risk money in this invest
ment unless Germany Is placed in a
position which makes her financial
means a more reasonable agreement
must be reached regarding future in
demnity payments and probably that
the enormous ,at Us domestic debt Of Ger
ordinated. to this new loan.
&c &GermaanGy NJ has pre-war debt of
5.Ooo. ooO,Soo gold marks. The he state stat
900 paper marks. incurred a debt Of
26. 900, ,00O.0 900 by purchase of the rail-
roads. has 14.000,0O0,000 in obligations
to federal states and municipalities
and has outstanding 246,000,0 900, 900
discounted treasury notes.
France Is Obstacle.
Vast as this sum appears, on the
basis of ESQ marks to the dollar it
amounts to only 81, 500, ,0O0. 900.
If g. sensible adjustment of future
indemnity claims could be made. a
prior lien and special security given
the service Of the proposed loan, it
should be proper investment in
which Americans may participate.
The first ''ff' Is the most significant
conjunction in the whole array of Eu-
to sensible adjustment of indemnities? =?
Furthermore, will she agree in time
to prevent financial catastrophe in
Germany?
The first act in Americas role ought
to be to throw all the moral force she
can on the side of sane adjustment
Of indemnity burdens. BY that 1 do
what 1t is possible to obtain, but 1
do mean that blind greediness should
not be permitted to wreck Europe.
Upheaval in Possfbilities.
There are not impressive reasons for
hoping France will act sensibly and
promptly. Her logical mind. remem-
the lever of the Versailles treaty, de-
mands her pound of flesh.
A settlement must be made quickly
to avoid the possibilities of invasion
by France and the catastrophe danger
Of financial collapse Of Germany, a col
lapse involving inability to feed her
Ver-industrialized population. Slow
starvation does not lead to radicalism.