The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-09-12
BANKRUPT GERMANY.

When the nations set up an inter-
national court at The Hague they
should have provided a section for
handling bankruptcy cases. Such Il
court might we'll take charge of the
affairs of Germany.
A business concern finding itself
bankrupt makes assignment for the
benefit of it's creditors. it's preferred
creditors being first paid, and, If there
be nothing left after these payments
the ordinary creditors claim Is cam
celled by virtue of a bankruptcy law.
No claim against a country is entitled
to greater preference than the repara-
tions agreed upon on account of war
for which that country is entirely re-
sponsible and which reparations do
not begin to measure the damage oc-
casioned to other countries by virtue
of her criminal acts.
Every report from Germany indi-
Gates that business is going on as us
ual. People are employed. production
is at high point, and, aside from the
fact that Germany's currency system
has no gold basis, Germany is in a
prosperous condition. Recent observ-
ers in France and Belgium report that
the fields devastated by the conflict
OF war are now in a state of full pro-
duction and that little evidence of the
wars devastation is now to be seen.
The productive power of Germany is
nearer par than that of any other Eu-
ropean nation. Her productive ma
chinery was less impaired by war than
that of any other nation. Her people
are thrifty, prudent and industrious,
Germany will be the first of the ma
tions of the world to recover from the
effects of the war. Already her manu-
featured articles are filling the world 5
markets. at prices which cannot be
met with hish-priced union-controlied
labor. An international bankruptcy
court would pay her out or wipe off
the slate and enable her to start out
anew
Leading New York bankers have ex-
pressed a decided belief that the allied
war debt owing to the United States
step in the sterilization of European
finances. It is urged that some ad-
justment OF international debts will
soon be necessary not only in the in
terest of national solvency abroad but
of national prosperity in the United
States 1t is frequently urged that
France and Great Britain cannot for
give the debt which Germany owes to
them unless the United States will be
liz ~
can never get on her feet financially
except by the cano -llation of the rep
arations which were agreed upon
This last argument says the Mining
Congress Journal produces an addi-
tionai reason to the many other valid
reasons why the allied debt should not
be cancelled.
Germany's financial conditions are
not the result of real poverty but
more the result of bad craftsmanship
Its financial leaders have undertaken
to pay their local debts with paper
money and the continually increasing
issue of the German mark has re-
duced its value to almost less than
nothing. From a financial standpoint
Germany is bankrupt Her bankruptcy
would better be declared. Her inter-
nal debts can never be paid. Her rep
aration obligations are preferred
Claims which must be paid before
those manufactured obligations which
have resulted in the deprecated value
OF her currency. By all means let us
have an International bankruptcy
court.