The New York herald., 1922-12-08
Political Aims Must Yield to
Economic Necessities at
Brussels. -
CUT DOWN PREPARATIONS
International Loan Enabling
Germany to Pay in Forty
two Years.
ny SIR GEORGE PAIsH.

Special Cable 20 THE NEW York HEuLD.
New York Herald Bureau.
London. Dec. a..
That the Prime Minister'S of France,
Italy. Belgium and Great Britain are
again to meet to discuss the recon
struction of Europe in general and
the reparation problem in particv' ar
is all to the good. One must, err
theless. await the result OF thu { de-
liberations in order TO discover If they
are even yet willing to base their
policy upon the actualties of the sit
uation. Signs are not wanting that
various Governments are more clearly
appreciating real conditions, and be-
coming less unreasonable. 1t would
however. be a mistake to deludc one
SELF into imagining that they are yet
prepared To- take all the measure:
which the situation demands--that
statesmen are willing TO subordinate
political aims to economic possibilities
or to economic necessities.
II may be, however. that the. COM
ing conference will disclose that states-
men are at last prepared TO bring
their political aims into harmony with
economic possibility. Even IL the COL
ference were TO result in no practical
step for the adjustment OF the present
dangerous financial situation, great
feeling OF relief would be caused to
the whole business world II the Gov
ernments show any indication OF that
change OF mentality which would sub
sequently enable a solution 70 oe
found for economic problems.
Trade Recovery slow.
It cannot be too clearly realized that
there would be no insuperable obstacle
confronting tho statesmen. No ndica-
tion Of n change In their attitude would
therefore mean that the situation had
fundamentally become worse. II Is true
that trade has shown slight recovery.
but this recovery Is slow because ma
lions outside Europe whose credit is un-
impaired by the war have been using
their credit in order 10 create employ
ment and maintain the purchasing power
OF their peoples. The amount OF credit
which these countries can obtain how
ever. Is limited and Il is evident that
unless steps are. taken without delay TO
strengthen the credit and restore the
productive and purchasing power of
Europe. fresh and even severe coll
lapse of trade will take place IN the
no, distant future.
The credit OF Europe Is practically
exhausted. and the credit OF other bor-
rowing nations In almost the entire
world will be exhausted and trade will
collapse. and there Will be almost uni
versai bankruptcy. national and IN
dividusi. Germany certainly cannot
continue to raise credit by selling worth
less marks 20 the rest az the world, nor
can France continue Indefinitely to add
70 her already enormous debt. The
coup d'etat IN Italy would not have
taken place were that country In a less
dangerous condition.
VIII the Prime Ministers Of the En-
tente nations. when they meet. recos-
nize that The policy hitherto pursued en-
hance the mischief that the war caused
to the credit Of Europe. and that all
the great nations of Europe are either
bankrupt or on the verge Of bankruptcy.
and several other nations In the world
approaching bankruptcy II they ap.
preciate the financial danger into which
the world has been and Is being plunged
by the policy hitherto pursued. they will
reverse that policy and demonstrate
their desire 10 prevent the world break
'down OF credit. which seems 80 inn
minent
German Preparations First.
The first problem which demands set
tlement is German renarations. Were
this 20 be made practicable one funda-
mental difficulty in creating the neces-
sary credit for the restoration of tho
devastated districts would be overcome
The present amount demanded for rep.
arations is entirely impracticablo II
cannot be collected. nor any credit
raised on It's security in anticipation OF
It's receipt Reparation which poten-
TALLY Germany could pay Is an annual
sum FOR given number OF years.
The maximum amount OF reparation
which Germany could pay is. according
to my calculations. not more than f100.-
600. 900 yearly. The period OF such
annuity should be not longer than forty
two years. or for such a shorter period
a. Will enable credit TO bc secured on
Continued on Pare Two. -