The New York herald., 1922-12-24
many last summer.

The loan to Germany and the sea ser
pent have both had their headlines in
the last ten days. Both have gone their
way: both In due time will return.
Last spring. when tho loan talk was
confusing and paraiyzing the official
mind and the official action In Berlin. I
set forth In THE NEW York HERALD
some OF the hurdles that must be taken
ere the difficult goal be reached. They
are not all covered by the phrase set
tlement OF reparations" unless one
chooses to make that phrase as elastic
as self-determination. unprovoked at
tack, freedom OF the seas and such like
sheet rubbers Of diplomacy. 1t behooves
us just now to turn our attention to the
announcement that the German Govern
ment-has asked. or Is ready to ask,
President Harding to appoint a COM
mission which shall report upon a sum
OF reparations that Germany can pay"
That phrase also means little until It
carries with 1t the length of time within
which payment is to be made. date OF
beginning and scale of annual payments.
In the main. however, the idea is a
good one. Anticipating some difficulty
from France In accepting our arbitra-
tion by q governmental commission of
the reparations sum to be paid, pro-
posed in the Berlin press last April that
countries not directly interested in rep
arations be invited by the German Gov
ernment to pass upon their own presen-
tation OF their situation and their own
proposition of settlement, including such
notifications of the Versailles Treaty as
they might think necessary for the full
flllment of any considerable undertaking.
The report of such a commission
would not be binding upon the cred
itors of Germany but would have much
weight in clearing the atmosphere of
the you are a liar!' poison which. now
makes sick men both of Teuton and
Frank. An unofficial body could have
gone to work Immediately on the whole
nasty mess. For a time this PROPOSE
ton received some serious consideration
in Berlin. but the Genoa conference
loomed on the horizon and poor Rath-
enau followed the mirage Of Lloyd
Georges good intentions.
or course the French Government has
learned something and has less fever
ish public opinion to deal with since
last spring. But ere we pin our faith TO
the proposed American commission as
a solvent of all the difficulties It may be
we'll to consider the matter from the
French point of view. Let us not hastily
condemn NJ. Poincare If he should refuse
assent or, while saying yes. attack con-
ditions of difficult fulfillment.
Observe that. as the cables indicate.
the Germans expect "a new reparations
treaty" to result from the American
sound thought. Alas. nothing is simple
that has to do with that marvel Of COM
plication known as the Versailles
Treaty. The vital question of national
security for France is tied up with
reparations. Let us see how.
The first lien upon German resources
under the treaty is for securing pay
ment OF the cost Of military occupation
OF the west bank of the Rhine. IL you
were called upon to estimate what Ger
many can pay for reparations you would
N-~~~-
first charge is to be continued and also
its magnitude if continued.
True, you might report alternative
figures, one set based upon occupation
costs, taken at sum &C. and one based
upon no, occupation costs, and the
French might be supposed to make their
option between the two. But here comes
in another cross-consideration. Quite
naturally the French contemplate set
tlement as something clearing the way
for a loan to Germany, largely devoted
to repayment of the sums already ex-
pended, on German account. Yet pro-
spective leaders throughout tho world
might say, NO. I don't care to inves,
my money in an unarmsd man against
whose head another man holds pistol
night and day. Under suoh circum-
stances my prospective debtor would
be nervous. He would be too 1umpy
to worl, WELL
That also seems simple and fairly
sound. So, IL the French want set
tIcment in order that q loan may be
made would they in fact have an op-
ton TO accept the reparations figure
based ON continued occupation of the
Rhineland?
Let us look at the matter In another
light--always, remember. from the Eiffel
Tower
Suppose the arbitral commission
should take the view that German in-
dustry could produce and sell an eX-
portable surplus OF a given amount with
or without the irritating element or for
eign military occupation. They would
thus take no account OF tho jumpiness
of the situation. In such case the sum
available for reparations would be In
creased by every dollar saved on oc-
cupation costs and all other similar
charges connected with the execution OF
the treaty. In other words, what would
in one case go TO the French War De-
partment would in case of withdrawal
OF troops go to the Reconstruction De-
partment or TO tho Pension Bureau.
But what about the resulting military
situation? Would not tho French army
have TO be increased in order to main
tain a given degree OF security against
There Is Star.