The New York herald., 1922-08-11

Special Dispatch to THE NEw York HERALD
WILLIAMsrowN, Mass, Aug 10.--
Raymond Recouly, foreign editor pf the
Paris Figaro, in public lecture this
morning at the Institute OF Politics, as
serted that unless relief Is affordcc
France faces bankruptcy. compelling
her to enforce the penalties against
Germany awarded her by the Treaty OF
Versailles. He said 93, 900. 100000 francs
had been expended in reconstruction,
nearly all OF which had been raised by
borrowing from the French people. and
declared France could not go on with
the work without help.
IF we decide. by any means in our
power, to go on in the matter of re-
construction, whatever the consequences,
1t means continual expense for four
or five years to come, which VIII in
evitably bring new imitation and cor
respondingIy a depreciation of our cIr-
rency,
You know that for two years while
the German Government was increasing
its imitation by leaps and bounds we in
France have absolutely stopped ours.
For that reason the franc, instead or
following the fall of the mark. has been
kept steady. But If we are Obliged to
increase our imitation ] don't see how
we can continue TO keep the franc
steady.
IF we do not receive some amount
OF money from Germany the franc will
certainly go down. The depreciation Of
the franc, perhaps the increase of the
deficit, the impossibiiity for the Gov
ernment OF paying the dividends to the
State bondholders. viii bring con-
siderable increase In the cost of living
and it may be, social disorders.
THAT is the exact situation of France.
and il may be said without any ex-
aggeration that It is a very tragic
one. The French are. think. the peo-
pie In the world who most hate a deficit
and who have horror of .bankruotcy.
Rather than face that extremity they
win be ready to enforce tirnh Germany
the penalties which, according to the
Treaty of Versailles, they are rcrfectly
entitled to enforce. They will use the
rights which they derived from the
treaty. which was signed not only by
their allies, England and America but
also by the Germans themselves. The
treaty gives Frarice the right OF seiz-
ing German property in case the Ger
man Government does not fulfill its OBJ
legations.
THAT will be, of course, a bad solu-
ton of the question of reparations. Not
a single sane Frenchman doubts 1t. But
we will certainly try that solution be-
fore letting ourselves go into bank
ruptcy.
I'm other words, it can be said that
a solution Of the question Of repara-
tions in which France and Germany
would te left alone facing. each other.
risks being bad one. With the col
Iaboration of England the chances OF a
good solution are greater; with the
active cooperation of the United States
the chances become much greater stin.
"The state of Germany, difficult as It
may appear so far as the financial sit
Eation Is concerned Is far from being
desperate. For many reasons. for which
the German Government is strictly re-
sponsible. the German currency has
collapsed, but the matter of the economic
condition Of a country cannot be meas
tired by it's currency only.
While the mark has gone down, the
economic power Of Germany. its pro-
ductive possibility the capacity of its
factories. the discipline and seriousness
OF its working people. its gift for or
ganization, remain unaltered.
'All these capacities may very soon
become a source OF considerable wealth.