The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-01-08
British Interests Split on
Capital Wealth" Payments
German Construction Reparations o KID by
Industrial Federation Branches AZ
fected Inimical to Proposition.

A little over a month ago . pro-
posal in regard TO German repars-
tions was made by Sir Henry strs-
| kosch. chairman Of the financial
committee of the league of nations.
which promised well as q solution,
in part at least. Of the problem OF
receiving reparations on the part OF
the allies without being injured by
tie receipt. Sir Henry's suggestion
was. generally, that Germany should
be required to create for her cred
Itor-nations, in whatever parts or
the world those creditor-nations oe-
creed, works of a capital nature. AZ
an example of the works which
Germany might create for Britain,
Italy or France. as reparation. BIZ
Henry suggested the erection OF
large electric power stations and
supply lines. Shortly after the sug-
gestion OF Sir Henry strakosch was
published. came the annual meeting
OF the Federation OF British Indus
tries. Al this meeting, in addition
to suggesting that a mortgage on
German Industries might be taken
as reparstion. the federation sp-
proved the idea suggested by Sir
| Henry strskosch. The retiring
president Of the federation. Sir Peter
Rylands. went so far az TO suggest
that Germany might build the long
discussed channel tunnel between
Calais and Dover as part OF the
PREPARATION bill, and the thought was
also put forward that Germany
might be required 20 complete the
great project OF the Cape-to-Csiro
| railroad.
Industries Disssprove.
The underlying thought in con-
nection with the proposal just men
| toned is that the creation of wealth
OF the class described would obvi-
ate competition by Germany with
allied industries and put an end TO
q form OF repsrstion-pay more
costly TO the recipient than to the
debtor. The suggestion met with
considerable favorable comment py
| influential British newspapers and
periodicals. some OF which have been
reproduced in these columns. Some
thought that q practical suggestion
in regard to receiving substantial
repsrstions without injury had. at
last. been found. Yet II appears
that the favorable comment In
England on the suggestion was not
unanimous.
Trust each industry to look after
its own direct interests! As manu-
! facturers OF goods for current con-
sumption. in Britain as in America.
have been protesting against the
payment OF German indemnities by
the dumping in their home markets
OF goods they manufactured, SO, as
might have been foreseen. IL is the
organ of manufacturers whose bust
ness is threatened by this new suE-
sestion which voices q protest. The
Electrical Industries OF London
come forward with vigorous con-
| demnstion OF the suggestion Of re-
ceiving reparations in capital
wealth. 1t will be borne in mind by
| the reader that electric power sta
lions were used as the chief exam
pie OF the sort OF work which Ger
many might do! II the suggestion
had been steel ships, We would have
had a protest from the shipping in
dustries OF Glasgow or Belfast. II
the suggestion had been bricks for
a million homes for heroes" doubt
/ less the brick industry would have
been the one TO make the protest.
In commenting on Sir Peter Ry-
lands statement that. under the
/ proposed scheme. Britain would get
its superpower stations for nothing
and electricity free OF capital
charges. the Electrical Industries
says:
CaIIs Theory False.
1T is an ingenious theory and
one that is likely TO seize popular
lima gination. but IL is fundament-
ally false. Therefore, il is all the
more to be regretted that IL should
have received Endorsement. pro-
visional though II be. from such a
responsible and influential body as
the Federation OF British Indus
tries. II A owes B El.0Oo. 900 and
cannot pay cash. or IL B finds Il in
convenient to take cash. the debt
can be discharged by A building a
power station for B at a cost of
flsooo.ooo; but the power station.
so far from costing nothing. has
cost B 100000. Had Herr Hugo
SHINES looked in at the Hotter
Cecil during the meeting he would
have been delighted to find such
valuable contracts on-o offer for the
Allgemeine Elektricitats GeselI-
schaft, and to have the assurance
that, whatever happened, the Ger
man workman would always have
a home and food and clothes, for
obviously he cannot build power
stations without these things It
really makes one despair OF any
solution OF the German reparation
problem to ind a body representa-
tive Of all the manufacturing in
dustriss In this country solemniy
giving its provisional approval 70
recommendations which, II given
effect and Germany consenting.
would pour into our land a flood of
boilers. steam turbines. generators,
switchboards, cables and transmits
sion equipment, not only made IN
Germany but paid for in advance
by the cancellation of q contracted
debt. If power stations are to be
built at all. they must be built by
British labor and of British ma
chinery. II Central Europe ana
Russia are to be reconstructed. the
allied countries must see to IL no
work goes to Germany that can by
any possible means be brought
elsewhere. Germany must pay for
the work to the uttermost farthing.
but 10 ask her to do IL and pay her
for II by wiping on an equivalent
proportion OF her debt is precisely
what Germany wants"
Yet, in spite of the adverse views
| OF Electrical Industries, we find q