New-York tribune., 1922-02-14
(csntIhusd Yro1, rase sns)


north and dividing this continent into
eastern and western Europe. Western
Europe has been tho oest Of what we
call advancing civilization.' Out Of
it has come all that the world hiss nc
complished in the way Of modern prog
ress. Eastern Europe Is Oriental
Ariatic, barbnric. limo and time again
1t has thrown its masses against the
civilization Of tho west. In modern
times it swopt westward elniost to the
doors Of Vienna.
"This div;sion line betwc"n tho cast
| and the west, this real boundary of
:hc Vistula. Let tho world beware that
Il Ia not moved from tho Vistulh to the
Ehino with three hundred millions to
the enst OF tho line.
III Germany were to turn to the leet
not ss far as Dolshcvic communism
but far enough so that Dolshevic COM
munism, which is nov turned toward
che right, could be met on some sort
Of common ground, The two might novs
together. Then the limo separating tho
western Europe OF civilized progress
from the eastern Europe OF Oriental
barbarissn would move toward the west
with an impetus such as 1t has ncver
had before in history.
Germany Wants to Continue
In Western Europe
"Gerraany wants to contlnuo in
Western Europe. Every instinct is to
be part OF that group Of peoples
but 1t is conceivable thst Il her
misery becomes Goo bitter, the seed OF
radicelsn, which may be found almoet
everywhere in Germany to-day. n light
grow fearful crop"
The highcst officials Of the German
government com mplctely accepted Ger
nany's defeat and It's penalties It
seemed 20 mo that they accepted as
automatic that defeated Germany
should have 20 pay oil that sho could.
On tho question Of how much ahc
would be able TO pay thcro wao much
to be said.
demnity at $4,000, 100000 gold msrku,
plus &c per cent Of the gold value Of
all exports. In addition to certain pay
mcnts in Kind, The chiss Of which Ia
the great annual contribution OF coal.
This IS calculated to make total ar
nual gold paymen. Of 3,250,0o0,O00 TO
$4,000 900 gold ynarks, or approx
natcly ssoo,ooo,ooo in gold annually.
The accomplshme Of France in
tho payment OF the $4,000, 100000 Of
Indemnity laid on her after her de
feat by Germany in 1870 is frequently
uscd 70 prove Germany's ability to
pay
But tho conditions facing Franco in
1871 and those facing Germany today
&c In no wise comparable. The wal,
had been comparatively short, the ms
terial injury Was not great, and tho
loss Of life cannot be compared WITH
tho terrible slaughter Of the great war.
All Europe outside Of France end Ger
many was unaffected ard the rest Of
the world was economically uncon-
cerned.
France paid her indemnity by two
means. She held a large amount o.
foreign Investments and credits upon
in a position TO command fresh credits
from world that was rich enough to
grant them. From these two sources
her obligation wap paid and tho slsxe
wao cleared
The situation chat Germsn7 faces is
utterly different. She must pay, not a
lump sum, but continuing obligation
that, II carried out, will lay q heavy
hand upon the lives OF her youngest
children. She no longer domestically
owns any great amount OF foreign OBJ
United States and other countries were
connscated. Har colonial possessions
and all the enterprises OF the govern
ment ard OF individuals in her colonies
have been Sorn from her. Eer profit
able incrchsNt marine has been d.
vided among the yictors.
She is without the credit whicl,
would enable her 60 incur new Foreign
obligations on any extensive scala.
Her indemnity payments, therefore
can only be met by excess of exports
over imports. In add,tion she must
provide for her food necessities and
pay for her required imports OF raw
materials. To accomplish this STU
pendous tasE, TO find these yearly sums
of thousands OF millions, she will have
to develop an enormous export trade.
Must Market hugo
Bill to Pay Her Debts
Germany must market; t.is liuxe bill
OF goods in world whose international
trade is demoralzed, and 20 customers
whose means Of payment has been
terribly curtailed and whose only fu-
ture means OF payment muss lie in
their GuccessYul ability also to market
goods Or produce.
The Industrial establishments OF
other nations feel keenly the stinu-
lated competition OF German indus-
try. They are erecting customs bar
rie-s SO that German goods, after they
have hurdled the 26 per cent export
duty imposed by the Allios, must en-
counter the customs exactiona Of the
governments of her various customers.
The indemnity payment, IL must be
remembered, must be met, not by Ger
man exporters, who must primarily
create the foreign credits, but by the
German government. To DO THAI the
government must impose And collect
sufficient domestic taxes for that pur-
pose. Those taxes are collected in
paper marks. They must be sufficient
first to meet the ordinary expenses OF
the govcrnmcn and then to provide for
the huge deficit piled up by the state
owned railroads each month and for
other extraordinary expenditure due to
the way.
With every decline In the exchange
quotation for paper marks tho Treas
uzy's need is increased. In provid-
ing for ordinary government cxpen-
dsturcs It is impossible TO determine
with any degree Of certainty any OF
the items which involved the pay
ment OF salaries or wages, or the pur-
chase Of goods, for with the falling
| mark salaries and wages must rise
and the cost Of goods advance.
The German budget for 192I-'22
has therefore items on its debit side
that have been doubled since the re-
cen. days when the budget was over
hauled because Of the decline Of the
mark. II It, continues, these items