Evening star., 1922-08-07
ny HIRAM X. MoDERwELL.

DY HIRAM X. MODERWELL.
By Cable to The Star and Chicago Daily News.
Copyright. 1922.
LONDON, August THE Poinoare-
Lloyd George conference which opens
here today is of critical Importance.
Americans may well be tired of being
told that each conference Is the most
important ever held, but this is not
inconsistent. AS each conference
fails to solve the main problem this
problem becomes increasingly men,
acing. At the present time it is a
serious question If Europe can hold
out many months longer unless a
real settlement is reached.
Exchange Of Wealth Problem.
Though in many ways postwar Eu-
rope has shown unexpected vitality.
especially regarding resistance to
bolshevism and the relative stability
! OF the new states. nevertheless the
appears further from
solution THAN ever. This Is the
problem of the production and ex-
change Of wealth. People everywhere
have been slow to realize that the
wealth destroyed in the war really
was destroyed and that bits of paper
were substituted for it-promissory
notes and reparations agreements
intrinsically worthless unless new
wealth is produced to make them
good. At present the world is slack
ening its efforts at wealth produc-
ton to replace the war losses pend
ing a somewhat undignifed effort to
make somebody else promise to pay.
Under these circumstances a large
portion of Europe has gone from bad
to worse. Germany. Austria and other
central European states, much weak
ened morally and materially, and in a
state of economic exhaustion OF which
the depreciating mark is the symbol,
may well be in the penultimate state
of collapse. France, too, is nearing the
term when conditions must definitely
turn for the worse or the better. The
workable limit Of the floating debt has
she receives haSd cash soon she must
initiate her currency to pay the bond
holders. The result of such step is
bound to be serious.
Britain Faces Uncertain Future.
Great Britain has pulled herself out
of the war finance tangle magniffcently.
but ner future under present coHdl-
tions is not bright. She is sure to have
a desperate struggle in the coming
years to make the commercial scale
pans balance 1t is needless to add
that an impoverished Europe cannot
manufactures.
Obviously. the first need is an honest
and final agreement as to who VIII!
pay and what. This Is essential. and
is practically the sole topic of the
present conference. But the prospects
are certainly not bright. This is per-
haps the only conference in recent
years in which the chief working pro-
posal was publicly made by one party
and publicly rejected by the other be-
mier Poincare's proposal to reduce the
,, reparations to so. 000.000.000 gold
marks if Great Britain and the United
States remit the French debts can
hardly be meant seriously. because
the refusal of Great Britain and the
United States to remit the French
debts to them is matter OF public
record. It is, perhaps. rather one Of
those familiar political maneuvers de-
signed to throw the moral burden on
somebody else.
Both Sides Embittered.
Lord Balfour's note has certainly
robbed the conference of most of its
both sides of the channel has become
visibly embittered in the last few
days. Political topics are creeping in,
despite all promises to exclude them.
Great Britain has just voted large
sums for aircraft, due to the enor-
ihouS ieheh hiiii'o Oil CQoiPiietl
and must soon spend more on anti7
submarine craft. due to the continued
building of submarines by the French.
Premier Poincare's threat to en-
force penalties against Germany on
the eve of the conference also has put
sand in it's wheels. Indeed. it ap-
pears to some that NJ. Poincare's aim
is to regain freedom of action for
France on the plea that Great Britain
made an agreement impossible. In
this case those French politicians
whom Englishmen call the wild
men, will for the first time be really
at the helm of French affairs. Great
Britain regards this with the utmost
concern. The one hope for the sue
cess of this conference is precisely
the terribleness of the results If it
fails.
REJECTS GERMAN PLEA,