Evening star., 1922-12-17
policy that does not threaten tn,
peace of the world.

l. AOeuVre asked me Tor statement
of the European situation. as 1 saw
it. and, in response, I gave him an
interview, which was printed with
strong editorial support. and the
statement that, according to their
official commission of finance, the
French budget for the present year
would have a deficit of 0o.00o,00o
view was a categorical statement. as
follows:
l. France must obtain a large loan.
2. Germany must obtain a large
loan.
3. France will not get a loan un-
less Germany gets one at the same
time.
4. France can obtain money only
from bankers and private subscribers
and these will not lend unless the in
vestment is safe.
s. No loan can be considered safe
unless France obtains from Germany
reparations sufficient to enable her
to repay the loan.
6. Germany cannot provide these
reparations unless she produces ef-
fectively.
:. Germany cannot produce effect
lively unless her money is stabilized.
s. German money cannot be sta
bilized unless Germany obtains a for
eign loan.
9. Therefore. France cannot obtain
a loan unless Germany obtains one
at the same time.
10. Neither France nor Germany
will obtain the necessary loans un-
less political dangers-that is to say.
the dangers of war during the period
covered by the loan-are averted. In
vestors will not invest their money
in countries which are likely soon
to go to war, or in countries which
are likely to have their ability to
pay interest and loan lessened or
destroyed by the application of eco
nomic sanctions.
II. The danger can be averted only
if France receives guarantees of help
in case of being attacked by Ger
many. guarantees which must satisfy
the French people and make impossi-
BILE an appeal by the political oppo-
sition to- the fears of German attack
which dominate SO many French
voters
II. If France obtained these guar
antics. she could save three billions
a year on her military budget, and
by reducing expenses connected with
it balance her budget and avoid too
heavy taxation.
., ;4lI
would be able to follow the advice
of her bankers. who in agreement
with the principal foreign bankers
and in order to establish the basis of
a loan, would be obliged to solve the
question of reparations, which can be
solved only by agreeing upon an in
demnity from Germany as large as is
practically possible, but not beyond
her power to pay.
IL. The danger of financial collapse
and the necessity for unbearable tax
alton being thus averted, France
could then produce freely, and. her
money being stabilized. she could
compete CONNIE rcially in the world
markets.
Is. The question of Frances war
debts to America would no longer be
considered as a question Of financial
life or death for France; 1t could then
be treated on its merits and propa.-
ganda could be openly undertaken in
America to convince the American
people of the French belief that this
debt is a part Of the expenses of a
common war, and that it should,
therefore, be borne in common and
not by France alone.
16. 1t is impossible. however, to
carry out this program Of reconstruc-
tion unless France receives guaran-
ties which will give her people every
security.
The World Stake in a Secured France.
Growing decentralization, which Is
forcibly shown by the financial edi-
tor of the Manchester Guardian as
painful thing that he met with every
where on a recent visit to Germany
a growing lack of morale even in
small things, a growing inef1ciency,
feeling that 1T didn't matter
whether or not a thing got done
would be checked and recovery be-
gun, 1 feel certain. If France were
given guarantees that, by taking