The New York herald., 1922-08-03
URGES U. S. APPRAISE
EUROPEAN FINANCES
Institute Of Politics Speaker
Says Neutral Gauge of Situa-
tion Is Needed.
WOULD DISPEL BIA
Austrian Ayers and Briton De-
nies Versailles Treaty Aggra-
Yates Overseas Plight.

Special Dispatch 10 THE New York HERALp.
WrLLIAMsTowN. Mass. Aug. AFTER
a day OF animated discussion at the In
stitute of Politics on the problems Of
the interallied debts and the rehabilita-
ton OF Europe. in which Paul M. War
burg OF New York, Philip Kerr of Eng
land. former Secretary to Lloyd George !;
DR.. Josef Redlich. ex-Minister of Finance
in Austria, and Raymond Recouly.
French publicist, participated. Oscar T.
Crosby, former Assistant Secretary OF
the Treasury and President Of the In
tterallied Council on War Purchases.
came forward with the suggestion that a
neutral body of competent men should
make statement of the existing finan-
cial condition of Europe.
Il said | would suggest one possible
action on the part of our Government"
said Mr.. Crosby, although l am very
chary Of governmental action: ] see
how much trouble 1t gives. But would
il be out of place IL our Government. II
nothing comes OF this meeting between
Lloyd George and Poincare on August I.
could be asked or could the German
Government ask that a neutral body OF
competent men should wise this wretched
situation. ! say wretched because every
statement made In Berlin Is contravened
in Paris. They are competent statesmen.
but they are tired and fighting every
point.
Sees Situation Political.
..lf our Government would ask that the
German Government submit its case,
failing an adjustment at this meeting
OF August 4 perhaps we could get some
where"
The discussion on European recon-
struction broke away from the care
fully planned lines of Mr.. Warourg,
chairman of the round table, on that
subject within two minutes after he had
finished reading statement advocating
that the question be settled along sci
entific lines.
1t was like turning a Brussels finan
cial conference into a Genoa political
gathering. according to smile used by
DR.. Redlich in leading the discussion.
Il don't think that anything less fruit
ful, more sterile than those financial
conferences has ever been SEEN" he
said.
THE first thing I urge is, therefore,
not the studying of text books on
finance but consideration of the political
situation, because the political situation
is the condition under which the eco
nomic restoration OF Europe must be
contemplated, and is, for that matter.
the basis for financial reconstruc-
ton.
IF you now consider the political
situation OF Europe as whole of course
the central point of the situation can
be best designated by noting that the
Leace treaty has mutllated old political
and economic units aad fabrics OF life
I and has created new cnes. The treaties
ave disintegrated AMI have helped very
little.
II don't think that any American
realizes what the latest events In Ger
many mean. They should have made II
Gear TO everybody who has watched af-
Iairs since 1918 that the effect OF the
policy followed by the Supreme Council
4 or by tha Entente has caused the Ger
man inner political situation to develop
the most unfortunate way.
What have the European Powers
he so-calied victorious Powers-what
have they done? They have done moth
ing TO help these democratic Powers to
Dear this burden. Every English and
French politician or statesman should
lnow that the democratic parties in
Germany, after having really become the
responsible political factor. have become
very unpopular in large parts OF Ger
many. They have not very strong roots
ir the German nation, which never pre-
tended to be revolutionary. which never
PRETENDED to be republican.