The New York herald., 1922-12-20
America and the European
Economic Crisis.

With the Allies hopelessly dead
locked over the question of repara.
tions and over many other questions
pertaining to after-war conditions
and after-war methods, one is forced
TO the conclusion that Americas ac-
tive participation in a general read
justment of things is quite as neces-
sary as was her participation in the
war itself.
The truth is the situation then
was not more critical than it is now
America was considered the hope OF
the world then; America may well
be considered the hope of the world
now, for there is seemingly no prob
ability that England and France can
ever get together on any question
having to do with Germany, and
with the collapse Of her money sys-
tenn and with her economic break
down Germany is the menace Of
Europe and the danger spot of the
world.
haANC AhcioSo tiiat pCi many 40
capable of paying an indemnity OF
thirty-flve billions of dollars with In
terest and that she has got to pay It,
England, herself heavily interesteu
in this indemnity. insists that II .s
not possible for Germany to pay any
thing like so much, stripped OF her
resources as she is. England rests
her conclusions ON the opinions of
her abIest economists and biggest
hsnkers and biggest men of affairs.
What nation can do and what it
cannot do in the matter OF indem-
nifty payments is wholly an economic
land and France and America and
Belgium and Italy and Japan and
South America ought to reach prac-
ricelly the same conclusion. What a
cisely the same kind of problem as
that OF any corporation or individual
debtor. 1t is not political problem
but rather one that has to do with
sttAl 10 tAtC tc6ChNC VI ldCtc aHQ
figures.
The general opinion in England is
that, with any hope of making good,
Germany cannot undertake to pay
rlore than ten billions of dollars.
Many estimates. are much lower. The
difference between ten billions and
the amount France insists Germany
can pay is twenty-five billions of
cellars.
Considering the matter on its
merits, and with access to the same
facts and figures, it is not possible
for the distinguished economists and
bankers OF England and France to
differ so widely.
III this situation the outlook for
Europe's return to sound economic
conditions and economic health, ex-
ccpt through the arbitration OF
America or some other disinterested
ration. or through the arbitration of
Il combination of nations. is as black
as night. Three years have been
wasted OH these after-war problems
three years OF going from bad to
worse, three years that have brought
economic chaos to Europe and ruin
- world trade.
Americas stake inc world trade,
Americas stake in normal Europe,
Americas stake in world peace, is
represented by:
Seventy-fve thousand dead SOL
diers, more than two hundred
and twenty thousand manned and
wounded soldiers, and an initial
outlay Of thirty-fve billions OF dol
lars, which will mount TO hundred
billions before the last cent of war
Indebtedness and war expenses is
paid.
Clearly American money cannot
and will not go to the aid of Ger
many, which means to the aid of the
Allies, until the measure OF German
reparations is so cut down and cou-
ditions OF payment are so arranged
that an American loan would be Sc
cure. This is the attitude of the
American bankers, as voiced by Mr..
NonoAS, and is the attitude of the
American public, whose money
would 20 into the loan.
Tbraa Tensee