Evening star., 1922-12-30

petent in financial affairs could ac-
national conference toward solution
Of the European reparations tangle
was put forward by Secretary Hughes
here last night in the hrst public
pronouncement on ,the economic crisis
to como from responsible ofncials OF
the administration at Washington.
The Secretary. who spoke before
the American Historical Association,
added that he had no doubt" dis
tinEuished Americans would be will
ing to serve on such q commission.
which he said might Wen be Kept
eisn omces or any duty to obey
political instructions. Once advan'
tage had been taken of tho oppor.
tunitiss thus afforded. he said. the
avenues Of American heipfulness can
not fail to open hopefully"
Referring to suggestions that the
United States assume the role OF
arbtter In the reparations dispute. M
Hughes said q sufdctent answer 70
that was the fact that we have'not
did not believe this government
should take such burden OF re-
sponsibility.
Basis Ii ReDaratiens.
Throughout his discussion the
Secretary recognized that the quss.
tions Of German reparattons lie A.
the root Of any economic settlement.
The problems abroad, he said. are
world problems. and could not be DIS,
He declared the United States would
view with disfaYor measures which
instead Of producing reparat!ons
would threaten disaster" and said no
one could foresee the serious con
sequences" which might ensue Il
forcible means were adopted to obtain
| reparations from Germany.
The full text of MI Hughes dis
I cussion Of economic problems fol-
lows:
"The economic conditions in Eu-
rope gave Us the greatest concern.
They have long received the earnest
consideration Of the administration.
1t is idle to say that we are not IN.
terested in these problems. for we
are deeply interested from an
| economic standpoint. as our credits
and markets are involved. and from
a humanitarian standpoint. as the
| heart of the American people goes
out to those who are in distress. We
cannot dispose Of these problems by
| world problems and we cannot
| escape the injurious consequences OF
| failure to settle them.
They are. however. European
| problems in the sense that they can
| not be solved without the consent OF
consent for them. The key to the set
tlement is in their hands. not in ours.
Crux Of Situation.
! tion lies In the settlement OF repara.
tions. There will be no adjustment OF
| other needs. however pressing, until a
| definite and accepted basis for the
discharge of reparations claims has
! been fixed. 1t is futile to attempt to
erect any economic structure In Eu-
rope until the foundation 10 laid.
| How can the United States help In
| this matter? We are not seeking reps
! rations. We are, indeed. asking for
| the reimbursement Of the costs Of our
! army of occupation. and. with good
! Army In Europe at the request Of the
allies and of Germany. and under an
! agreement that its cost. with ike
Army costs. should be a first charge
upon the amounts paid by Germany.
Others have been paid and We have
not been paid.
But we are not seeking general
| reparations. We are bearing our own
burden, and through our loans large
part Of Europe's burden In addition.
NO oendnoS oi ours stdHu III tHe way
Of a proper settlement of the repara-
ton question.
"Of course. we hold the obligations
of European governments and there
has been much discussion abroad and
here with respect to them. There
since the armistice to link up the
debts owing to our government with
reparations or with projects Of can
collation.. This attempt was resisted
in q determined manner under the
former administration and under the
present administration.
Debts to L. 8. Not FaeteY.
"The matter IL plain enough from
our standpoint. The capacity OF Ger
many to pay Is not at all affected by
any indebtedness Of any OF the aliies
diminish Germany's capacity. and its
removal would not increase her ca
pacity. For example, II Franco had
been able to finance her part in the
war without borrowing at all from
us-that is, by taxation and internal
loans-the problem of what Germany
could pay wo aid be exactly the same.
Moreover, 80 far as the debtors to the
United States are concerned. they
have unsettled credit balances, and
their condition and capacity to pay
cannot be properly determined until
these credits for reparations has been
"The administration must also con-
sider the difficulty arising from the
fact that the question OF these obi.
cations which we hold. and what shall
be done with them. Is not queetion
within the province OF the executive.
Not only may Congress deal with pub
lie property Of this sort, but II has
dealt with it. 1t has crested com.
mission, and instead OF giving that
commission broad powers such as tho
administration proposed, which. quite
ansrt from cancellation. might per-
nit a sound discretion to DO exer.
cised in accordance with the facts
eIicited, Congress has placed definite
restrictions upon the power OF tho
commission in providing for the re.
funding of these debts.
"But what IL our attitude toward
the question OF reparations. stand
ing, 10 it does as q distinct question:
and Is one which cannot BE- settled
unless the European governments
concerned are able to agree!
Would Have Gernaay Psy.
I'VE have no desire to SEQ Germany
relieved Of hsr responsibility for the
war o. Of her just ob!igations 70
mako reparation for the injuries due
to her aggression. There Is not the
siiehtest desire that France shall lose
any part of her Just claims On the
other hand, we do not wish to sec
PROSTATE Germany.
"There can be no economic recupera-
tion in Europe unless Germany re
cuperates. There will be no perma-
nent peace unless economic satisfac.
tions are enjoyed. There must %
hope and industry must have prom
iae of reward il there 10 to be pros
nerity: We should view with disfavor
measures which instead Of producing
reparations would threaten disaster
daomA Of our own people have suS