Evening star., 1923-01-07
SEES DOOR CLOSED
ON i. S. BY FRANCE
Senator-EIect Fess Declares
Financing of Europe Must Be
Done by Business Men.
DRAWS MORGENTHAU FIRE
Former Ambassador Predicts Dem
ocrats Will End Isolation When
in Power 1.-TWO Years Hence"
Rr the Associated Press.

Ey the Associated Press.
NEW YORK, January 6.-President
Harding is deeply concerned over the
grave turn of events in Europe re-
sulting from the collapse of the con-
ference of premiers in Paris. Senator
elect Simeon d. Eess of Ohio told the
National Republican Club today at a
discussion of present foreign policy.
His address was interpreted by
many as an intimate revelation of the
administrations position in the criti-
cal period. particularly an assertion
that I'VE should not foster the call
ing of an economic conference"
I'VE thought a commission of ex
perts TO pass on the facts in relation
to reparations might be welcome
he said, but the suggestion was not
welcome and it seems to me the door
is now closed Therefore. what we
may now do is not very encouraging.
Senator Fess drew the fire of Henry
Morgenthau. former ambassador TO
Turkey. when he said:
I'VE believe that the financing OF
Europe should not be done by any
action of the government, but by
American business"
Dubs IL "Passing Buck"
Speaking as a democrat, Mr.. Nor
genthau termed the proposed nom
official reparations commission "a
deliberate attempt by the republican
administration to pass the buck at
this critical period in the worlds al
fairs to the business men of America.
Mr.. Morgenthau spoke frankly to
the republicans in defense of former
President Wilson's policy. He pre-
- tn.
er In two years and would find way
to participate actively in European
affairs.
"The republican party" he said. lis
attempting to poison the minds or the
American people against the league
of nations and the peace treaty in
1918. until both have become the FOOT
ball of politics to an extent that mas
tied the hands and feet of the nation
so that IL is powerless now to act,
though it's own safety and the fate
of civilization are at stake in the
present crisis through which western
Europe is passing"
Albert W. Krech, president of the
Equitable Trust Company. another
sneaker, held the view that perma-
nent peace in Europe could be es-
tablished only by putting the cur
rencies of all European nations on a
gold basis in direct ratio to the pres
cnt purchasing power of their exist
ing currencies.
Interprets Hughes Speech.
Apparently interpretating a change
in the administrations policy. He
said:
1T seems to me the voice OF
Hughes in the New Haven speech is
to be regarded as a voice from the
wilderness proclaiming, prepare ye
the way.
The American people, he declared.
had a moral responsibility in the
worlds affairs quite apart from their
material interests
Senator elect Fess asserted that
the crisis in western Europe is the
question we are all thinking deeply
about now"
81 do not know" he said. whether
or not France has closed the door to
us; whether the premiers of the allied
nations have barred US from further
participation in Europe's troubled af-
fairs is in doubt We do know that
the French newspapers do not accept
our suggestion of having an economic
commission pass on the reparations
problem.
'If that represents the stand of the
French government then l say that
for the present the door is closed
against the United States and it can
not act. We have faced no such prob
lem as the closed door in our time,
and perhaps in any time in our his
tory"
Where Britain Stands.
Mr.. Fess said no country felt the
failure of buying power more than
Great Britain and because of that, her
overseas commerce did not return to
normal.
"England's remedy is a revival of
markets, hence her concern in the re-
viYal of German industry and Russian
prosperity he added. Her request
for a reduction of the burden of Ger
T. fNr ~ q
guilt nor a lack of appreciation of
Frances just claim. 1t is not a de-
sire to relieve Germany for her own
sake, nor to deprive France OF needed
reparation, but rather a selfish de-
mand to assure relief to British COM
merce and the employment of her unem-
ployed. The economic necessity OF
Britain calls for a. a.rejuvenation of the
industrial world, including the central
powers and Russia"
All that England is concerned
about he said, is the worlds buying
power and she wants ii restored at
all costs for her own self-preserva-
tion.
France, on the other hand he
continued "sees only the work of
devastation, of wars hideous destruc-
tion, of the terrorism of German mill
tarism; so she demands that Germany
be compelled to make good what the
treaty of Versailles specifically gives
her the power TO COllGCls Win hCi
army If necessary"
France Fears Revolution.
France cannot contemplate the all
ternative of German failure to pay,
Mr.. Fess asserted.
France sees financial bankruptcy
in case of German default and worse
than financial collapse. she fears inc
yitabie revolution in case she agrees
to the default when the treaty gives
her the authority to collect 1t by
military force"
Mr.. Fess dealt with the German
fiscal situation. which he said, "baf-
hes the world" He declared the
United States could render Europe
no greater service than Ito notify
those countries now, once and for all,
that so long as they refuse or delay
to put their houses in order, no
assistance from US need be expected"
Alluding to limitations placed on
the debt refunding commission, Mr..
Fess said Congress made a very seri-
Gus blunder. when 1--WE tied down the
commission to a time limit within
which the debts were to be paid, and
Withholding from the body the right
to modify the rate of interest on
those debts"
1--WE must give that body some free
dom" he added That must be done.
and + am not telling tales out of
school when I say It will be done"
If Germany's indemnity was placed
at a figure she could pay, said Mr..
Fess, he believed a. loan could be
fioated for Germany which would
find a market even over here"