The Washington times., 1923-02-04

. ny nth the World Wide Netos
Se,-Vice, Inc, Boston, MdSs.J
- HE Preparations Commission
went to Berlin some weeks
ago. 1t obtained nothing.
On November Is, Wirth's
cabinet sent the commission a
note which the new chancellor,
Cuno, accepted as his own. 1t
NAV be summarized in very few
words:
We can do nothing until we
have placed our currency on
stable footing; to stabilize our
currency we must have q reduc-
ton or-as they say by way OF
euphemisn-ar revision and def.
mite statement of the amount
that we owe. We demand that
we be freed for period OF three
or four years from all deliveries
In kind and all payments OF
money for which we are at pres
emit held. We win make an ex-
ception for the devastated re-
Kions, subject to one condition:
That we shall not be called upon
to pay more than we can raise
by ordinary taxes and Internal
loans-which means practically
nothing. Finally, we demand the
calling Of an international finan-
eial conference to ascertain what
sum is necessary to put Europe
and Germany on their feet-that
Is to say, how. much banking
credit can be placed at the dis
pOsaI of Germany.
GERMAN PROMISES.
This was what Germany told
as on November Is. We were
therefore faced with the ques-
tion Of revising, or, in other
words, overturning and abolish
ing the scheme of payments
agreed upon in May. 1921. We
were asked to grant norato-
rum of three or four years. In
return Germany did not promise
to carry out a single one of the
reforms that the Preparations
Commission asked for:
To stop padding her govern
ment expenses. to collect all the
taxes due from her citizens, and
to correct the inaccuracies in the
statistics showing her foreign
trade balance.
The first condition laid down
by Germany was that her debts
should be scaled down to some
definite figure. This Is a favor
lite proposal with many finan-
ciers on both sides of the Atlantic.
But this places France in a most
unhappy situation. BY the end
Of this year she will have ad-
vanced one hundred billion francs
against her bill on Germany, and
she has collected scarcely any
thing on that bill. It will be
impossible for her to. continue
this policy any longer. without
receiving substantial payments.
Furthermore, during the long
course Of the war France incur
red heavy debts in the common
cause, toward America and toward
England. These debts have not
been paid. I cannot tell you the
proximately the equivalent Of thir-
teen billion gold marks due the
United States, and ten billion gold
marks due England.
On the other hand, Belgium,
Russia, Serbia, Rumania and other
allied countries owe us five or six
billion marks. In the aggregate,
England is the creditor of France,
Italy and other countries to the
amount Of twenty-three billion
marks, and the United States is
the creditor OF Europe to the ex-
tent Of forty-one billion marks.
II we add together all of the
sums due the various creditor
nations Of Europe, we find they
total about seventy-two billion gold
marks.
COLLECTIVE COST.
Are we Justified in making any
comparison between this war debt
and the debt Of Germany to the
Allies? Certainly they have moth
ing in common.
So, we have always said to
our creditor Allies:
1--WE have no intention Of dis.
putting our debt. We recognize
that debt. But I'm neither justice
nor fact can we pay that debt
until we have received what
Germany owes u.s."
Coming to the question OF re-
facilitating Gernany's finances,
the neutral experts that the Ger.
man government recently con-
suited are in full agreement with
the Preparations Commission.
These experts divided into two
groups-some presented findings
more indulgent for Germany,
others presented findings more