Evening star., 1923-08-21
PREPARATIONS SEEN
EUROPE'S HANDICAP
Mr.. Mellon Thinks Sound
Economic Recovery Only
Awaits Ruhr Adjustment.

If only satisfactory solution to
the joint problems of German repa-
rations and the French occupation of
OF the Treasury Mellon believes. con-
ditions in Europe. as he found them
there on a trip from which he has
just returned. would operate toward
a sound economic recovery.
Something may be expected to
break the deadlock over the Ruhr by
winter, Mr. Mellon believes. although
the outlook as he found it was so
complex that it would be impossible
in his opinion. to predict how the
deadlock may be broken and what
would De the immediate outcome.
Factors Evident.
But there We're factors evident in
Europe, Mr.. Mellon was represented
yesterday at the Treasury as believ-
ing, which would go a long way il
reQarations could be settled to re-
establish senLblance at least of
economic order to gravely disturbed
political conditions.
England was found to be eager to
resume the trade relations of Europe.
vital TO her very existence.
Franco had good crops. no unem-
ployment and was actively and
regions.
Even In Germany. with the mark
uepleted to an infinitesimal mini
mum, trading was being carried on
according to relative values. or. il
might almost be said almost on a
gold basis. Germany was full of in
dustry and activity. though political
~ IN a turmoil, with danger of a
breakup into q series of smaller
states. This would be a catastrophe
which no nation or group of nations
mas yet been able to present an ade-
quate program to meet. Should Ger
many break up politically. it was
thousht. there would be greater diff
Guilty. it not. indeed, impossibility, in
the collection of repa rations.
See Mark No Longer Of Value.
With the depletion of the German n
mark to such low value. it was
round to be the opinion of some of
the best German bankers that the
mark could never again be lifted to
It's former value. If the mark ever
was to be established again as the basis
or German money. it was the opinion
or some German authorities that it
would have to be stabilized on a
much lower basis than it enjoyed
before the war
The German government was not
attributed by Secretary Mellon with
| being deliberately responsible for en-
barking on a policy of depreciation
of the mark in order to muddle the
reparations question and practically
wipe out the German internal in
debtedness. The country had needed
money to purchase food and supplies.
But when the mark began it's light
ming descent it was said the German
government had followed along with
that descent, and made practically no
effective efforts to stop it,
In view of the increasing serious
ness in Europe. although the basis
was found to exist for an economic
recovery, Secretary Mellon was rep
resented as feeling that there was not
much hope for immediate payment of
French and other allied debts to the
United States.
French Debt Not n Topic.
In fact. it was understood, the ques-
tion of the French debt was not Off
cially discussed by Secretary Mellon
while in France, his trip being adj
mittedly of a personal nature. OBJ
servations. however, made by the
| chairman Of the American debt COM
mission are considered in official cir
cies here as giving a much more ade-
quate view of the real situation over