The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-05-27
BY J. ST. LOE STRACHEY
Editor Of The Spectator, London
(By Special Leased Wire to The Age
HArald.l

LONDON, May 26.-what is the
remedy?
We propose that a body should be
created called, let us say, the COM
mission for the liquidation of rep
aration obligations and outstanding
international debts" France, Britain,
Italy, and the United States should
each appoint two members, Belgium
one member, and these should add to
their number three members to rep
resent the other indebted and repara-
tionsowing nations.
By new international pact the
powers should bind Germany to pay
to France per cent per annum for
GA years on $500, 100000 pounds
which should be the capital sum
agreed on in respect of reparations
That terminable annuity would pro-
vide both for interest and for the
repayment of capital.
Germany would, however. at any
time have the right to get rid of por-
tions of this terminable annuity, ac-
cording to the present value" of the
amount of annuity sought to be
amortized. AS such capital sums
were paid off. portions of the orig
inally occupied territories should be
evacuated. Belgium and other rep
arations claimants should be dealt
with on similar lines, France as the
illustrative example.
Plan Debt p.y o q O.
Next, the commissioners would
have paid to their account similar
terminable annuities of 81 years
duration calculated at per, cent per
annum on the capital amounts due
by the various powers in respect of
their individual Indebtedness to US.
to the United States, and to each
other.
The indebted powers would have
the right of anticipating the extinc-
ton of their debts on terms similar
to those applied to the Germans. The
reraration and debt commissioners
would thus become middle men be-
tween the debtor and creditor powers.
The clearing house functions of the
commission would be simple.
Ttake the case of France as by
far the most important Germany
would pay in, say, 1925, 100000 pounds
year in respect of her reparations
to France. France. however, would
owe, say. 100000 pounds year to
Britain, and another 100000 pounds
a year to the United States. If
France Is owed money by any of the
smaller states, this would, of course.
be brought into the account, Putting
this aside, however, for the moment.
ceive a yearly clearing house cheque
for 61,o0o.000 pounds. Belgium
would be treated In a similar way.
other Powers Conferred.
Clearly this plan would work very
we'll SO long as Germany's payments
were regular. But suppose that in
some particular year Germany was
not in a position to pay in full.
What would happen then? How are
we to avoid another invasion of the
Ruhr? In the first place. powers of
= ;et. re,s Lxrx cxo
appointing the commission should be
conferred on the commission. But
though action of that kind by a
commission would be far better than
occupation by an angry aud distrust-
full nation, we want something bet
ter than the power of distress. espe-
cially If the temporary inability to
pay should be real.
The proper way is to provide
reserve board We would provide 1t
in the following way. Britain and
the United States should agree not to
present. but instead to give back
to the commission their annuol clear
ing house balance cheques for the
next II years. This would be gem
erous and disagreeable. but wise. BY
this means some S0,000,000 pounds
year-the annual amounts due for
loans to Italy Serbia. and so on, and
also for any reparation claims made
pS powers otner IMAM rrdHNe anu
Belgium would be added to this
would accumulate as a reserve fund.
AS to the final destination Of the
reserve fund, we suggest that it
should be handed over to the United
States and Britain to be dealt with
in the general interests OF peace and
civilizat ton and economic stability, as
they might Jointly determine.
If we do not adopt some plan for
keeping France and Germany apart
and also for liquidating the inter-
national debts, Europe will soon be in
a condition of bankruptcy, anarchy,