Evening star., 1923-08-12
BELGIUM HAS KEEN
PREPARATIONS NEED
Poverty Explains Why She
Followed France in
Ruhr Campaign.
By WILLIAM f. NASH.

III WILLIAM T.. NASH.
Correspondence Of The Star and the Chicago
Daily News Foreign Service.
i, BRUSSELS, Belgium, August IL
"The financial situation OF Belgium.
with particular regard to reparations,
Is critical, but not desperate" well
known banker of Brussels informs
me. even if we never collect an
other cent from Germany. we can
null through by dint OF strenuous
domestic efforts, Sacrifices we must
lmake, sacrifices which nobody likes
TO contemplate; but. we can pull
through. Before the war Belgium
was country of low taxes and low
prices, where it was a pleasure to
live. Now it will become nation Of
high taxes and high prices, where
the struggle for livelihood will be
herce. That is the meaning of the
reparations problem for us"
In contrast with some types of
Frenchmen. Belgians are good bust
ness men, who know how to separate
sentimentality from finance. They
have taken into. account the event
uality, more or less probable, of re-
Ceiving no more indemnity payments
from Germany.
Territory Ravaged.
That from the point of view of
justice Belgium has an incontestab Bile
right to reparations cannot be denied.
Part of her territory was ravaSed
'riShtfully by war and other provinces
were subjected to wanton pillage.
Enemy troops occupied practically all
.uer territory. Enemy experts carried
on immense amounts of machinery
from factories along the MeuSe and
pI haf In
large towns and cities. Destruction
In the industrial region about Mons
and Charleroi, while not as systematic
as across the border near Valenctennes,
was considerable
In recognition of her need for rem
arationS allied statesmen made spe-
gal concessions to Belgium at the
1'eace conference, such concessions as
Il grant Of loans TO tide her over the
difficult armiStice period. the grant
Of 2.000,000,O0O marks ($476, 900 OOO)
priority on indemnity payments, the
transfer OF her war debts to Germany
and the assignment to her treasury
If Il claim on enemy resources for
1900. .pno,Oo0 gold marks tS2,3SO,00O)
20 make good the cost OF reconstruC
lion
Only DrCp In Bucket.
Up to date Belgium has received
about l,500.000.000 gold marks. or
$S0I. 100000. III actual payments from
country has received. but is a small
sum when compared with annual
budget deficits. while Belgium has
spent about 10000 600 gold francs
tS3.J10, 0,00G.000) on reconstruction,
and must spend another $4,000. 900. 900
before her task is done. Moreover. In
the period following the armistice
she had TO convert into francs al the
rate Ut l - t0 the sum of 5000, ,O00-
600 marks ($l,42H. .000) left in cir
,lst
territory. These marks are now prac-
'ically worthless.
Summing up, it can be seen that
Belgium must pay out 2S.500.000 900
gold marks (S6,7S3. 000,000) TO Ger
lnany's account, while she takes in
received only 100000. 900 thus far
Even If she receives the full measure
Of her claims. which is highly unlike
", she VIII be able to cover only one
third Of her expenses. With what
she has received she can cover only
one twentIetfT of her expenses.
Reason for Policy. -. ~
Thus Belgium feels forced to follow
a repdration policy similar to that OF
France. She believes that Germany is
deliberately trying TO elude her obli-
cations. She believes that Germany
can pay, and that the best way to
make her DO so is by using force. She
believes to a certain extent in the
efficacy of the Ruhr operation, al
though on this point there are many
<elgians skepttcal enough, to question
government desires.
In resaId - 4. examination Of
Germanys 5 capacity to paS-that is, a
reduction # the 1872 200. 600, 900 tS3l,-
$4,000. .O00) mark schedule established
IT the conference of London three
wears ago-Belgium was inclined TO
he favorabl" for a time, but is now
inclined to be unfayorable on account
of Ruhr commitments to France. She
GxtS a minimum of o,0OO.00O.000 gold
francs ($96J, 900 ,o00) which, she says,
she must obtain in cash before talking
about further reductions. She regards
the last slice of German payments
that is, the & bonds-aS a superior sort
Of waste paper. which will never pay
any interest, but must be held FOR
political reasons.
On the other hand. Belgium Is disin-
terested in the question of interallied
war debts, because her liabilities in
that direction were transferred to
Germany by the treaty of Versailles.
This is one of the main reasons why
Relgium can afford to show herself
legs intranSigent toward Germany
than France.
Debt to America.
Moreover. this matter of debt raises
4 curious point with regard to the
Hntted States. How muon does Bel
Eium owe the United StateS2 Wash
ingGon says $375.000.000. for that is
tho amount lent her during and after
the war. Belgium says $175 900, 600,
because that is the amount she bor-
rowei subsequent to the war, and
consequently the only amount she is
liable; for under terms of the treaty.
But tie United States does not recog-
niZe the treaty of Versailles. Between
1915, 600, 900. and SITS, 100000 is a diff
ference of $500, 100000 which the
United Estates paid in hard cash and
would like TO recover. 1t is con-
sideredi foTegone- conclusion that