Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-25
BY FRANK II. sIMONDs.


amounted to "a. European pro-
test against the American policy, and
TO the passionate declaration that the
United States is holding Europe to
ransom, must be recognized in the
United States as opening a new page
In our foreign relations.
1t is easy to eXaggerate the present
Importance of European resentment
because Europe is not today in a
position to take any effective re-
prisals. We hold Europe at the
moment in a situation where, so far
from quarreling with us, it must
obtain financial advances from US to
keep going. On the other hand, while
1t is manifest that European depend
tree upon us is to be limited as to
TINA there is nothing to suggest that
there VIII be any limit in present
time, or for two generations, to speak
exactly, to European resentment, pro-
vided that the debt settlements now
made or in the making stand For
so years and in increasing amounts
for most of that time Europe will
be paying us relatively huge sums.
Typical American View.
Of course. it is simple to take the
ordinary American view and main
tain that the money was loaned, that
the debt is a debt of honor, and that
not only should it epaid in full, but
that all European protests and argu-
ments are in themselves evidences
OF desire to evade. Let Europe
reorganize it's system disband it's
armies. reduce its fleets, abandon
such colonies as Syria and Morocco
and address itself to the main bust
ness, which il paying it's debts"
This, broadly speaking, is the current
American opinion as it translates it
self into the halls of Congress and
influences members of Congress only
anxious to give their constituents
what they demand.
There is, however, a European
point of view. 1t may be right or
wrong, but ii is a fact which will
nightly affect the whole debt ques-
ton. If you look at the European
side of the case, first, as to the
fundamental facts. it is this. and one
might note that it found expression
recently in the characteristic COM
ment of Winston Churchill: Assume
that German reparauons will amount
annually to $500, 900. 600 This is a
high figure. higher than conservative
experts accept, but II is possible
figure. Then, in the nrst instance,
Germany will pay to her concuerors
In the second step, France. Britain,
Belgium, Italy and the smaller coun-
tries having relatively minor shares
In the German payment, will turn
over to us $3.50. 10000 900 a year. OF
all the vast sum which Germany is
to pay, $50, 200, 900, at most, will stay
In Europe, the rest will come to our
shores. Thus for all practical pur-
poses Germans will think of their
ind lxy
to the United States.
What Allies Will Get.
AS between themselves, the credit
orS of Germany under reparations
will fare as follows: Britain will pay
us $1S1 900, 900 a year. She will get
$62 ,000,0 900 from France. sec, 100000
from Italy and seq ,000. 900 from Ger
many directly. She will then have in
round figures some SIZE, 600. 900 COM
ing in against $1S1 ,000, 900 going out.
What comes in directly and indirectly
will really represent German pay
ments made to hers or transferred to
her.
France will get 1915, OOO, 600 from
Germany. and pay S165, 000,00 to the
United States and Britain. She will
then have a balance of $4,000, 900,
which will represent all she will get
for her devastated area. Britain, on
her side, will get nothing for her war
losses in property. Belgium VIII get
just enough to pay her debt to
America as funded in the recent
settlement. She has transferred to
Britain and France shares of the Ger
man reparations to cover their loans,
but the burden Of her reconstruction
rests upon her shoulders.
AS for Italy, she will pay the United
States and Britain some $50,OO0,00O a
wear and get from Germany less than
S35. o00, 900. Thus the Italians and the
British will have to pay us more than
thew get from GERMANY, the Belglans
will have to give up all they get and
only the French will have any sur
Mus. but the surplus will not come
within a mile of meeting the costs OF
the reconstruction of their devastated
area, which every one agrees should
be reconstructed at German expense
L. S. Absorbs Preparations.
Substantially, then, the effect of the
war has been to put Europe In the
debt of the United States Tor a sum
which almost but not quite apsorps
all any one believes Germany can pay
An the first instance. Now the British.
nv the Balfour note, brought forward
the principle which they had long as
serted. namely that all war debts
should be Cancelled and that par
passu German reparations should De
reduced. The underlying argument
was that all war debts were abnormal
tiles which could not be permitted to
block reconstruction without eVli
consequences.
But we owed no one anything and
we were owed by many states. We
should. then. have had to carry the
load of such a cancellation. When
we rejected the Balfour idea with
Some anger, however, the British
fell back on the second lire, also in
Guided in the Balfour note, namely.
that. failing cancellation owing to our
veto. Britain would collect from her
debtors, Germany included, only
enough to pay her debt to us. TINS
put the whole responsibility for all
debt collection upon us.
Now we are coming close to a new
sten. If practically all that Germany
pavs comes to America, the European
creditors of Germany under repara-
tions can say to Germany in the spirit
of the Balfour note: I'VE believe
that reparations, like war debts,
should be Cancelled. We are prepared
to cancel them If America will for
give our debts All that you pay SUBJ
stantially goes to America. II repara-
tions are a burden to you. it is Ameri-
ca which is responsible" The result
is, of course, that Germany will share
the European view that America is
holding Europe to ransom.
French Policy Stated.
But equally important with the
Balfour principle, which. as 1t STANDS
sol q
agreement. provides that Britain will
collect from the continent only
enough to satisfy America, is the
CaiiiaiiY rnriracinle (which is DaSsioY1.