Evening star., 1928-10-14
CAMPAIGN UPSETS DEBT
EXPECTATION OF EUROPE
Coolidge's Frank Separation of Issue
From Reparations and Smiths
Silence Dash Hopes.

must, that the allies cannot collect
from Germany enough to pay us.
Our European debtors desire to keep
the reparations question open just as
long as the debt question is not closed
and closed to their satisfaction. They
wish to put every sort Of moral pressure
upon lis that can be exerted through
the reiterated statement that American
debt is postponing European recon-
struction and reconciliation. They de-
sire to put every sort of material pres
sure possible upon us by permitting vast
American loans to Germany to pile up,
thus raising a division of interest be-
tween thCs" who hold private bonds in
German concerns and the mass of the
American people who, as taxpayers, are
interested in allied payments.
When Poincare says that the French
share of reparationS must be sufficient
to discharge French debts to Great
Britain and the United States and leave
France balance to meet the interest
on the bonds issued to pay the costs
Of restoring the devastated area, he Is
saying something that can only mean
that France will not consent to any
reparations settlement until the United
States agrees to a debt reduction on q
sweeping scale. This is the fact be-
cause no one in Europe now believes
that any such sum can be collected
from Germany.
AS long as the Poincare policy pre-
walls in France-and this policy, like
the American debt policy, is not parti-
san but national-ti1e >reparations ol1es-
ton cannot be settled. Moreover, along
side Of the Poincare policy one must
place that of the Balfour note, which
asserts that the British will collect
from Germany and from their wartime
allies every cent that they have to pay
the United States. But this policy Is
also based upon an essential absurdity,
because no one believes that Germany
can pay enough to provide the funds
Britain insists upon having.
Some Hopes Are Reduced.
Neither the British nor the French
and the Italians are in the same case
expect to get enough from Germany to
discharge those debts to the United
States which are now regulated by the
several debt settlements. The Victo-
rious allies of the war are already
cured of the fantastic expectations
which dominated the Paris peace
conference. Instead of hoping to get
$4,000. 100000 from Germany, tfley
are excessively doubtful as to their
ability to collect $4,000, ,000, 900. An,'
this sum is hardly half of what IL,
stand obligated to pay the Unit. =.
States.
Moreover, on the German side there
Is flxed limit. What Germany can
pay and transfer across her frontiers is
not going to amount to enough to fur
nish the funds to discharge the Amer
lean payments fixed in the settlements
to continue for So years. Practically.
there is nothing doing on the German
side OF the problem. Everything de-
pends upon the American And since
this is the case all Europe it not think
ing OF accepting American conditions
but OF abolishing them.
There never has been the smallest
weakening on either side of the At
iantlc. Europe is just as determined
not to pay as we are not to cancel
But Europe is perfectly willing to let
the situation drag as long as we are
putting up the money to meet our debt
claims against Europe. 1t costs Eu-
rope nothing. it commits Europe to
notnlng, and 1t leaves the matter open
Ior ultimate adjustment. The sole dim
culty In the situation is that the Ger
mans want their territory evacuated
and the French won't agree to evacuas
ton until they get the debt matter
adjusted
Triangular Dispute Seen.
Naturally this angers the Germans
VINO maintain. not without reason. that
II is not their fault that the United
states won't take the allied view of
the debt question. and, since they are
lVlng up to the Dawes plan, there Is
no reason why French troops should
nnger III Coblenz and Mainz because
American officials and American nuhJic
opinion insist upon debt payments.
Actually therefore. what exists Is a
triangular dispute. We say that there
Is no connection between debts and
FeparationS, the Germans say that there
Is no connection between debts and
evacuation and the allies say that there
only one problem. and that repara-
tlons. debts and evacuation are tied
togetner beyond all hope of extrication
And so the situation goes on inst as n
ference. P0@Oe "0li-
Obviously crisis must come sooner
or later. The allies. by the terms -of
tne treaty of Versailles, can't stav on
German soil beyond January I. 1o35
Ii they can't get the debt matter Adj.
Justeo before that time they will have
10 drop the reparations factor ana
come out into the open. They viii
nave to choose between reputation and
payment. anu
fCopyright. 1922