Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-02-11
America and Reparations.

AukCIlCd anu AeCpoA a lAoAS'
Today at Paris the international ex-
perts' committee comes to grips with
the tangled problem of reparations. A
distinguished American, Owen D. Young,
has been unanimously elected chair
man. The circumstance that Mr..
Youngs reluctance to accept that re-
sponsible post was not overcome until
President Coolidge's assent was obtained
is prima facie evidence of the United
States interest in the questions about
to be discussed in France.
The presence among the reparation
experts of Mr.. Young, j. P. Morgan,
Thomas w. Lamont and Thomas NJ
! Perkins is of itself physical evidence OF
the Importance this country attaches to
the issues at stake The fiction may be
maintained that our participation in
their solution is unofficial, but they are
no less momentous, on that account,
from the American standpoint.
With clarity characteristic of French
economic thought, the Quai d'Orsay
puts the reparation situation in a nut
shell at the very outset of the experts
deliberations France wants roundly
$4,000, 100000 from Germany. She
needs $500, 100000 for reconstruction
Of Northern France and for pensions
and $2,o00,0oo,oOO each for payments
Of war debts to the United States and
Great Britain This, the French ex-
plain, entails sacrifice of the original
amount demanded by them, but they
are prepared to make the sacrifice, pro-
vided corresponding reduction Is made
on her debit side by America and Brit
ain.
Germany, on her part. is no less out
spoken as to what she expects from the
Paris meeting. She Graves prompt
decision IN order that evacuation of the
left bank of the Rhine may be ex-
pedited. The Germans seek the "mobi-
lization" of S2,75o 100000 Tin gold
marks of railroad bonds and $780,
100000 of industrial debentures. This
vast project contemplates the hotation
of forty-five per cent of the total issue
Of $4,000, 100000 in the United States. In
other words, the Germans propose that
American investors shall absorb the
gigantic sum of $1,000, 100000 to be
turned over in cash to the Berlin gov
eminent, which then would account for
the equivalent to Germany's reparation
creditors, principally France and Great
Britain.
In other words, it is now crystal
clear that both the French and the
Germans expect Uncle Sam to un-
sheatlle the sword with which the Cor
dian knot of World War indemnities is
to be cut. They are manifestly pro-
ceeding on the theory that the coun-
try which possesses half the worlds en-
tire store of gold is called upon, in the
very nature of the case, to disgorge
handsomely thereof No soothsaying
skill is needed to predict that much
water will flow beneath the bridges Of
the Potomac, the Seine and the Spree
before reparations are composed on
such basis
Until the United States is confront
ed with a concrete proposition, its at
titude will not have to be disclosed.
What it is likely to be can be conjec-
tured only from the Governments past
utterances. These have been unam-
biguous. AS to curtailment of war debts.
the United States considers that the
funding settlements already made re-
duce the debts substantially and gen.
erously AS to the f1otation Of huge
German bond issue in America, Wash
ington holds that its net effect would be
to transfer reparation burdens from the
shoulders where they belong to the al
ready heavily laden shoulders Of the
American investing public. Apart from
the intrinsic incongruity of such q
transaction, there is the practical ques-
ton of our capital markets capacity
to add so prodigiously to the colossal
aggregate of foreign obligations it is al
ready carrying.
Meantime the United States interests
at Paris are in safe hands-there could
be none better. Messrs. Young and
Morgan are men who walk warily. They
may be relied upon not only to watch
their step in the Champs Elysees, but
to remember that the Congress of the
TTy,i+ed STATES iS the court of last re-
sort in respect of the war billions Eu-
rope owes us.
The experts of Paris may propose
But Capitol Hill, Washington, may op-
pose, and then dispose of, decisions
which do not amply safeguard Amer
ica's stake in German reparations.