Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-20
Revision of Reparations.


Americas lead in calculating finan-
cial relief for Germany clothes with
definite interest for the United States
the recommendation of the International
Bankers Committee at Basel that Ger
man reparations should be subjected to
immediate revision. Once upon a time
--persistently, in fact, until President
Hoover's moratorium proposal of June
20 last-the Washington Government
held that Preparations and allied war
debts were utterly unrelated issues
Whatever the former enemies Of Ger
many might deign to do In the direc-
ton Of slashing her reparation obliga-
tons, the contention Of the United
States was that such action could and
would In nowiSe affect European war
debts owing to this country. That
theory went by the boards the moment
Mr.. Hoover offered to suspend war
debt payments for one year If Ger
manys creditors agreed to . coinci-
dent suspension Of PREPARATION pay
ments.
It viii need to be borne in mind
amid the controversy certain to be pre-
cipitated by the Wiggin committees
report of Germany's incapacity to pay,
that the Reich is not obligated to us
for reparations. These are owed ex-
clusively to European powers and ia
pan. But recent events make 1t crystal
clear that If European treasures are
going to receive curtailed reparation
annuities from Berlin they win not be
minded to disgorge uncurtailed war
debt annuities to the United States. It
win be pointed out with unanswerabIe
logic that 1t was President Hoover him
self who linked the two sets of obliga-
tons in a manner that it viii not be
easy henceforth to put asunder. Plain
ly, IL the Basel recommendations reach
the stage Of formal action by the gov
ernments concerned, the hour will
hasten, with seven-league boots, when
washington viii be compelled to dis
close its hand toward the newly pro-
voked situation.
Acting Secretary Of State Castle re-
calls that while the President was con-
sidering ways and means Of alternating
the world economic situation q general
scaling down of intergovernmental debts
was one Of the remedies that received
attention. It was abandoned In favor
Of the limited moratorium plan. Moth
ing has yet developed to justify as far
flung an application Of that plan as
the Wiggin Committee proposes. IN the
same statement as puts reparations re-
vision forward the committee recon-
mends six months extension Of Ger
man short-term credits, aggregating a
billion and a quarter dollars. This
gives the Reich further and generous
breathing spell, coming as 1t does on
top Of the Hoover year"
A distinguished European economist
at the WilIiamstown Institute of Politics
has just expressed the opinion that Ger
many is capable of paying repara-
tons three times over" That may
be an extravagant. as well as an
unfriendly, opinion, and also a little
premature, at this very early stage of
the German relief inaugurated at the
instigation Of the United States, to
launch a scheme as extensive in nature
and so loaded with political dynamite
as the Wiggin Committee has Matched.
The committee consists Of bankers with
out governmental responsibilities. 1t is
for the Wigginses to propose, but it viii
remain for the Hoovers, MacDoualds,
Lavals and Mussoltnis to dispose. States
men do not always see eye to eye with
bankers. Especially the statesmen of
France VIII be heard from on the pres
ent occasion, In terms differing from
the key pitched by the bankers.