Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-19
New and Practical League of Nations" Is
Being Instituted at London and Paris

tween q erocheting and a fighting state
of health.
Prime Minister Laval Of France
wishes Germany to give an undertak-
ing that for 10 years she will not in
crease her expenditures upon arma =
ments and will not raise any political
outcries on such topics as the proposed
customs union with Austria or the pro-
posed remuneration to Germany OF
German inhabited territory now polit-
ically possessed by Poland. On those
terms Prime Minister Laval is willing
to see Germany given q long term loan
of $500 900. 900. one-third Of which
would be allocated to investors in the
United States. who thus would get a
chance to be helpful again.
Mr., Stimson will sign no treaty i'm
posing such terms upon Germany. The
methods of the new league" will not
include many open covenants openly
delivered to destruction in the United
States Senate. We shall not become
parties directly at this time to any po-
litical establishments between Berlin
and Paris. The new league" will be
practical; and the practical point in
the conversations" between the repre-
sentatives of the various countries as
sembled in the new league" will at
this time be reached when Mr.. Stimson.
Mr.. Mellon and Mr.. Gibson decide to
say to the Germans regarding any
given development of the French terms ::
we think you'd better" or we
think you'd better not"
- x
The American representatives will
doubtless say you'd better not" until
the terms proposed are such as will
genuinely promote German solvency;
and then they will inevitably incline
toward saying you'd better"
They will simply say it, If and when
the appropriate moment comes. and
they will then return to the United
States with no treaty, but with their
objective achieved.
Their strength in the negotiations Is
that they have to be satisfied If any
part of the new long-term loan to
Germany is to be taken in the United
States. 1t Is also possible to say that
no part of that new loan will get sue
cessfully taken in the United States
unless the new situation to be created
in Germany is satisfactory to Mr.. S.
Parker Gilbert, formerly agent general
for reparations payments at Berlin and
now a partner In J. P. Morgan g. Co. in
New York City. He knows more about
German economic strength and weak
ness than any other man living. His
views have had q most persuasive
weight with Mr. Stimson. 1t would
seem certain that Mr.. StimSon will not
60 against Mr.. Gilbert's business judg-
nent in the ultimate settlement.
President Hoover states that our spe-
cial representatives in the present ne
gotiations will treat only Of the pres
ent emergency" He Is not supposed to
mean that emergencies will cease. In
fact, the history of the last few weeks
proves that one emergency creates the
next. When President Hoover an
nounced his reparstions moratorium
move. the German Young plan bonds
of 1880 were selling in New York above
10. Subsequent political reverberations
have sent them down far below that
figure. The reparations moratorium
move was not enough. 1t led on to the
necessity of q next move. There will be
next moves now in a continuous series;
and the countries constituting the new
economic League of Nations" will
tend to be in almost continuous con-
yersational' session. The league for
peace may stop, but the league for
business will 60 on. So thinks wash
ington today. ,o,,