Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-02
GERMAN CRISIS UNSOLVED
DESPITE LONDON FARLEY
Disaster Looms Unless Financial Aid Is
Found-French Keep Whip in
Pressing Economic War.

came f1rSt, London was 1oreooomeo 10
failure.
The only question at London was
whether the French had changed their
mind and were ready to play ball"
or not. But the French had not
changed their mind. They had won
| q war and they were in no mood to
| lose another peace conference. The
| really decisive point was when Snow
den proposed that France should take
her share in the outstanding German
obligations, which in immediate Shcrt-
term loans ran up to 81 1000, 900
and of which 80 per cent were in
United States holding 60 per cent and
the British 80. while the French COM
mitment was but per cent. The
object of this strategy. of course, was
to give France a money stake in Ger
man recovery. When Laval bowed
himself out CT that ambush the whole
game was up.
Kept Victory Intact.
Thus the French preserved their VIC
tory intact. both at Paris and at Lon
don. All the recommendations of the
representatives Of the seven powers
did not and could not do more than
outline a way Germany might be
saved If the problem were limited TO
and Germany were at war and France
was not only victorious in the field, but
resolved to impose terms in accord with
the extent of her victory and the
amount of her power, all attempts to
save Germany on the financial side
would in the end fail, because France
was resolved Germany should not re-
cover until she met the French con-
ditionS.
London, like Paris, like the Hoover
moratorium move, could only interpcse
certain delay between Germany and
the operation of the forces in play.
AS long as the American and British
publics thought of the question as one
of finance. as long as American and
British statesmen attempted to deal
with it on the basis of peace, the
result was the confusion of the publics
and the confounding OF the statesmen.
For France went to war again in
March, when the AuStro-German tariff
union was proposed, and in June she
was victorious for the third time in
Is years.
There never were but three ways
| that Germany could be saved First,
by her surrender to French political
| terms; second by the abandonment by
France of her political purposes, or
finally, by the decision of Great Britain
or finance to save Germany in spite
CT France. Germany was bound never
to surrender until she had to and
American and British intervention en-
couraged her. Moreover, surrender by
the present government would almost
beyond question mean suicide, political
and perhaps personal. The similar
retreat of Laval would have led to
nothing but the fall of his cabinet and
Af FToN-
of national safety. AS for the final
possibility, neither the United States
nor Great Britain was willing or in a
position to coerce France at the risk
of war and neither had the money to
save Germany while France stood by
able and ready to destroy that con-
fidence without which loans would be
no more than good money sent after
bad.
Situation Unchanged.
London leaves the situation just
where it was five weeks before, when
Mr.. Hoover launched his moratorium
proposal. GermanyS financial ruin, 70
be sure, has been completed since then,
but otherwise all remains unchanged.
The French purpose is mistaken, the
French power has been demonstrated at
Basel, at Paris. at London. All the in
genious devices for freezing credits,
which means in simple language, leav-
ing American money in Germany, won't
help much, fer on the one hand Ger
many needs more money and on the
other, if the Franco-German war Is go
ing to continue America will be oOrre-
spondingly anxious to get its money cut
while there is any to bring back.
The scene now shifts to Berlin,
Bruening and Curtius nave been COM
PEELED to go home with empty hands
They have some promises but the ques-
satisfy desperate people and power
full opposition. They can hang on for
the moment if the public remains quiet.
for the ReichStag will not meet until
Autumn, and they control the police
and, perhaps, the army. While they
last the situation is not hopeless, be-
cause some settlement with France IS
at least conceivable. But it will not be
easy to satisfy France and it will be less
easy now than in June. For the French
are both fortified by success and an
gered by what they regard as a hostile
attitude on the part Of Washington and
| Londcn.
The French were wrong when they
| reckoned that American concern for
saving its money would lead the United
States to bring pressure on the Ger
mans to accept French terms. 1t was
big miScalculation and it has given
the later stages of their campaign a
different form from that which Paris
expected. But so far it has not changed
the result. And, If one can judge the
situation from the distance, they still
have lingering hope that when the
British and the Americans see that they
cannot be persuaded or driven, both will
turn their attention to persuading Ger
many to agree to a political moratorium
as the single means OF economic and
| financial salvation.
The strength of the French position
lies in the fact that, while Washington
and London were preparing for a disar-
mament conference next year. the
French were getting ready for finan-
cial war this year. Thus they modified,
concentrated, struck and overwhelmed
their enemy. And when London and
Washington woks up to the situation,
the French victory was complete and
the difficult task that was left consisted
in trying to persuade the French to re-
sign the fruits of victory in the inter-
ests of world prosperity they had de-
liberately disregarded when they set
out for war.
Copyright. 1917
Canada Allows Servants