Evening star., 1944-03-05
Experts Seek to Avoid Seed
OF New War in Postwar Era
Key to Problem Seen in Churchill Speech
That Unconditional Surrender Is No
License for Barbaric Treatment
BY Joseph H. Baird.

II. Baird.
half their vessels Of between 1000
and 1900 tons and a quarter OF
their tonnage in smaller craft.
Many economists argue today
that the reparations fixed originally
for Germany were not beyond its
capacity to pay. They also are con-
vinced that the tragic imitation
which followed the French invasion
of the Ruhr in 1923, after Germany
failure to make coal deliveries, was
artif1cially engineered by German
capitalists and officials in an effort
Cd to wipe out large amounts of
bonded Indebtedness and (2) to con-
vince the Allies that Germany was
ruined economically and could pay
nothing more.
Imitation Hit Little Fellow.
This may well have been true.
However, the practical effect of the
imitation (the mark reached the
astronomical figure Of 1000, 900 900
to the gold dollar was to wipe out
the insurance, securities and savings
OF the small investor. The wage
Garner. whose pay increases always
Jagged behind the dwindling pur-
chasing power Of money, suffered
equally. And the net result was to
convince the small people of Ger
many that they were the victims OF
economic determination by the
Allies.
When, in 1924. the financial COL
lapse of Germany had become COM
plete, the Dawes plan, based on
Germany's capacity to pay" cut
the German reparations bill to a.
600 900 900 gold marks, payable over
IS years. while the introduction of
the rentenmark restored German
currency to its former parity. (Still
later, in 1929. the Young plan fur
ther reduced tho strain on the
Reich.)
But, from q psychological view-
point, the damage had been done
The little man in Germany had de-
veloped a persecution complex, and
it Is interesting to note that Hitler
first f1ared into the headlines of the
world press with his Munich beer
hall pusch in 1923, the year of finan-
cial collapse.
Subsequent Allied financial policy,
viewed in retrospect, appears equally
as unsound-though for very diff
1erent reasons-as that which fol-
lowed Immediately after the war
Convinced after the establishment
OF the Dawes plan that Germany was
a sound financial risk, international
bankers with excess lendable funds
began to make extravagant loans to
the German state, provinces and
municipalities.
Loan Funds Diverted.
During the period from 1924 to
1928, American bankers alone (who
advanced some 70 per cent of Ger
many's foreign credits sent the
Reich 81 SOC, 900 900 in long and short
term loans. Presumably these loans
were Tor the reconstruction of Ger
man industry. Actually millions of
dollars went into the building of
sports palaces, swimming pools and
other accoutrements of the Reich,s
campaign to build up a physically
strong citizenry against the day
when they would move to the battle.
field again.
Meanwhile, German disarmament
the terms OF which were strong
enough on paper, became a Joke
The Versailles treaty cut the Ger
man Army to 100000 men. banned
any air corps, and reduced the Ger
man Navy to six small battleshins
SIX light cruisers, IL destroyers and
IL torpedo boats. Submarines were
outlawed. More, a f1ve-power in
spect1on commission was established
regularly to see that these restric-
tions were observed.
But after q few years the Control
commission eased its inspection,
Machine tools for the manufacture
OF arms were made secretly. Under
the skillful guidance of Finance
Minister Hjalmar Schacht. Ger
many began the accumulation of
basic war supplies from the Balkan
countries, exchanging for them
German manufactured goods. Thou
sands of future pilots were trained
IN so-called glider clubs" while an
expanding civil aviation industry
laid the basis for conversion to
military plane production. When,
at length, Hitler came to power in
the spring of 1888 and successfully
defied France and England, he
found the groundwork for rapid ex-
pansion of the Reichswehr fully pre-
pared.
Lord Vansittart, former British
Undersecretary of Foreign Affairs,
said recently that the Germans are
not to be trusted with guns" AS
to economic policy, points four and
six of the Atlantic Charter promise
to the peoples Of the world, victor
and vanquished, an opportunity to
earn q decent living. And although
Mr.. Churchill said In his recent
speech that the Germans are not
entitled, as a matter of right, to
the boons Of the Atlantic Charter,
the context of his remarks indi-
Gates that he was speaking of terri
torial settlements rather than eco
nomic settlements.
Many students Of foreign affairs,
viewing the tragic failure of the
Versailles treaty to prevent another
war, are convinced that the Allies
will be wiser this time If they make
sure that the enemy is effectively
and permanently disarmed, but is