MAIN SOURCE OF EVIL

Evening Post, Volume CXIII, Issue 9, 12 January 1932, Page 9

MAIN SOURCE OF EVIL

GERMAN EEPAEATIONS

EX-CHANCELLOR'S • VIEW

For years it was my conviction that no one could equal the German and especially the Prussian official for nar-row-minded and frequently stubborn insistence on the letter of laws and regulations, writes Wilhelm Marx,, former German Chancellor, in,the "San- Fianeisco Chronicle." Bo that as, it may, M: Poiheare took over the same method for himself, and M. Laval seems to feel compelled by the force of influential nationalistic circles to-employ the same methods in dealing with,questions of foreign policy. One was .accustomed to hearing M. Poineare declare: "The Treaty of Versailles and. the Young Agreement must be' adhered to in all circumstances. Treaties must be fulfilled to the letter." No matter how fundamentally the whole economic and financial situation of the world might have changed, he clung to this one idea of the juristic formalist. A world-wide crisis of tremendous scope has come upon the civilised countries. It is admitted by everybody that the monstrous' reparation payments by Germany are the main, source of evil. But, '■ despite everything, tho . French Government's thesis still stands like a rock in a sea. The. Young Plan must be adhered to and all its provisions carried out. No one in all the world outside of France still believes that Germany, even with the best will in the world and by exerting all her energies, can keep on paying reparations, including the unprotected payments. . The situation must be, relieved at the earliest possible moment. As to this, too, there is general international agreement. In August, 193'1| an international commission, created on the basis of the London Conference^ and headed by Mr. Albert Wiggin/ president of the Chase National Bank of New York, considered objectively and intelligently. the problem of revision of the reparation, obligations, and presented, through' Sir Walter T. Lay ton, an exhaustive and irrefutable'report. Hence there would be nothing'to prevent the summoning of an international conference of the couiitries interested, which, after making any small additions to the report that might, be necessary, could draw the political conclusions from the economic facts presented by the commission. STILL ADAMANT. But that would be -too' simple. De-r spite the.great urgency of the situation for all concerned; France demands that recourse be had to the round-about way set forth in the Young Plan, which provides, if Germany finds herself unable to pay reparations, that she must first mako a declaration to that effect, and that a special commission of the Bank for International Payments shall then como together, whoso report and recommendations are finally to be submitted to a conference of States, which is to draw the necessary conclusions. . One can only regard' with' dismay this narrow-minded and pedantic attitude of the French Government, an attitude that menaces all nations suffering from the crisis. There is .nothing for Germany to do but fulfil France's demand. For weeks these two conntries have ' .been . negqtiating merely about the form of the proposal to be made by Germany. It was in itself wise to arrive at an understanding as to this, for-if France had made objections after the proposal was presented, these would! have had a still more detrimental effect. : ■ A form- was finally found that France approved and which lias been submitted. The International Bank, with full appreciation of ;the economic situation, immediately summoned the special commission provided for in the Young Plan, and the countries concerned quite as promptly, named their representatives—a plain indication of the menace they see in the situation. GERMANY'S PLIGHT. What tasks must this commission, accomplish in order to arrest the worldwide crisis and, if possible, to end it? The chief question—whether Germany can keep on paying reparations—will cause the least trouble. No one, except the French, dares even to submit the question; much less to answer it affirmatively. France, however, still seems to be of the opinion that whe_n the crisis is ended Germany can again meet her reparation obligations to the same extent as formerly provided. There can be no talk of this in any circumstances. The special commission must aim at and achieve a final adjustment, to remain valid after the crisis shall have ended. For the main cause of this crisis was not alone the great doubt as to Germany's ability to pay, but also as to the financial strength of those States that have to pay war debts to the general creditor, America. This distrust, upon the allaying of which everything depends can disappear only if and when a final regulation of the reparation question is achieved. This is a plain economic truth as to which there ought to be no doubt whatever.

The communique given out at the end of the first joint session of the German-French economic commission was hope inspiring. In it one finds: "The commission has found that as to all matters thus far ; considered favourable prospects exist for building up German-French co-operation." The commission has again concluded unanimously that its efforts must be carried out in a spirit of generous co-operation, with _ the desire to achieve complete solution in all cases where this is possible, solutions that shall serve the reorganisation of the economy of Europe and the whole world.

Difficulties will attach to the solution of the question as to whether the com-

mission shall confine itself to regulating the reparation payments in future, or whether it shall also take up the matter of the private debts ot banks and citizens of the different countries' among themselves. ' Sinco the all' too rapid realising of these debts bears a big part in the responsibility for the worldwide crisis, the adjustment of this question may also not be neglected Unless all efforts are to be completely in vain. Moreover, the "freezing agreement" remains in effect only until the end of next February. Before that date either an extension of the agreement or some other regulation must be arrived at, for otherwise all the other work will also have been in vain. Hence Germany's proposal to the International Bank is quite right ia saying: "Since the new plan places upon the special advisory commission the task of investigating the situation from all viewpoints, the commission must study the problem as a whole and having regard to all its factors, and must in doing so pay especial heed to the fact that the question of .Germany's private indebtedness must bo nowly regulated before the end of nest February by an agreement to be reached between the foreign creditors and the German debtors." AS A WHOLE. Furthermore, the ■commission may not make any distinction between protected and unprotected reparation payments, between such as can and Buch as cannot be postponed under the provisions of the Young plan. The problem must be grappled with ana solved as a whole. Germany is not able to pay the 660 millions of unprotected reparations. Problems of' historic importance for the world await solution. On the manner in which they are solved depends the economic and political developments not merely of Germany but of the whole civilised world. It goes without saying that the political conclusions and decision of the economic committees must be put into effect as speedily as possible by an international conference. There arises like a" menacing spectre the disarmament conference to meet in February, ithe success of which is maissolubly bound up with the results achieved by such an international conference. One can say with completo justification to that conference that the fate of humanity rests in its hands. Let France finally abandon her stubborn attitude, which ia dangerous also for her own welfare. Distress is knocking also on her closed gates, and in the East Bolshevism, waiting hungrily for prey, is making ready to take over the legacy of a Europe destroyed' by narrowmindedncss and shortsightedness