The New Zealand Times. THURSDAY, OCTOBER 18, 1923. REPARATIONS IMPASSE

New Zealand Times, Volume L, Issue 11653, 18 October 1923, Page 4

The New Zealand Times. THURSDAY, OCTOBER 18, 1923. REPARATIONS IMPASSE

Though the aftermath of Germany’s fatuous policy of passivo resistance in the Ruhr has produced a very serious situation, not only there but in other parte of the Fatherland, on the whole the position in regard to the reparations impasse seems to be decidedly better than it has been for mpntlis past. There can be little doubt that the very alarming picture drawn by the Dusseldorf special correspondent of the London “Daily Express” of the state of affairs in the Ruhr and the Rhineland, is subject to very considerable discount. Throughout the whole business, indeed, the special correspondents have shown themselves distinctly alarmist, not to say panicky. It will he well, therefore, to take with a big grain of salt the statement that “the situation in the Ruhr apd the Rhineland is rapidly approaching a point where the British and French troops will inevitably be drawn into hitter conflict with the civil population, if the country is to be saved from anarchy ape} complete destruction everywhere.’’ The same applies also to the reports as to the crowds rupning wild, smashing their way intp clothing stores, and “raiding the food stores like hungry wolves,” and the expression of opinion that “the outlook is of the blackest,” and “the unemployed already number a million,” Of course, these statements doubtless have behind them, some basis of fact. But, from the whole tone of the message, one cannot but foe! that they are exaggerated and, sensational—that they are, in fact, very largely hasty journalistic generalisations, interpreting a few comparative-, ly isolated happenings as representative of the state of affairs prevailing everywhere.

It may be that the “Daily Express”, correspondent has truly gauged the position ; but’ we take leave to doubt it There has been far too much sensational writing about the Ruhr and re, parationa problems. If, however, he has correctly stated the case, it only goes to show how very near to the verge of the abyss the German Govern-' ment allowed their obstinate adhesion to tho passive resistance policy to take them before Herr Stresemann' nerved himself to rise to the occasion and call a halt. The, from the economic .point of view, absolutely unjustifiable payment of wages to the idle workers in the Ruhr, to induce them to persist in refusing to carry on the important industries of that region, was, admittedly, very largely, if net entirely, responsible for the abyampl drop in value of the mark. The “money anarchy,” which has resulted, is recognised as the root evil in Germany. The food disturbances, it is stated, are not due to any real food shortage, b.ut to the fact that, while the food supplies are good, the agrarians very naturally refuse to sell supplies except for a stable currency ; and the existing currency has been rendered worthless. Happily, the German Government is already vigorously tackling the problem of restoring financial confidence. As a result of-the recent vote in the Reichstag on tho Emergency Powers Bill, Herr Stresemann is in a stronger position to deal with the urgent problems confronting his Government than he would have been if he had assumed dictatorial powers without Parliamentary sanction. He has the way clear before him, we are told; and he intends to go forward most speedily. Already the coal tax has been abolished, which reduces prices at once by 30 per cent.; and provision for the distribution of foodstuffs, clothing, etc., and the solution of the housing and unemployment problems will be quickly made. The unemployment, manifestly, is a direct outcome of the passive resistance movement; and now that passive resistance has been called off—the railwaymen and others have been instructed to go back to work —the greater number of the out-of-works should before very long be absorbed. Meantime, it is good to se© that Britain, France, and Italy have at length agreed that the Reparations Commission shall examine the problem of Germany’s capacity to pay on the basis of the proposals which Belgium submitted in June last, with a view to reconciling the French and British standpoints, hut which wore then ignored. In these proposals it was estimated that about 3000 million gold marks could be secured each year from the exploitation of the German railways, and from tobacco, liquor, sugar, and other monopolies, deliveries in kind, and a share in German industrial profits. The situation looks all the more hopeful from the fact that the Belgium Government gives authority to tho statement that the industrialists in the Ruhr are coming forward in greater numbers to negotiate for the resumption of work; that the railwaymen are expected to resume work this week, and that provisioning is assured throughout the ocoupied territory. Failing agreement on the Belgian proposals, the reparations plan put forward by General Smuts may afford a solution of the much-vexed

Ruhr and reparations problems; or, on the other hand, a merging of the two may he found to give the best and surest way out of the impasse. The two main features of General Smuts’s plan are—(l) The financial reconstruction of Germany on lines somewhat similar to those followed in the case of Austria, under the aegis of the League of Nations’ Standing Committee on Finance; and (2) the establishment under, it is presumed, the guarantee of the League, of a neutral, or demilitarised, zone in the Rhineland. This, without interfering with the Rhineland’s present political allegiance or administrative links with the rest of Germany. It is sincerely to bo hoped that both these sets of proposals will ho very carefully considered, and that out of them may arise a satisfactory settlement of the grave issues involved.

If such a settlement is not arrivedat, then one may well despair of the future, unless and until, as Mr Lloyd Gporge said at Minneapolis the other day, “the United States, with its power of- moral command in the world, casts its. influence into tho scale for peace.” “Somebody,” added Mr Lloyd George, “said Americans were doing their best to forget the Great War. It. ought to he (he declared) your pride that you entered it without selfish purpose and fur a holy idea. I trust that once more the nation, in its ov.u way, will cast its great- might into the scales for peace.” So say we all.