THE OTAGO DAILY TIMES FRIDAY, JANUARY 5, 1923. THE REPARATIONS CRISIS.

Otago Daily Times, Issue 18753, 5 January 1923, Page 4

THE OTAGO DAILY TIMES FRIDAY, JANUARY 5, 1923. THE REPARATIONS CRISIS.

The problem of German reparations, is certainly the most difficult that claims attention at tho present time. It tfas described not many weeks ago by Mr Bonar Law as “hopeless.” This was perhaps a carelessly-employed expression. At any rate Mr Bonar Law has himself propounded an elaborate scheme for dealing with the problem, and it may bo inferred that a close examination of it, in consultation no doubt with competent advisers, has impressed him with the belief that the trouble will yield to skilful and sane treatment. It is obvious, however, that it has become a problem for solution by financial experts rather than by politicians. The extent to which Germany is capable of honouring her obligations is a matter regarding which determination on tho part of the Allies is most desirable. Unfortunately the French view upon this point conflicts with that which is entertained by prominent authorities—we should say, by the best authorities—in Great Britain. Franco is perfectly satisfied that Germany has been dishonestly evading the discharge of her liabilities. Her conviction that Germany could have made paymen ts considerably in excess of those she has made if only she had the will to make them lies at the root of her claim that “sanctions” should be applied,—that; in plain terms, the bailiff should, be put in. The attitude which France assumes is one that merits very deep sympathy if her premises are at all sound. She has suffered tremendously. No person who has not received ocular demonstration of the vastness of the devastation which was wrought in French territory by the German armies can possibly have any adequate conception of the measure of the injuries sustained by the country. It is only reasonable that. Germany should be required to furnish compensation to the last penny for tho wrongs committed by her so long as the effect would not bo to lead her to financial bankruptcy as well as possibly to her political disintegration and, in the reaction, to injure seriously the industries of other European countries and to delay, if not to prevent, the revival of international trade. But the French view that Germany is deliberately and fraudulently shamming an inability to meet the reparations demand is no longer fully accepted by the Allies. It is cogently argued that it would be at the cost of any prospect of the reestablishment of her credit if Germany were required to make payments that would ho even adequate. Germany is in the position of a patient that needs to be nursed if she is to be enabled to satisfy the reparations demands, modified though these may bo by the concession to her of a moratorium and by a reduction of the amount of her liability. That is the view which is now held by financial authorities iu Great Britain, and it is difficult to resist the conclusion that it expresses a sound conclusion. But official opinion in France and public opinion, so far as it is reflected in the French press, are apparently at one in the rejection of this conclusion aud in the as-sertion of a policy enforcing payment of reparations by the occupation of industrial districts iu Germany and the imposition of taxation upon German industry. This policy has yet to he approved by the Conference of Allied Prime Ministers, but it seems to he not altogether improbable that France will act independently of her Allies in pursuance of her scheme if she does not gain the acquiescence of the majority of them to it.