The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. TUESDAY, DECEMBER 15, 1931. NECESSITY’S PRESSURE.

Southland Times, Issue 21577, 15 December 1931, Page 6

The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. TUESDAY, DECEMBER 15, 1931. NECESSITY’S PRESSURE.

In considering reparations and war debts, the nations have had their eyes all the while on France and the United States. Herr Hitler, who seems to be anxious to make himself as big a nuisance as possible, has declared that the hatred of the nations is centred on France as a hoarder of gold, and as a power which stands in the way of the settlement of these problems. But Herr Hitler is rather fearful of hurting Amercian susceptibilities. American finance has helped Germany, and undoubtedly the basis of any moratorium is Germany’s need. If Herr Hitler were not fearful of hurting the feelings of the Americans, he would say that domestic party polities which kept the United States out of the League of Nations in 1919 are interfering now with the only action that can be effective for the United States and Europe. The eloquent Senators of the United States Congress who are pleased to approach European polities from the standpoint of the one hundred per cent. American, talk rather easily about disarmament, without taking into account the conditions which face the nations in Europe, and without realizing that by introducing this form of bargaining they complicate the issue already difficult because of the French attitude to reparations. European nations are aware of the terrific efforts being made in Russia, and they know that the Russian military forces are as powerful as they -were in 1914. What it may lack at 'the present moment in war material, it more than makes up in the development of the industrial side which, in spite of all troubles, puts Russia in a better position to support the military forces in the field than she was in when the war broke out. Looking at the situation from the spectators’ standpoint in Washington or in New Zealand, anyone might say that the Russian bogey is exaggerated, but the opinion of the Pole, who has had a taste of it, is rather different, and one must respect the nervousness of those other countries which, while conscious of the serious financial position, are not yet certain that the immediate future will be spent in peace. The expenditure on armaments is a heavy drain, and disarmament is desirable if it can be made effective and-we believe that Europe desires to rid itself of as much of the outlay on military and naval force as it can, but the treatment of war debts and reparations cannot be made conditional on anything, and

American Senators who put forward such conditions are merely providing themselves with excuses. The appeal for the cancellation of war debts and reparations is not put on any sentimental basis and it ha,s never been argued that the United States should agree to cancellation as an altruistic gesture. The whole point is that the United States cannot hope to emerge from its own economic slough until world trade has revived, and it cannot revive until this war burden is lifted. A glance at the reparations figures is illuminating. Under the Treaty of Versailles Germany’s annuities for reparations amounted to £780,000,000, but in 1921 the Reparations Commission scaled these down to £312,000,000. Three years later the Dawes Plan, reduced these annuities to £125,000,000 and in 1930 the Young Plan provided for £lOO,000,000 a year for the first 37 years and £75,000,000 per annum for 22 years thereafter. Reparations under the Treaty of Versailles were set at £37,400,000,000 but under the Young Plan of 1930 the total was set at £5,350,000,000. These reductions were not the result of sentiment. They were made under the compulsion of the fate which overtook the reparations must cut down war debt payments. Of the reparation payments France takes 52 per cent, and Britain 22 per cent., but Britain’s receipts merely oilset concessions she has made to her own debtors. Britain recognized at the Spa Conference in 1920 that it was impossible to collect the fantastic sums represented in the reparations, and the concessions made since that time have been made under duress. Germany cannot pay, and to continue with this squeezing process will involve the Allies in bigger losses. When war debts are considered the United States is in a similar position. Germany’s payments realiy go to the United States in the form of payments of war debts, and if Germany is to gain relief the United States must make the concessions, because no one, except France, can. France can and maybe the references to armaments is a hit at her; but nothing can be done without a conclusive treatment of debts and reparations. If France likes to spend money on armaments that desire is no excuse for the United States, which alone can give relief and which will not because public opinion cannot see that in this matter America’s interests alone are sufficient to justify the concessions contemplated.