Wairarapa Daily Times [Established Over 50 Years.] MONDAY, JANUARY 11, 1932. WAR DEBTS.

Wairarapa Daily Times, 11 January 1932, Page 4

Wairarapa Daily Times [Established Over 50 Years.] MONDAY, JANUARY 11, 1932. WAR DEBTS.

Prior to 1919, Britain, in liquidating successful Avars, had been guided by a fixed principle. She might annex territory belonging to the vanquished, but she never demanded an indemnity. An indemnity, to be worth the name, can only be paid by instalments, the collection of Avhich —as the creditors of Germany are Avell aAvare —may present difficulties. Britain Avished the transaction to be closed once and for all, so that normal relations could be resumed with no rights and liabilities left outstanding. There Avas another reason for this policy. It is undesirable that one nation should harbour a grudge against another, and this treatment Avas less likely to leave smouldering embers of resentment than a continuing monetary claim. Territory, oversea is on a different footing from the homeland. The loss of a remote outpost of Avhieh the ordinary citizen knoAVS little or nothing may cause a momentary pang, but the memory is soon effaced. The agitation of Germany for the return of her former colonies has quite subsided. With an indemnity, on the other hand, the people liaA 7 e to submit, year in, year out, to the extortions of the taxgatherer in order to meet their obligations, and they are constantly reminded of their financial bondage. They can neither forget nor forgive. Unfortunately, as the event has proved, her customary course Avas not open to Britain at Versailles. Britain had borroAved from America for her oavu purposes. She had also borroAved from America, in substance if not technically, on behalf of her Continental allies. They also had contracted an enormous Avar debt. President Wilson might say Avith a magnanimous gesture that America, the Avorld’s creditor —Avould not take a single mark from Germany—it Avas fairly ob\’ious that a high proportion of any payments that Germany might make would eventually find their Avay to America’s coffers. But the Allies could not afford to indulge in this vicarious altruism. They had

not the AvhereAvithal to fulfil their engagements to their creditors in the absence of a contribution from Germany. It Avas inevitable that Germany should be required to pay. Yet the question of reparations has given more trouble and caused more friction than, perhaps, any other incident in the aftermath of the war. For seA’eral years, Germany; sullen and defiant, sought every loophole for evasion. Then came the series of conferences and the resultant plans, each modifying the method by Avhich Germany shall dischaige her liabilities and taking greater account of her capacity to pay. Yet reparations hang round her neck like a millstone, and Avere a factor in the financial crisis last July. ___