DAY BY DAY

Waikato Times, Volume 96, Issue 15033, 2 September 1922, Page 4

DAY BY DAY

Mr A. W. Kiddy, in an article dealing with the deterioraDeterloration tion of 'the German of mark in the London The IWark. Spectator, thus sums up the position:— “With minds concentrated upon relieving their own strained financial position by obtaining large cash payments from Germany, those who. framed the economic financial clauses of the treaty undoubtedly gave insufficient attention to the real position which had to be tackled in Germany itself, and by insistence upon - immediate cash payments not only was the fall of the mark accentuated, but from the very moment the terms of the reparation demands became known the signal was given to German nationals to take flight from their own, currency.- To express the matter in a sentence, Germany having first of all criminally provoked and criminally conducted the Great War, financed it . on almost equally criminal lines; that is to say, on lines calculated, in the event of defeat, to produce the maximum amount of financial confusion. But, criminal as this undoubtedly was, the position should have been clearly recognised by the Allies as one which made it imperative that there should be financial reforms in Germany before it was possible for that country to give to the Allies the reparation payments which, large as they were, so inadequately expressed the injury which had been inflicted upon the victors. It is impossible to undo past methods, but it would be well to benefit by past mistakes, and it must now be for the Allies lo prevent the insolvency of Germany and to ensure the necessary fiscal and currency reforms within the country, even though it may be at the cost of foregoing further cash payments for some time lo come. Needless to say, however, that it must equally be their concern-to obtain such a mortgage over Germany's future prosperity and to secure such guarantees as shall make the ultimate payment of the reparation payments merely a question of time. Meanwhile, however, if this policy is successfully and skilfully pursued the Allies themselves should derive from a return of confidence and lan improvement in international currencies, benefits quite as great as those which would have been conferred by immediate large reparation payments .in cash.”