Evening Star Newspaper, October 2, 1921, Page 45

' INDUSTRIALIST MOVE HITS MONARCHISTS Rich Interests, to Save Selves, Apparently Have, Gone to Aid of the German Government. BY OLIVER OWEN KUHN. L] ITH the reichstag in session | 4 and Germany at the cross- road in so far as financial readjustment is concerned in order that Germany may fulfill the burdens that have been placed upon her through peace treaty stipulations, great {nterest has centered about af- filiations and line-up of political parties. The most significant event since the war in so far as German politics is concerned is the pretty definite align- ment of the industralists of Germany Wwith the republican government. The fact that the great financial in- terests of the nation should forsake ol _monarchical ties and volunteer to help the government in its hour of financial trial is far-reaching. It means that the backbone of the mon- archical group has been removed. for without the backing of the industrial and financial interests the monarch- ists could not hove to achieve desired ends, namely, restoration of the em- pire. Ever since the war. when the re- publican form of government was adopted. the monarchists have in- sisted that the real sentiment of the financial interests lay with. restora- tion processes, and possibly _they have, up to the present. but with bil- lions of marks reparations to pay in November and January, and with the mark depreciated to an almost in- finitesimal value, and the good will of Germany yet to be thoroughly demon- strated to the allles. the industrial- ists have decided the government must be assisted if they themselves are to be saved. Former Foes United. As a_consequence of negotiations | which have been going on. the in- dustrialists and the centerists, or Catholic party. heretofore bitter ene- mies of the soclalist grounings, have aligned themselves with former foes. It is very likelv that Chancellor Wirth, even though facing tremen- ous burdens and trvine hours in Ro! far as his tenure of vosition is con- cerned. may be sustained through | volitical bargaining. but it may be taken for granted that with the new suport gained thare will be German cabinet changes of such character as to give the industrialists and center- ists greater representation in the zovernment. There is little that cannot be achieved through co-oberation. Ev- ervthing is to be lost in case the political fight should spread to a noint where the government is over- thrown and the whole German poli- tical situation left in such state as to arouse in the minds of the allies sus- | picion that reparations agreements will not be met. Tt is essential to maintain such faith as has been gained so that ex- port taxes and other stipulations which have proven a great burden in the fight for financial and economic readjustment may be lifted. Alreadv the allies have lessened the Rhine <anctions. Wirth has won the con- fidence of the allies. so therefore it is more than likely he will remain chancelor in the face of far-reaching taxation reforms which are mothin more or less than the imposition of greater burdens upon the people as a whole. < Monarchists Lose Chance. A few weeks back it appeared that with the opposition of industrialists CAUSE OF ALBANIAN TURMOIL LAID AT GREAT POWERS' DOOR To the Editor of The Star: The article by Mr. Oliver O. Kuhn in last Sunday’s Star on the Albanian question fails, I think, to give a cor- rect impression as to the matter ac- tually at issue. May I, therefore, be permitted to present the situation from another point of view? In order to completely understand this question we must go back to the beginning of things so as to find out the exact status of Albania and where her territorial and other rights be- &in and end. Up to the war between Turkey and the Balkan states .in 1912, Albania formed part of the Ottoman empire. That she today enjoys freedom and independence she owes to the very Serbia which she now opposes and attacks. The Albanians as a people are turbulent, ignorant (about 90 per cent are illiterate), and restive under control of any kind. That they have certain primitive virtues of courage and hospitality no one denies. They Dpossess a language of their own and have strongly marked racial and na- tional characteristics. The various tribes have also a kind of primitive love of liberty, which inspires a cer- tain amount of sympathy. But, un- fortunately. this love of liberty on their part does not include a respect for the liberty of others. As a re- “sult brigandage is rampant and plun- dering incursions into neighboring srritory, especially after the harvest as been gathered, are of constant occurrence. During the whole time Albania formed part of the Ottoman empirs it was in a 'state of latent or open Tevolt against the authority of the sultan. Then came the war of 1912 and the liberation of the Balkans from the Turkish yoke. One of the first bene- Reiarics of the war was Albania, which hastened to proclaim its h’lde-‘ pendence. At the conference of the powers in | 1913 it was proclaimed an independ- ent state, its frontiers were defined and Wilhelm zu Wied, a German | Drince, was elected mvret or king. His reign, however ,was neither long nor glorious. He proved completely in- cpable of ruling the turbulent tribes- men, and had, after a few months, to quit’ Durazzo and even do it hur-' riedly. After his departure Essad: Pasha, a former general of the sultan | and a native Albanian, seized power | ind succeeded in maintaining himself | tro-Bulgarian invasion of 1915 com. pelled him to leave in his turd. Essad ! Pasha’s methods of government would | hardly recommend themselves 'to ' more westerly peoples, but he main-! tained that as he was a born Alban- ! ian, he knew better how to rule the | country than an outsider. . This, he! frankly admitted. had to be done with a heavy hand. It was his ambition to return to Albania after the peace, but this the opponents of his rule settled in characteristic Albanian fashion by assassinating him in the streets of Paris. Italy then proclaimed a protectorate over the country, but proved umable to_obtain Albanian support. The tribesmen took up arms against the 1talians and their troops were forced to evacuate the country. From the general anarchy which fbllowed a zovernment emerged which called it- 1f the government of Tirana, from he fact that it established its head- «quarters in the town of that name. Its authority is, however, far from heing universally admitted. It is rgely Mohammedan in character and therefore. excited the ill-will of the Mirdites or Catholic section, which forms about one-third of the population. These are now in revolt against the Tirana government. Ono of the great problems in Al- Dania is that of the blood-feuds of the various tribes or clans, which keep the country in a tonstant state of turmoil and trouble. In a country, Wwhere everybody goes armed and where the respect for human life is a negligible quantity this internecine and centerists he might go down to def2at, and, with the alignment of in- rialists and monarchists, the lat- ter had excellent chance of usher- ing in a counter revolution against the republican form of government. ‘With the situation changed and a spirit of greater. co-operation, Ger- many may yet weather financial storms and, through concrete agree- ments between the government and the gold standard industries, repara- tions payments will be met. It is stated that co-operation Is planned to such an extent as to prac- tically give the industrial power of Germany as security for a loan whieh will put the German government in position to meet all future allied stipulations. It has been suggested that, inasmuch as the German gov- ernment is. 5o near bankruptcy and the German industrial interests so wealthy, the government should set in motion some scheme of expropria- tion whereby the government’s finan- cial position would remain impreg- nable. The industrialists, if they have won promises of cabinet positions, however, will work out same scheme to prevent this in which neither the industria] interests nor the government will be hazarded. , Revised Reparations. Already there has gone up in Ger- many a cry for revised reparations payments, it being pointed out that the continued decline of the mark and the increasingly grave financial di- lemma of the nation is doing nothing more or less than demoralize the eco- nomic situation of the world. German labor i{s working as never before at wages far less than those received by workmen in other coun- tries. Germany must curb -imports and_increase exports, she being al- ready able to undercut other nations in world sales through cheap produc- tion. The Germans must win and are winning markets from the allies. It is pointed out that where the unem- ployment of Germany is comparative- ly small. other countries are suffering and will continue to see hundreds of thousands out of employment as long as Germany’s products spread to a greater extent over the world. The allies cannot raise barriers unless they prevent Germany from paying reparations on a gold standard basis. so there is belief in Germany that sooner or later the allies, particularly Great Britain, will seek to limit the obligations imposed in Paris and London. Sentiment in England. Already Winston Churchill of Eng- land has argued for a reduction of Serman reparations, pointing out dangers to the economic welfare of other countries. Industria) and finan- ¢ial as well as _economic co-operation between all European nations . has been proposed. but inasmuch as this frequently Has come from Germany, in one instance from no less person- age than Ludendorff, the French are suspicious, though it is declared some circles favor the scheme. However, it may be expected that the French, ever ready to see German chicanery in any proposal designed to whittle down the terms of the Versailles treaty, will be the last to consent to any aiterations, unless it is seen that Germany must go bankrupt, with con- sequent danger of obtaining no rep- arations at all. But Germany has no desire to go bankrupt. Every effort will be made to meet reparations payments, and when the situation has adjusted itself it may see moneyed interests in such power in the =overnment as to place the industrial power of the nation be- hind reparations promises. In such case all obligations will be met. strife among the various clans is apt to_produce anarchic conditions. The political status of Albania is at the present juncture very abscure. The political frontiers are far from clear, as there are two conflicting thescs put forward. The Albanians, the so-called government of Tirana, claim that the frontiers of the coun- try_were defined by the powers in 1913. They declare that as Albania remained neutral in the war she did nothing to justify any change and that these frontiers still subsist. This, however, is not the case. On December 14, 1915, I calied on Essad Pasha in his palace in Durazzo and he informed me that he had, the pre- vious day, detlared war on Germany and Austria. He had at the same time siezed the consuls of these countries and sent them out of the country on board an American sailing vessel, | which happened to be. lying off the town. A year later I wus pieseat iu Saloniki, when Essad Pasha landed thero as the recognized ruler of Al- bania and was received at the landing stage by Gen. Sarrell, the commander- in-chief of the drmy of the orient, to which I was then attached. Essad was received with all the honors due to the chlef of an allied state. Under Tirana government that Albania re- mained neutral during tne war is nfoundéd. Albania being thus regarded as a belligerent, after the victory arrange- ments were made for a final delimita- tion, under the auspices of the peace conference, of the respective terri- torics of the Balkan states that had fought on the allied side—that is to say, Serbia, Albania and Greece. This, however, has not yet been done and this inexcusable delay is the cause l:lhese circumstances the claim of the | of -great complaint on the part of the Jugoslavs and Greeks and is largely Tesponsible for the anarchical condi- tions now prevailing on the Albanian frontier. Until this work of delimitation should be carried out a provisional frontier line was drawn by the peace conference, which the Jugoslavs were asked by the allied powers to guard. This line does not coincide with the frontier laid down by the London conference in 1913. This fact has brought about the present attacks of the Albanians on the Serbian troops holding the line. The Albanians refuse to accept this line, even provisionally, and have repeatedly tried to drive: back: the Jugosiav Lroops now noia- ing it. The great powers, by their dilatoriness and not the Jugoslavs, are responsible for the present clash on the Albanian fromtier. The Albanians have appealed. to the league of nations. But M. Spalaiko- vitch, the delegate of Jugoslavia at Geneva, has_rightly challenged the title” of the league of nations to in- tervene at the present juncture. It is only after the allied council of am- bassadors has finally settled the ques- tion of the new frontier line that the authority of the league of nations can be invoked. It is the duty of the league to see that both- parties re- spect the decision regarding the fron- tiers. The league of nations itself does not take any hand in fixing the; frontier line. H 2 Since the armistice Serbia has had to accept many decisions of the pow- ers regarding territories due to her. In the Adriatic, in the Baranya, in the Bachta and in the Banat she ac- cepted every decision, though in al- most every case she regarded the de- cision given as. unjust to her na- tional aspirations. - And now she is asked to give way once more simply because a number of turbulent Albanian tribesmen threaten to make trouble if their claims are not admitted, without fur- ther pariey, by the powers. Serbia takes her stand upon the peace treaty. This provides that the fron- tier shall be delimited by an inter- national commission appointed by the allied powers. Is it too much to ask that,’ after hearly three years have passed, this commission should finally| get to work and lay down a frontier| line only a few miles long? ‘GORDON-.GORDON THE ' SUNDAY - STAR, WASHINGTON, D. C, OCTOBER 2, 1921—PART 2. THE STORY THE WEEK HAS TOLDE BY HENRY W. BUNN.' (Copyright, 1921, by The Washington Star.) HE following is a brief summary of the moat important news of the world for the seven days ended October 1: UNITED STATES OF AMERICA.— The debate on anti-beer has been postponed until after the action on the treaties and ‘on the tax bill. It is etated that the Presldent has intimated to the republican leaders in the Senate his desire that action on the ' Borah bill which proposes repeal of the Pahamia canal tolls act be_postponed until & fhore “opportune”’ time; that is, presumably, until after-the Washington conference on the limitation of armaments. A vote on the bill 1s scheduled. for October 10. It is thought that the President will not have his wish; that the vote will be taken ‘as scheduled. ¢ Debate on the ' treaties is proceeding vigorously in the Senate. Some senators in opposition will not' hear to ratification, others would ratify with reservations. ‘The proposéd reservations seem generally to agree In re- quiring an explieit statement and v.cknowledge- ment of our: obligations under tha clanses of the Versallles treaty embodiéd in the German treaty; and similarly, it is to be presumed, as to the -other treaties. It is expected. that the treatles will be voted on by October 15. The reichstag ratified the German tréaty on September 20, $ The national conference on unémployment’ was opened on Monday by the President him- self. After brief and admirable speeches by the President and Becretary Hoover, and with- . out preliminary palaver or fanfare, the mem- bers were divided into committees and pro- ceeded to practical work. On September 30 the steering committee has ready fits report based on the reports of the several committees appointed to conmsider emergency measures looking to reduction of unemployment. That report is a document of the first interest. It finds that “the problem of meeting the emergency of unemployment is primarily a community problem.” It is chiefly up to the mayors, supervising emergency committees. The report recommends speeding up of ‘public construction—municipal, state and federal. “A congressional appropriation “‘for ‘roads ~would make available a large amount of employment.” “The greatest area for immediate relief for unemployment is in the construction industry, which has been artificially restricted during and since the war. Considering all branches of the construction industries, more than two million people could be employed” if needed construction were under way. The report is noncommittal as to the number of unemployed, merely stating that “there are variously esti- mated from 3,500,000 to 5,500,000 unemployed and there is a much greater number dependent’ upon them.” The report quotes the recommenda- tion of the committee on emergency measures by manufacturers to the effect -that an effort should be made to secure general co-operation with o view to reducing prices to correspond- ence with present costs of manufacture; only thus may the buyers' strike be broken and industry restored to normal. The conference, having adopted the -report, adjourned to October 10, when it will address itself to the study of causes and the attempt to formulate economic policies likely to prevent unemployment crises in the future. Quite as important as the emergency recommendations would seem to be a machinery to make them effective. Press notices give no hint of such a machinery, but presumably there is one and already in motion. : * ¥ Kk ¥k THE BRITISH EMPIRE—At last Liloyd George has spoken, replying to.De Valera. The British cabinet, he says, have been looking over the correspondence between himself and Pe Valera, commencing with the, invitation to Inverness. They_ think the best plan would be to burn that correspondence, forget it, act as though it had never been. So I interpret the first five paragraphs of the ssmewhat awkwardly worded note. The note ends thus: “We send you a fresh invitation to the conference in London on October 11, where we cams meet your delegates as the spokesmen of the people whom you represent, with a view of ascer- taining how the association of Ireland with the community of nations known as'the British Empire may best be reconciled with Irish national aspirations.” ‘. As the London Daily Chronicle says neatly: “Lloyd George has not asked the Sinn Fein to commit themselves to anything beyond recogni- tion of what it Is that he invites them to discuss.” 5 It seems that De Valera must mccepti per- haps he will. (He has accepted; one seems to hear a cosmic cheer,) Reports had. indicated that the uprising of the fanatical Mohammedan Moplahs of Malabur (southwest coast of British India) had been put down by troops of the central Indlan government. But no; the flame of Insurreotion has spurted up with greater violence. Lady Astor loses her solitary distinction; another . woman has been elected to the house of commoéns. The British government is essaying. to come to real grips with the unemployment problem, though, to be sure, by methods differing from ours. It is the unemployment quite as much as the Irish ploblems that prevents Lioyd George's . attendance at the Washington conference. f * Kk Kk Xk - GERMANY.—The reichstag met on Septem- ber 27.°°It {s declaréd that arrangements are ulmost completed for formation of a mnew coalition government to include representatives of the peoplé’s party, the party of the great financiers and industrial leaders. If one might know what concessions by. Wirth, what con- cessions by Stinnes and his co-mates, this coalition involves, he would have the key to the “most important current developments in Germany. A great propagandist drive is on, looking to, for the present, “a reparation moratorium,” for the future, drastic revision of the London program. Some say that the recent - aoceleration of the fall of the paper mark is not chiefly due to mad and selfish speculation, ‘but rather to a fipancial conspiracy to speed its descent, in the hope that the spectacle may cause ‘the allles, in panic fear of .German bankruptcy and what may follow, to consent to suspension of payments for' the present and curtailment of the reparation total. The allies do not seem to be impressed; and it is reas- suring to learn that while the propaganda pro- ceeds merrily and the mark Continues to to- ‘boggan, Wirth and the industrial leaders are consulting ways and means to find the gold for the next reparation installment. “Wirth is expecting a ferocious attack at this session of tlie relchstag by the German natfonal party, the party of reaction. We are told that they will attack his decrees against treasonable speech, publications and intrigues, and his action pursuant to those decrees, and that they hope to compass his destruction upon the taxation issue. The taxation program tentatively set forth at the last reichstag ses- sion proposed to, bear very hard on the indus- trial magnates; presumably, in consequence of the new alliance of the government with these gentry, that program has been considerably modified. It is all very dubious, very interest- ing, very obscure. The Rhine customs barrier was done away with on September 30. It is reported that Wirth and the new Bavarian premier have compromised the quarrel between the Bavarian and federal governments. A truce, rather; very necessary to Wirth, who has other fish to fry. The issue of state rights vs. federal authority is not settled; the real fight is ahead. The Bavarian fortress of reac- tion remains proud and menacing. ‘The interallied commission of control n Germany reports that disarming of Germany now so nearly conforms to treaty requirements that Germany has absolutely ceased to 'e a military menace to the allies. * ¥ % * NEAR EAST.—Last week I inferred from the absence of reports of the fighting in Anatolia that things were going badly with the Greeks. From the very meager informa- tion since arrived it seems certain that things have gone badly with the Greeks. They seem to have repassed the Sakaria river, and to have fallen back to a line covering Eskishehr; whether unmolested or hard pressed by the Turks does not appear; whether in good order and with good morale or the opposite, does not appear. A report from Constantinople announces: cap- ture“of Eskishehr by the Turks, but-this is hardly credible. * K K X CHINA—A Peking dispatch of August 3 told of & battle on & ten-mile front then in progress in Hupeh province, just across the Yangtze from Yochau in Hunan province, between forces of the Canton republic and forces of the Peking government. It seemed from ddspatches of early August that the re- doubtable Wu Pel-Fu, commanding for Peking in Hunan province, had gone over to Canton with his soldiery. He seriously considered such a move, indeed, but has remained loyal to Peking, whether from conviction or won over by appointment to the post of inspector general of the military districts of Hunan and Hupeh, one wonders. Gen. Wu Pei-Fu has the reputation of one of the most honest patriots in China, and probably deserves it. He seems to be a sort of Chinese _ Lafayette as well, with discreetly liberal views. To decide between Canton and Peking must have been very difficult; whether to at- tempt to save China by seceding to Canton (so greatly strengthening the southern cause), or by remaining -with Peking and. continuing the effort to liberalize and purify the Peking government, that was for him. the question. Having made his decislon, Wu Pel-Fu proceeded to business. I doubt the August 3 report of a battle on a ten-mile front. I fancy the fighting has been of the familiat casual Chinese sort. A report of September 27 shows Wu Pei-Fu successful; the provinces of Hupeh and Hunan pacified, Hunan restored to the Peking govern- ment, the Szechuanese driven in headlong flight toward Sichang. The situation in the Yangtze region, of which Wu Pei-Fu is the outstanding figure, is very obscure. The Canton republic has been claiming to have the adhesion of the provinces Kwangtung, Kwangsi, Yunnan, Kuechau, Sze- chuan and Hunan, joined in a lcose federation. Side by side with the movement which has re- sulted in the southern federation has been pro- ceeding a’federative movement of certain cen- tral provinces, but this movement seems to have lacked competent leadership. Now, whether with the idea of attaching these provinces to the Canton fepublic or of clearing them of northern troops and then leaving tnem to take their own decisions, I cannot say. But, at any rate, several armies from the southern prov- inces invaded Hupeh province about the 1st of -August; with the result, if dispatches are correct, that they have been repulsed and that Hunan province has been recovered for Peking. This development is very important. Had the dissatisfled central provinces been detached from the northern republic, either to join the Canton republic or join a separate federation, the Wash- ington conference problem of devising an inter- national policy toward a China of which the recognized government should control only a minor part would be well-nigh insdluble. * k k * MISCELLANEOUS.—I mey only briefly mention here sundry matters of importance, such as: The Burgeland affair. The latest develop- ment is the declaration by Hungarian chau- vinists of a republic of west Hungary. What will the council of ambassadors do about that? The excellent progress of American relief in Russia. The apparent breakdown of European relief plans. The Polish ultimatum to Moscow, which threatened rupture of diplomatic relations with Moscow unless by Ottober 1 Moscow had ful- filled or given guarantees of fulfiliment of cer- tain clauses of the Riga treaty. Moscow has not complied. How Polish forelgn policy has alienated the sympathy of the world. The league assembly doings or rather say- ings. How Albania was weakly fubbed oft with the advice to await and obey the decisions of the council of ambassadors on her controversies with Jugosiavia and Greece. How the league assembly refused to support Nansen's scheme for helping Russia. 9 The eugenics conference; its gloomy prog- nostications of the future; the heterodox and welrd argument that the American man is the superior of the American woman, Of how the Giants “cinched” one pennant, and how the Yanks are likely to cinch another— and other things. Economics of Peace With Germany BY EDWARD N. DINGLEY. HATEVER opinion may be entertained as to the method pursued to estab- . lish final peace with Ger- many, ratiication of a -separate treaty with that country (as well as Austria and Hungary) will put an end to an anomalous condition and close a stormy chapter of turmoil and ter- ror. Acceptance of these treaties will be gratifying to all riations concerned and a distinct triumph for the diplo- macy of the administration. The long, bitter struggle over the Versailles treaty is a matter of his- tory now. It involved the whole civi- lized world, made and unmade states- the careers of some of the actors, caused political havoc in party elec- tions and involved nations in turmoil. Historians will pronounce the build- ing of the Versailles treaty and its final rejection by the Senate as one jof the most thrilling and-heart-break- !ing periods in-American annals. i The great war Wwas not only a ghastly waste of men, but a,colossal economic waste. Primarily, the war was economic. It was a struggle whose roots, were hidden in the hu- miliation of France in-1870-71, and i even back of that, in an imperial am~ bition to control the commerce of the world.” It has been said by one writer that Germany was like a-caged mon- ster struggling for more room, more expansion, more breathing places. This was an economic madness. Economies of Versallles Treatys Hence the economic: clauses’ of " the treaty of Versailles seem to -be the most important. Part X of the treaty contains the economic clauses, yet the “German rights and interests” recited in part IV -are tially - economic; for they touch the entire colonjal sys- | tem of the empire, upon which much jof her overseas.commerce and ship- ping depended. Fi Under the terms of the Versailles contract not only did ‘the’ United States become the owner.in.fee as.a .tenant in common of European terri- tory and a trustee as to other ter- i ritory, for which Germany was paid { nothing - nor given .credit in repara- tion, but a co-receiver for all im- perial state property. 3 Under this treaty Germany ceded | her overseas possessions in fee simple {to the allies. and assoclated powers | (including the United States), who did not assume the debts and who took all the property, without any compensa- tion whatever ,running to Germany, either for the territory ceded or-for the actual property taken. o The United States became a tenant in common, with Great Britain.and other associated countries. of Ger- man African possessions, with an area of 1,000,000 square miles (one-third the area of the United States) and'a native population of® 11,600,000; like- wise a tenant in common of Gér- many's Pacific possessiona. - Germany 'ceded without compensa- fon of any sort or description her extraterritorial _rights in ( northern Africa, Samoa and in China, the lat- ter “free and clear of all charges asd encumbrances.” r e . Treaty Closed Germany 5 In_short, Germany was closed out in-all the world, apj tly, without. a penny’s jon. She lost her - men and leaders, well-nigh wrecked |8 soutlet for her increasing popula- tion and found her territory in Europe restricted. Germany ceded all her merchant ships 1,600 tons gross and upward to the allies and associated powers, in- cluding thirty-two auxiliary cruisers, one-half of her ships between 1,000 tons and 1,600 tons gross, one-quarter of her steam trawlers, one-quarter of her fishing boats. Thus 'she: was stripped of all means of carrying on her commerce. Furthermore, Germany was COm- pelled to construct, in her own ship- yards a maximum of 200,000 tons of shipping each year for five years, the reparation commission to determine i the specifications and the terms. Also Germany' was forced to restore all allied river boats for inland naviga- tion and to cede a portion of her own fleet, Furthermore, Gérmany waived llI claims for. damage to German ps. % Getmany agreed within three years to deliver to France and Balgium 40,700 horses, 184,000 cattle, 121,200 sheep and a large number of other animals; also large quantities of ma- chinery and tool To France, Bel- gium and Italy, Germany agreed to deliver between 32.000,000 and 35.000,000 tons of coal annually for.five years, and 25,000,000 tons for five years after. All the railroads and equipment in the German territory oeded to .the allies were seized without. compensation. Germany was.compelled to agree to make ‘compensation -for-all damages done to the civilian population of the allied and assoctated powers, and to their property. - £ Investments Wiped Out. Germany's investments in allied and associated countries, and held in Ger- many, were wiped out. All other Ger- man property in allied or associated territory might be retained and liqui- dated: by the powers. “This. applied to all ceded territory. < 2 Germany agreed to-compensate na- tionals of all allied and .associated powers for losses, to propert: Ger- man tefritory, and to compensate for all property rights or.interest taken by the-allied and associated powers from German neutrals. ‘The treaty terminated all commer- cial treaties except those named and accepted by the allies, stopped Get- | many from making trade agreements, turned her coastwise trade over to all the- world, and prevented higher du- ties than those prevatling July 31, 1914. Germany waived all claims ?or internment of her nationals-and her ships : Such_are the leading econbmic fea- tures of a treaty which the world in its_calmer moments realizes is_harsh and-cruel. Yea, more: it is disistrous o the. whole world. British shipyards are idle- because of ‘the oversupply of dullt ind de- | miners Hdve sufferdd °bi many is Nndll\{ millions of tons of coal.to the British Isles and Ffance and Belgium. French and Belgian industries are suffering because &r- many is forced to pay a large part of -her indemnity. in manufactered goods. ‘ Drained Germany of Geld. The - struggle between ~England, France: and Germany over the-fixing of_:the. amount. of -reparation, the politics mixed in that struggle, the istory. 'Ahul'nu &nd. is a ?n!ur‘g i (the, omic. prof taced | Eg:on mi"—flmqunw 3& ques- tion was.raised hy British economis! German; ot How long can astand it How' long can Great’ tain ‘and Europe stand, it? _Germany, paid th ~ expenscs or was'charged with the expense of the army of occupation, in addition to carrying her otner bur- dens. She could not perform finan- cial and economic miracles. Her ef- forts to perform the task drained her gold reserve, until the paper mark was worth not much more than the paper on which it was written. Strip- ped of much of her economic machin- ety to produce, made helpless by the treaty of peace, deprived of her col- onies, relying on the printing press for money, Germany is in the hands of a recelver already. The joint resolution declaring an end of war, approved by the Presi- dent July. 2, 1921, expressly reserved to the United States and .its nation- al “any and all rights, privileges, indemnities, reparations or advan- tages, together with the right to en- force the same,” to which the United States Is entitled. The terms of the separate treaty with Germany make the same recital. Also the séparate treaty specifically retains in the United States all alien property seized. Vital Difference in Treaty. In considering the, economics of pedce with Germany, it is well to re- member this vital distinction between the Versailles treaty and the Berlin- ‘Washington treaty. The former im- poses certain ‘obligations upon Ger- many which now the allies agree can- not be perfot . The latter concedes to the United States the right to de- termine what the United States shall exact.from Germany, and how. it shall be exacted. It is significant that article II of the separate treaty with Germany recites “with a view to de- fining more particularly the obliga- tions of Germany * ® * with re- spect to certain provisions of the treaty of Versallles,” it is- understood, etc. -In other words, the United States seems to open the way to deal with'-Germany about as it pleases, under the several parts of the Ver- sailles treaty recited in the separate treaty. 'This might -give the United States the right to handle the eco- nomie questions with’due .régard.to the interests-of all-concerned, includ- ing Germany and the United States. The -original reparation plan -of payment by Geérmany of 220.000,000,- 000 gold marks in forty-two years plus 12% per cent tax on exports was abandoned. It was"conceded to be more than the whole fortune. of the Germani_people, and waould result not e enslavéement of Germany, it in a_perilous economic situation in Great Britain. This enormous pen- 1ty was opposed in the United States. As’ early as -February, 1821, .it was American statesmen and economists that the “only remedy lie: eparats treaty with Germany. Germany countered with & sroponl the payient of 50,000,000,000 gold ‘marks, - less 20,000,000,000 . marks al- ready claimed to have been paid, leav- ing 30.000,000,000 marks, a-portion -of the latter to:- be settléd by Internd-| Ge: ny pointed out that the only way she could pay the large indemnity .demanded was by exporting -nfl'nmnf goods, to an emount in total _ exports —of manufactures of America and England. Such an enor- tion, price of raw materials and perilously digturb_the world’s markets. / Ultimatum to -Germany.: The . yltimatum- to Germany was: peRet T ALV B S s LR it e b sty e ol o MR AL M AL RS R B2 B R Bahaab o oA, o bl i A A A OB Wi B0 3 'e payment’ S:A'n'.’., 000t T merhe (3 pag: ent -of 3. Soid marks en- | - nually_snd 26 per-esat of the-value low ‘cost of production. ‘manufactured | demnity “when it is in the shape of excess of the | merchandise and manufactured gogds. ‘mous_ increase’ in Germany’'s produc- | question as to whether other nations it was said, would raife the|should permit her to-pay as -ha is rs ;;)l_ afig:o.m.m in gold | value. This made the world economic eXpo - | ma to- competing. countries at a e “The. direct| of her exports and (3) payment of 1.000,000,000 gold marks within twen- ty-five days. Germany appealed to the United States without avail, and in the end was forced to accept the terms. ‘The separate treaty with Germany specifies the sections of the Versailles treaty under which the United States gEpressiy reserves its ‘rights, privi- leges, indemnities, reparations or adv: es” In other words, the United States refuses to be bound by or to become a party to the harsh terms of the Versalilles treaty, and elects 'to accept or reject its economic rights which existed under the terms of the armistice, and which were re- cited and reafirmed in the Versailles documerit. One of these rights is the right to sit in the reparations com- mission if it is deemed best. “There were no precedents for the indemnity on Germany,” says Keynes, in his work on “The Economic Conse: quences of Peace.” “The exactions were not detérminate. It was neces- sary to set up a body with wide pow- ers over the internal economic life of Germany.” The reparation commission is a sort of receivership, an arbiter of Germany's economic life. whose de- crees Germany agreed ‘to carry out and enforce. As to whether the United States will decide to have an official representative on this com- mission is a matter of policy. Of Doubtful Bemefit to Allles. ‘The principal allies in Europe have discovered that the economic burdens doubtful-benefit to them. The terms of reparation were an option on Ger- man commodities, and the enforce- ment of the option has caused the principal allies to pause and examine the situation. F .- Ships, coal, machinéry, reconstruc- tion material, chemicals, dyestuffs and labor constituted the main economic | factors in reparation. As 'a ‘conse- quence, today more than a million tornis of British ‘ships are idle and ex- perts have recommended the abandon- ment of the ship clause. German ship- building yards are busy, workmen are employed. building ships for England. Germany pays -her labor in paper marks. British coal exports have fallen off, since France and Belgium and Italy are getting coal from Germany. Great Britain Is at a disadvantage. All or- ders for repairs and parts of ma- chinery. set up by Germany in the devastated territory go to Germany. Up..to. a"year ago France had not accepted a single plece of machinery from Geérmany. The allied countries have placed an embargo on an dyestuffs. Germany. is successfully inviting investment of foreign capital in her enterprises, to the chagrin of the allies. What promised to be an economic restoration for the allies turns out to be a peril. It is oné thing to force:Germany to pay an in- demnity; it is another thing to com- pel other countries to take. the in- It is no longer a question as to whether Germany .can pay; it is a paying. - Germany ' paid th 1,000,000,000 gold marks when due, but the payment had an injurious ef- fect’ on the German mark, which dropped to; lesc_than one cent in gold rroblem all the more dlmcglt, for it vited -1 rts Ger- heaped upon Germany have been of | §9 oA DO A A A D e Lo I SR s e e 2 R R AP T L B 10 XPERTS FROM U. S. AID LATIN AMERICA Peru Is'an Example Profiting by This of Those Who Are Country’s Expe- rience in Development. BY BEN McKELWAY. ERU today offers a good exam- ple of the way many coun- tries of Latin America are profiting by the experience of others and calling on: the United States to send trained experts to as- sist them in passing through the same stage of development that is now past history. in this country. In every southern republic today are found citizens of the United States engaged in some task of reorganization of government or directing some im- provement or development scheme along the same lines adopted here. The work of these experts in South America is the fulfillment of an jdea which originated in the Pan-Ameri- can Union. One of the best ways to create a real spirit of friendship and mutual understanding, it was argued, was by the interchange of students und experts, who would lend their experience gained in a country whose development has been more rapid, to ropublics whose national growth is just beginning. The idea has won popularity in all of South America, and today we find scores of Ameri- cans in positions of authority in Lat- in America, and hundreds of Latin American students studying in the United States the same problems with which their governments at home are confronted. i The result of this method of co- operation will be beneficlal to Latin America and to the United States. Eu- ropean ‘systems will be’ replaced, by American methods and at the same time a closer and more helpful un- derstanding between the Americas will_be developed. Americans visit- ing Latin America will find business methods with which they are familiar and 2 people who look to this country for help and co-operation in their pursuit. * ok k k Peru, just beginning to awaken from lcng economic” lethargy under a gov- ernment of oliques inherited from her aristocratic Spanish founders, presents an opportunity for American. invest- ment and American brains which rivals that of any Latin American republic Under the progressive administration of President Leguia, Peru looks to this country for co-operation in the new era just beginning. Probably in no other country of Latin America are Ameri- cans so popular and the way made so easy for Americans who seck develop- ment of her rich resources. It takes only a glance at the vari- ous enterprises ‘conductéd in Peru to show how closely Americans are iden- tified with her present national life. An American naval commission- is reported_to be doing_excellent work, under Commander Frever, in reor- ganizing the Peruvian naval establish- ment. The Curtiss corporation of this coun- with the army and navy and aiding Peru in utilizing airplanes mercial purpéses. An American naval officer is in charge of the Peruvian naval training station. An American pedagogical mission, under direction of Prof. Bard and a score of American teachers, is reor- ganizing the Peruvian higher edu- cations]l _system, and an American Prof. Giesseke, is president of the University of Cuzzo, the seoond oldest college of the western hemisphere An American is also at the head of the Lima High School. The department of agricuiture of Peru is ugder the direction of an American: and the national sanitary service of Peru is under the direction of Col. Wrightson, United States Army, who assumed the post origi- nally. offered to his father-in-law, Gen, Gorgas. A New York concern is_doing the engineering work in connection with the sanitation pro- gram mapped out by Col. Wrightson. An American is in charge of Peru's fight against yvellow fever: at Callao the reorganization of the customs for com- | try is placing American-made ar.hle-i service §s nmow under an American, while an American financier probably will go to Peru within the near fu- ture to aid Peru in reorganizing and reconstructing her entire flnancial system and economic policy. Peru now in a bad way finan- cially, just as are her sister republics of Latin America. The economic de- pression following the war has left business there at a standstill. Her government looks with favor on any well intended scheme for American investment and points to the un- touched resources as the incentive. Peru offers a number of prodects. Her mines, for which she is princi- Dnllf famed, have received compara- tively little development. Her agri- cultural possibilities are little real- ized, but with proper irrigation tre- mendous advances in this direction e possible. Unlike many of her sister republics, she is not depend- “nt on any cne product. A €mmn in the market for one commodity does not affect materially her production of another and her climate offers a rare medium between the two ex- tremes. The members of the American com- mission which represented the United States at the recent celebration of Peru's centennial report a pro-Ameri- can sentiment which was very grati- fying. An incident to illustrate this is recited in connection with the com- mission’s expense account. The ap- vropriation to defray expenses for the visit was not haif used, for the Peruvian government was a real host. Now the State Department, ac- customed to deficits rather than to surplus, is puzzled to know what to do with several thousand dollars re- maining. x x * * Interest is shown here in the petro- leum law passed recently in Bolivia, copies of which have reached Wash ngton. This is the first step toward <overnment _regulation of oil re- acurces ever taken by Bolivia and its terms leave the effect on oil exploita- tion there in doubt. The law places all netrolenm resources under government control, no matter who owns the prop- arty on which petroleum is discovered. This is the first instance known. it is stated, where this relic of old Roman taw his been applied to petroleum de- DOSItS. In her new law Bolivia seeks to avoid the difficulties encountered by the Mesican government in framing tegislation to guard her natural re- sources. She iz anxious for forelen development, but at the same time jealously retains the right of owner- ship. 1t is understood there may he some revisions of the law in case ifs nrovisions are found onnosed ‘o for- eign_exploitation and development Approximately 600.000 acre of land may be leased to an individual or cor- woration for exploration, under 1l new law, and approximately 200,000 of these acres may be selected for development. The selection of zround must be made within four years after permission is obtained for exploration, and the individual or corporation must then sign a lease ¢or fifty-five vears. The government retains 11 per cent of all revenues resulting from petroleum exploita “ion, which may be paid in cash, rav or refined products. At the expiration of the fifty-five vear lease all ‘equipment and ms ~hinery and means of transportatio revert to the government. but & prc vision allows for a renewal of t lease if the project is found. feasibl: * x ¥ % The handsome gold medal prese d to President Harding last w iby the Costa Rican minister, Se | Dr. Don Octavio Beeche, commemor: |ing the 100th anniversary of the | dependence of Central America. w accompanied by an engraved diplom bearing the Costa Rican coat of arms and signed by President Acosta and the minister of foreign affairs, Alejan- dro Alvarado Quiros, and containing |a greeting from Costa Rica to the President of the United States. The medal was designed by tie | French artist Prudhomme and made in Paris. result in Great Britain was the en. actment of tthe *“‘safeguarding of in- dustries act of 1921 to save Great Britain's economic and industrial life. France and Belgium have been com- pelled to take a similar course. Lurking Peril to United States. These events have an important i ‘helr!n( on the separate treaty with Germany, and suggest that economic peril to the United States lurks in an attempt to enforce the economic terms of the Versallles treaty or compel in- demnity by the acceptance of mer- chandise. Great Britain's experience may well be a suggestive warning, Primarily, the United States is con- cerned with-the payment by Germany of damage to property and loss of American lives. During the war the United States seized between $525,- 000,000 and $5560,000,000 of German property, based on valuations between 1917 and 1919. The alien property custodian is now reapprgising_this property on present valuation. What will be done with it finally is an eco- nomic problem to be solved. The United States ie vitally con- cerned in trade and commerce with| Germany. If the payment of Ger- many's_debt to-the United States in Tolves the acceptance’ of manufac- tured goods and merchandise to the injury of American industries, the economic problemh involved ls serious. Can the United States afford to re- ceive large quantities of goods from Germany, pay for them in cash, and have the funds turned over to the alled reparation commission? = Al- | ready -increasing imports from Ger- many furnish a problem for the United -States to solve. Imports. for the last three calendar years were: 1919, $944,981; 1920, $45.085,975; 1921, 773,756, Germany Strong Economieally. Germany is in a strong position eco- nomically, however weak she may be financially, Lloyd George said re- cently: “The mark is not as ragged as, it.appears.” The paper note cir- culation of Germany January 1, 1921, was -80,835,000,000 marks, and Ger- many’s debt in March,.1921, was about 300,000,000.000 marks.. Paper marks temporarily are solving Germany's economic and financial problems at the expense of other countries and giving her a tremendous advantage, but,they are slowly bleeding Germany to -death. If Germany_is reduced to economic helplessness by the repara- tion program and the use of the print- ing press, what will be the effect on the rest of Europe and on the United States? . Germany cannot exist on a paper currency, and the allied pi gram under the Versailles treaty is robbing Germany of her gold. ‘The crash is inevitable. If to Russia's loss - of economic -and _purchasing power is.added Germany's- collapse, the whole world. will feel the shock. 1s it -not reasonable ta assume tha a separate treaty with Germany, avoiding the economic pitfalls of the Versailles blunder; is wise? Germany is underbidding the world in the production of's! cause she pays her labor in paper marks, worth in gold -less than one cent, often resuiting in.wages. of less than b cents & day. This is disastrous competition for the rest of the world, including the United States. - Hence, does it.not seem logiéal that the United States, through a sepa- rate peace with Germany, should en- deavor by its good offices to. correet the wrongs of Versailles. exact from Germany only what Germany can pay, with safety, and.refuse to fan'the of econpmic " ;5’! .which may, psume the rest of e’ world, in- cluding ‘the United States, in the meéantime postponing a return of. in- dustrial prosperity atd a decrease of! unemployment? 3L 2 le goods, be- | CANCEL WAR DEBTS, EUROPEANS ASK Ut (Continued from First Pag: quite generally to think that th. United States should cancel these ob- ligations _entirely. Moreover, _they are ~disappointed that the United States has not taken the same view. The claim is made by them that the United States is wealthy and suffered comparatively little in the war, and that it should make this addjtional contribution to the allies. He said that the pebple abroad pretty generally were pinning their faith to the league of natfons; at least, that was the impression he gained from talking with the dele- gates to the interparliamentary union, which is composed of members of the parliamentary bodies of the various nations. Great regret was ex- pressed by them, he said, that the United States had not become a mem- ber of the league. In fact. a resolu- tion was offered at ome of the ses- sions expressing it as the sense of | the union that the United States should join the league. Senator Rob- inson took the floor as a representa- tive of America and pointed out that the people of this country, through * their government, had gone on record as against joining the league, thougl he himself had favored going in. managed to tide over the awkward sit- ation, and the resolution was 50 modi- fied the next day as not to cause the American delegates embarrassment. ————————— SOON TO QUIT SERVICE R. W. Bolling’s Resignation as Treasurer Announced. Resignation of R. W. Bolling. brother-in-law of former President ‘Wilson, as treasurer of the United States Shipping Board Emergency Fléet Corporation .will become effec- tive-as soon as his successor, Maj. T. L. Clear, becomes familiar with the work, according to Shipping Board officials. . B Mr. Bolling's resignation has been Iln the hands of Chairman Lasker for several ~months, it was said. 3 Cleat is now In Washington and wiil immediately take up his new duties. He came to the Shipping Board from the Army and was formerly treasurer | of the Panama canal under Gen. Goe- tl e of T. Edward Mur- - 1s. - Appointmen taugh as publicity manager for the | Emergency Fleet Corporation was an- nounced yesterday. Mr. Murtai ‘was formerly director of publicity for the American Red Cross and was located in Washington during the war. ARMY BOARD TO MEET. Will Fix Relations of Forces Not “in Seryice. % A board of Army officers has been ordered to meet in this city to formu- late the principles which shall govern * the relations of the militia buresu, the - corps area commanders and the Na- . tional Guard when not in the e of the-United States, with refetence to the functions of supply, recognition of new units and the survey of federal property. The board is instructed to write the amendments mnecessary to make those principles effective. The detail for the board is Cols. Frank M. Riumbold ind Ffankilm W. Ward, Lieut. Goion yemeral it Map Thomas W: gene! 5 v S e tamiey. and" Mas. Louws C. 'Wilson, Quartermaster Corps. i