Evening Star Newspaper, December 11, 1921, Page 49

. STAR, WASHINGTON, -D.. C, DECEMBER 11, 1921—PART 2. - g~ BRITAIN IS GAINING POWER IN GERMANY Loan, Aiding General Reconstruction Processes, Sure to React in Favor of " English to Exclusion of Others. BY OLIVER OWEN KUHN. HILE Furope at large gets very much excited about the future financial situa- tion on the continent, and several countries wail over fantastical goblins that every now and then thrust themselves upon the horizon, particu- larly Germany's inability to pay repa- rations, the British government is lay- ing the foundation work for Europe's advance. Possibly this is the reason for the quick recovery of the pound sterling in the money marts of the world. There is seen in British maneuvers during the past few weeks definite steps toward the restabilization of old world condi- tions. And after the restabilibing processes, and when conditions actually approach normal, there is every reason 1o believe it will be found that the Brit- ish will again, as they have after pre- vious European wars, hold the trump cards, financially and economically speaking. 1t is not without some mis the French government W cpurse of deliberations between Dr. Walter Rathenau, representing Ger- 1any, and representatives of Britain in London. It is but natural that French financial experts, headed by Louis Loucheur, minister of the liberated re- gions, should go to London to confer With British government officials while the Germans are there. Of course, the reparations question must be threshed out between the French amd British be- fore there can be any definite change in the methods of Germany settling her war debt, but it is exceedingly likely that the French, having been heretofore uninformed, will be particularly inter- ested in seeing just how far the British intend to go in the financing of Ger- many in order that Germany may meet ler repartions payments and set wheels in motion looking toward complete in- dustrial and financial recovery from the war. * k k¥ Tn fact. it may be stated that there 1s definite trend toward a great busi- ness rapprochement between the finan- cial_interests of Germany and Eng- Jand. . Plans which have long lain dormant in the minds of British financial leaders apparently are to bear fruit. . The British could not Voluntarily go to Germany and offer a measure of assistance in aiding Germany to her financial feet. But it a noticable fact that when Hugo Stinnes. the great German industrial haron, went to London, to be followed shortly by Ratheanau, they were zreeted with much warmth. Through their requests the British plan to as- sist Germany. thereby bringing about union of British gold with German brawn and industrial ingenuity, got well under way. The German reparations payments. 500.000,000 gold marks on January 15 and another 275.000.000 in February. which payments Germany says she cannot meet without outside assist- ance, is the ostensible reason for the Anglo-German negotiations, but it is zenerally credited that the delibera- tions will be but an excuse for open- ing up general co-operation between and and to 8= at aav juncture, if other allies can prove that nationalistic and im- perialistic theories are not being ad- vanced agminst the best interests of the continent as a whole. *® &k ¥ X Tt is significant that the Germans approached England with a mora- torium plan immediately after the Briand land armament speech in TWashington, and immediately after the split between France and Eng- Jaud over the near east became ap- ent. It likewise is significant that ingland opened her ears to the Ger- man pleas. But. when the showdown comes. when Lloyd George and Briand take up the question of coming rep- arations payments, there will be no great divergence between them, for it has been announced in the past week there has been a noticeable change in sentiment in certain French circles. ¢ Whether or not this change is sufficient to induce Premier Briand to fly in the fage of critical opposi- tion headed by Poincare. and fully azree to British plans, is not known. but it is believed certain that the Rriand official regime is coming more 1o the British viewpoint that some such steps should be taken to assist iermany. Undoubtedly the French -ill make counter proposals looking toward the strictest guarantees that Germany will keep the faith. should reparations be deferred under the zuise of a moratorium, and there may bo some squabbiing over this, but it is now believed that there will be agreement. . ok R Ok However. the French are placed in position of merely approving what the British and Germans have wrought in secret negotiations that have been carried on in London dur- How Arms Conference Looks From Outside Looking In (Continued from First Page.) Subcommittee on drafting—Mr. Root, chairman, United States; Baron de Cartier (alternate, Mr. Cattier), Belgium; Sir Auckland Geddes. (al- ternates, Sir John Jordan or Mr. Lampson, and Mr. Malkin as drafting British empire; Mr. Koo, France; Ambas- ; Mr. Hanihara, van Karnebeek, Por- Jonkheer Viscount d’Alte, Japan: Netherlands; tugal. % * k ¥ % There has developed at the con- ference what is popularly known as meetings of the “big three.,” on ques- tions particularly relating to the limi- tation of naval armament, meetings of Secretary Hughes. Mr. Balfour, head of the British delegation, and Admiral Baron Kato, head of the Japanese delegation. When the ques- tion of the size of the French and Italian navies comes up for considera- tion, as it will after the capital ship tonnage of the three big naval powers has been settled, it i3 expected that the “big three” meetings will be ex- panded to meetings of the “big five,” with M. Vivianighead of the French delegation, and Senator Schanzer, head of the Italian delegation, sit- ing in. iy PR So much for the methods of doing ‘business at the Washington confer- ence. It must be remembered, also, that the delegations of the foreign powers are constantly in touch by cable with their home governments, seeking advice and instructions on various questions that arise. The scheduled conferences with the newspaper correspondents, at which spokesmen for the delegations of the various powers_meet the newspaper men in a body, are, in a way, a tribute to the American method of do- ing business. There are, as a rule, four or five of these conferences every afternoon. Most of them are held in offices of the delegations in the huge Navy building, where each delegation has been assigned quarters. This is not true of the conference with the spokesman for the American delega- tion, which is held in the State De- partmen . Out of them come some news and not a little propaganda. On the whole, however, these conferences are illum- .inating, from what is not said, as well as from what the spokesmen say. Mr. Hughes is the spokesman, 6f course, for the American delegation. It is an unwritten law that any- . ing the last fortnight. It is notice- able that the British have taken the lead in making Germany's bur- den lighter and though this may be an unpopular course in France, it has progressed to a point where the French undoubtedly reallize they must do something to meet the situa. tion which threatens to throw Ger- man trade ‘and German sympathies toward the British to the exclusion of all other nations save, possibly, the Italians. Should the British loan Germany £25,000,000, as has been asked, the British will at once obtain a hold upon German industrial powers as well as sympathies. The Germans undoubtedly will favor the British in exports and reciprocal trade rela- tions on every hand if they can legitimately do so. The British may insist with the French that the al- lies be represented in control com- missions to restrict the flooding of Germany with paper marks and take other steps to see that Germany plays fair and square. but the fact that it is British money and no other that is assisting the Germans will have tremefldous weight. Possibly the full returns will not be achieved by the British for many years to come, but eghen conditions are re- stored to some semblance of normal- ity British influence will be found predominant. - * ok ok ok The Anglo-German financial con- cord will have far reaching effect. Undoubtedly the British wiil par- ticipate in expected trade agreements with the Russians. German indus- tries further, strengthened by British capital will be able to accomplish much toward reconstruction processes through all of eastern Europe and British influence undoujgedly event- ually will be felt in ssia as in Germany. The British policy of the moment is not a new one. From the very first days after the war when there were storm clouds over the entire world the British government has seen the possible collapse of European eco- nomic and financial conditions, and as a consequence has in a fashion prepared for the day when Britain could take advantage of the situation and mold events and destinies more in. accordance with British ideas of The British reconstruction processes. have never moved with interest in fostering po toward European reconstruction. doubtedly. however. England’s pres- | ervation always has been back of | gvery action, but there has been a foresightedness embracing the fact that even England cannot prosper un- less all continental countries are prosperous. To obtain return to nor- mal conditions British statesmen have fought from the very first, even to the point of estranging allies from her. It is a fact that. even though Eng- land’s allies have resisted at times, they today are standing with Eng- land in most of the far-reaching eco- nomic. soclal and financial plans that { have been advanced. all of which look toward the recovery of Germany at i the earliest possible moment. * % %k % Much of the success of the British will depend upon the restrictions that jare placed upon Germany by the inter- allied reparations commission and such agreements as are finally de- cided upon in case a moratorium for Germany is granted. ' It generally is known that Germany can only go so far in meeting the tremendous loads that have been placed on her shoulders. ut how far is a question that has roused sharpest difference of opinion in London and Paris. The French be- {lieve the Germans are faking. The British are more inclined to take the German word at its face value. There | may be established such restrictions iupon Germany that these will go far lin defeating their own ends. 1t is a | known fact that Chancellor Wirth be- lieves he has done much to establish German good faith. On_the other hand, he is inclined to believe if the allies insist on regulation of German finances, partialarly demanding tax- ation reforms,rather than enforcement of taxation laws, much will be undone. It is known that the German pays less taxes when he does pay than any other of his continental brethren. The allies want Germany to enforce payment and make the Germans carry the same heavy load other nations are |earrving that there be proportionate balancing of Germany's internal ex- penses with the income. But this may prove unpopular. The Germans have stated that internal conditions and expenses have drawn away from Ger- many’s ability to pay reparations. The “allies want these deficits wiped out to facilitate reparations payments. But whatever decisions the allies may take in the application of their demands, the feeling grows that when the storm clouds have passed the Bri- tish will be seen in particularly ad- vantageous position in a revivified Germany withi other allled countries on the outside looking in. And to say this prospect is treated lightly in other continental countries is stating the case mildly. thing the Secretary of State says is not to be Qquoted, a law that is rigigly adhered to by the newspa- per qorrespondents. As presiding of- ficer of the conference, Mr. Hughes also ix desirous of not being quoted. However, his conferences are attend- ed by scores of the newspaper cor- respondents daily and from them much of the news of the day de- velopes. * % k% For the Japanese delegation the spokesmen at these conferences have been Admiral Baron Kato, Prince Tokugawa and Mr. Hanihara, vice minister of foreign affairs. The Japanese, when they have had any- thing to say, have not objected to being quoted. On the other hand, they have been extremely cautious about giving the Japanese point of view on important matters before the conference. They are adepts in polite declination to answer ques- tions. submits to questioning his inter- preter stands at the side of his chair and quickly translates the questions of the newspaper men into Japanese and the answers of Admiral Kato into English. The admiral under- stands English rather well, but does not speak it. Prince Tokugawa, on the other hand, and Mr. Hanihara both speak English fluently and get along without interpreters. With the British spokesmen it is as with the American—they do not allow themselves to be quoted. They are more ready, for that reason per- haps, to give the British point of view of various questions arising. All of the British principal delegates have taken turns at being inter- viewed by the correspondents en masse, including the delegates from the itish _possessions, Australia, Canada and New Zealand. qther delegations, the Chinese, the Ttalian, the Netherlands, the French, submit occasionally to these con- ferences with the press, though not as regularly as the Americans, Brit- ish and Japanese. . * k k% In addition to the conference prop- er, and the meetings of the con- ference subcommittees, there is being staged in connection with the con- ference, but not of fit, negotations l between the Japanese and the Chinese with regard to Shantung. At these eonversations, .representatives of America and Great Britain “sit in,’* but merely for the purpose of aoting as observers, and if possible to take from these n::e(ln‘s the curse of “direct negotations,” which the Chinese have declined in the past to undertake regarding Shantung. It 1s impossidle. it is sald, to bring the question of Shantung up in the con- ference, since so far as sevefl of. the THE STORY THE WEEK HAS TOLD|C ~ BY HENRY W. BUNN. HE following is a brief surmary of the most important news of the world for the seven days ended December 10: UNITED STATES OF AMERICA.—The first regular session of the Sixty-seventh Congress began on Monday. On Tuesday the President addressed the Congress. His audionce includ- ed the delegates to the conference on limita- tion of armament. 3 The address glances at many things—it deals directly and specifically with a few. The European natlons are admonished to apply heroic remedies to their economic mal adies; when such have been tried, “then we can help and we mean to help’—but not till then. Lenten entertainment, this, for the dis- tinguishea guests. The system of government by party is handsomely eulogized and the disastrous ef- fects of insurgency are indicated for the edi- fleation of the agricultural bloc. “When parties fail they are relieved of authority,” says the Rresident slyly. With polite circumiccution the -President declares himself dissitisfied with the lax leg- islation of the extraordinary session. “Later on, when other problems are solved, I shall make some recommendations about renewed conslderation of our tax program.” ‘The President invites attention to the first budget under the new budget act, submitted to Congress only the day previous—"a signal achlevement” for a first essay. He urges passage of the forelgn debt refunding bill Cthe unfinished business of the Senate). He remigds the Congress that he (like his predecassor] has failed to comply with that Clause of the Jones act which requires the executive to “give notice of the termination of all existing commercial treaties, in_order %o admit of reduced dutles on imports carried in American bottoms.” He craves congres- sional tolerance of non-compliance with that astounding clause a few weeks longer. It Sseems that the administration is preparing for the consideration of Congress a plan which “gives such promise of expanding our mer- chant marine that it will argue its own approval.” Contrary to the expectation of many, and unheeding the rumble of many a distant drum (e. g., recent utterances of the New York Chamber of Commerce and the National Cham- ber of Commerce), the President urges im- ! mediate completion and enactment of the “permanent” tariff bill. He recommends more flexible tariff policy—adjustment of 5 10 changing conditions through a grant to the chief executive of authority to pro- claim new schedules from time to time. To this end there would also be required exten- sion of the powers. of tHe fariff commission, that the President might be properly informed and advised. This portion of the President’'s address has attracted more attention than any other—has, indeed, aroused a brisk con- troversy. i Nearest to the President's heart is* the farmer. Congress has provided temporary re- lief for him, but “the call is insistent for the permanent solution.” But what is that solu- tion? “In_the main” thinks the President. i “the remedy lies in distribution and market- ing. Every proper encouragement should be given to co-operative marketing programs.” The co-operatives have had astonisfiing suc- cess in Europe—above all, in Russia. Then why not make the experiment on the grand scale here? The President deplores the drift of popu- lation from farm to city. He longs for res- toration of the proper balance between city and country. He has some very just remarks on the right of labor to organize and on the proper limitations to the coercive power of labor so organized. Hefseems to foresee a “code and charter of elemental rights, dealing with the relations of emplover and employe,” but this is rather in the va, The President urges to appro- priate generously for reclamation and de- velopment of the public domain. He brings out the interesting point that, besides the 20,000,000 acres of federal lands susceptible of | reclamation, 79,000,000 acres of swamp and (mostly in the south) which could be reclaimed into as valu- able farming property as we have. He urges federal advances toward such reclamation. ‘The most interesting of all the President’'s recommendations is that of a government ap- propriation to supply the American Relief Ad- minlistration in Russia with 10,000,000 bushels of corn to feed the starving, and 1,000,000 bushels of seed grains for the spring planting. But If the appeal of the starving mouths on the Volga has become irresistible and ousts all other considerations—e. g., the considera- tion that such American charity as that pro- posed is likely to have the indirect effect of giving a new lease of life to the red regime— one wonders why the President would so stint the appropriation. Mr. Goodrich, just back from an“inspegtion of the Volga famine area, reporfts to Mr. Hoover that 15,000,000 to 20,- 000,000 bushels of corn and 4,000,000 to 5,000,- 000 bushels of seed grain are required. “The quality of mercy Is rnot strained.” If we have decided on present mercy (waiving the question whether present mercy may not be ultimate cruelty to Russia), let it not be strained or limited. * %k 3k X IRELAND.—The world was never more surprised than it was on Tuesday, when it learned that about 2 o'clock that morning the Sinn Fein and British conferees signed an agreement for the settlement of the Irish con- troversy. The agreement provides for an Irish free state with “the same constitutional status in the community of nations known as the British Empire as the Dominion of Canada, the Commonwealth of Australia, the Dominion of New Zealand and the Union of South Africay with a parliament and an executive re- sponsible to that parliament.” Like Canada, which is named as the particular model for the relatlons of the new state to the imperial parliament and government, and to the crown, the new state is to entertain a crown repre- sentative corresponding to the governor gen- eral of Canada. ‘That awful difficulty of the oath of al- legiance was got by through substfiution for the usual oath of an elaborate Hiber®ian cir- cumlocution. The free state is to take over an_equitable share of the public debt of the UnMed Kingdom. It is proposed that ulti mately the free state shall undertake her own coastal defense, but for at least five years the_existing imperial arrangements for such defénge are to continue. The free state may have a military defense force, but not more numerous in proportion to the population of that state than are the military forces main- tained in Great Britain in proportion to the population of Great Britain. Several elab- orate articles provide for the alternatives of Ulster joining the free state or remaining in- dependent. In the latter case there would still be a tenuous bond of connection between northern and southern Ireland in the council of Ireland provided for by the government of Ireland act in 1920. And in the latter case a boundary commission would “rectify” the frontiers between northern and southern Ire- land—a stipulation sufficiently vexatious to Tlster. A provisional government of south- ern Ireland is to function until a parliament and government can be constituted in ac- cordance with the agreement. The agreement is a little vague in respect of guarantees to Ulster, but it is, on the whole, generously conceived and of a very ingenious contrivance. Present adhesion of Ulster seems doubtful, though by no means impossible, should guarantees deemed sufficlent by Ulster be subscribed by the S8inn Fein. Ultimate ad- hesion of Ulster canont be doubted, should the free state government make good. But one should avold a premature census of chickens. The agreement has to be ratified by the dail eireann (ratification by the British parliament is, of course, a certainty). The dail eireann has been summoned for the com- ing Wednesday. If De Valera can have his way, it will not ratify. He has manifestoed his fellow citizens: “The terms of the agree- ment are in violent conflict with the wishes of the majority of this nation as expressed freely in successive elections during the past three years. 1 feel it my duty to inform you immediately that 1 cannot recommend the ac- ceptance of this treaty, In this attitude I am supported by the ministers for home affairs and defense.” The cabinet, then (including De Valera), stands four for ratification and a_ continuing three against. It would appear that the church and the press are overwhelmingly for ratification. The anmy is said io be doubtful, but Michael Collins, one of the signers of the agreement, is the army's idol. It remains to be seen how powerful may be the influence of that strange personality, De Valera. IS BLOW OUP IN GUATEMALA TO UNION Overthrow of Herrera Government . Is Regretted Here by Friends of the ‘Ccntral American Republics. * % % %k GERMANY.—If press accounts are to be » believed, the reparation commission and mem- 3 g bers of the French and British governments M e are close to an agreement on a new program SIDE from the real danger of of reparations finance, with the following most an outbreak of. hostilitles in important ftems: Central America and its re- (a) The German budget to be balanced. (b) German capital which has been ex- patriated to be repatriated; no more expatri- ation. (c) Payments in kind to be continued. Not only so, but this method of reparation to be applied on a much larger scale than has hitherto been contemplated. The Wiesbaden agreement between France and Germany (which calls for substitution, in large part, of German materials, manufactured articles and labor for reparation gold marks, but'to which the Tequired assent of Gfeat Britain, Italy and Belgium is lacking) to be put in operation, and similar agreements between Germany, on the one part, and Britain, Italy and Belgium, on the other, to be made. | (d) An allied financial control commission. sitting in Berlin, to supervise reform of the budget and other fiscal and financial reforms. We take if, this might be the committee on guarantees, with enlarged powers. (e) If Germany will subscribe to the above. then, suspension of cash reparation payments for three years. H (f) A foreign loan to Germany. As a con- dition precedent to conclusion of any such ar- rangements one presupposes the furnishing by Germany of acceptable guarantees, of per- formance (a_ difficult matter, one should think). And I take it that another understood condition precedent is payment of the Jan uary and February reparation gold instal ments. That money apparently cannot be ob- tained by a foreign loan. The British bankers won't lend before a moratorium is conceded and the moratorium won't be conceded before these installments are paid or definitely as- sured. A meeting of the supreme council in the near future, to consider reparations finance, the near east and other subjects, is expected. k ¥ ¥k ¥ THE CONFERENCE.—Last week end the conference atmosphere was murl The pessimists held the field. This week end all is sunlight and cheer. The pessimists have vanished like ghosts before the dawn. An in- effable odor steals upon the air. It is the odor of the millennium which is due to arrive as the result of happenings at Washington. The delegates of the United States, Great { Britain, Japan and France have agreed upon a four-power treaty—no mere protocol “gentlemen’s agreement” or nderstanding. or any such “what-d'ye-call-it"—but an out- ) icultural and industri and-out treaty. A copy will be sent to the S H Senate, which will ratify instanter, and fthe {jcvelopment =~ Overnight this has new era will begin—so rumor, who is quite (o represent the minerity wi\:':t‘e;” certain about it. By this treaty the signatory powers will recognize the status quo of the islands in the Pacitic, and each promises, in case of misun- H drestanding with any of the others, to ask the mediation or arbitration of the powers not in the quarrel, and, not least important. the Anglo-Japanese treaty will join the dodo, be- | coming extinct. . Decisions have yet to be taken concerning ships, naval bases and fortificaitons. poison gas and other “new agencies,” the laws of war, Siberia (presumably) and. above. all, the multitudinous problems of China. The Jover of China knows that her emancipation must be a siow process. What he chiefly desires is assurance of a definite policy for China and program which must progress through successive conferences at regular in- tervals to the ultimate complete emancipation of that great country. (Copyright, 1921, by The Washington Star.) | When Admiral Baron Kato | 5 Mentioned as Successor ’ To Briand in France RAOUL PERET, Prominent French diplomat a leader in Fre; polities, w! as Premier Briand’s most formidable opponent i in muccensor in the event that the present istry should £all on the “rock of militarinm.” nations participating in the confer- ence are concerned, the question of Shantung and Japan’s right to the former German rights and privileges in that province of China have al- ready been settled in the Versailles treaty. Unless they are willing to violate that treaty, they .could not open the subject here, unless it was with the full consent of the Japanese. And Last, Came Pershing. (Suggested by the necount of the laying of wreaths by high officials on the bier of the unknown soldier in the National Capitol, No- | vember 10, 1921.) t. came Pershing. This is his comrade, sharer of his strain Of battle-wrested victory; he stands again In far-off shell line: here again es. Gommand. to be obeyed: In Pershing's soul. Ames This unknown links America’s destiny With France and England, Italy, Japan, Belgium. Behold the man Who last comes—Pershing! And last, came Pershing, Whose flower-circled wreath Upon the unknown's bier is but a part. Resolute, proud, from out his grateful heart He draws a tribate, and, with shoulders square, Lifts to his cap that steady right hand, bare, In rigid salutation—silent pays To the unknown his debt of honest praise. 0 spirits of the unknown dead, salute! Touch hats again! In testimony mute Respond till all America perceive £ The tribute this unknown would most receive— ‘What bloomed beneath . The heart of Pershing. —GBNBVIBVB L. HUTOHINSON, East Longmeadow, Mass. —_— Things You Cannot Believe. India is showing off for that popu- lar young tourist, the Prince of Wales. In Bikaner the natives held a re- ligious fire dance for him and he saw that spectacle which has interested and puszied other noted occidentals. The Hindus danced through the em- bers of “a great bonfire.” They snatched up glowing coals and,put them in their mouths. Afterward they ran to the prince to show him that their feet were not only unburnt, but were cool and moist. Members of the prince’s staff, suspecting a fake about the performance, tried to pick up the embers and burned their fingers. Fire walking is as old as history. A hundred wise men of the west have set out to explain it and failed. It has been done in nearly all the coin- tries of Asia and in Spain, Bulgaria and some Pacific islands.—New York Herald (independent). OR a perfod extending over nearly thirty years I have h:ld the chair of political economy and of the science of finance in the University of Na- ples. I now wish to address my- self not to statesmen and leading men in politics, but to my past and present university colleagues throughout the world, in order to discuss from a clear and large- minded point of view the problem of credits and debts of different nations, not only considering its internal repercussion in each coun- try, but its international effects. It is impossible that there should be no solution. Perhaps, on the contrary, merely to examine some of these problems would mean to solve them. After the war the European con- tinent, which was collectively a formidable creditor of the other continents, suddenly became a debtor to almost all the other con- tinents. But the European conti- nent, which was the most impor- tant market of consumption, owing to this very fact and to the dimin- uation in its total production, has lost a great part of its buying ca- pacity. It consumes much less, and therefore placés in a state of crisis not only America, but the whole world. In consequence of the war, which had brought about an in- creased demand for products, to- gether with a diminution of pro- duction in the belligerent states, the countries of America especially had greatly increased their pro- duction. Now they have no buyers and are obliged to close down their industries, which means unemploy- ment and an industrial crisis. * X x ¥ In the meantime, the most un- likely and unexpected conditions of debt and credit have arisen. 1. The United States, as a fed- eral government, is creditor of the countries associated in the war to the amount of $9,687,000,000, di- vided as follows: Great Britain, $4,277,000,000; France, $2,997,000,000; Italy, $1,648,000,000; Belgium, $349,- 000,000, etc. By a mighty effort Great Britain might pay off her share f the debt, but no effort could golalbly enable France and Italy to pay. If pressure were brought upon them to enforce pay- ment the result would be a com- plete collapse of their exchange, debarring them from any possi- bility of buying or of paying, while closing other markets to the United States - and rendering the crisis ' more acute fn America. 2. The British treasury has lent £657,000 to France, £561,000 to Rus- sia, £476,000 to Italy, £24,000 to Belgium, etc. Altogether it is a creditor to the amount of £1,803,- 000,000 sterling. 3. It follows that. the United Stat is the creditor of France and Italy; Great Britain has cred- its and debts which balance each other. = ' 4. The debtor countries of Eu rope, on the other hand, Great Britain, France and Italy, are cred- itors of the indemnity which Ger- many must pay. While the con- querors themselves: are ‘unable to The Paper Chain That Strangles the World BY FRANCESCO NITTI, - .Former Premier of ’Ilaly. pay their debts, they expect that the vanquished countries, who have lost everything, and that Germany, now poverty-stricken and disor- ganized, should pay an indemnity the yearly installments of which would be many timaes greater than the installments of their own debts, which France and Italy could not pay without going bank- rupt. 5. This situation has a direct repercussion on all international exchanges. Austria and Hungary have fallen, and their currency is practically ' valueless; the same phenomenon has now extended to Germany. The latter has now a total currency of 88,000,000,000 of marks. What will the mark be worth tomorrow? With the col- lapse of the mark, the German market will have to isolate itself, thus still further increasing the crisis of the American markets. France has an avowed circulation of 38,000,000,000 francs and Italy of nearly 18,000,000 lire. They are now both in a critical position, un- able to pay their debts and with their difficulties continually on the * increase. 6. The same absurd situation is noticeable in each of the great countries . of continental Europe which have emerged from the war. Italy has a debt of about 100,000,- 000,000 life, France of 265.000,000,000 francs, Germany of more than 320,000,000,000 marks. It would be idle to talk about the public debt of countries already bankrupt, such as Poland, or on the verge of ruin, such as Austria and Hungary. To be creditors of Poland is equiva- lent to having a mortgage on the clouds. 7. In consequence of the enor- mous war debts, the citizens of each country have become heavy creditors of the state. The state solemnly bound itself during the war not to reduce the interest or the capital of the war loans. So far, so good. But owing to this very fact the public now owes enormous sums to the state, as the latter is obliged to constantly in- crease taxation in order to pay its debts. An endless chain of paper, like a huge sérpent, is coiled,round the world, slowly strangng it. * k% The United States, which enjoys the unique position of being ex- clusively a creditor-and in no way a debtor, appears to be convinced that Great Britain, France, Italy,, etc, will eventually pay their debts. Moreover, Great Britaln, which ig isolating herself more and more from continental Europe, whose ruin she foresezs, believés that the debts contracted by France, Italy and Belgium will eventually be settled. France, above all, wishes it to be thought that while she is unable to pay her debts to the United States and Great Britain, Germany is in & position to pay enormous indemni- ties “on the nail” Summing up\ the situation, we findrthat France, Italy and Belgium are not even paying the interest on their debts, while Germany, forced to effect the payment of ome billion, has seen the mark as a result drop al- most to zero in a few weeks. Debts and taxation are on the in- crease everywhere, but the French think that Germany will pay. Meanwhile, in order to compel Germany. to; pay,&n army of occu- pation is maintained on the Rhine, the cost of which amounts to at least half the maximum indemnity New Hungarian Premier Completes Cabinet Line-up COUNT BETHLEN ‘whem goes the task of stifiing the T strong royalist that has been a thorn in the side of the government. — e sVt which Germany can pay for sev- Ql‘lfll y::”(! to cnmie! n ° their morning prayer all good Christians daily ask for the remission of their debts and prom- ise to do likewise by their debtors. But as yet there is no talk of remission of debts among the na- tions. Each of them tries to grab the biggest share of the wreckage, and every day that passes means a larger collective loss. * ¥ % ¥ The heavy paper chain becomes every day more oppressive; riot- ous confusion of exchanges, dimi- Rution of buying capacity, crisis in creditor as well as debtor coun- tries, increase of mutual distrust. Are we still in time to remedy this paper errer, or, to be more pre- cise, this deadly paper delusion, and to found, with all due precau- tions, a general commission which will enable the world to breathe once more? Statesmen are not always the persons most fit to discuss these problems. We have seen how many unfounded facts and figures they have induced the public to believe with regard to the indem- nities which Germany and the other losing countries were able to pay. The data given at the Paris conference between 1918 and 1948 were so absurdly fantastic as to constitute a wholesale poisoning of minds. I hope and desire that these arguments be fully discussed and explained to the public by econ- omists. ‘Sane currents of opinion will then be formed which will impose themselves on statesmen and governments. (Copyright, 1921.) —_— POSTS SOON VACANT. Terms of Two Members of I. C. C. to Expire December 31. Two places on the Interstate Com- merce Commission, now occupied by Coqn.nluloner- Aitchison and Hall, fall' Vacant December 31.dy expira- tion of the terms of the incumbents, and there were indications yesterday that President Harding might send to the Senate, at an early date, the reap- pointment of both men. . 5 (ion;:zlulzh Allehl:on r:o” 0“- ointed to the commission from Ore- zon and Commissioner Hall- from Colorado. sulting bloodshed and loss of property, there is a feeling of deep regret on the part of many Latin! American representatives in Wash- ington over the coup which has re- sulted in the overthrow of President CaMgs Herrera and the unionist party in Guatemala. » Regardiess, of affiliations, political Beliets and sympathies, it is generally felt here that Herrera's deposition by ! American division of the bureau of forelgn and domestic commerce of the Department of Commerce. This report is considered to be one of the most comprehensive surveys of condi- tions in Latin America recently made. Argentina is pictured by Mr. Smith as waliting for the outside world to become purchasers of her raw ma- terial, other conditions being nearly normal. Relations with the outside depend upon prices which can be ob- tained, and, of course, the demand for Argentine products. The soundness of the government ix evidenced by the recent loan by a group of New York bankers of $50.- 000,000, covered by treasury bonds bearing interest at 7 per cent. Al- |though the amount of capital invested revolutionary tactics is a most un. ;N ATgentina during and immediately fortunate occurrence in its effect on’|after the infant federation of Central America and upon the economic status of all the republics of Central America. For until these little re- publics establish themselves in the eyes of the world as stable, indepen- the war was restricted in amount, Mr. Smith points out, the origin being confined to the United States and the neutral countries, there 1hau recently been an influx of Brit- ish capital, favored by the exchange rate. Several important British en- dent governments, capable of bring- | terPrises have taken steps to expand ing about changes in their adminis- trations through the will of the peo- ple exgpessed in lawful manner, they wiil néver win the respect neces- sary to receive the aid they need from outside. of Central America need financial as- sistance through loans and the llh' vestment oelcapital, and the unwill- ingness of capital to enter the field on a large scale has been attributed 10 a great extent to the Inability of any of the governments to guarantee anything like political stability. It matters little whether the revo- lution was staged In Guatemala, Hon- duras, Salvador, Nicaragua or Costa Rica, or what the name of the polit- ical party. another one of the revolutions for which Central America is famed has been staged, another government overthrown and another regime es- tablished. * k% ok In this case sympathy here fis largely with the Herrera government. His party, which came into power by another “revolution, under different circumstances, it is true, had given promise of a new order of things in Guatemala. 1In spite of the economic depression there, the administration jwas going forward steadily with its { plans for the establishment of schools and public roads, works, reorganization of construction of the fis ped In and under cover of darkness and., with the aild of a few soldiers, proclaimed themsleves In power. In our country we wonder at the overthrow of a government in a night. 1In Central America it has be- come an old and oft-repeated story. Tt must be remembered that there the large masses of‘ the population are ignorant, the soldiers cheaply bought, the emotional Latin temper- ment easily stirred. A “coup” does not always express the will of the people. It is a coup in every sense of the word. ‘The effect of the revolution on the !newly formed Federation of Central America, conceded to be a progres- sive movement, is bound to be harm- | their business G The fact remains lhnli in Argentina, while ‘erman capital has participated to some extent in the exploitation of her natural resources. American, British, German and Chil- All of the republics|€an Interests are becoming interested in the possibilities of petroleum in Argentina, and the government is ex- tending operations in some territories. Business failures have been marked in the last three months, Mr. Smith declares, and exports and imports gen- erally have decreased. A favorable indication of improved conditions was - ishown in the reduction of stock held iin the Buenos Aires warehouses. A normal crop Is expected this year. Im- migration from Spain, Germany and Italy has been increasing from month to month and as a result unemploy+ ment is increasing and labor is cheap. * % ¥k ¥ Brazil's slow but sure recovery from her economic depression is described by Mr. Smith as due to prompt steps taken by her government to apply remedial measures. Her unfavorable I balance of trade seen in the first seven months of the year is being cut down* and a return to normal is forecast by the improvement in the exchange rate. . Increase in Brazil's exports ix due, in part. to the mew industries devel- oped as the result of her inability during the war to obtain raw mate- irial and to the fact that her two main | products of export—coffee and rub- ber—found a restricted market. Bra- zil is described as being in a unique position in South America’s recupera- tion because of this increasing eco- nomic independence. Chief among Brazil's new products for exportation is frozen meat, which a short while after its creation as an industry occupies an advantageous po- sition in regard to Brazilian exports. Cotton. sugar and rice are listed among Brazil's new articles for ex port on a large scale, and recent ef- forts to revive the production of sugar in Brazil have placed that commodity second among the country’s exports. The increased variety of her prod- ucts has made Brazil a field for keen competition. and within the last year foreign missions have been numerous and the establishment of chambers ful. even though the revolutionists in | Guatemata_ give it their approval. It is in a fair way now of failing, as other attempts at unionization in Central America have failed for a century. Guatemala was one of the strongest and most powerful advo- cates of the federation. Julio Bianchi, its minister here and her clected delegate to the federal council of Central America and the probable choice as president of the federation, to all intents and purposes is now a pol cal exile. Upon the ability of the federation to outlive such revolu- tionary attempts depended its recog- {nition” by “this country and Latin American powers. and upon this rec- ognition depended Its existence. * * % % British-owned raflways in Argen- tina are taking a prominent part in the agricultural and commercial de- velopment of that country since the war, according to the Department of Commerce. Through the commercial departments of these railroads, col- onization and the promotion of new industries along the lines have been encouraging. The commercial departments of the raflroads have agricultural experts and traveling experts. as well as ex- periment stations. The experts and agents answer inquiries, give cata- logues. visit the farms and give free demonstrations, and in many_cases, it is stated, furnish free seed. Motion pictures showing agricultural ma- chinery and roadbuilding have been shown in villages along the railroads, and one company publishes a free agricultural journal. which has a large circulation. The Pacific and Western railway, one of the large transcontinental companies, has been instrumental in- enlarging the dried jand canned fruit industry of Men- dosa, which will be in_a position soon to enter the export field on a large scale. The companies, in some cases, have actually furnished road improvement machinery, and have aided in the formation of agricultural co-operatives. x x x The economic condition of Latin America, as indicated by the situation today in Argentina, Brasil, Peru and Chile, is shown to be gradually im- proving_ in a_report prepared by Philip S. Smith, chief of the Latin of commerce and other co-operative organizations frequent. French, British, Italian and Belgian missions have visited the country, Germans and Japanese have been active and Brazil's immediate neighbors in South America have been eager to capture a portion of her trade, Argentina, es- pecially. having exerted efforts in this direction. - * ¥ % % Improvement noted in Chile's condi- tion in September has continued, Mr. Smith states, and the general tone of conServatism he notes among Chile- an importers is described as indicat- ing a more complete and wholesome llqluida(ion. mports have generally decreased. while there has been an increase in the export of agricultural products and copper bars. * k x % The efforts of the Peruvian govern- ment to improve economic conditions have aided in bringing about a favor- able aspect there, and the present congress has under consideration measures of great importance. A law | passed by the Peruvian congress last October provided for the reorganiza- tion of the customs and gives the president authority to secure foreign personnel. An Anierican has been en- gaged to take over this work. , Government supervision has been iextended to savings banks and in- surance institutions. Government at- tention is being directed to the con- struction of cheap model tenement houses. Government finances are pictured as being unsatisfactory generally. and difficulty has been experienced in meeting government expenses. There are arrangements pending for a §50.- 1000,000 loan, which, it is hoped, will improve matters. German, British and particularly Japanese activity in Peru has been marked recently, and Americans are meeting keen competition. There is no American chamber of commerce in Peru, but one probably will be es- tablished within a short time at Lim: “Peru will push to completion se: eral projected railways and new con- cessions have been granted. A new steamship line, promoted by Chinere interests in Peru. will run between Callao and Hongkong. THOUSANDS WILL SPEAK FOR ARMS LIMITATION General Committee in Support of ‘Educational Campaign Works for Lasting Peace. Thousands of men and women are to take the platform in all parts of the country on behalf of the prin- ciples and aims of the conference on limitation of armament and to arouse public opinion in favor of limiting arms, continuing conferences among |p, the nations and lasting peace, accord- ing to an announcement made public today by the general committee on the limitation of armament. Prominent clergymen are helping in the educational campaign, the state- ment said. Included on the govern- ing board of twenty-seven are Bishop W. F. McDowell of the Methodist Episcopal _Church of Washington, Rabbi Stephen Wise of the Free Syna- gogue of New York city, Rev. John A. Ryan of the Catholic University of America and Rev. E. O. Watson, sec- retary of the Federal Council of Churches. Bishop McDowell is chairman of the speakers’ bureau and already has many representatives of the clergy in his corps of speakers. Included in this mumber are the following: Dr. Herbert F. Randelph of Washington, Rev. John G. Murray, Bishop of Mary- land; Rev. Edgar T. ton, Md.; Rev. C. T. Taylor, Greenville, Va; Rev. F. R. Bayléy, rstown, Md., and Rev. R. Carl Maxwell, Syke: ville, Md. The general committee on the limi- tation of armament, the announce- ment said, is supported entirely by voluntary contributions. A minimum budget of $100.000 is required “and all, are wel- Z&ontributions, however comed.” street northwest. —_— Gen. Wood says the Philippines are not yet ready for independence. They as yet by no means are out of the oud, in other words—St. Paul Ploaeer : Headquarters are at 1319 F, _\thousand billion {ons. Congress Back on First Page and Has Job Cut Out for It (Continued from First Page.) prove whether civilization is a failure, whether reason, counsel, justice and common sense have weight in the af- fairs of men, or whether mankind is to live for years to come by the sword and die by the sword. It is predicted that no headway can be gained by seeking to trade upon the hopes of the party in pcwer. With the men who are guiding its course disaster to the republican party is a small item compared with the catas- trophe which would befall the world y the conference doing the wrong thing or ‘doing nothing at all. * *x % % Here is a question that perhaps many have framed in their mind and would like some one to answ. Why is it that every public and pri- vate expression of the men who are participants in the conference, those who are in the inner councils and se- cret meetings, invariably predicts x successful outcome and that the prophets of disaster are found only among observers and commentators? Are the latter endowed with second- sight or are the first mentioned only deluding the public? If the favorable predictors are putting the world on the wrong scent, how are they going to “square” themselves with their own peo] when they go home? « ht, 1921, by The Washingtoa Star.) Mother Earth Is Gaining Weight. Some people will sympathize heart- ily with Mother Earth who, the as- tronomers report, is gaining welight. Others, on the other hand, will find a common bond of sympathy in the fact that it is estimated that-it will take her four hundred million years to increase her diameter by a couple of inches, in spite of the fact that meteors, or shotting stars, fall to the earth in such quantities as to increase its weight a hundred tons a day. Scientists, the London Post reports, estimate the earth’s weight at between five thousand "and actually .