A WAR INDEMNITY SCHEME

Dominion, Volume 10, Issue 2955, 15 December 1916, Page 22

A WAR INDEMNITY SCHEME

THE ECONOMIC ALLIANCE

GERMANY'S DESPERATE : STRAITS One of the most comprehensive statements | made upon the financial and commercial aspects arising out of the war was made the other day by Mr. Edward Crammond, Secretary of the Liverpool Stock Exchange. Among other things, he said tho financial outlook of Germany was desperate. What Germany ProposßS. Mr. Crammond was inclined to believe a report which had reached him from a Swedish source that the Gorman. Government had deoided immediately on the conclusion of peace to attempt to raise an enormous foreign I loan, ranking in front of all the war loans and bearing a very high rate of interest. . That is to say, she would in effect repudiate her. internal war debt., Germany was now spending nearly £5,000,000 a day, direotly or indirectly, upon the war; It was time that tho Allies, and Great Britain in particular, began to formulate their views as to the economic basis of the conditions of peace.. The political and military alliance of the Allies could not be maintained unless it was supported and. strengthened by a reciprocal economic policy.- In order to cement , the alliance and secure the peace of the world, the Allies should guarantee the integrity of each other and the small nationalities: The question of the payment of the war indemnity will have to be very carefully considered. ■ It- would be a great mistake for ibo Allies to impose

such a. moderate indemnity on Germany and Austria as they would be able to pay off in the course of a contain number of years. The effect of this would be to give _ an immense stimulus to the productive capacity of Germany and to encourage the development of her foreign trade, for obviously she could not pay nnless she were given an opportunity of doing so. He suggested -that the war expenditure of all the Allied Powers should be assessed, by an International Commission. If the war should last uirtil March 31, 1917, the total amount might bo approximately as follows: — . £ 1 Belgium 500,000,000 France , 2,500,000,000 Great Britain (net) 2,600,000,000 Italy 500,000,000 Russia 2,400,000,000 Serbia and Montenegro 100,000,000 i Total 8,600,000,000 These claims should bo pooled and I presented in one claim by the Allies, j Before the war Germany possessed over 5,000,000 tons of merchant shipping, i or about 10 per cent, of the total merchant shipping of the world. It was f her deliberate, aim to destroy as much merchant shipping as possible, so that when peace came her proportion of the , total might be much greater. The Getr ; man merchant fleet should bo applied ' first, in making good the loss which 1 each maritime Power, belligerent or ' neutral, bad suffered through German ' submarines .. and mines. Germany : should be compelled to return in kind, not in money, the rolling stock and machinery, raw . material, .. manufactured goods, works of art, etc.,. which < she has stolen from Belgium, Northern ' France, Poland', and Serbia. , How Germany May Pay. When credit' had been given for all the assets thus realised; there might remain a balance owing of, perhaps, £8,000,000,000. The German and Austrian Governments _ should he required to issue debt certificates to the War Debt Commission, which' would bo distributed among the Allied Powers in proportion to their claims. EacnPower, should undertake -to impose upon its' trade with Germany and, Austria a. war debt import duty, on all manufactures and a war debt export duty on all exports of raw material, to the Germanic Empires—both by way. of surcharges on their ordinary , tariffs. The maritime, Powers should undertake; to impose supplementary war dues on all German and Austrian shipping entering their ports. _ Ij'he praceeds from these various duties and shipping dues should be paid over by the Allied Powers to the War Debt Commission, by whom they might be distributed. The Prjce of Peace. If after the lapse of a poriod .of years the Allies were satisfied that..the Germanic peoples were not likely to disturb the peace of the world again, the question of cancelling the war debt services and abolishing the duties might be considered. .This plan would havo the effect of making Germany's foreign trade, as it were, a hostage for her good behaviour ;in the future. The claims of Belgium, Northern France, Poland, Serbia, and Montenegro should be treated as preferential and paid in full. ■

He suggested tliat the organisation of the Ministry, of Munitions should bo retained after the war and transformed into, a Ministry for tho Development of the British Empire. Its special task should be the econoiflie reorganisation of Britain and the Dominions to meet the conditions created by the war. If similar organisations were in existence in France, llussia, and Italy, it would be, poseiblo to adopt a. common policy in the . reconstruction of Belgium, Northern- France, . and Poland.