The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, SEPT. 27th, 1924. THE RETARATION PAYMENTS.

Hokitika Guardian, 27 September 1924, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, SEPT. 27th, 1924. THE RETARATION PAYMENTS.

Ink |.osition in regard to Germany making good on the re| oration payment. is very ninth akin in Russia reI aying Rrilish ie| ndialed Joans. In hath in-tames it i-- j in, i ed llial Hib--1 out ia I anieiini-. n, 11-e t> > |.- ■ I ie | aid •".'I -tl n ill- \ lo' t.ei .. | | - 11• |I. bn a'" !• I'tei'e tl'-- ii'!"t meol .. I It•, i. .nlliet 'ling :.! a, | i • I-. x in Imam--, loit it. neeii m t lie gone into iriliial y iiere. In the ease i.T G.a many I lie re| aylinoit.s liom loans, i- an essential part of ilie Danes s. hem. nlii -h l.as l.eeo ae i opted I.A those |a 'iue.i| ally : 111. cl'Mcd. the objeeb of the D.nve.s plan geiieially is ta return Germany to mere normal eeoiioinie < onditions. Set the cnimtr.v up on its feet in fait, limine.ially, an that il can go aliout jeatefnl hnsiiiess pursuits in a more regular maimer than i.s | nssihle at ] resent. Tiiis was the task ol the late l.olidou (lOileieine to roach an agreem. ..i on the |.:>ilit. Now. the .success or faihne of the ('.inference hinges upon the ((iiestion whether tile hank> r.s w ill agree as to the nature ol the fcciirity to lie ).ut nj> for the proposed loan to Germany of £10.."It! 11(19, a loan which it is intendslnill provale lour-liflhs of the liist year's lei'arntinii payments by German.'. The apparent jaiadnx of having to lend a delilor a large miiii in order to enable him to pay his debts need not be dis: itssed here. At the

same time the feeling is not al all sanguine that it will be possible to get this loan subs ribe I. especially by American-investors, and it is doubtful it the whole amount mold Ic raised in Britain, even if nucli a course acre advisa’d >. Further, if agreement is rcai lied on this point it does not follow that the pro 1 lem will l.e solved. The issue of such a loan is merely one part of the Dawes plan, as a Loud in linaiieia! paper points out, but it is a very essential part being alm-xt the starting point of what is intended to h' the linaneial adjustment of at:omits between the parties toneerned. ft would alterwards remain to he seen to "hat extent Croat Biitain. Frame. Italy a i.d the others are p. re pa led in receive payments liv Ccrmnny. It is generally admitted that such (ayments can only he made in the form of goods. To compel (formally to pay £AO or £fio millions in this way would not only tend to make her industrially more ellieient lull, it is to he feared. Would lead to very keen competition with Britain and the other nations ler the trade of the world. F.vcn if England and France refused to take Herman goods on a much larger utile than tit ] resent, the goods would have to lie sold elsewhere in order to make the Dawe.s scheme .effective, and the operation would almcsl certainly spoil the British market in the countries to which such goods were .sent. A settlement of the repartitions problem is much to Le desired, for thereby the recovery of Europe from the injuries indicted by the war would bo hastened, but having regard to the considerations iust dealt with it is difficult to be very that this solution will come from the operation of the Dawe.s scheme. For one thing that ) Inn docs lot define the full amount whi li Cic-r----nnny "ill he asked to pay, while anitlior consideration is the provision hat in the event of difficulties nppenrng in the way of remitting the repaat.ious. the money is to he allowed to emnin in the hands of the Hoparaions Commission. A somewhat similar lifiiculty is experienced in connection iith the payment of the British iiidebed.ne.ss to America. In the ordinary mrse this should he made in the form f goods, hut America has raised a high airier in the shape of the Forduey 'arid again-t imports from Europe, and ad it not been for the fact that Brilin was able to send her 'immense uantities of gold in liquidation c? the ldchtednosS something in the nature f a deadlock might have arisen hv‘ lis time in regard to the payments. J meriea decs not want the cold, hut

slio is compelled to toko it because a tkm.se of the debt settlement gave tho power to ]iiy in this way. Germany has no gold to speak of, and she ceitniiilymT.s not eoinuiand of some of the woi Id’s biggest producers of the metal, .so that if her creditors will not take her goods in payment it is dillieult to see how reparations ran he elle ted. Such is tile conclusion of a leading London financial journal.