The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JULY 2, 1930. GERMAN REPARATIONS

Hokitika Guardian, 2 July 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JULY 2, 1930. GERMAN REPARATIONS

The final' report of Mr W. Parker Gill>urt, /.is 'Agent-general ior Reparations, places -emphasis upon a phase ot the problem of Germany’s liabilities which Mr Gilbert has consistently stressed since he became “economicdictator of Europe” five years ago. Mr Gilbert is convinced, as he stated in his last annual report, that Germany can pay the vast sums required of her under the Dawes Plan, now to he superseded by the so-called Young Plan, which was drawn up by a committee of international financial experts in 1929. Germany’s ability to pay is, however, restricted by the degree of willingness of her people to make the necessary economic adjustments—in short, to economise. Mr Gilbert now states definitely that the Germans are not going seriously about the task of meeting the obligations they incurred through plunging the world into u terrible and very costly war. Public expenditure, from that of the Government to that of the smallest rural community, is, lie affirms, profligate. With a return of prosperity to the country, largely 1 obtained through the assistance of their late adversaries, the Germans are spending lavishly, apparently without regard to the debts which the Allies have plainly shown they are determined to collect. Nobody likles paying for a dead horse, as t ..e saying goes, and it is possible to sympathise to some extent with the feelings of the German people, who finding they have money to spend after years of intense depression, during which the disastrous collapse of- tbe mark •occurred, are more inclined to spend it in present joys than in paying for an event which brought them nothing but misery. Hut the fact remains that Germany has only herself to blame for the incurring of a'huge international liability. While the Germans still had high hopes of winning the war, it will be remembered, there was much talk oi the large indemnity they would impose on the Allies to pay the cost of the conflict and lighten German taxes. As prospects of a victory became more and more remote the Gormans changed their tune and took up the .slogan : “No annexations and no indemnities.” The Allies could not he blamed for refusing Lo join in this chorus. They had no ambition at any time to honelit by the war, but they took the not

’unreasonable view, that the countries which bad caused iL should—at least to some extent —pay for it. Their bill of damages was finally presented in 1921 as amounting to 132,000,000,000 gold marks, or something over £O,-iAaL'OO..’JK-'O, but it was. soon recognised that tins sum could never be paid. The Dawes Plan provided for a scale of payments based upon tin's sum, but the Young Plan, which is now being brought into operation, takes no regard of any such total liability and merely fixes a definite number of annual payments over a period of 58! years to 1988. The Young elan provides a measure of relief to Germany from tli© obligations imposed under the Dawes Plan of paying u fixed total amount plus an indefinite amount of Interest over an indefinite period of years, but the obligation is still very heavy—the payment of -,OJ),0()()y!K)0' gold marks a year lor tnirty-seven years, followed by annual payments of about 1,50.1,000,000 gold marks for twenty-two years. It is obvious that these payments can be made only if Germany prospers, and the Allies are prepared to assist the country in reorganisation which will bring a return to finnan iul independence. U is Germany’s duty to reciprocate by honouring her reparation pledges, and this she cannot do if motitiy is being Spelit, as Mr Gilbert Parker states, extravagantly, That the German Government recognises the need for cautious spending is Indicated ill a cable message published Recently, Whidi stated that a scheme of economics is to be enforced. The scheme will be unpopular, a,« such measures invariably arc, but the Germans prill have to bow to the inevitable and far-reach-ing requirements of war’s aftermath. Reports concerning the incidence of unemployment, and a serious industrial slump necessitating wage reductions, point to the existence in Germany of conditions furnishing their own commentary upon the extravagance to which Air Parker Gilbert has „iawn attention.