GERMANY’S POWER TO PAY.

Taranaki Daily News, 8 January 1921, Page 10

GERMANY’S POWER TO PAY.

An International Economic Conference was opened in London on October 12 to consider the restoration of Europe. Sir George Paish, formerly joint editor of the 'Statist, and adviser to the British Treasury on financial‘and economic questions during portion of the war period, was in the chair. He declared that the world to-day was in a position of financial danger, almost unprecedented, and dealing with the remedies which should be applied, Sir George Paish said that the first thing necessary was that statesmen should withdraw the political impediments to sound economic action. Secondly, there should be a revision of the Peace Treaty. The treaty was unsound, had been drafted by men insufficiently informed as to economic and financial laws, and therefore would not work. Thirdly, there must be complete reconciliation between the nations. Every nation must help in the work of reconciliation. We could not recover without the assistance of Russia, Germany, and, finally America. We, in this country, must he prepared for sacrifices. Germany could not possibly make good all the damage she had done. She could only raise £2,000,000.000. and of this sum she needed at least £500,000,000 for her own needs. We must therefore make a free gift of the debts amounting to £1,500,000,000 due to us from foreign countries, and America, in similar manner, must forgive the debts amounting to £2,000,000,000 due to her. Permanent remedies would only be found in the liquidation of the large stocks now being held, in the reduction of debts to the banks, and in convincing the investors of the world that their money will be safe if entrusted to the nations for the purposes of world-re-construction.