The Daily News. TUESDAY, SEPTEMBER 5, 1922. GERMANY’S RESPITE.

Taranaki Daily News, 5 September 1922, Page 4

The Daily News. TUESDAY, SEPTEMBER 5, 1922. GERMANY’S RESPITE.

There are several features in connection with the decision of the Reparations Commission, with regard to Germany’s financial obligations to the Allies, that make it more remarkable than any happening since the Armistice. The outstanding sensation—for it amounted to that—was the part played by Belgium in bringing about a compromise when it seemed as if nothing but a deadlock was in sight. That Belgium, the neutrality of whose territory was first violated by Germany, and brought Britain into the war, should have brought forward a magnanimous and irresistible proposal to save Germany from utter ruin, is one of those acts of greatness that sheds lustre on civilisation. The method whereby Belgium solved a problem that almost defied Isolation was extremely simple. France was determined that Germany should pay her instalments ; Britain favored a moratorium to the end of the year; Italy preferred not to take any active part in the momentous decision, so contented herself by backing the Belgian proposals, while Germany strove to obtain sufficient time fpr a radical reform in her public finances to be carried out, but was willing to increase her payments in kind. Naturally the German proposals were unacceptable to all the Allies, so that when, in the face, of determined French opposition, the moratorium was turned down, there only remained the Belgian scheme for the payment by Germany of six months Treasury bills for the amount of cash reparations due from Germany of October 15 and December 31, these bills to be backed by guarantees to be agreed upon by Germany and Belgium, or "by a deposit of gold in a bank acceptable to Belgium. Such an arrangement gave Germany, if not the respite she asked, a reasonable breathing time in which to set her finances in order. Apparently France is willing to have one class of paper money substituted for another, her one main insistence being that there should be a payment other than in paner marks. Germany has yet to find acceptable guarantees, the only alternative being the earmarking of about four millions’ worth of the Reich bank’s gold, a course that would • play further havoc with Germany’s credit. There is much force in the contention of the London Morning Post that the existence of Europe as the centre of civilisation depends on Germany’s response to the Allies’ generosity over the reparations’ payments, and that, though the way is hard, it is Germany’s only way to salvation, which can only be won at a price. Apart from the issue of German Treasury bills, redeemable in gold marks, the chief feature of the compromise is its temporary nature. In a way it is a kind of final test of Germany’s intention tn psv, for unless she keeps faith with the AlB lies under the terms of

there will be an end to further concessions. Without d6ubt Germany hoped there would be a rupture of the Entente over this matter, instead of which the Allies are as closely united as ever, and will be in a position to deal with a default, should it be made, by penal measures to which no objection can or will be taken by either Germany or any other Pbwer. It would seem that the compromise arrived at can justly be viewed as consolidating the Allies as well as giving Germany a ehanoe to recover at least a part of her financial strength. At the same time she must fully understand that default on her part will mean ruin to her sooner or later. All the talk about a rapproachement between France and Germany, so as to jointly become industrially strong, is so much hot air. When France can be found to trust Germany to that extent the days of absolute peace will have arrived. Meanwhile it,is reassuring to know that a crisis has been passed, and the world may, for a little while, breathe freely.