The time has come for the convocation of a great Conference of the Powers who are mainly interested in the Reparation question, and at this conference the Governments of the Powers should be) directly represented. The situation is much too difficult and threatening to %e dealt with by any subordinate authorities. Neither the Reparation Commission nor even the Council] of the League of Nations should called upon to deal with it. They have not the authority or the responsibility which rests directly on the Governments of the Powers. It is a business for principals, not for agents. The conference may decide to refer certain in qui to subordinate bodies, but it must act and de. cide itself, Decisions of far-reaching _1m-portance will have to be taken. There may even be the parting of the ways, and the history of Europe may never be the same thereafter. If the task before is to %e done, it will be a conference unlike any that has been held in Europe since the Peace Conference. Its importance, therefore, cannot be overestimated. I know that negotiations are, afoot to bring about such a conference, and shall therefore retrain from saying any more about it except this: I have no reason to think that any of the Powers concerned would decline to_come to such a conference, but) T am clear in my mind that the al sence of one or other Power should not prevent the rest from meeting and dealing with the situation to the best of their ability.
It is, however, in my judgment vitally important that the U.S.A. should be there as an active member and bear her full weight, which under the circumstances, may ec more decisive than that of any other Power. In her distress Europe is to-day more than ever turning her eyes and stretching out her hands to the great daughter nation in the West. Tike appeail is not so much for material assistance as for mora] support in this dark hour. It is the lack of moral justice which is -Europe's undoing. The peoples of Europe have faith in America, they believe in her impartial justice, and they feel that' without the reinforcement of her moral idealism Europe has no longer the strength to save _herself. I share that faith and that feeling, and I have complete confidence in America's readiness to act at the right time. President Coolidge has already in his recent statement taken up the initiative: it is being followed up, and the New World may once more come in to redress the balance of the Oilld, as it did one hundred years ago. and as again did six or seven years ago.
THE REPARATION QUESTION, The main issue for settlement at the conference will be the Reparation question. And the stage -which this question has now reached renders a satisfactory solution possible, if only statesmen will be reasonable and desire a solution at all. It is now universally recognized that the amount fixed by the Reparation Commission in May, 1921 (£6,- 600,000,000 sterling), was too (high, could not be paid, and even if it were paid the consequences for industry would be calamitous, It would mean that the standard of living for German workers must be lowered to an extent which would render industrial production in other countries, in competition with Germany, almost impossible. The amount. thas to e reduced to a reasonable figure, and from. the recent correspon between the British, French, and Belgian Governments it appears possible to arrive at 1 such a reasonable figure. It would, in addition, be necessary to give Germany 2 moratorium. of about two years before payments are begun in order that she may in the meantime reform her currency, re-establish her credit, and balance her Budget.
I have consulted many of the most competent financial authorities, both in this country and on the Continent, and they are all agreed that if the total Reparation amount: is fixed at a reasonable figure (about which there is: a great measure of agreement), and if a, reasona)le moratorium is given in order to enable Germany to put her financial house in order, Jarge and' increasing annual payments of reparations could thereafter be made. by her. In short, they are all agreed that, if only the political questions are out of the way, the technical financial questions are all capable of solution, and it may not eyen be necessary to go as far in the way of credit sistance to, and financial control of, Germany as was necessary in the case of Austria, in view of the greater financial and industrial resources of Germany and her inherently sounder position.
Germany is, therefore, still in a position to pay. reasonable reparations, which will amount to a very large figure and go far to case the burdens resting on the taxpayers in - Allied countries.
Text read from the printed page and cleaned; old type leaves the occasional error.