Jan, 1, Ramsay 'MacDonald' emphasis on hard facts will probably be found to be more in iino.with the actual developments, from: Dr. Bruening's. important Htion that the Lausanne Conference has been: forestalled, After all the German Chancellor thas merely confirmed what the [Special Advisory Committee reported from Basle last_month, That report categorically stated that Germany had full basis for claiming an inability to meet the condition reparations payments next July. It must be remembered that the German Government have carried out most sweeping measures of taxation and trenchment. The point has been Tong reached where the process finding more revenue definitely restricts the field of revenue production. In homelier language the goose which lays the golden eggs is in danger of being killed. Psychologically it might be as well to admit that once a Committee of Experts—advisory though its capacity may be—delivers so definite a dictum as that quoted above, the acceptance of its accuracy' ig inevitable, Germany may well take the line that she is honourably relieved lof responsibility for "the conditional payments at all events and that she has a right to draw attention to the Committe pointed opinion:
"In view of the interdependence of nations in the field of both national and international econo~ my the governments concerned cannot be indifferent to the situa tion in Germany, The govern:
ments must examine to their full extent the problems raised by the temporary "insolvency of Ger= many.
'The statement which Dr, Bruehing makes goes straight'. to the root of the problem. It enables the Lausanne Conference to attack its main issue with the clear knowledge of the cholo before it. The War Debts and the burden they impose on the [mations concerned may be said to have gradually emerged into ithe light in their true aspect—the incubus which is mainly responsible for the acute economic malaise of to-day, directly of their own weight and indirectly [by reason of the tariffs whicl nations have erected in order to stave off the catastrophe they threaten to precipitate, The events of the last few months should be sufficient in [themselves to show how difficult it is to control the forces of credit deterioration when once they become active. The world rocking on foundations to to accept og final. The reason for the swift replacement of the Dawes Plan by the Young Plan and for the Moratorium of last year temporarily suspending the operation of the latter, can be discerned in the same element of uncertainty. "It is almost superfluous to attempt to decide whether the bases of wat-debt', settlements were justly reached. The practical point is that Germany can choose between chaos and duly notified intentions to default." The net result in each case is the same: she makes no payment. In the former how. Jover she involves half the world in her disaster; in the latter she offers prospects of international Jcooperation which may well be turned to good advantage for debtor and creditors alike. Recent conversations in Paris between the representatives of France and Great Britain have established the fact that in France there is a lively appreciation of the dangers against which Dr. Bruening's announcement may be taken to be a grave warning. The difference between France and Great Britain hitherto has lain chiefly in the desire of the latter to arrive at some kind of permanent solution of the reparations issue in order that the flow of the world's trade may be released and freely proceed to fertilise the economic desert of the moment, whereas France clings, 30 far as can be judged, to the idea of a temporary expedient to be followed possibly a revision at a later stage. The trend of thought of late, shows a conviction that time very much the essence of the contract. Unless prompt recognition of the reality of the crisis: fs forthcoming there may
Text read from the printed page and cleaned; old type leaves the occasional error.