REVIEW of REVIEWS

Germany Disorder Organized

French Writer Claims the Financial Disorder is Deliberately Staged to Befool the Public

RAYMOND RECOULY September 15 1922
REVIEW of REVIEWS

Germany Disorder Organized

French Writer Claims the Financial Disorder is Deliberately Staged to Befool the Public

RAYMOND RECOULY September 15 1922

Germany Disorder Organized

French Writer Claims the Financial Disorder is Deliberately Staged to Befool the Public

RAYMOND RECOULY

'WHERE does Germany stand?” asks M. Recouly in a book he has recently written under this title. He declares that having made up her mind not to pay the allies what she owes them under the treaty of Versailles, she has organized disorder in her finances. In other words he is convinced that it is not a case with her of not being able to pay, but of not being willing to pay. And in order to help along the German contention that it is not at all a ease of unwillingness on their part the Germans have lavished upon the organization of disorder all the genius for organization for which they are universally celebrated.

Only in so far as German finances are concerned has Germany failed to recuperate from the consequences of the war. Her former strides in other directions have been such as to take the world’s breath

“Order has been re-established everywhere,” writes M. Recouly. “The German system of transportation has been reorganized. The German people have gone back to work. Despite the depreciation of their money, German manufacturers have obtained raw materials. Factories have started up again. Favored by the weakness of exchange (it is an ill wind that blows nobody good), German exports have begun again on a big scale.

“Why is it, then, that Germany, having easily surmounted all these obstacles, having succeeded in finding bread and raw materials and in defeating anarchy, has shown herself incapable of restoring order in her finances, writing off her deficit, practising the policy of economy that is necessary if she is to pay her debt?

“She has not done this, simply because she has not wished to do it.

“Financial order is, fundamentally, not more difficult to re-establish than order in the streets. But the latter sort of order benefited the Germans alone; the former on the contrary, according to the view of all Germany, would have primarily benefited the Allies, and, most especially France. And that is why the Germans have done nothing toward re-establishing it.

“Do you think that it was easy to send French, English and Italian officers in uniform into German barracks for the purpose of destroying cannon and machine guns and ascertaining the total of troops held under arms? Nevertheless, tbe Germans resigned themselves to this, and there were only an insignificant number of untoward incidents. Why? Because they felt all resistance to be futiie.

“They would have accepted control over their finances in the same spirit. Unfortunately—very much so—nothing, absolutely nothing, has been done in this direction. The Reparation Commission, the principal executive organ under the treaty, installed itself in Paris, which in itself was a grievous error, since the proper headquarters for it was Berlin. It has made merely brief visits to Germany.

“Taking advantage of this laxity on the part of the victors in the war, the Germans have ‘organized disorder’ with great cunning and persistence. Instead of thinking, first of all, of payments due to the Allies, the German Government has played ducks and drakes with German finances. It has set aside nearly

600.000. 000 marks for the improvement of inland waterways—a matter, which might well have been postponed for a while. It has kept railway fares in Germany at such a low figure that the German railways have shown enormous deficits—14,000,000,000 marks in 1920 and

17.000. 000.000.000 marks in 1921. This, says M. Recouly, was done in order to make the Allies reluctant to seize these railways and apply receipts from their operation to the cancellation of Germany’s debt. The German postal, telegraph and telephone systems also show enormous deficits, he goes on to say. Moreover, the German Government has been most generous toward German shipbuilders, having paid out nearly

12.000. 000.000 marks to them for ships turned over to the Allies under the Versailles Treaty, the value of which was estimated by the Allies themselves at only

9,000,000,000 marks. The difference between the allied figure and that paid by the German Government, says the French writer, is nothing more nor less than put -ting a premium on the construction of new ships by German shipbuilders, to which encouragement the latter have responded by applying themselves with such energy to the recreation of a German merchant marine, that, in the period between Jan. 31 and Aug. 31, 1921, there were launched from German shipyards fifty-five new

ships, of a tonnage varying from 2,500 to 12,000 each.

"An empty Treasury, an increasing deficit, a depreciated currency, yet, on the other hand, a more and more highly developed equipment, prosperous industrial and commercial enterprises ready to march to the conquest of all foreign martels that is the picture confronting us in present-day Germany.

“And it is all due to the fact that the Germans are ‘organizing disorder’ in their finances with all the genius for organization which they displayed before and during the war, when they dreamed of dominating Europe; which they have displayed, since the war, in restoring to a pre-war basis all those branches of activity in Germany which, so restored, benefit not the Allies, but only the Germaristhemselves."