THE REPARATIONS DEADLOCK : AN AMERICAN VIF.W.
The breakdown of the Paris Experts Conference, though in Well-informed Wall Street circles not entirely unexpected, is deeply regretted. Many competent observers felt that it would have been wiser to allow the Dawes Plan to remain in effect until Germany's capacity to pay and to make transfers had been demonstrated—without the benefit of foreign loans. The Conference, therefore, was regarded by many here as premattire. It should be said, however, that the delegates to the Paris Conference from the United States were con- vinced that a favourable result could be achieved. Dr. Schacht is thoroughly trusted and respected in financial circles here, but the best opinion is agreed that he made a mistake in not frankly setting forth at the outset Germatty's estimate of her own capacity to pay, and then justifying this estimate, instead of placing himself in the position of refusing to agree to the proposals of the Allies. His procedure, in so fur as it was intended to affect American opinion, showed, as German policies so often have shown, a lack of understanding of American psychology. It should be added that there is a growing conviction here that this is one of the last important international conferences in which America will be repre- sented by " unofficial " delegates.
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