It should be made clear that Mr. Parker Gilbert does
not fear any immediate default ; the reparation payments are provided for. What he does fear is. that the new form- of inflation- which. is causing• a rapid rise in the cost of living will upset the value of the currency, and that later the Dawes Scheme will break down in effect. It would be useless to receive German marks if the credit of Germany had evaporated. There has always been a risk of that, and what Mr. Gilbert asks is that the German 'Government should not rashly- turn the risk into a reality. In the German newspapers the best defence of the Government is the argument that the admittedly high expenditure is " productive." But there is general agreement with Mr. Gilbert's main contention that German finance requires careful over- hauling. It would be a good thing if a beginning_were now made to reconstruct the clumsy relations between the Reich and the States.
* * * *
Previous page
