News of the Week
MR. MAYNARD KEYNES' proposal that the Lausanne Conference should draw up a plan for the settlement both of reparations and War debts and then solicit an invitation to move itself bOdily to Wash- ington and pursue the discussion there suggests (what is no doubt the fact) that he is more familiar with the financial issues of Lausanne than with the atmosphere of Washington in a Presidential year. It is all very well, moreover, to say that we cannot cancel reparations unless we get a remission of War debts. But if the alternative to cancellation is simple default, as it almost certainly is, what becomes of the argument then ? If Mr. Keynes is right in supposing that Germany would agree to make some small token-payment after a moratorium, and so close the episode " with a handshake all round," that would no doubt be the best solution of all. But the assumption seems optimistic, particularly in view of the broadcast declaration of Herr Strasser, the Nazi spokesman, on Tuesday. And if reparations are going anyhow the wise course is to let them go forth- with with as good a grace as possible and then open conversations with America on the basis of the aceom-
plished fact. It would not gratify her to know that War debts were being discussed formally at Lausanne, which she regards with some justice as a reparations conference. The next War debt payment is fortunately not due till after the Presidential election.
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