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Mr. Castle, Under-Secretary of State, made an important pronouncement on

this subject last Saturday, at the State Department in Washington. He made it clear that the question might be re-opened there if Germany were in serious danger of collapse, but that the Adminis- tration did not yet consider that this was so. Yet it must appear doubtful even to the layman whether Germany can carry her present four and a half million unemployed through next winter without disaster, and in this doubt the layman would have many experts with him. The Italian suggestion would help to dispose of the pretence, still maintained by the American Administration, that the amount exacted from Germany in reparations has no connexion with the amount exacted from her creditors in payment of their war debts. * * *

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