Show New Book Reveals Nations of Europe Can Pay Up Debts By GERVILLE REACHE One of the Foremost Journalists of France Copyright 1027 1927 Consolidated Consolidate Press Association PARIS Nov 26 George Gcorge George P P. P Auld formerly accountant gen sen- general senera general eral era I of the reparations commission and who assisted Owen D. D Young in installing the Dawes plan has hns just published a book The liThe Dawes ves Plan and the New Economics which undoubtedly un un- undoubtedly undoubtedly will create a a. sensation both in Europe and in the United States When the French edition appears it U will certainly be received with deep satisfaction The author Indeed in scattered articles already has shown himself a redoubtable opponent of John Maynard laynard Keynes Keynes' theories which does docs not displease French readers read eN Mr Keynes thus far always has escaped his contradictors sometimes contradictors sometimes In devi devi- devious devious ous ways but ways but this time Ume he will not no get away so easily Mr Aulds Auld's book tok confirms the thesis this correspondent has set et forth fre fre- frequently the the United States enters the arena of world politics with wilh no policy but is learning fast and what Europe has has- done donG In the past the United te 2 States can do today CAN PAY rAY DEBTS Mr Auld holds that Mr Keynes' Keynes theories especially concerning the Im im- Impossibility impossibility impossibility possibility of paying war debts ana and reparations are obscure and false He shows that war pre Europe was 1 owed by the world far more than It now owes America As for the risks in new American Investments he calls colls c ls them then ordinary commercial co risks Mr Auld marshals actual facts ot of the tho last three years to prove Mr Keynes Keynes' predictions unsound He also demonstrated falsity of certain of Mr Keynes' Keynes premises such as the state state- statement statement statement ment that France does not pay taxes We He shows that economists have been too far ahead of the facts and have underestimated w the extent and duration dura dura- duration duration tion of Europe's war desolation and ano the tremendous part Americas America's unparalleled unparalleled prosperity might play in re rehabilitating re re- habilitating a II ruined world ACCURATE FACTS Mr Aulds Auld's facts are accurate and lead hl him to sound realistic conclusions which t Is impossible impassible to praise too highly wever rHo certain reservations must be made mado Inthe In III the first place p e it Is 13 regrettable that the Dawes plan was Influenced by bytho bythe bythe the tho theories of English economists and Germany thereby was permitted permUted to profit by advantageous transfer claus claus- clauses es eli although Washington always has refused to Insert equivalent conditions In the allied debt settlements It Is true true- that a nation can always transfer If riot not with national revenue then with capital In the past transfers trans trans- transfers transfers fers were Vere simplified by cessions of ter ter- Today they are aro possible by for for- foreign foreign foreign eign participation In business as os was done in the case of the German rail rall- ways PARIS r. DISAGREES Moreover Mr Aulds Auld's estimate of the Dawes plan is not acceptable In Paris The committee of experts definitely declared it was not within their competence to fix the number of annuities an annuities an- an annuities which Germany will have to pay as this would practically mean fixation of a II new German capital debt Indeed it would shock the European sense of Justice if it the allied debt payments were extended six sl years yean while the German payments lasted only 25 years at the full rate and 15 years at a half haH rate War debts explains captain e Mr Auld are debts between tax payers and the a at al lied tax payers if obliged to continue heavy annuities under the Mellon ellon agreements will doubtless agree forty years ears hence that the German payments pay pay- payments payments ments should continue at least leat 62 years Meanwhile much water will pats pass pa s un un- under under der rIer the bridge and perhaps the idea of general compensation Uon of debts will make progress Anyhow every esery day da shows chows evolutions e in these problems problem which confound the economists TAX X PAYERS r. SEE POINT Dr Hjalmar Schacht president of 0 the German In a speech at Bochum declared that since the I Dawes es plan went Into effect German states and cities clUes had borrowed about two and a half billion dollars Ger Ger- Germany Germany Germany many indeed could have amortized a great part of ot her railway first mortgage mort nort- gage bonds If she had desired and thus discharged a 0 considerable c part of her capital debt Such things would be te still sUll easier as soon fOOD as liS European money rates rales decline Who could have foreseen fore fore- foreseen seen uen such developments three years ago ugo Another Interesting fact act Is the re recent re- re recent recent cent conversion comer lon in New York of I I In 11 4 and 4 per cent Liberty bonds into i 3 3 31 per cent notes which I incited Philip Snowden to ask the present chancellor of the In the tike house LIC of commons how it hap hap- happened happened happened that Great Britain had consol consol- consolidated consolIdated consolidated Its American debt at 32 per cent The chancellor diplomatically replied that he saw no connection be between between be- be between tween the two facts but the tte British taxpayers did not miss the pant p lt |