rished and her children starved and crippled, and that she must be
ringed round by enemies; then we shall reject all the proposals of this
chapter, and particularly those which may assist Germany to regain a
part of her former material prosperity and find a means of livelihood
for the industrial population of her towns. But if this view of nations
and of their relation to one another is adopted by the democracies of
Western Europe, and is financed by the United States, heaven help us
all. If we aim deliberately at the impoverishment of Central Europe,
vengeance, I dare predict, will not limp. Nothing can then delay for
very long that final civil war between the forces of Reaction and the
despairing convulsions of Revolution, before which the horrors of the
late German war will fade into nothing, and which will destroy, whoever
is victor, the civilization and the progress of our generation. Even
though the result disappoint us, must we not base our actions on better
expectations, and believe that the prosperity and happiness of one
country promotes that of others, that the solidarity of man is not a
fiction, and that nations can still afford to treat other nations as
fellow-creatures?

Such changes as I have proposed above might do something appreciable to
enable the industrial populations of Europe to continue to earn a
livelihood. But they would not be enough by themselves. In particular,
France would be a loser on paper (on paper only, for she will never
secure the actual fulfilment of her present claims), and an escape from
her embarrassments must be shown her in some other direction. I proceed,
therefore, to proposals, first, for the adjustment of the claims of
America and the Allies amongst themselves; and second, for the provision
of sufficient credit to enable Europe to re-create her stock of
circulating capital.

2. _The Settlement of Inter-Ally Indebtedness_

In proposing a modification of the Reparation terms, I have considered
them so far only in relation to Germany. But fairness requires that so
great a reduction in the amount should be accompanied by a readjustment
of its apportionment between the Allies themselves, The professions
which our statesmen made on every platform during the war, as well as
other considerations, surely require that the areas damaged by the
enemy's invasion should receive a priority of compensation. While this
was one of the ultimate objects for which we said we were fighting,