0,000 given
by Great Britain for the reconstruction of Belgium and the loans
granted by her for relief to an amount of L16,000,000. So, altogether,
Great Britain's credit to the Allies on March 31, 1921, was
L1,803,600,000, and has since been increased by the interests. Great
Britain had also at the same date a credit of L144,000,000 to her
dominions.

France has credit of little less than nine milliard francs, of which
875 millions is from Italy, four milliards from Russia, 2,250 millions
from Belgium, 500 millions from the Jugo-Slavs, and 1,250 millions
from other Allies. Italy has only small credits of no account.

Now this situation, by reason of which the victorious countries of
Europe are heavy debtors (France has a foreign debt of nearly 30
milliards, and Italy a debt of more than 20 milliards) in comparison
with Germany, which came out of the War without any debt, has created
a certain amount of bad feeling. Germany would have got on her feet
again quicker than the victors if she had no indemnity to pay and had
no foreign debts to settle.

France's anxieties in this matter are perfectly legitimate and must be
most seriously considered without, however, producing the enormities
of the Treaty of Versailles.

Assuming this, the situation may be stated in the following terms:

1. All the illusions as to the capacity of Germany being able to pay
have fallen to pieces, and the indemnities, after the absurd demands
which tended to consider as inadequate the figure of 350 milliards
and an annual payment of from ten to fifteen milliards have become
an anxious unknown quantity, as troublesome to the victors as to the
vanquished. The German circulation has lost all control under the
force of internal needs, and Germany is threatened with failure.
The other debtors--Austria-Hungary, Turkey, Bulgaria--have need
of succour, and can pay nothing. Austria has need of the most
indispensable objects of existence, and everything is lacking.

2. The indemnity which Germany can pay annually in her present
condition cannot, calculating goods and cash payments altogether,
represent more than two or three milliards at the most.

3. The victorious countries, such as France, have won immense
territories and great benefits, yet they have not been able to pay the
War debts contracted abroad, and not even the interests. France and
Italy, being countries of good faith, have demonstrated that, if they
cannot pay, it is absurd to deman