Schedule of Payments, and a bit more. That is to say, they are pure
water. They mainly represent that part of the Reparation Commission's
total assessment which will not be covered, even though the London
Schedule of Payments is paid in full.

In offering the cancellation of these Bonds, therefore, M. Poincaré is
offering exactly nothing. If Great Britain gave up her own claims to
Reparations, and the "C" Bonds were cancelled to the extent of France's
indebtedness to us, France's claims against Germany would be actually
greater, even on paper, than they are now. For the demands under the
London Settlement would be unabated, and France would be entitled to a
larger proportion of them. The offer is, therefore, derisory. And it
seems to me to be little short of criminal on the part of _The Times_ to
endeavour to trick the people of this country into such a settlement.

Personally, I do not think that at this juncture there is anything
whatever to be done except to grant a moratorium. It is out of the
question that any figure, low enough to do Germany's credit any good
now, could be acceptable to M. Poincaré, in however moderate a mood he
may visit London next week. Apart from which, it is really impossible at
the present moment for any one to say how much Germany will be able to
pay in the long run. Let us content ourselves, therefore, with a
moratorium for the moment, and put off till next year the discussion of
a final settlement, when, with proper preparations beforehand, there
ought to be a grand Conference on the whole connected problem of
inter-Governmental debt, with representatives of the United States
present, and possibly at Washington.


THE ILLUSION OF A LOAN