All the illusions concerning the indemnities are now fated to disappear.  They have already vanished for the other countries; they are about to vanish in the case of Germany.

Nevertheless it is right that Germany should pay an indemnity.  Yet, if the conquerors cannot meet their foreign debts, how can the vanquished clear the vast indemnity asked?  Each passing day demonstrates more clearly the misunderstanding of the indemnity.  The non-experts have not learned financial technics, but common sense tells them that the golden nimbus which has been trailed before their eyes is only a thick cloud of smoke that is slowly dissipating.

I have already said that the real damages to repair do not exceed 40 milliards of gold marks and that all the other figures are pure exaggerations.

If it be agreed that Germany accept 20 per cent. of the inter-allied debt, the indemnity may be raised to 60 milliards of francs at par, to be paid in gold marks.

But we must calculate for Germany’s benefit all that she has already given in immediate marketable wealth.  Apart from her colonies, Germany has given up all her mercantile marine fleet, her submarine cables, much railway material and war material, government property in ceded territory without any diminution of the amount of public debts, etc.  Without taking account, then, of the colonies and her magnificent commercial organization abroad, Germany has parted with at least 20 milliards.  If we were to calculate what Germany has ceded with the same criteria with which the conquering countries have calculated their losses, we should arrive at figures much surpassing these.  We may agree in taxing Germany with an indemnity equivalent in gold marks to 60 milliards of francs at par—­an indemnity to be paid in the following manner: 

(a) Twenty milliards of francs to be considered as already paid in consideration of all that Germany has ceded in consequence of the treaties.

(b) Twenty milliards from the indemnity which Germany must pay to her conquerors, especially in coal and other materials, according to the proportions already established.

(c) Twenty milliards—­after the payment of the debts in the second category to be taken over by Germany—­as part of the reimbursement for countries which have made credits to the belligerents of the Entente:  that is, the United States, Great Britain and France, in proportion to the sums lent.

In what material can Germany pay 20 milliards in a few years?  Especially in coal and in material for repairing the devastated territories of France.  Germany must pledge herself for ten years to consign to France a quantity of coal at least equal in bulk to the difference between the annual production before the War in the mines of the north and in the Pas de Calais and the production of the mines in the same area during the next ten years.  She must also furnish Italy—­who, after the heavy losses sustained, has not the possibility of effecting exchanges—­a quantity of coal that will represent three-quarters of the figures settled upon in the Treaty of Versailles.  We can compel Germany to give to the Allies for ten years, in extinction of their credits, at least 500 millions a year in gold, with privileges on the customs receipts.