profits of the industrials.  It is useless to say that we are dealing here with an absurd and dangerous conception, because the profit of the capitalist is a necessary element of production, and because production along communist lines, wherever it has been attempted, has brought ruin and misery.  But it is useless to deny that such a situation exists, together with the state of mind which it implies.  We can well imagine, then, the conditions in which Germany and the vanquished countries find themselves.  The workmen, who in France, England and Italy exhibit in various degree and measure a state of intractability, in Germany have to face a situation still graver.  When they work they know that a portion of their labour is destined to go to the victors, another part to the capitalist, and finally there will remain something for them.  Add to this that in all the beaten countries hunger is widespread, with a consequent diminution of energy and work.

No reasonable person can explain how humanity can continue to believe in the perpetuation of a similar state of things for another forty years.

In speaking of the indemnity which Germany can pay, it is necessary to consider this special state of mind of the operatives and other categories of producers.

But the mere announcement of the settling of the indemnity, of the immediate admission of the vanquished nations into the League of Nations, of the settling the question of the occupation of the Rhine, and of the firm intention to modify the constitution of the League of Nations, according it the powers now held by the Reparations Commission, will improve at once the market and signalize a definite and assured revival.

The United States made a great financial effort to assist their associates, and in their own interests, as well as for those of Europe, they would have done badly to have continued with such assistance.  When the means provided by America come to be employed to keep going the anarchy of central Europe, Rumania’s disorder, Greece’s adventures and Poland’s violences, together with Denikin’s and Wrangel’s restoration attempts, it is better that all help should cease.  In fact, Europe has begun to reason a little better than her governments since the financial difficulties have increased.

The fall of the mark and Germany’s profound economic depression have already destroyed a great part of the illusions on the subject of the indemnity, and the figures with which for three years the public has been humbugged no longer convince anyone.

5.—­FORMING NEW CONNEXIONS WITH RUSSIA