Assuming then, if only to keep our hopes up, that America will be prepared to contribute to the process of building up the good forces of Europe, and will not, having completed the destruction of an enemy, leave us to our misfortunes,—­what form should her aid take?

I do not propose to enter on details.  But the main outlines of all schemes for an international loan are much the same, The countries in a position to lend assistance, the neutrals, the United Kingdom, and, for the greater portion of the sum required, the United States, must provide foreign purchasing credits for all the belligerent countries of continental Europe, allied and ex-enemy alike.  The aggregate sum required might not be so large as is sometimes supposed.  Much might be done, perhaps, with a fund of $1,000,000,000 in the first instance.  This sum, even if a precedent of a different kind had been established by the cancellation of Inter-Ally War Debt, should be lent and should be borrowed with the unequivocal intention of its being repaid in full.  With this object in view, the security for the loan should be the best obtainable, and the arrangements for its ultimate repayment as complete as possible.  In particular, it should rank, both for payment of interest and discharge of capital, in front of all Reparation claims, all Inter-Ally War Debt, all internal war loans, and all other Government indebtedness of any other kind.  Those borrowing countries who will be entitled to Reparation payments should be required to pledge all such receipts to repayment of the new loan.  And all the borrowing countries should be required to place their customs duties on a gold basis and to pledge such receipts to its service.

Expenditure out of the loan should be subject to general, but not detailed, supervision by the lending countries.

If, in addition to this loan for the purchase of food and materials, a guarantee fund were established up to an equal amount, namely $1,000,000,000 (of which it would probably prove necessary to find only a part in cash), to which all members of the League of Nations would contribute according to their means, it might be practicable to base upon it a general reorganization of the currency.

In this manner Europe might be equipped with the minimum amount of liquid resources necessary to revive her hopes, to renew her economic organization, and to enable her great intrinsic wealth to function for the benefit of her workers.  It is useless at the present time to elaborate such schemes in further detail.  A great change is necessary in public opinion before the proposals of this chapter can enter the region of practical politics, and we must await the progress of events as patiently as we can.

4. The Relations of Central Europe to Russia

I have said very little of Russia in this book.  The broad character of the situation there needs no emphasis, and of the details we know almost nothing authentic.  But in a discussion as to how the economic situation of Europe can be restored there are one or two aspects of the Russian question which are vitally important.