The Bull-Dog Stretches

The all-absorbing event of the week was a statement by Premier Baldwin to the House of Commons. His speech was to the effect that Great Britain and her Allies differed only on the method of obtaining payment from Germany. " We are as determined as any of our Allies that Germany shall make reparation for the damages done in the Great War to the fullest extent of her capacity."

A reply to the last German offer (thus far scorned by France and Belgium because Germany does not acquiesce in their demand that passive resistance must cease before discussion on the Ruhr and reparations issues can take place) will be written by Britain, sent for the approval or remarks of the other Allies, then forwarded to Germany. " So far as united action is possible, we shall continue to observe it," said the British Premier.

The policy of the British is definite. They will not tolerate any protracted occupation of the Ruhr. On account of the firm attitude of Great Britain, backed at home by Conservative, Liberal and Labor parties, and on the Continent by Italy and Belgium, it is understood that France, despite M. Poincare's Senlis speech, will agree to a conference on the British plan, and, if satisfied with the results of such a conference, will withdraw progressively from the Ruhr Valley. The conference is based on Secretary Hughes' plan to discover by an international committee the capacity of Germany to pay reparations, and may have the backing of the U. S. Government. The main purpose of the conference will be to seek a solution of the Ruhr and reparations problems on a plane that will be acceptable to France and not injurious to European trade. It will also take into consideration the French demand for territorial security and will suggest Anglo-French participation in German industry; the whole, of course, being based on a speedy evacuation of the Ruhr by France-Belgium forces.

It is interesting to note that the British paved the way for their active participation in the Ruhr dispute by a long series of diplomatic soundings, followed by financial actions and economic threats against the French. It is obvious that much diplomatic correspondence has passed between the British Foreign Office and the governments of Italy, Belgium and Germany. It was necessary to get the first two nations on their side before making a pronunciamento on the Ruhr and reparations. It was equally necessary to have a tacit understanding with the Germans that they would be willing to accept British mediation along specific lines. This done, the bank rate was raised from 3% to 4%, partly as an act of pressure on France. The Air Force appropriation presented to the Commons, providing for an additional 34 squadrons, was a measure to offset French prestige by strengthening that of Great Britain. Finally, rumors of British action on the French debt were heard at Paris about the same time that the French began to realize that they were virtually isolated in Europe. Such is the bare outline of a clever diplomatic gambol.

It is only fair to France to say that Britain in no way reflects upon the justice of the French occupation of the Ruhr. True, Mr. Baldwin said that " the indefinite occupation of one country of the territory of another in time of peace is a phenomena, rare and regrettable in itself." This is strictly true, but it is also true that the Ruhr occupation is having disastrous effects on European commerce, and is rapidly forcing a political crisis in Germany which may have a far-reaching effect on Europe--including France--if it is allowed to come to a head.

The situation in Germany is reported to be serious. Chancellor Cuno has remained in power so long because it was found useful to have Herr Stresemann, his proposed successor, acting as intermediary between the Government and the Industrial Tzars. Herr Stresemann's particular job is to feel his way to a general mobilization of capital in order to have tangible offers ready at the hoped for conference. For the rest, crops are reported to be poor throughout Germany. Any aggravation of suffering there is thought likely to bring about the republic's complete collapse, and to open the door to Bolshevik Russia.

Indication that the German Government has now officially discountenanced sabotage in the Ruhr was given when the German police at Essen arrested five men caught cutting French military telephone wires, and handed them over to the French authorities for court-martial.