Enter, Politicians

Paris observers of the struggling Second Dawes Committee, a committee of theoretically unofficial businessmen attempting to settle the problem of German reparations and hence of world finance, saw plain signs last week of the entrance of politicians to take charge of the expiring body.

Heretofore professional politicians have maintained a careful hands-off attitude toward the labors of the committee. All have been ready to wait until the delegations of the various nations filed their reports before taking a hand in the proceedings.

A fortnight ago the problem of German reparations seemed nearer settlement than at any time in the past three months. Germany's Dr. Hjalmar Schacht had indicated a qualified acceptance of the newest Young Plan, whereby Germany was to pay 18 billion dollars in the course of 37 years, with an average annual payment of $487,600,000 (TIME, May 13).

The success of the Young Plan depended on:

1) Acceptance by the creditor powers of a slight reduction in the previous minimum demands.

2) The organization and profitable operation of the bank of international settlement, the profits of which are expected to pay after the 37th year the balance of German reparations in 21 more years.

Britain's General Election was too near for Chancellor of the Exchequer Winston Churchill to keep silent longer. He arose from the Conservative bench in the House of Commons and said:

"In order to prevent misconception abroad and alarm at home, the kind of proposals which were foreshadowed in the newspapers yesterday [the Young Plan], will in the opinion of the government be unacceptable, and the government will in no circumstance entertain them.

''The committee of experts now sitting in Paris is composed of independent representatives of the various countries concerned. We have kept in touch with the British members throughout the protracted proceedings. . . . We have not, however, at any time sent definite instructions to these gentlemen. . . . The experts committee must be left to reach their own conclusions.

"These conclusions, whatever they may be, whether agreed to or not, in no way commit His Majesty's government, which remains entirely free to review the whole position and make their own decision. . . ."

As the conclusion of his speech showed, Chancellor Churchill was aware that he spoke out of turn in discussing the Young Plan before the Experts Committee had reached any agreement. His prematureness brought to the world a sharp, discouraging realization of the difficulties still to be faced in the Reparations Problem--ratification of the experts' finding by the countries involved.

For home consumption, the Churchill speech was most effective. By the Young Plan, Great Britain's percentage of the total of German reparations would be reduced from 20 1/2% to 19 1/2%, would cut 670 millions from Britain's total receipts. Mr. Churchill felt that even a one per cent reduction was more than the country could stand. He was backed by British papers of all political faiths. The electoral stock of Winston Churchill, previously depressed, rose perceptibly, and, as usual, the blame for everything was passed on to the U. S.

"Considering that we alone are paying our debts to America," said the London Daily Chronicle, "we might have expected different treatment from her delegate [Mr. Young]."

The Churchill alarums echoed emptily in the Second Dawes Committee's conference room at the Hotel George V in Paris, whence all the delegates had departed, pending an expression of opinion on the Young Plan from French Expert M. Emile Moreau. All last week M. Moreau continued silent, while the French press joined the British in flaying Uncle Shylock.