he
perils of a not distant future; the third is to find at all costs a
means of accord between Germany, France and Italy.

But only vast popular movements and great currents of thought and
of life can work effectively in those cases where the labours of
politicians have revealed themselves as characterized by uncertainty
and as being too traditional. Europe is still under the dominion of
old souls which often enough dwell in young bodies and, therefore,
unite old errors with violence. A great movement can only come from
the intellectuals of the countries most menaced and from fresh popular
energies.

4.--REGULATING INTER-ALLIED DEBTS, GERMANY'S INDEMNITY AND THAT OF THE
DEFEATED COUNTRIES

These two problems are closely connected.

The victorious countries demand an indemnity from the conquered
countries which, except Germany, who has a great productive force even
in her hour of difficulties, are in extreme depression and misery.

Great Britain is in debt to the United States, and France, Italy and
minor nations are in their turn heavy debtors to the Americans and to
Great Britain.

The experience of the last three years has shown that, even with the
best will, none of the countries owing money to the Entente has been
able to pay its debts or even the interest. With an effort Great
Britain could pay; France and Italy will never be able to, and have,
moreover, exchanges which constitute a real menace for the future of
each.

The fact that France and Italy, although they came out of the war
victoriously, have not been able to pay their debts or even the
interest on them is the proof that Germany, whose best resources have
been taken away from her, can only pay an indemnity very different
from the fantastic figures put forward at the time of the Conference
of Paris, when even important political men spoke of monstrous and
ridiculous indemnities.

The problem of the inter-allied debts, as well as that of the
indemnity, will be solved by a certain sacrifice on the part of all
who participated in the War.

The credits of the United States amount to almost 48 milliards of lire
or francs at par, and the credits of Great Britain to 44 milliards.
Great Britain owes about 21 milliards to the United States and is in
turn creditor for some 44 milliards. She has a bad debt owing from
Russia for more than 14 milliards, but 13 milliards are owing from
France, about 12 milliards from Italy, and almost 2-1/2 milliards from