RUMANIA: An Old Score

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An old dispute between Rumania and Germany recently broke out anew.

In 1917, the Germans entered Rumania, occupied the whole country. General Ludendorff called this a most important step. Germany had no intention of annexing Rumania; she had likewise no intention of occupying the country for love. Her object was food; but that was for the starving German people. Then there were still the German soldiers to be paid and there was a Reichsbank at Berlin groaning under a terrible burden of debt. It was decided that the Rumanian Government must pay for the costs of the German occupation; but there was no Rumanian Government—it had fled. Thus, it came to pass that the Banca Generale at Bucharest was compelled to issue Rumanian bank notes to the amount of $75,000,000 to pay for the German occupation.

After the Armistice, the Rumanian Government returned to its native capital and was subsequently forced to make good the enforced issue of the bank notes; but it charged the amount to its reparations bill against Germany.

For many years, the amount of this bill has been disputed by Germany, who at one time offered $12,500,000 in full settlement. This offer the Rumanian Government refused.

Came Mr. Dawes to Europe (TiME, Jan. 7, 1924), hatched, with the aid of his colleagues, a plan to provide for the collection of "all charges payable by Germany to the Allied and Associated Powers" for War costs. Rumania is an Associated Power. The Rumanian claim of $75,000,000 is a War cost. Nevertheless, Rumania demanded payment outside of the Experts' Plan, threatened last week to seize German property and triple the import tax on German goods, began to deport Germans.

In Berlin, a grand caterwaul was raised. It was alleged, not without reason, that to pay the Rumanian bill would be to create a dangerous precedent ; for other ex-enemy countries might well demand special payments outside the Experts' Plan and saddle Germany with debts that would wreck the Plan, which was designed to collect all that is collectable from her.

There were signs and portents that the matter would be referred to the Reparations Board for a ruling.