for this Government to pay the claims of its nationals under an arrangement by which Germany might issue long term bonds to be paid to the United States as conditions improved. Five or six million dollars a year would no doubt meet interest and sinking fund requirements. It is unthinkable that Germany could not meet this. We have referred above to the fact that after the Spanish War, this country paid claims of its nationals. Such a position would be as striking an act of international morality as the return of the Boxer indemnity and would very likely yield consequential returns both materially and morally which would justify such generosity. Austria-Hungary did not seize alien property. South Africa has released it. Great Britain and France have asked under the Versailles clearing house arrangement, a sugar-coated method of confiscation. What will America do? No attempt is made here to argue either one side or the other of the question, but merely to present the facts and the law as they exist. There is no doubt that it is the purpose of this Government to deal just as fairly and as liberally with alien enemy property as the rights of its own citizens will justify. To hold property as security would or would not constitute confiscation, depending largely upon legislation in the future. If the intent were not to confiscate it even though American claims were not paid, then the holding of the property as security is a weapon that we do not intend to use. The general policy of the country, our view of international law, our traditions and history and the words of our present State Department officials, are against confiscation. Holding as security is confiscation sincerely intend to use the security that is if we but a creditor may waive the security. America is sensitive on questions of national honor and probably we shall eventually find that the retention was merely a lever to compel proper settlement of our claims. At any rate as a practical matter, the present Congress will pass no bill that does not leave this property as security to American claimants against Germany. Note. While this book was in press the Winslow Act was passed. The bill with appropriate comments appears in the Appendix. See p. 329, post. |