THE WAR OF 1939-
to go communist and join up with Bolshevik Russia
if she did not get it. On die other side the Allies
displayed extreme gullibility. In response to Ger-
many's cries, a Reparations Commission, under the
American General Charles G. Dawes, was summoned
to Paris in the early months of 1924. As the result
of their deliberations German reparations were scaled
down to £125 millions a year, and it was conceded
that Germany, in order to restore her currency and
restart her commerce, should be allowed to borrow
money in the Allied countries. Accordingly, during
the next five years she borrowed ^900 millions,
mainly from America, a large part of which she
spent on secret rearmament. About £400 millions
she paid over to the Allies in respect of reparations;
then in 1929 she again defaulted, again threatened
bankruptcy and Bolshevisation, and ceased to pay
either reparations or interest on her loans. Thus—
having paid all her reparations since 1924 out of
borrowed capital—she 'got away* with £500
millions of Allied money!
To deal with this new situation the so-called
Young Commission met at The Hague in 1929. The
German indebtedness was reduced to £100 millions
a year, with a promise of further reductions in
course of time. All, however, was in vain. Whether
or not Germany could pay, she had no intention of
doing so. Instead of paying she was busy borrowing
again, and the countries to whom she already owed
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