The Washington herald., 1920-04-18
Uncle Sam. Nth Thin Purse,
Must Insist That European
Nations Work and Pay Debts
System Depends Upon Disposition
Of Loans Made to Allies.

I chiefly for American and not for
British consumption, Controversies
as to relative sacrifice are very bar
rem and very foolish" Yet Il 10 not
foolish to take account Of the fact
that the United States raised
through taxes and bond issues Q
greater portion Of It's war expendi-
lures than any other country In the
world. 1t is not foolish to take ac-
count OF the fact that the tax rate
In France today Is but little higher
than IL was prior TO the war. as
France raised large portions Of her
war money through loans from her
allies. II IL not foolish TO take ac-
count Of the fact that Italy. militant
before the war, militant now. would
be put In a much stronger financial
position In case she wished to wage
war against czecho- -Siovakia or any
other country. -
Companions by FitsGeraId.
1t is not foolish, although Mr..
Keynes might contend It is, to re-
call a paragraph from an address
made by former Chairman Fitz-
gerald Of the House Appropriations
Committee in 1918.
Including loans" said MI Fitz-
gerald. "the United States In the
first year proposes to expend as
much as Great Britain. more than
France. more than Russia, probably
as much as Germany, and one-third
T, more than Austria Hungary has ex-
pended during the entire three years
OF the war. Even IL the
amount of the loans to our allies be
excluded. the figures are still sum-
ciently startling"
1t is not foolish to recall that
| when we first went into the war I
was said that our financial assist
ance was the principal thing re-
quired; that before we even worked
out a plan of assisting financially.
we were called upon for men, and
that before the war closed we had
more men on the front than any OF
our allies.
1t is utterly ridiculous for the
European governments to come for
| ward with their proposal to have
the United States cancel their in
! debtedness to US. There is even
grave question as to the wisdom of
the administration in consenting to
the funding of the interest due us
without putting up a sitter fight TO
.et II.
Burden on American People.
When the administration consent
ed to let the interest go over, 1t
virtually issued an edict to the
American people to contribute in
taxes $500, 100000 this year, more
than $500. 100000 next year. and SO
on, until the European interest pay
ments commence, in addition to the
amounts they must contribute for
the other expenses of our govern T.
ment. II the allies fall down on
principal as well as interest ii means
that the American people will have
to assume an additional obligation
Of $4,000. .000,0 900. In the present
condition of our national finances,
this is impossible.
1t is almost useless to discuss the
desire of the older nations for ad-
ditional loans from the United
States. In the FIRST place our gov
ernment won't make them. In the
second. 1t couldn't II II would.
Mr.. Hoover. Secretary Glass, Mr..
Vanderlip, Senator Mccormick, and
other men who know and under
stand Europe and Europe's prob
lens said months ago that the solu-
ton of those problems will be at
tained. not through further loans
from the United States. but through
the settling down of the European
mind to the cold fact that Europe
must go back to work. Europe can
work out of its present indebted
ness IL it will go to work. II we
should be so foolish. however. as to
cancel that Indebtedness, then loan
Europe more money, without any
control over its expenditure. we
would be prolonging. by just the
time taken for its expenditure. the
period that will ensue before Europe
goes back to work and hard at
work.