The New York herald., 1921-02-13
CANCEL WAR DEBT
ANDBENEFIT,
APARTlAN TOU.S.
Senator Predicts Trade
Boom if We Should Give
Up Claims OH Allies.
HAS JUMPING PLAN TOO
Paris Commission Coming
to See Harding to Seek
Relief Measures.
WILL INVITE OVERTURES
Hope America Will See What
Europe Views as Just Meth
cd to End Ills.
HAS JUMPING PLAN TOO
WILL INVITE OvERTURES
By LAURENCE HILLS.

ny LA SG hAAhSs
Special Gable to THE New YoRK HERALD.
Copyright, 1921. bv THE NEw York HERALD.
New York Herald Bureau,
Paris. Feb. IL. {
Conversations will be opened with
the Washington Administration soon
after March on the subject of the
French war debt to the United States.
A special commission probably will be
sent to America for this purpose after
the French Government has conferred
with Maurice Casenave. French High
Commissioner in the United States,
who is now on his way to Paris.
Members of the Parliamentary COM
missions professed anxiety TO have this
problem settled in the early spring, as
a settlement Of it would facilitate the
placing of new international loans.
which the Government here has an
nounced its intention to seek pending
the receipt Of the German reparations
payments.
France herself will not make the
suggestion for cancellation of all or
any part of her Indebtedness to Amer
lea. helpful as the cancellation would
be to her In her present position. but
naturally she would welcome such a
suggestion coming from America. THE
New York HERALD correspondent here
to-day interviewed Senator Raphael
Georges Levy. a member of the Senate
Finance Commission and one Of the
best Informed French economists,
whose reputation is widespread since
he opposed the reparations theory OF
John Maynard Keynes, put forward
in Mr.. Keynes's book, "The Economic
Aspects of the Peace" Senator Levy
admitted that the commission Of
which he is a member was studying
the effect on Frances war debts of
the various settlements and that he
personally was urging either redIs-
tribution or cancellation scheme.
Jumping of Expenses Urged.
Would it not be fair to lump all the
war expenses and distribute the total
according to the population figures,
as well as the wealth, of the various
countries interested?" he asked. "If
this were done, the United States and
Great Britain, despite what they have
already done. would still be debtors
vanced to their Allies.
But admitting that this kind of a
distribution would not be easy to ar
range. compromise could be reached
whereby all outstanding war debts be-
tween the Allies might be cancelled out
right. Both Italy and France would
benefit greatly thereby. Both of them
suffered from the fall in their ex-
change rates. their international trade
was hampered and they cannot import
from the United States as freely as they
would II their exchange were restored
to parity through an arrangement of the
war Indebtedness
lit must be admitted that the rlso of
the dollar from five to fourteen francs
is not benefittng American mnnufac-
turers and traders who have a tremen-
dous surplus of goods which they
cannot sell. Undoubtedly any sacrifice
made by the Treasury in Washington in
abandoning the American claims on
France. Belgium and Italy would quickly
turn into great benefit for the whole of
the United States American trade and
industry certainly would revive and
American exports would increase and
reach the level of those OF the most
prosperous year, say like 1915.
Both citizens and political leaders of
our great sister republic should be broad
minded enough to take this view--a
view which would aid France in wiplng
off the disastrous consequences of the
world war on her financial position"
Sees Troubles Grow Worse.
Senator Levy expressed the belief that
the existence OF this reciprocal indebted
ness was one of the most vital sources
of the present financial and commercial
troubles, which, he declared, were in
crcasing daily because of overdue inter-
est. Through the cancellation of the war
debts, including interest, he calculated
that France would benefit TO the extent
OF f703, 900. 900; Italy. fs27,00o,000 /;
Russia. f76s. 100000; Belgium. f2ss.-
100000 and Serbia, fso.ooo.ooo.
BY this scheme the United states
would give up claims to fi.soo. 100000
and Great Britain to fe00. 0.000,o 900.
But II might be wise to postpone the
cancellation of Russia's debt until Rus
sian affairs are settled" he added.
Senator Levy based his argument that
the United States should agree TO the
debt cancellation on the fact that with
10000. 900 people an immense territory
with great natural industrial and agri-
cultural resources the United states IL by
far the richest community In the world" "
"The United states entered late into
the war after having developed her for
elgn trade TO wonderful extent he
continued. Neither American towns
villages. manufacturing plants nor mines
have suffered tho slightest Moreover
her battle losses arc only about per
cent OF those Of France and not l per
cent. when the populations OF the two
Republics are considered. France. Ser
bia. Belgium and Italy stood on the
front line in a gigantic conflict. making
sacrifices far beyond those OF the United
States and Great Britain.
But the Allies were united In n COM
mon struggle. each OF them fighting for
t-s ru-e o= ni;. Therefore. why should
not they be united in meeting the wars
resulting burden in so far as finances are
eenccrned?"
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