The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-10-12
our BILLS RECEIvARLE.

Delay in the adjustment of the debts
which European nations owe us ap-
pears to be due to forces similar to
those that prevented the ratification
of the treaty of Versailles.
OF the nations debtors. England, it
is said, is anxious to conclude an ar
rangement that will enable her to ex-
tend payments of her obligations over
term of years. The other debtor ma
tions must of necessity make similar
arrangements. Delay in the proceed
willingness of a certain group of con-
gress to intrust the matter to the sec
rotary of the treasury. This group
would reserve to congress the right of
review and of veto in the event that
the treasury's settlement was found
unsatisfa Glory.
That Mr.. Mellon is not favorabIy
disposed to proceed with the matter
under these circumstances can be
readily enough understood. In the
nature of the case he would make GER
tain commitments in the name of the
government that he might find him
self unable to carry out because of a
lack of support in congress. A situa-
ton similar to that growing out of the
peace negotiations might develop that
would be highly embarrassing and
postpone the date when actual pay
ments could be started.
Advances made by the United
States to it's associates in the late war
aggregate the enormous sum of nea~-
ly nine billion dollars, upon which
interest to the extent of approximate
1y $500, 900 is due. All this money
was borrowed on the sole security of
notes given by the accredited repro
sentatives of the debtor governments
There is no thought that any debtor
government will contest, much less
repudiate, the obligations which it has
incurred, but it is desirable that these
vast transactions, which under the
pressure of war necessity were con-
Quoted in an off hand manner, should
now be regularized and that the loaAs
which were so lavishly and Informally
made should be placed on a normal
basis.
To this end 1t seems important that
the secretary of the treasury should
be invested with an authority COM
mensurate with the occasion, and that
he should be empowered to negotiate
for the repayment of the advances
which have been made upon the best
: terms of which in his judgment the
conditions permit.
There are wild. divergences in the
paying ability OF our several European
| debtors. No one of them is in a posi-
ton, or is likely for many years to
come to be in a position, to make a
full repayment of what it owes us.
Apart from what is due by them 20
| the United States, they are all stag
| gering under a burden of Indebtedness
which they are unable or barely able
| to bear and even Great Britain, whose
financial status is of all of them the
strongest, is having a severe struggle
to maintain its solvency.
In these circumstances it will be
understood that the immediate or
early collection of the billions owing
us is an absolute impossibility, and
that no more can be done now or
within any measurable period than to
arrange, so far as such an arrange
ment is practicable, for the payment
of interest on the outstanding princi-
pal; and this is what bill now pend
ing in congress will enable Secretary
Mellon to do, 1t is obvious that what
ever measure of success he may
achieve in that direction, no matter
how small, will be so much gain. The
money lent to the European countries
was obtained thru the issue of liberty
and victory bonds to which the Amer
lean people subscribed and the inter
est on which is being paid by them.
When the non-interest bearing
notes now in the possession of the
United States shall have been ex-
changed for bonds of the debtor gov
ernments, the revenue therefrom de-
rived will to that extent tighten the
burden of the American taxpayer
That is why the Mellon bill has beer
introduced.