The New York herald., 1921-02-27
CANCELLATION OF
WAR DEBTS URGED
Wiping Out Of international
Obligation Recommended by
Investment House.

Although the mutual cancellation of
war debts between nations has long
been discussed on the other side of the
water and has received more or less
publicity in this country. there has been
practically no public support of the plan
here. That fact lends especial interest
to the statement made yesterday by c.
F.. Childs & Co., local investment house
specializing exclusively In Government
bonds. and in which an unequ!vocal posi-
ton in favor of cancelling all of these
war obligations was taken by the firm.
''The aggregate debts of the various
Allies to the United States Treasury
are now. roughly. $4,000. 100000" the
statement points out. ''The worlds an
nual gold production Is not sufficient to
pay even the interest on Europe's debt
to us. Manifestly no repayments can
be made except in goods and services
to balance the account. Do we want the
debts paid in European products on
scale which would demoralize our mar
kets or shall we erect a tariff which
will only postpone the day of reckoning
for US? In either case we Will have TO
look for payment in goods instead OF
gold. and then only if we enable Euro
pean populations to resume production
by furnishing them with raw materials
on long term credit"
1t would be much better. the state
ment continues. to help Europe get
back on it's feet, and even to press for
the payment Of interest alone would
be IAN act Of folly not equalled In his
tory" The remission of the allied
debts to this country would have to
be accompanied by similar action by
England, the firm goes on, and Amerf-
can wishes would have to be asserted
in plain terms to all parties, 'since
there are many phases Of the existing
economic settlement in Europe which
are contrary to the better judgment of
American bankers and were ineffectu-
ally opposed by American representa-
tives at Paris" BY so doing, 1t Is
pointed out, We can make certain that
the tangible results Of debt cancella-
ton will be commensurate with the
sacrifice involved and that no one ma
ton can benefit unduly at the expense
of the others.
"The mutual cancellation of all inter-
allied governmental credits" the firm
adds, would be felt at once in every
part Of the world by revival Of trade.
In fact. there is no other way TO get
trade started. If American farmers
and manufacturers desire to create an
effective demand for their products
there is no surer way of doing it than
by a wholesale cancellation or clear
ance of interallied governmental war
debts. Our products can only be moved
by extending private credits, but there
is no chance for this so long as the
huge $4,000, 100000 frozen Treasury
credit stands in the way. If it were
removed, however. the whole business
world would Immediately respond and
with fresh hope and confidence would
undertake reconstruction. AS was tbs
case when we refunded the Chinese in
demnity, we would again perform g
generous act which would not only i'm
prove our national reputation abroad
but would also many times exceed II
value our financial sacrifice. We car
afford to do il and no other natior
can. The continuance of the debt is az
embarrassment of riches and does oul
trade more harm than good. Larg'
minded action at this time would b,
not only an economic but politica
advantage to America for generation
| to come"