New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-26
BOn'aI1 Sees Aid
To 1)isaA'znirngi in
Allies ID 10 is
He Urges Pos,ponement Of
Funding of War Loans to
European Nations Till
After Harding Conference
Calls Cost Million Daily
Declares Americas Money
Helps Britain and France
Keep Up Fighting Forces
From The Tribune's WASHINGTON Bureau.

TTOHi He 4 TfOUWe 8 W washington bureau
WASHINGTON, July 25-Funding Of
the foreign debt should be held up by
this government until after the dis
armament conference, according to
Senator Borah, of Idaho, who spoke on
the subject Of the foreign obligations
in the Senate this afternoon. The
Senator declared that the treatment Of
this debt might become a matter of
very great Importance" in that con-
ference. He held that if European
nations were unwilling to enter into
reasonable agreement to disarm, then
he believed the American people would
feel justified in demanding that these
governments promptly meet their debt
and the interest on it,
With the American taxpayer bearing
the burden of sustaining the arma-
ments of France, Great Britain and
other countries, Senator Borah said it
would be short-sighted policy for this
nation to put itself in position where
it might not modify it's policy accord
ing to the results of the disarmament
conference.
France at present has an army of
100000 men, and is to day the most
thoroughly militaristic nation on
earth" said Senator Borah. ~ recog
nlZe that the situation in Germany is
partly responsible for this, but not
wholly so. Great Britain's navy costs
about $765, 100000, and her army makes
her armament total about a billion
dollars.
"America Foots Bills"
"Thc taxpayer of the United States
is carrying the burdens of armament
for this country, for France and for
England. Under this policy we arc
financing the armament program of
Europe
II recognize that European govern
ments have their difficulties, Just as
we have. But insist that there should
be evidence of good faith by these
governments to meet their debts, and
the United States should meet the sit
uatlon without equivocation or apology.
ut will be vastly to the advantage of
the United States if it remains just as
1t is now urtil it can be determined
whether the world is to ge. rid of its
armament or is to travel the road it is
now going toward bankruptcy.
The government ouga. to use every
power at its command to bring about
universal disarmament, and if l could
use this debt for that purpose l would
not hesitate"
Senator Borah opened with discus
sion of the question Of whether the
foreign governments were able to pay
the interest on their debt and whether
to pay it would disrupt this country's
financial fabric. He maintained this
country could absorb the amount of
financial affairs. He pointed out that
the British government recently had
loaned $50,0o0,OO0 to Argentina for the
purpose of building up her trade.
SIT is barely possible" he said, that
we could take that money and lend it
tn South America for TIE purpose of
building up our trade"
He said he was not criticizing Eng
land, but when he read of such things
he was less tolerant of the cry the
Allies were unable to pay.
A Million Day
Senator Borah said this country, by
reason of not collecting interest, was
now lending Europe $1,000 600 day
ITO the extent to which the Euro
pean governments can in good faith
meet their debts, he SAID, I'VE should
inform them it must be DONE"
Senator Borah pointed out that the
foreign debt, as to the refunding of
which the Secretary Of the Treasury is
asking authority, involved much more
than simply the indebtedness itself,
namely, the relations with foreign gov
ernments.
He gave figures to show that, includ-
ing private loans, this country had
about $19,000,000, lent to Europe,
not including more than $2,000,OOO 5000
donated to Europe since 1915.
He asserted the masses n Europe
would not go to work SO long as they
expected Germany to pay the expenses
Of the war and the United States to
cancel the debt. No country in Europe.
he said, is working but Germany.
Senator Mccormick interrupted to
say that the countries that owe the
United States have more than 100000
men under arms, or more than they had
before the war.
Senator Mcclellan sustained Senator
Borah. Senator Nelson thought the
fact that borrowed money was expended
here for supplies must be taken into
account.