Evening star., 1921-12-11
EXPLAINS HIS PLAN
FOR HANDLING EUROPEAN DEBT

be improved and the character Of her obliga-
tion greatly benefited.
England desires to construct a series OF
great central electric power stations She mas all
the means of doing that within herself, out mas
not the economic courage to start on such great
enterprise in the face of situation wnere
we may demand from her hundreds OF mil
lions of dollars a year il our claims were to
be realized in payments made in the United
States.
She could readily undertake such construc-
ton il for the time being she did not have to
export goods into our market to meet our
claim. She would increase her productive
capacity, employ her idle workmen, put fresh
courage into her industrial and economic sit
uation by doing this, and we would have in
addition to the obligation we now have the
further security of the great power plants
which were created.
There is nothing really novel about such a
program-the only novelty lies in the applica-
ton to national obligations Of those principles
which wise creditor would apply to a tenn
porarily disabled debtor. Help put the debtor
on his feet. Give him fresh courage. Give
him a start toward increasing his earning
capacity and the prospect of ultimate debt
liquidation is improved. That sort of thing
is done every day as between individual debtor
and creditor. The difficulty seems to lie in
thinking of the subject in international terms
Quite another question is raised in connec-
tion with the carrying out of such a project
1t is asked whether in view of the mess that
governments have already made in conducting
great undertakings it would be possible for
our government to undertake successfully such
a program. If Congress had to pass on each
undertaking, il the projects were handled
after the manner in which we improve inland
waterways and construct public buildings, l
would say, No. The work would need to be
handed over to properly constituted COM
mission. I have suficient faith in American
genius to believe that We could properly con-
struct such commission. 1 have put it
briefly by saying that I would put Herbert
Hoover a. the head OF 1t, and would rest easy
about the results. We have many such men of
high motives, of sound imagination, of tech
ncal expertness. who would render in such a
connection very great international service
X X X
Some amazingly good work has been done in
Europe by Americans in the days since the
armistice. They have shown such a sense of
fairness, such a grasp of method, such an
ability to organize the forces there into self
helpfulness that know we could successfully
undertake such program as have outlined
il we could put some of our best men at the
job. The man who fears that we cannot trust
the character, good sense and ability Of Amer
leans to undertake a work of this kind has
less faith in his fellow countrymen than 1
have. I believe that we can.
The great task would only devolye grad
ually At best We can only get a portion of
this interest paid at once. We would only
have to plan expenditure as rapidly as in
come developed feel profoundly certain,
however. that sensibly to start on the program
will result in rapidly developing the ability of
our debtors to pay. With such program
wisely carried out they can in time discharge
their full obligations to US. r. Some part 1
would certainly expend with no obligation for
its direct return. We are talking now about
renting the debt. about sealing it, or about
cutting down the interest for a period to
nominal rate. All that means giving up some
thing. II we are willing to do that, why
should We not give it up with the same gen
erosity. but with much greater wisdom, by
insisting that the full amount be devoted to
the rehabilitation Of the Economic life Of Eu-
rope and toward invigorating its social well
fare?
Even II We get no direct return from some
Of the earlier interest payments, the indirect
return would be greater than a direct return.
for 1t would give the Impetus the confidence
the start toward self-helpfulness that Europe
must have IL the gravest dangers are to be
avoided.