The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-07-12
Frederic Haskin's Letter
The Debility of Foreign Trade.

/ long time Hungary would allow
none of its wheat TO go TO Austria,
IL retaliation for Austria refusing
to let its manufactured goods need
ed by Hungary reach that coun-
try. The Hungarians could not get
the clothing and machinery they
needed. The Austrians could not
get the food they needed. The stu
alton benefited no one. and hurt
both countries, and all other coun-
tries with which they have to have
dealings.
1t has often been proposed that
the United States government take
big sponge and wipe clean the
slate on which are chalked down
the debts of foreign nations to the
/ United States These debts ara
owed to US by our late allies, and
the loans were necessary for the
prosecution of the war to a success
! full conclusion.
Governmental experts are in
clined TO look upon this suggestion
with the idea that it would do little
! or no good. 1t would mean cutting
down the financial obligations of
certain foreign nations, but these
experts say that unless the comon,
every day citizen of those lands
benefited, it would do no good For
instance, if forgiving the French
debt to the United States were ac-
complished, there would follow a
lessening of the tax burden on The
French people. Unless the United
States government could dictate
how this should be done. there
would be no surety that the ameli-
Grated taxes would help the ordin-
airy French citizen, or that the value
CT tie French franc would be aD-
preciated at all, which is the only
way America could benefit from this
tranSa ctiOn.
Also, it has been said and is prob
ably true in some instances, that
the limit of taxation on many for
eign countries has been reached.
If this is true, and these countries
cannot now pay even the interest
on their debt to the United States
about a billion in back interest is
unpc-id at this time-wiping the
slate clean of the debt would ac-
complish no good at all. either Tor
that nation, the United States, or
the rest of the world.
A Possible Cure.
Some of the countries partaki1g
: of the German PREPARATIONS have
/ suggested that in exchange for their
! obligations TO the United States that
the American government accept
! the German bonds which some Of
our late allies hold. In support Of
this idea, il is brought forward that
by France, for instance, holding
German bonds, and America hold
ing French bonds, it just makes
an extra transaction for the Unit
ed States to get its dues. France
collects from Germany, then the
United States collects from France.
| The American government has
| been reluctant to turn back the di-
! rect obligations of our late allies,
in exchange for the obligations of
the late enemy nation. This is not
because of fear that Germany
would not be able to pay the inter
est charges and the principal OF this
obligation in time, but because Of
the situation which arose out Of
the peace conference.
/ By returning French bonds 10
! Paris, for instance. and taking the
1 equivalent in German obligations
which France now holds, it would
it is feared, put the United States in
very much the same position as il it
had joined the League of Nations,
lock, stock and barrel.
The present administration and
the present senate majority is OPP
posed to this. The virtual member
ship in the league would be be-
cause it would give tho United
! States a direct and deep interest
J in preserving the solVency of the
German nation. The ramifcations
to which this would give rise, gov
eminent financial experts say
would make necessary American
participation in the affairs OF
Europe, with all of their conflicting
interests, to an extent to which II
is not thought the American people
would cOuntenance.