Grand Forks herald., 1921-12-17
CANCELLATION POSSIBILITIES.

report is current ia Washington that Premier
Lloyd George of Great Britain is considering the ad
visibility Of proposing to his government the
collation. OF all war indebtedness to Great Britain
owed by Italy, France, Belgium, Russia and the
small Balkan states amounting, with interest, to
upward of ten billion dollars. The proposal does
not yet seem to have reached precise FORM nor is it
understood that definite decision has been reach
ed concerning it. But the intmatioh is given that
the subject is being very seriously considered, and
that such proposal is quite likely to be made. One
of the conditions which is to be attached according
to the report is that the French debt t Great Brit
ain shall be cancelled in consideration of the reduc-
tion of German reparations due to France by ap-
proximately. equal amount, this amount being
stated at about thirteen billion francs.
This step, it is said, is being considered without
reference to any action which the United States may
make. 1t will be remembered that some time ago
the suggestion was made for complete cancellation
of indebtedness and that the propos-
al was not cordially received in the United States
the principal objection which was made here being
that whereas the cancellations of credits by some Of
the European countries would be at least partially
offset by the cancellation Of their indebtedness
the United States the United States would have no
such offsets, as this country was not borrower
from any other country on account of war.
1t appears that even with the prospect OF their
being cancellation of debts owing to the United
States, there still remains fixed in the minds of some
OF the European nancers conviction of the desir-
ability of general cancellation SO far as it can be
made general This due to recognition of the i'm
poverished condition of most of the European ma
tons, and of the utter inability of some of them to
make payment The British plan so far as it has
been reduced to form would involve the wiping out
OF an immense sum of paper assets Of the British
government with no corresponding reduction in her
own indebtedness on account of the war, and it ap-
pears that in British circles there is feeling
that this sacrifice would be warranted in order
to bring about earlier stablzation of the finances
of Europe, which are admittedly in deplorabc con-
dition
Among the countries which would be benefited
BY such procedure is Germany. Efforts to induce
France to reduce her claims against Germany have
not been successful but it question how far Ger
many will be able to go in meeting the obligations
which she has assumed, and strong emphasis is Civ
tial to the revival of prosperity in Europe as is the
economic rehabilitation Of any of the other Euro
pean countries.
It's apparent that the consideration of this mat
ter of war Indebtedness and of cancellation involves
something more than altrnisn 1t is not likely that
the purpose of any of the men who are believed to
be in favor of plan Of this kind entirely for the
benefit of the nations whose indebtedness is to be
cancelled There is recognition of common inter-
est IN common prosperity, and of common need
for the recreation of conditions under which pros
perity will be possible. 1t is mistake, therefore, to
assume in the consideration of either the reported
new plan or of any other which may be suggested,
to%ake the ground that cancellation is purely an act
of charity 1t may be an act involving high meas
ure OF sef-nterest just it is considered good bus
iness sometimes for creditors waive their claims
against debtor in order that he NAV get on his
feet and again become useful customer and that
he may not, in going to the wall himself carry 9TH
ers with him.