The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-07-13
AVOID PROPAGANDA
URGING CANCELLATION
OF DEBTS, BEvERIDGE
tBy Associated Press,

must be barred and alertnesS must be
exercised against foreign propaganda
if the problem of foreign debt and
national taxation is TO be handled sue
cessfully, former o. S. Senator Albert
j. Beverage of Indiana declared here
today in his address before the In
diana State Bar association Mr.
Beverage discussed at length the war
debts of the allies to the United
States and their relation to the fin
ancial situation of the country
The most serious problem imme-
diately before American statesmen is
that of taxation" said Mr. Beverage.
Little or no promise is made that
national taxes will be reduced or even
that the absurd, unscientific and I'M
businesslike internal revenue devices
adopted soon after our declaration of
war will be readjusted so as to per-
nit capital TO engage freely in in
dustry," he added.
Outlines Situation
Mr.. Beveridge outlined the foreign
loan situation pointing out that in
debtedness of the European nations
for money loaned by the United
States during the months the nation
was at war with Germany aggregates
ten billion dollars. The interest, he
said, is about five hundred million
dollars annually
Mr.. Beveridge declared that soon
after the ending of the war "a care
fully prepared propaganda originating
in the debtor countries" was begun
for the cancellation of the indebted
ness. Mr.. Beverage declared that
nothing but the continuous and ever
increasing American sentiment can
avail against cancellation.
Claims of the debtor nations that
they are unable to pay because they
have no money and are actually in
need of funds for reconstruction pur
poses" were also brought into the dis
cussion by Mr.. Beverage. He de-
clared that the United States should
investigate these claims.
Reviews Gains
Mr.. Beveridge then reviewed the
material gains Of the allies derived
from their victory.
Americas reasons for entering the
war have considerable bearing upon
the question of debt payment, Mr.
Beveridge said
IF we drew the sword to save
France and Great Britain, to rescue
and preserve civilization, to destroy
militarism, to vindicate humanity, to
save freedom throughout the earth
then it is immoral and indecent for
US to insist on the payment of contri-
buttons of money made by US to our
partners.
But if, as congress formally, DELHI
erately and solemnly declared, we
made war on Germany because Ger
many had been and was making war
on US, then the loans made by cur
government to the European allies
constitute a genuine debt, payment Of
which is moral as we'll as a legal
obligation"
Discusses Tariff
Another material reason for cancel
lation, according to the speaker, that
is urged by those who believe that
payment will gravely impair the pro,
tective tariff system.
con purely economic national
grounds all these influences, except
the last, may be dismissed from our
calculations in determining what We
OuSuI W uOs Sdlu Iu0 lOl lueI ScUdlOI.
But it is not yet proved that the
debtor nations cannot pay in cash the
interest as it falls due and, in time,
the principal. Facts already given
would appear to indicate that they
can. Nor is it certain that those ma
lions could not enter our market, not
withstanding the handicap of even
high protective tariff
Must Bar Politics
"Of course, the only method by
which the remaining principal and in
terest of this huge debt can ever be
paid is by the peoples of Europe-if
only they would-to stop fighting, cut
out politics, eliminate naval and mil
itary expenditures and devote their
energies to productive industry
IF we are to handle the situation
with any degree of success it is clear
that politics must, for the time being
be barred. If some proposal is sup
ported or opposed merely on partisan
grounds, the confusion will become
even more maddening. 1t is just as
evident that we must be so alert and
steady of mind that foreign propagan-
da, even when unwittingly advanced
by our own citizens, magazines and
newspapers shall not lead US astray
from the interests of our owp
country"