, 1922-01-23
THE DEMOCRATS REVERSE.

The Democrats Of the senate find themselves in an
anomalous position in their opposition to the foreign
debt refunding bill reported by the Republican finance
committee. It was their party which made the loans,
and that party is responsible for the condition they
are now in. The Democrats stopped at nothing in
their eagerness TO permit Europe to spend the re-
sources of the United States. The Democratic presi-
dent went to the extreme length OF offering the wealth
and power Of the United States as a guarantee for all
the vague promises included in the covenant Of the
league Of nations, and urged his fellow countrymen to
make a supreme sacrifice" for the benefit Of Europe
and the rest of the foreign world.
Now the Democrats seek TO amend the reminding
bill so as to prevent the refunding commission from
making such liberal terms with the debtor nation as the
financial and economic status in the various countries
may necessitate. They would have the commission de-
mand what may very well turn out to be the impos-
sible, thereby not only denying reasonable c~onsdera-I
ton TO the countries that owe US money, but greatly
decreasing the chances of ultimate collections of the.
debts. The Republicans of the finance committee re-
fused to include in the bill provisions for semi-annual
payment of interest and for an interest rate of 3 per
cent. There is no just reason why the foreign debt
OTIS should pay any higher rate of interest than that
paid by our own Liberty bonds, through the sale of
which the money was raised to make the foreign loans.
Neither is 1t wise to write into the law an arbitrary
demand for the payment of interest six months after
the, refunding has been arranged. and scmi-annually
thereafter. Such an arrangement may be quite pos
sible with some of the debtor nations, but further ex-
tensions will probably have to be granted to others.
Foreign nations ought to be convinced by this time
that their real friends in the country are to be found
In the Republican party. The aid extended by the Re
puDDcanS TO WOrlu feconStruCton uoeb not ncNuue any
surrenders of American sovereignty, which, even If it
were granted in accordance with the desires of Will
sonism, could accomplish no permanent relief. Re-
publican assistance has been through reduction of
military burdens in the discussions of the Washington
conference, the removal of cnuses that threatened the
peace of the world, and the grant Of supplies to the
starving Russians, Further practical help will be ex-
tended by Secretary of the Treasury Mellon and the
other members of the debt refunding commission in
reaching adjustments that will grant the most lenient
terms to Europe while relinauishing none of our
claims.
Chairman McCumber of the finance committee ex-
presses the views of his fellow Republicans when he
says; "The necessity for the exercise of clemency in
the matter of the extension of the time of payment of
principal and past due interest becomes apparent the
moment we survey the financial condition of the coun-
tries to which we made our war advances"
Under Mr.. Wilson, the altruism of the Democrats
extended to absurd lengths in their attempts to guar
antee the integrity of Europe through the use of
American soldiers and money. Now all that is appar-
emily forgotten in The necessities of partisan politics,
and they are going to the other extreme Of denying
to Europe fair treatment in the matter OF the debt,
merely because the Republicans advocate a liberal pol
icy of handling the iv.sign Obligations.