Abilene weekly reflector., 1922-03-02

t.estions may not have n maturity be,
tyond dune 15.' 1947, sor an Interest
lrnte OF less than Az per cent.
Authority TO cancel any part OF the
Indebtedness or to substitute the OBJ
legations Of one country for another
is specifically withheld from the
commission by the terms Of the act.
at seems reasonable to predict
that the commission will extend AZ
lenient terms TO our former allies In
the matter OF refunding these debts
az are possible under the terms OF
the present legislation. In the coun-
try Mt large there are two well-de'
fined opinions as to the question OF
ultimate payment--One for and one
agaInst the full cancellation Of the
debts"
The case for cancellation was well
stated in recent address by Mr.. JUS
tice Clarke of the United States Su-
preme Court. The arguments run
that for three years the allies fought
the central powers without our as
sistance. Our advances went to
further the common victory and were
nothing less than our share In the
war, 80 that In equity there really Is
nothing owing MS.
But assuming that the allies can
pay-~0 runs the argument--may II
not be a question whether II is to
our best interest that they do so? 1t
IL not necessary to demonstrate that
our debtors must meet both the year
ly interest payments and amortiza-
tiOns chiefly by sending goods
manufactured goOds--into this cOun-
try. The annual interest alone on
our foreign credits at an per cent.
comes to round half billion dollars.
Our favorable trade balance Of last
year was about $2.OOO.00O. II our
allies are able to meet their interest
obligations. our trade balance will
probably show rapid readjustment
during the next few years. The bal
ance may shift to a s0-called unfav-
able one. with imports exceeding
exports cOnceivably by as much as
half billion dollars. Such sudden
read justment. such an influx Of man.
ufactured goods from abroad, would
possibly entail serious consequences,
prolonged for long period unsatis-
factory business conditions. If. how
ever our investors should purchase
foreign securities on a large scale,
readjustment may be partially ar
rested. Such are the main points Of
this phase of the case.
zone Of the most forceful Of the
arguments Of the pronunciation
forces" says the Monthly, ''is only
incidentally moral or economic.
They hold that II we press for the
collection Of these advances, we shall
In the years to come gain the repu-
tation of being the ShylOck of inter
national finance They point to his
tory to demonstrate that the repay
ment of huge international debts,
whether tribute or borrowings, usual
ly breeds a spirit of mutual distrust
suspicion and ultimate hatred be-
tween the parties involved. And
they raise the question whether for
a nation with large foreign trade,
the possibility Of such an outcome
is worth the candle.
"Those who wish to see our loans
collected in full present counter argu-
ments. They hold that the war was
primarily the war of Europe, precip-
itated by European Imperialism, to
which her opponents contributed as
well as Germany. Our sole interest
was to insure the defeat Of Germany
so that in future years we should
not have to oppose her alone. We
asked no assistance in maintaining
our armies in the line; the funds
borrowed from us by our allies to
maintain their armies are their just
and due obligations: and they should
expect to repay them. The can
collation. Of International obligations
is a dangerous precedent to establish.
Furthermore, the spOils Of war In the
shape Of land acquisition and repar-
atiOns in kind and money have gone
entirely to others; we asked nothing
In this connection,
'On the economic side Of the ques-
tion, the opponents Of cancellation
maintain that If our government can
collect from its debtors yearly inter-
est Of half billion dollars or more,
our taxes can be commensurably cut
down. Lightened taxation Is In turn
expected to give a decided impetus
to business revival. However opin-
ions may differ as to the positive in
iuence of taxation upon business ac-
tivity, all sides will agree that tax
alton is at the present time absorb
ing larger share. Of the national
income than Is desirable"
In any case 1t seems clear that
this refunding legislation does not
settle the large question Of interna-
tional indebtedness. The present
worldwide business depression. the
confusion In international trade, and
the financial difficulties Of number
Of the nations Of Europe will make
the problem Of external national