The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1922-03-02
SHALL WE CANCEL THE FOR
EIGN DEBTS?


World for February 10th says:
Speaking before 100 members of
the National Institute of Social
Sciences, a. a meeting in the ball
room of his residence at No. 100
Fifth Avenue, Mr.. Kahn enumerated
the following, ETC."
1t is evident that he is man of
means, otherwise he would not have
a ballroom in his residence. He
speaks of himself as ga business
man." but we think that a better de-
scription would be a speculator. He
is a member of the Kuhn, Loeb & Co.
,, banking house and of the American
international Corporation which
deals in investment securities. He is
an International banker-and that
explains his interest in the cancella-
ton of the debts owed to US by the
recent Allies.
Mr.. Kahn is reported by the World
to have said, in part:
at 81 a just contention from
commercial viewpoint that the war
debts are due US. But from the moral
and from a business viewpoint I am
entirely clear in my own mind that
we ought to cancel those debts, all of
them. And the other nations should
wipe them off he slate, among them
selves.
eff we lift this immense load off
the back of Europe it will yield to US
in dollars and cents fabulous sums of
money, irrespective of the reputation
- er,- FaIv Il l.
ing and generosity.
eve are rich enough to give this
up. Let's do it. But we should stip-
ulate in return for this gift to the
world proviso to make sure 1t is go
ing to serve the welfare of the world
and not be spent like money given to
a small boy who squanders 1t on
candy.
eve should stipulate first that the
reparation question be settled IN a
way sensible people feel is lasting
and workable. MilitariSm would
have to 90. We should require that
useless barriers, built up in compet-
itive fear and jealousy, should be
removed so that trade can move free
ly across frontiers. We should in
sist, lastly, that the exchanges be
esta blished."
Is Mr.. Kahn willing to do for him
self what he advises the Government
to do? Is he willing that the 1corpor-
ations with which he is connected
shall cancel the huge foreign debts
owed to them, the foreign stocks and
bonds which such corporations
bought during the war at huge dis
counts? We doubt if Mr.. Kahn
would suffer very much in his private
purse if such action should be taken.
He would probably still be able to
maintain his private ballroom. He
should say, for himself and his bust
ness associates: eve are rich enough
to give this up. Let's do it." Can
anyone imagine his saying it in such
connection? If so, that person must
have a vivid and wholly wonderful
Imagination.
What he probably would say would
be: "No, we cannot do that. We
must protect our stockholders. We
are, to a certain extent, trustees and
we must fulfill our obligations to
those who have entrusted their funds
to US" And he would be right IN
taking that stand. If the invested
funds were all his own, or If they
were all the propertysof himself and
the members of the corporations with
which he as connected, he or they
would have the right to make such a
sacrifice. But where others are in
terested no such right exists.
The United States Government IS
the greatest corporation in the world,
with each and every one of its cltI-
zens stockholders therein. The Of
ficers of the Government are not the
Government, but are simply trustees
elected to do the bidding of the
stockholders and to safeguard their
interests. They stand, therefore, in
much the same position as that Occu-
pied by Mr.. Kahn and his corporate
associates in their corporations, only
the interests of himself and assoc
iates are greater in their corpora
tons. because their own money is in
vested to a greater extent than is the
money of others. On the other hand,
those selected to manage the affairs
of the Government have only the
same rights and interests that they
would have if they were foreign cit
izens.
There is a class of citizens, how
ever. who have more than ordinary
personal interest in the fiscal at
fairs and financial dealings of the
Government, and they are the ones