New-York tribune., 1922-08-22
Crosby W arms
Against More
Loans to Allies
Tells institute of Politics
Further Advances 10 El-
rope Would BE Bad for
u. s. and Debtor Nations
Devastation Was Limited
Former Official of Treasury
Eavors Debt Cut i'm Half,
Will, Interest Abolished
Special D.spafch 10 The T,4onac

4
WILLIAMST0WN, Mass, Aug. 21.---
Oscar T. Crosby, former Assistant Sec
retary of the Treasury, told the Insti-
tute Of Politics to-day that owing to
what he considered the mistaken ideas
of "eager bankers America might be
urged into the making of loans to
European governments at time when
he did not consider that this was beat
either for the European countries or
for the American investor.
Replying to report of committee
of the round table discussing inter-
Allied debts, Mr.. Crosby said he was
willing to see the debts owed to
America cut in half and to have inter
est charges abolished. He believed
| that Europe would not help herself as
| long as she looked for easy money
| from America, and while international
conferences such as Genoa held out
hope, absolutely without foundation,
that financial relief would be forth
| coming. He was in Germany just be-
fore the Genoa meeting and noticed
that all considerations OF schemes of
reform stopped dead because OF the
forthcoming conference.
The round table committee on debts
reported that board of trustees should
| take over and administer inter-Aliied
debts. Sums would be collected from
debtors able to pay and re-lent to
Europe for the purpose Of rehabilita-
tlon against collateral security of q
private business nature. The commit
tee held that as America has not con-
trlbuted SO much to the common cause
IN men she should take an idealist
view of the interAllied debts.
Says Rehabilitation Not Needed
Mr. Crosby said that as far as he
could judge, Europe was in no need of
rehabilitation" The war had DESTROYED
lar less than was generally thought.
The strip of territory most devastated
was only about 200 miles long by twen-
ty-tlve miles wide, and the French
were justly proud of the fact that these
regions were now growing crops, owing
to the great efforts of the peasants
There was TO devastation in England
and none in Germany. The truth was
that neither France, nor England. nor
germany were ever so highly equipped
Tor production as at the present time.
when rehabilitation" schemes were
spoken OF, it was necessary to ask:
REHABILITATION of what ?" What was
mostly meant by rehabilitation" was
new construction of various kinds. and
such new construction was not needed
in France, Germany or England, but in
the southeastern parts of Europe.
Great gralneries, for instance, might
be established in Rumania to help her
production but it could be said that
America also needed new construction
of this kind.
Inc countries of Europe had got into
the habit OF viewing industry nation
ally, Mr.. Crosby continued. There was
more shipping in. the world to-day than
anyone had use for and yet it was said
that Germany must have money to build
herself new ships. Germany was also
building. great new manufacturing
plants that were not needed by bust
ness demands but were being put up on
nationalist grounds.
Wants Inter-Allied Debts Cut
The Round Table Committee on in
ser-Allied debts favored the reduction Of
sums owed to America to $6,75O. 900 900
IN place Of approximately the s11, 1,OO0,-
100000 now outstanding. 1t was held
that on account of the increasing PROS
perity OF America, with the additional
impetus caused by the cancellation of
part of the interAllied debt, the Amer
lean taxpayer would not greatly feel
the burden. The drawback was not
overlooked, but discounted, that dan
gerous precedent might be established
IN the regulation of international debts.
III the present debts were to be can
celed 1t might be assumed in the flu
ture that all money lent to help COM
mon cause by America should have the
status of gift. Members of the COM
m1ttee could not agree as to whether
cancellation would mean breaking faith
with American holders of bonds cover
/ ing loans to foreign countries