Arizona republican., 1922-06-12

indebtedness was incurred should be subjected to
special analysis.
That would result in a separation of the debt
into two parts one of which we might be brought
to cancel but the other would properly insist
upon payment. when these loans were made" says
Mr.. Kent, land they were made, the basis OF the
negotiations were such that the United States IS
thoroughly warranted in demanding their payment
from this standpoint" But with delay in getting
actively and effectively into the new element
was introduced Instead of loaning the allies money
to enable them to protect their lines, they came
to making use Of it in such way as to save the
live. OF American boys Mr.. Kent might have gone
farther his argument in favor of such separa-
ton of the debt by showing that our delay made
necessary the expenditure of larger part of the
loan for actual operations than otherwise would
have been necessary.
But he estimates that go per cent of the expend-
ture was made for purely purposes and he be-
lieves if this matter laid before the people
of this country they would assent to the cancellation
of such part of the debt. During the though
part of the loan used for constructive purposes
and for civil purposes. After the armistice large
sums spent by the allies in reconstruction. Such
sums amounting to 40 per cent of the total Mr..
Kent believes should be paid Some such disposition
of debt he thinks would result in bringing order
out of the present economic chaos and the good to
But Mr.. Kent sees an evil in the absolute extinc
ton of the debts by this country He IF they
were Cancelled in such manner as lack
of confidence in the integrity of governmental obi
cations it would be disastrous to the morale of
the world that it would be far better that every one
of the debts be paid to the last cent"
He does not think as some economists have assert
ed that the interallied debt vet had effect
on the exchange situation unless it has acted as a
deterrent to foreign investments in through the
purchase of exchange though there is doubt
however that such indebtedness has subconsciously
weighed upon the peoples of many nations and has
retarded the development of economic hope
He suggests the following factors helpful to
the exchange situation if intelligently worked out:
Cooperation with Russia along lines aimed to
reduce the menace of the Red Army; eliminate the
menace of the vicious propaganda Of its present ru
ers; obtain recognition Of the right Of the Russian
people free press free expression of opinion,
free elections of government officers and definite
property rights.
quick settlement of the German reparations
with terms of payment compatible with existing
conditions
Reduction of governmental waste stoppage of
initiation caused by the issuance OF currency and
floating loans; the removal of trade bar
rers by means of special commercial treaties and
agreements between nations
Greater cooperation between capital and labor
so as to allow for the increase OF production
rapidly as concurrent developing conditions enable
its absorption.
better world morale working toward the elm
nation of class national hareds and the increase
of integrity and square dealing