New-York tribune., 1922-12-26

Allied nations to the American govern
mot.
.1nese debts are justly due. The
contention that these loans 70 the Allied
nations should naturally be considered
and treated as q contribution 20 the
/ common expense OF the war does not
appear warranted:
"(a) The intrinsic circumstances OF
Americas joining in the war were es-
sentially different from the conditions
and considerations which determined
or compelled the course Of the Allied
nations when they entered the conflict.
Opposes Any Secret Bargain
"(b) America made no secret treaty
or bargain, as almost all the Allied ma
tions did. She asked for none OF the
spoils Of victory. Each one OF the
Allies took material compensation from
the vanquished 70 the full extent that
there were assets to distribute. Amer
ica. on the other hand, demanded moth
/ ing and received nothing. She is car
rying the immense burden Of her war
expenditures without any compensatihg
/ tangible return whatsoever.
"Ie) OF the $4,000 100000 advanced
I by America 70 the Allies cons der
able proportion (obout $500, O,OOO'OV!'
las far as ] can ascertain was ad-
vaneed after the war was won-aitcr
/ the aTmistice. u must be recognized,
/ though, that q part Of this sum was
needed and no doubt arose out Of com
mitments entered during the war, and
was used In connection with the set
| Element of contracts entered into for
the purpose of the war.
"(d) OF the remain ng say 5720O,-
00o 600, a certain portion was spent
by tho recipients for purposes not con-
nected with the war.
Paid Cash, Cave Credit
"(e) while the American govern
ment was loaning money 20 the Allied
governments unstintedly 10 pay for
things which they bought here for the
war II was paying cash TO the Allied
governments for everything which il
bought over there for the war
90 On the other hand, IL Is but
fair 70 recall that prior 20 Americas
entrance into the war our industries
farmers and workingmcn benefited
greatly from Allied purchases in this
country and the bulk Of what America
loaned 70 the Allies was spent in max
ing purchases in this country.
From the profit accruinR 70 the
sellers on these purchases the Ameri-
can government derived large revenue
in taxes, and. owing 20 the immense
depree alton Of foreign currencies. ex-
cept that Of England, the sum which
the debt TO America now represents in
their own respective moneys is vastly
greater than the sum calculated in for.
eign eurreneies or values which Amer.
iea's debtors received at the time the
loans were made.
Fair Consideration for Claims
b also, as against the amount due "a
L. America from the Allied government 4
I certain Offsets are claimed. which
claims are, Of course. entitled TO ful
and fair consideration"
MT hahn points out that, while Con
, gress has formed a debt refundine
commission, its authority has been Iin-
tied 20 arranging the repayment Of IN,
Indebtedness within twenty-five wears
al an annual interest Of az per cent
, which really means the imposition o,
an annual charge Of 6h per cent. ag
with such time limit, a sinking fun,
. Of per cent yearly must be provide,
for in addition to the interest. Tn,
Allied nations have asserted il il i'm
possible for them 70 meet these condi
tions, and Mr.. Kahn believes this 4
true, with the possible exception o.
, England.
In this connection the banker call,
attention to the fact that, although al
the Allied nations declared themseive,
unable TO pay the aggregate OF $40.
II -
same governments last year stipulated
> Germany, alone and defeated. b,
obliged TO pay them more than thre,
times that sum, in addition TO severa
: hundred million dollars a year for IN,
I maintenance OF their armies Of occups
: ti0n.
Z Outlines Repayment Plan
|, "If, then" the letter continues, pub
lie opinion and Congress will not ol
present consent TO the relinquishmon
; on our part Of a portion Of the Alliee
J, debt-whieh REIMBURSEMENT, be Il IN
= derstood, Is suggested only in retuu
Z for and simultaneously with measure.
! on the part Of the European nations q
: bring about that change Of mental ans
; moral attitude and actual condition.
which Is indi spensable il the world II
" ~ ~" - OF 81 NhNM hNfA ANtN tNiN
suggestion would be the following:
"Of the S2,T5o,oo0 900, or there
abouts. which our government loaned
70 the Allied nations after the arms.
tice. that portion. az least, as was nol
applied 70 the settlement Of war con.
tracts here or Is Offset BY valid coun
ter claim is intrnsically distinguish.
able from the balance OF the Allied
debt to as. Il should be promptly put
In the way Of repayment with q rec.
sonable rate Of interest