The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1922-12-30
HUGHES PROPOSES
BANKERS FARLEY
To SOLVE PROBLEM
America Cannot Call General
Economic Conference Until
She Is Invited, Secre-
tary Says
CONTINUED From Page .one)


our army in Europe at the, request Of
the allies and OF Germany and I'M
der an agreementythat its costs with
like army costs Should rBe first
charge upon the amounts paid by
Germany. Others have been paid and
we have not been paid.
but We are not seeking general
reparations. We are bearing our own
burden and through our loans a
large part Of Europe's burden in adj
dition No demands of our stand in
the way of a proper settlement of
the reparations question.
Link Up Debts
"Of course we hold the obligations
of European governments and there
has been much discussion abroad and
here with respect to them. There
las been persistent attempt ever
since the armistice to link UP the
debts owing to our government with
reparations or with projects of can
collation.. This attempt was resisted
in determined manner under the
former administration and under the
present administration.
The matter is plain enough from
our standpoint. The capacity of Ger
many to pay Is not at all affected by
any indebtedness of any OF the allies
to us. That Indebtedness does not
diminish Germany's capacity, and its
removal would not increase her ca
pacity. For example, if France had
been able TO finance her part in the
war without borrowing at all from
us, that is. by taxation and internal
loans, the problem of what Germany
could pay would be exactly the same.
Moreover, SO far as the debtors to
the United States are concerned, they
have unsettled credit balances, and
their condition and capacity to pay
cannot be properly determined until
the amount that can be realized on
these credits for reparations has been
determined
The administration must also con-
slider the difficulty arising from the
fact that the question of these OBJ
legations which we hold, and what
shall be done with them, is not a
question within the province of the
executive. Not only may Congress
deal with public property of this
sort, but it has dealt with it. 1t has
created q commission and instead of
giving that commission broad powers
such as the administration proposed,
which quite apart from cancellation
might permit sound discretion to b.
exercised in accordance with the
facts elected, Congress has placed
definite restrictions upon the power
of the commission in providing for
the refunding of these debts.
But what Is our attitude toward
the question of Preparations, standing
as II does as a distinct question
and as one which cannot be settled
unless European governments con-
cernedsare able to agree?
Not to Relieve Germany
I'VE have no desire to see Ger
many relieved of her responsibility
for the war or of her just obliga-
tons to make PREPARATIONS for the in
juries due to her aggression. There
is not the slightest desire that
France shall lose any part of her
just claims On the other hand we
do not wish to see PROSTATE Ger
many. There can be no economie
recuperation in Europe unless Ger
many recuperates. There will be no
permanent peace unless economic sat
isfactions are enjoyed. There must
be hope and industry must have
premise of reward If there is to be
prosperity. We should view with
disfavor measures, which instead of
producing reparations would threaten
disaster
Some of our own people have sug.
gested that the United States should
assume the role of arbiter. There is
one sufficient answer to this SUCCESS
ton ana that Is. shat we have not
been asked to assume the role of
arbiter. There could be no such ar
bitrament. unless il were invited and
1t would be an extraordinary and un-
precedented thing for us to ask for
ouch an invitation
should Not Take Responsibility
Il do not think that we should
endeavor to take such = burden OF