New-York tribune., 1922-11-25
Europe Can and
viii Pay, View
OF Wadswt,rtIl
MELONS Assistant Assures
Aca d e m y of Political
Science Cancellation Ii
Not Road 90 Stability
Years May BE Required
Native Soundness of Foreign
Economic Status Insures
Collections, He Believes

es2nsr1cS to the United States govern
ssent can and will be paid ultimately
according 20 Eliot Wadsworth, As
sistant Secretary OF the Treasury. Mr..
Wadswsrth addressed the Aeademy Of
Political Science at the Hotel Astor
from 3 junior Cabinet oftseer, who has
made q special study Of the European
dess problem, was accepted as q re-
fsctson of the attitude the Allied Debt
Commission will take when negotia-
fions looking 70 the funding of the
European debt are begun. That the
Administration is not deceiving itsek
as 20 the ability or willingness OF some
Of the debtor countries TO pay was
made plain by Mr.. Wadsworsh's state
ments.
That the government has declined
TO consider cancellation IL not q just
ground for criticism,~ said Mr.. Wads-
worth, "It is doubtful whether there
is any serious popular opinion In favor
of such action, and certainly there is
no authority, without an act Of Con-
gress. The loans are part of the as
represented by debts from nineteen
nations. varying In quality from 100
per cent good TO 100 per cent bad"
Mx. Wadsworth disabnsed his audi
ence of any notion they might enter-
tain on the question Of quick settle
nsat.
Payment VIII Nos Be Soon
"As for the very practical question
xegaYding the value of these debts,
ara ready to venture the opinion that q
considerable portion can and will ulti-
matsiy be paid, and further, that long
before they are paid the credit Of at
least some of the debtor nations will
be re-estsblished, their bends conf
IDENTIFY taken by investors and their
currencses stabilized in the exchange
markets. This is not looking forward
months, but years "a considerable
number Of years perhaps. It is not
judging from the present situation or
with any plan Of readjustment in mind
j am considering the stability and
wealth achieved by the peoples of Eu-
roDe in the past. with a Arm conviction
that their public opinion will not silow
the present chaotic, political and fnan-
cial conditions to continue indefinitely.
IT it is not possible 80 believe this, then
we must expect to see a long-drewn-
out and disastrous period"
Inc action of the British in paying
sl0o,0oo,ooo in the last thirty days on
account of interest, Mr.. Wadsworth
eontended, removes from the debate a.
TO the value of the Allied debt over 10
per cent of the total. He took some
pains 20 confound opinions to the ef-
feet that inter-Allied debts are largely
responsfble for the wide fluctuations in
foreign exchange, are killing the for
eign trade OF this country, and are TO
plHme fer the unbalanced European
budgets and general chaotic condition
OF nnanee. AS proof that cancellation
wouio NOT work sudden and complete
cure for the difficulties under which
the world 10 isboring Mr.. Wadswortb
said: "S~'"oieh
The total collections bv the Yynitsd
Statss IN three and half years ended
iass M october were less than 1925. .o0O. =
Vuo' all representing special transae-
tions OUTSIDE of the war loans, They
are briefly as follows:
Tells of Silver Pnrehase
Payment Of $4,000 600 ma ;nt.-es+
and $61.000,0Oo of the principal NJ a
loan to Great Britain for the uurchns q
OIL silver bullion from our Treasury at
e. an ounce under authority Of the
Fiteman act. This silver was urgently
needed in India. The market onofation
was above 81, with little 60 he baa
An adequate supply could be obtafneJ
only by the melting OF nintsd siivsr
collars, and this was done. 1t was i'm.
aerstood that this transaction was to
90 treated separately, the total loan
OF SiZ2'oe0,ooo to be paid In four an
nua1 instaiments. Great Britain has
met ner payments on the dot. The
poune sternng mas meanwhile recov-
etea from s8.lS in February, 1920, TO
about sa.46 at present, which ia ess
1nan 10 per cent below parity, rur;ns
THIS time Great Britain has also srhe
stsan.,e,iy reduced her indebtedness In
sns United states by paying of Treas
u'y piiis and government bonds.
$soo,ooeoo0 Of ten-year notes vivsn
@ Ior surplus property of the A. p.
lhis purchase of material was a cow.
mereiai transaction and no doubt q
considerable part Of the property ac-
CURED mas been sold and the proceeds
covered into the French Treasury. In
total this has required to date sao :
100000. w N"se SA"'-
rayment by Belgium Of interest ON
notes given after the Armistics FOR the
purchase Of supplies, amounting in
tnrse years to less than $4,000. 900,
Debt Transactions Small
'sThis is the sum total OF tbe burdar
which the Allied debts to che Tnited
States has placed upon the exchange
markets, which. meanwhile, have han-
died an export trade of 20 coo COZ, O(l0
Imports Of Ii,000, ,e00, 900, enormous in
visible Items which cannot ba meas
nred, and the exchange croated by
loans to foreign governments, foated
IN thts country, Of over $4,000 900 COO.
Ihe relatively small amounts trnns-
serssd from European treasures to
the Unitad States can hardly be called
upon 70 bear the blame for the fluctua-
items n foreign currencies as measured
In dSllars."
The dinner at which Mr.. Wadsworts.
Baron dc Cartier and former Ambns-
eadcr John W. Davis spoke last night
was the climax % q two-day annual
n1ecting Of the Academy of Political
Science. "The Outlook for the Gold
Standard" was discussed YESTERDAY
morning by William +. Foster, diree.
tor of the Poilack Foundation fer
Economic Research: II. Parker wills.
OF Columbia University, and Professor
z. W, Kemmerer, Of Princeton Uni-
versity.
At the afternoon session Geerva
Roberts, viec-president of the National
City Bank; Jease 4. Pope, of 4he De-
partment Of Agriculture; Senator
Thomas P. Gore, of Oklahoma. snd
Representative syeney Andersen. chair
Of the Joint Commission on AgrIcul-
turai Inquiry. discussed the aarieu,t-
urai credit problem. Edwin r. A.
Seiigman, Of Columbia University, Pre-.
side6.