The Washington herald., 1922-09-03
Will Drop Aloofness and
Intervene in Finan-
cial Middle.
MAY FAVOR 3YEAR
DEBT MORATORIUM
Secret Initial Steps Said
To Foreshadow De-
cisive Action.

The United States government Is
approaching a decision on definite
and sweeping action in the Euro
pean economic situation to bring
about world rehabilitation, 1t was
believed here last night. The in
dications both in the public eye and
under the surface point to the
United States taking a leading part
in the serious effort to set the world
economic house in order.
1t is understood the initial.
though informal. step already has
been taken.
The exact nsture can not be re-
vealed, but all Indications are that
the result will be in favor of Amer
lean Intervention in the situation
abroad to do all that Is possible to
delieve the financial ills of Europe
which are now dragging nations of
the old world down deeper into the
mire.
Not to Remain Aloof.
The move is not directly a gov
ernmental one. 1t is considered
merely incidental to a real effort to
attain the end which administration
leaders here desire.
But the principal Importance of
this and other developments is re-
garded as showing that not only
has the United States no intention
of remaining aloof from the situ-
alton abroad. but probably that in
itial steps already taken foreshadow
a definite move from this govern
ment in the direction of solving the
main European problem.
The principal objection here 80
far to any cooperation by the
United States with Europe has been
the fear that European statesmen
would continue their Attempts at un-
real makeshifts and try to relieve
the nations abroad of their present
plight at the expense of the United
States. 1t was thought that should
the United States call an economic
conference or participate in one the
first subject the European nations
would want to discuss would be
the question of the allied debts to
this country, while refusing to con-
slider concessions on their parts.
such as in reparations.
Might Favor Moratorium.
Some leaders of this government
are known to have believed that if
Europe could be found in a reason
able state of mind, the United
States would not object to a three
year moratorium on all internation-
al debts growing out of the world
war, including Germany's repara-
tions obligations.
Recent events abroad. such as the
agreement among the allies to give
Germany respite during the re-
mainder of this year in reparations.
which is believed mainly to have
prompted the hopeful statement
from the White House Saturday are
believed to be working to hasten a
decision by the United States on
possible action in Europe.
Also the French proposal for an
economic conference which has not
yet been received here, is thought
to tend towards precipitating the
situation further in the direction of
a decisive issue.
No general plan of action by the
United States in the main European
problem has as yet been communi-
Gated to American representatives
abroad. But this country's ambas-
sadors are known to be in constant
consultation with foreign statesmen
on present world economic condf-
tions and further Developments
along the present line may come. or
the situation, so far as the United
states Is concerned, may change
over night. at any time.