Evening star., 1922-12-15
PROPOSED GERMAN
LOAN IS LAID
BEruRE CABINET
Continued from First Page.)

propaganda has been conducted by
Europeans to impress America with
the need for remitting the allied war
debt as a means of adjusting the
reparations problem. But the matter
Of reparations and the war debt of
the allies are to be treated separately.
and the American government hopes
illusion Of cancellation. American
sentiment. it is pointed out by on
| most that can be foreseen is a
willingness on the part of the people
to continue to foreso ,,a the interest a.
armistice. Some Of the nations Of
Europe-one or two of the smaller
ones particularly-can in q few years
begin paying their interest and prin-
cipal. Some cannot.
No general rule can be established
country vary. 1t may be wise to
forego the interest in some cases al
together. In others 1t may be neces-
sary to cancel the interest for five
and ten years-possibly some of the
! interest already accumulated since
annual payments. meeting the prin-
cipal from q definite date, say 1925
or 1890.
Although this doesn't mean cancel
lation Of the principal. 1t does in prac-
tical effect reduce the financial bur-
down the sums they would otherwise
have to pay the United States. The
United States would be giving up
about $500. 100000 annually. and for
this sacrifice disarmament undoubt-
| edly would be demanded.
In support OF the plan to cancel
the interest, however. the argument
| is made that the United States stands
no chance of collecting $4,000, 900. .0o(
! plus an annual interest charge OF
$500.000.o00 anyhow. and that much
! moro good will and economic stim.
that fact In a broad. generous way
than to hold 1t over the heads of Eu.
ropean governments indefinitely.
Cannot BE Money.Lender.
Another thought in the same con.
Injection Is that America cannot afford
to be placed before posterity in the
| light Of q money-lender who exacted
| interest which in itself would amount
in time to the total sum originally
back it's ten billion it would be get
ting more than many economists have
figured was possible.
But before any readjustment can be
made, Europe must understand that
the United States doesn't mean to be
OIAWu IuSO euy lASa - uCo 4OE luO &c
quisition- Of territory or the constant
harassing Of Germany. The apparent
readiness Of France to recede from
her threat to invade the Ruhr. valley
is unquestfonably an indirect result
Of the making known through diplo-
matio channels abroad Of the Ameri-
can attitude.
The big fact is that America wants
to help, and II foregoing the interest
on the allied debt either for q period
of years or permanently in some cases
| will raise exchange and enable Eu-
! rope to supply itself with foodstuffa
] and raw materials necessary for in
dustrial reeuperation. such . proposal
may be laid before the funding com.
mission created by Congress and
/ definitely embodied in an agreement.
such step would instantly assist in
improving European credit and pave
| the way for an international. loan.
Everybody here H. not yet agreed
upon the wisdom Of the step, as Eu-
rope must do her part first. but that
| is the first tangible offer. neverthe-
less, Of American aid which has been
made thus far.
Copyright. 1s27)