New-York tribune., 1922-10-11
u. S. Debt Must
W ait 'rillEurope
Gets ON Its T eet
Washington Believes Eco
nonlic REIMBURSEMENT Is
Due Before We C a n
Hope to Obtain Payments
Britain Is an Exception
America Will Insist on Full
Liquidation: To Grant No
Loans for War Machines
From nc Tyibuae.s washtaoson Bureea

D# t"t if}pHNeS washington Bureau
WASHINGTON, Oct. TO- Economic
readjustment of Europe must come be-
fore America can hope to obtain pay
ment from the Allied debtor nations Of
their wartime obligations to the
United States, high Administration
spokesman disclosed to-day. With one
eSceptlon~~Great Britain--no Euro
pean country has taken any step di-
rected toward an adjustment of these
loans, and the Administration view is
that until the economic situation in
Europe is cleared up these nations will
re unable 30 meet their obligstions to
the United States
rms does not mean, it was indicated,
that the American government is en-
teftalning any thought of cancellation
o. war debts On the contrary, it is
the Administration view that all Euro.
pean countries eventually must nav all
principal and interest on their debts.
out II is admitted that they will be
"hoity unable to accomplish this result
without first reducing home expenses
and attempting financial reforms.
British to Seek Refund
The British debt mission is expected
to come to this country late this month
to enter into negotiations with the
treasury Department for the refund
ing of the 5,000,000,00O debt. lhe re-
mainder of the war debt, aegrogatinc
about S6,0o0,000,0OO, will remain nm.
liquidated until the economic situation
| IN Europe clears, it is believed.
ANXIOUS to assist in any way pos
slhie toward the financial rehabiiita-
tion OF Europe, the Administration
doeB not intend to place any undue
restrictions against American bankers
VINO ma may desire to extend further loans
TO foreign governments. 1t is en-
pectcd, however, that full details on
proposed loans will be given to the
state Department. SO that the govern
fnent may give approval to the deals
| or suggest safeguards that may be
thought necessary
| President Harding was represented
to-day as not wholly pleased with the
attitude Of the European countries on
| their war debts. His view is that they
are spending enormous sums in keep
ing military establishments even great
er IMAM those that brought on the
"oria war and not attempting bulge
| tory reforms that are necessary.
| AT the Washington conference a
year ago America let France know in
no uncertain terms that she had little
| sympathy with Frances plea for
ieniency on the war debt when France
/ insisted on maintaining a mighty army.
Every other debtor of the United
States Ahas since learned that the
united States feels that the payments
CT Just debts should take precedence
over large military expenditures.
:, Ihere has been no way, however, for
| the American government to bring
much pressure to bear on these coun-
tries. Their statesmen seem to take
the position that this country forget
the debts and charge them up TO the
war.
No Loans for War Machines
Applicants for American loans, it lis
understood, in the future will have to
make some sort of a showing of an in
tention to pay their war debts and not
spend the proceeds of the new loans
merely in building up bigger war ma
chlnes. In other words, the govern
ment will discourage every foreign loan
that is not to be used in building up
economically the borrowing country.
| Only recently when Rumania was seek
ing loan, Secretary of State Hughes
inquired whether the money was to be
spent for military purposes.
There Is no set rule for dealing with
applications from foreign countries for
private ioans, it was said at the White
House. Each application will be con-
sldered on its own merits. But the in
ference was dropped that Euope must
make showing that the money is to
be expended in a way that will help tie
borrower to pay his war debts to Amer
lea, or the government will withhold it's
approval of any further loans.
LONDON, Oct. 11.--Sir Robert Stew
enson Horne, Chancellor of the Ex-
chequer, has indefinitely postponed his
debt-tunding mission to the United
States, according to "The Daily Ex-
press, This action is in consequence
OF the political situation in England.
ri " a A