The Washington herald., 1922-03-17
WOULD GIVE WAR
DEBTS TO REVIVE
FOREIGN AFFAIRS
Kahn Declares Claims
Are Frozen Obligations
AS They Stand.
AID RUSSIAN PEOPLE
German Reparation Terms
Called Stumbling Block to
U. s. Progress.

Solution for bette= business con-
ditions In the United States and Eu-
rope would be effected II this coun-
try would use its monetary. claims
against the allied nations, as well
a. its over-redundant holdings Of
gold. to aid ii bringing about q
change In European affairs.
This declaration was made by
= Otto Kahn before the Advertising
Club Of New York. He advocated
the canceling of the allied war
aebts to America Ito the extent that
hey are war debts), but In con-
sideration of. and in return for. ade.
quate pledges and appropriate ac-
tion on the part OF the nations con-
cerned. leading to the elimination.
as far as actually possible, or, at
least, the prompt and essential
mitigation Of the remedial circum-
stances and conditions which keep
Europe in turmoil and prevent Il
-ural functions either as consumer
or producer.
should Adjust Reparations.
. Mr.. Kahn also touched on the i'm
poTtance Of readjusting the repa:a.
-tions problem. On this point he
said that he was satisfied that one
Of the first conditions, indeed the
first, for the economic regeneration
of Europe, and particularly Of all
Europe east of the Rhine, Is a re-
vision Of the reparation settlement
on lines. not of misapplied leniency,
but Of clea--sighted. business-like
recognition of the realities.
That America should leave MOTH
ing undone to get into contact with
the Russian people was also urged
by Mr.. Kahn. 1t was our, duty. he
said. to aid those people in finding
a way out of their misery.
Debts Commercial Transactions.
His speech, In part, follows:
while / am convinced that the Eu-
ropean debts are justly due US: I
know OF no way in which they can
be collected without consequences
ruinous to most of our debtors and
highly damaging to ourselves. BY
means Of gold. raw materials or
other assets useable by us. only a
small fraction could possibly be
paid. BY means of services or the
import of manufactured goods We
do not want them paid, because that
would be disastrously destructive
TO our commerce and industry. As
to the suggestion that some OF the
British or French colonial posses
sions be transferred to US in part
payment, America is the last coun-
try in the world which would claim
that peoples and sovereignties are
subjects of barter to be transferred
other than by the voluntary action
of all concerned.
Nevertheless. II would be quiz
otic and, indeed. not conducive to
the best interest even of our Euro
pean debtors IL We were simply to
relinquish these debts without fur
ther ado. Moreover. a certain por-
ton Of them do not represent war
Indebtedness, by any stretch of that
term, but obligations incurred in
the course of plain commercial
transactions. such as the purchase
of silver from our government by
the British government.
Nations Are Interdependent.
The painful experience of the
past two years has led to wide rec
ignition among the people OF this
country that the economic welfare
of Europe is part of our concern
what are the main elements
which stand in the way of the re-
cuperation of Europe? I believe
the following to be tins principal
items:
(a) The so-called peace treaties
concluded at Versailles, st. Ger
main, Sevres and Trianon. respec-
lively, between the allied nations
and the enemy states. 1t would be
dif1cult to ind a parallel in the
history of treaty-making to the
faultiness, wrong-headedness and
harmful effects of these instru-
ments, from the point Of view alike
Of the victors. the vanquished and
the world at large.
while these treaties have hardly
any defenders left. still. il is not
to be expected that they, except
the treaty with Turkey, will be
formally revised. Such modiica-
in practice will be effected rather
by the silent workings Of circum.
stances and events and the pres
sure Of enlightened opinion.
Repar.tion situation Dangerous.
II believe the great majority OF
competent and candid persons
everywhere have reached the con-
clusion that the reparation sum. as
hxed In the ultimatum Of London
last May. Is not only greatly be.
yond Germany's capacity to pay by
whatever means. but that insist
ence on that sum is causing grave
damage to the allied nations and,
indeed. to all the world. II it were
possible for one nation to pay to
others SO vast an amount as 132,-
o00,oOo.o0o marks in gold. or its
equivalent, IL could only be accom-
plished with results pernicious to
the industry and commerce of the
recipients and violently upsettins
the natural and proper operations
Of economic intercourse among the