The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-03-04
ARE READY TO
COLLECT DEBT
FROM EUROPE
Recommendations Extent of
Commissions Authority
Government Can Exert
Economic Pressure.
WHAT IS NEXT STEP?
BY MARK SULLIVAN

pean governments is now in existence.
Whatever they can do is now to be
done. The question is. What is the
next step?
The obvious next step, and probably
the likely next step is for the commits
sion to organize and then send a note
around to the ambassadors of the
various debtor nations, calling their
attention TO the fact that their j. o.
US. and notes are overdue, and asking
them to come around and say what
ever they have to say about it.
However politely the details may be
arranged, this must be the essence of
uthe next move. In reply to these notes,
1bur debt commission will get differ
ent sorts of responses from the differ
ent debtors, according to their respec-
tive circumstances and desires
1t is quite possible that the British
ambassador may come with few mil
lions in cash on account of the unpaid
interest, and dependable promise of
readiness to make any arrangement
that may be decided upon as equitable
for paying the entire sum in install
ments over period of years agree
able to the United States.
1f we should feel free to be very
candid with France, we would prob
ably tell her that about as definite a
prejudice as the American people have
on any subject whatever is to the
effect that big armies in Europe shall
not be maintained with our money.
We don't maintain any big armies in
America, and we aren't going to main
tain big armies in Europe.
IL France probes deep enough, she
may discover that our people are
ready to go as far as we legitimately
can In exerting economic pressure on
Europe to stop maintaining big armies
and to stop improper and extravagant
government expenditures generally
Can Exert Pressure
Not only can we exert this economic
pressure through the leverage of the
public debts which the governments
of Europe owe our government We
can also exert it by frowning upon
future private loans by American
bankers to European governments
Many of the governments have been
doing a good deal of borrowing from
American bankers, and they want to
do more.
In the future, when American bank
ers are asked to loan more money to
govern
= ment wish to know something about
~the details. Our government may ask
Just what this money is to be used for.
II it is merely to go into the gen.
eral funds of these European govern
ments, and to be used to pay soldiers
and in other forms of government
waste, our government may express a
wish that our bankers should decline
TO make the loan.
Cash Is Unlikely
France, on the other hand. is not
likely to bring any cash and is likely
to say that she is not in a position to
pay anything now. France probably
will go even further and say that she
is not yet in a position to say Just
what she can do in the way of de-
pendable undertaking to pay fixed in
stallments over limited number of
years.
France officially is not expected to
make any outright refusal to pay or
any outright request to be relieved of
the debt entirely.
Some highly placed Frenchmen have
said unofficially that France can't pay
and that the debt should be cancelled
But France officially, when asked
for a formal declaration, is not likely
TO take that line. France is more
likely to say that her ability to pay
is dependent on what she can get out
of Germany and that she would like
further extension of time, until she
can determine just how much she is
going to get out of Germany, and wher
she is going to get it.
May Go Further
France may possibly go even a steI
further, and intimate that if we will
help her to bring pressure on Germany
Band to squeeze the last cent possible
out of that country, she can then be
IN a position to give us more hopefu
assurances about what she owes us.
If France should make that sugges
ion, our officials, if they feel like be
ing frank, must undoubtedly tell hel
that no such suggestion can be consid
cred by us for the reason that it is the
definite policy of our government no
to become involved in the unpleasant
" tangled muddle of German repara
lions.
If this conversation should become
very frank, indeed, and should take
on the ordinary color of an analogou.
conversation between the president O.
the bank, and a business man who ha.
talled 10 met an overdue note theI
in that case it would be conceivable
that our government might point ou
some things France could do which
would make her better able to pay, anC
which would improve her standins
with her creditor.
What We Might Say
We might tell her that if she would
reduce her army she could say,
enough yearly to pay at least the cur
rent interest on what she owes us
and also that if three or four hundred
thousand of the men that France nov
keeps soldering were released for ord
nary work. their productive capacit,
would add very considerably t,
Frances ability to pay her bills.
But, on the other hand, if the loal
is destined for some productive, If
is to go into water power construC
CStion. or some other form of helpful ir
dustry, then our government is likel
10 approve IT.
In short our government Is eager t
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