Evening journal., 1922-06-17
cAScEn1ArroN1srs STILL AT WORK

nIscERNING Delawareans no doubt have noticed
- that the recent meeting OF the United states
Chamber Of Commerce in washington seized upon
by one OF our international bankers occasion for
making for cancellation of the allied
debt to this country The emphatic mo" with which
our people replied cancellation suggestions from for
eisn year had the effect of sienc-
ing propaganda that sort and Great Britain and
France have signhed their willingness to enter nego-
for the funding OF their debts Doubtless the
other debtor nations will follow their lead. But an
American fnancier tried throw the whole ques-
on more in address before the leading busl-
ness organization OF the country.
This gentleman undertook divide the foreign debt
into two parts alleging about $4,000. 100000 of the
funds advanced by the United States expended for
war purposes that the balance, about .400oOoOoOO
was used for reconstruction civil purposes He then
stated that the item might we'll be Cancelled while
insisting the payment OF the latter Such division
Of the obligation s of entirely without rea
son. The Liberty Bond Acts under which those ad-
vances were made that they "for the pur
pose OF more eectuay providing for the national se-
curity and defense and prosecuting the war. What
ever the allies may have with the money after
they received H. the fact that all OF II given to
them for war purposes and every dollar OF those loans
must stand on footing with regard to repay
ment
This most recent proponent OF cancellation used the
familiar argument that the wipng out of the debt
would increase business in the United states and add TO
the annual income citizens If the cancellation
o. say 60 per cent OF the allied indebtedness should
result in an increase the United States
that would carry the average yearly in
come OF the people the United States would
receive greater without increasing the
rates OF taxation net income would be left
10 the people for expenditure and investment"
1t may be that cancellation OF the debt or any part
OF 1t would Increase slightly the income Of our
people because the purchasing power OF Europe would
be increased and our exports would to ex-
tent It cannot be reasonably assumed that the United
states would get all the the Increased buying
hover OF Europe But that problematical increase in
income cannot be offset against the advantage to our
tzen OF havngs half their debt and the interest
hereon paid by the nations that owe them money The
eceps on account principal and interest on the for
ign debt will in the end amount to between $4,000
900 and 0OO probably nearer the latter
um II that money Is not received from abroad It
i'm ply means that II be provided by our own
eopie in the shape OF Federal taxes to the prn-
ipal and interest on an equal OF Liberty Bonds
,oes anybody that the benefits accruns to this
ountry from cancellation would equal more than
mail fraction OF that sum7
The truth Is that the best thing that happen to
EUROPE is for the United States insist the ulti
rate payment Of every dollar the foreign debt. Not
theryise can frugal policies be instled the
can mind Even now European budgets reveal in
reasing annual dehcits due primarily 10 excessive
for war and the refusal Of those
tents institute such drastic economies as have char
cterzed the United under Republican rule Far
rom putting an end to European waste the cancela-
ION OF any substantial part of the foreign debt would
ring sreater proniSaey in national expenditure