The New York herald., 1922-12-23
Says World, Including Q.
S., Is Slithering Down
Incline of Indebtedness
SEES RUIN AT FINISH
Demands Armament Reduc-
ton and Deplores Move for
Larger Army and Navy.
Special Dispatch 70 THE NEW YORK HERA.c.
New York Herald Bureau.
Washington. d. c.. Dec. 22.

Special Dis7Gsca 70 THE NEW YORK EERA.c.
New York Herald Bureau.
Washington. ID. c.. Dec. 22.
In belated effort to stem specula-
ton as to what America Is doing to
aid Europe officials OF the State De-
partment to-day said that the Govern
nlent Is still exploring and that tho
American plan" commented on in the
European capitals, has not yet been
born.
When the spokesman of the At-
ninistration referred to the fact that
there is mo plan on paper" he prob
ably hit the real difficulty in apprais-
ing what is being done. All kinds OF
recommendations have been made ana
cussions with the Powers have been
and are in progress. but all sugges-
tions have been informal and cannc<
be characterized as q proposal from
this or that country.
The United States Government Il was
stated. has not approached the Powers
with any proposal for an American CONF
mission OF business men to arbitratc rep
arations and Fix the reparatiors Ger
many should pay France. This denial
covered formal or informal. direct OK
indirect suggestions.
AS no proposal for commission 0,
Americans has been mnde II was mani
fest,y impossible. Il was asserted. that
/ Premier Poinca-c Of France should have
rejected ii or tnat 1rcat Britain or Gsr-
many should have accepted t.
Bornh on world Finances.
Senator Borah. discussing In the Sem
ate to-day his proposal TO call world
conference for economic and disarms-
ment purposes. said:
1T is perfectly clear 20 me tina. We
are again threatened with naval race.
Unless something can be done to pre-
vent II. the purse strings Will again he
relaxed and we are to have what we had
hoped 10 avoid by .he disarmament con-
ference held last winter
Building is going on abroad along
lines. SO we are told. not specifically
covered by .he disarmament treaty. The
lElUbS WtllCl were fsOFcTtQ Lnhl ITtdNy
have been regarded to some extent as
therefore. the course now pursued is
that OF a naval race in those things
which really count in modern warfare.
There Is n very pronounced propa-
ganda In this country for an increased
navy and enlarged army. The reasona
which are assigned for this are not only
he building programs abroad In naval
affairs but the economic conditions and
discomfort and distress which prevail
throughout the world. We are told al
most daily by those at the head of the
navy and others In high authority IN
the army that we may expect almost
any day a condition Of affairs abroad
which will necessitatc our having a vast
navy and very much larger army"
Senator Borah directed attention to
the fact that when the disarmament con-
ference was convened year ago one OF
It's strongest advocates was Gen. John 5.
Pershing. who contended then that
civilization would destroy itself without
sorne such move.
Speaking on the 18th OF this month";
continued Senator Borah, Gen. Per-
shing IN New York city said that Amer
lea should abandon It's fallacious and
foolish policy OF disarmament and adopt
a program for preparedness to deferld
the national life Of the United States
Senator Borah quoted other army and
navy officers in support OF his point.
"Armaments and big armies and
navies have never led toward peace"
said Senator Borah. They lead to war.
II has been so for 1900 years and viii
be so for 1900 more years.
Cite. Huge Indebtedness.
"Our present national Indebtedness n
between s22, ,O0O. 100000 and $4,000
000.000-an almost inconceivable s,,rn
when any one measures it IN human
toll. In energy. IN sacrifice and In suf-
fering. II Is beyond tho power OF hu-
man Language 70 portray. The entire
amount of gold produced since 14s3 ~
5000, 600 600 less than our national
debt. There is not any place where you
touch producer. the business man or the
man who has 20 pay the tax that thero
has not been q doubling or trebling or
taxes during the last three or four
years, and We know tho results In con-
ditlons which confront us IN thls coun-
Try.
I'VE must bear In mind that the Sec
retary Of the Treasury recently advised
us not only Of the conditions which pre-
vail throughout the country with refer
ence 20 increase of taxes. but there has
also been a drying OF tax receipts 70 the
amount Of about $1,000. oOo. 900. cali at
tention 70 some OF the conditions abroad
sir George Palsh, who visited this coun-
try few days ago. said The credit
OF Europe is practically exhausted and
the credit Of other borrowing nations In
almost the entire world will be ex~
hausted and trade will collapse and
there Will I've almost universal bank
ruptcy. national and individual.
hat ~ f,f x-o a -, cff
ering down an inclined plane Of prodi-
galitv and Indebtedness that will land
ms. unless we act promptly and reso-
lutely ~ the ditch. We must cut down
our expenditures. reduce taxation
otherwise there Is nothing before US bat