The Columbia evening Missourian., 1922-12-19
CANCELLATION
OF WAR DEBTS
IS NOT LIKELY
Officials at Washington Point
Out That Interest May Be
Foregone by Certain
Conditions.
EUROPE MUST DIsARM
Interest Due L. 5. Amounts to
S5O0,O00.000 Annually So.
Some Assurances Are
Expected.
L, DAVID L4wRExCE

b Dawn LtgEESCE
Essm>CToN, d. &, Dec l9--AneT-
ies ra5y y wiling to forezo the inter
O.. 4 The ssr deb.s Of ih9=e counries
n Europe ~hich are unable 10 pay iO-
se1e-al year. % cone. The principal
xlI 10; b. canoe,ed or reduced.
Th=- -,a;-.L-,i7a y the -s;.bilizsiion
o. t-e worlds economic crisis i under
consideration bot Z all be done only
Z European s7yernneais pursue pol
icy vhich ihis goyernueni believes ~iil
accomplish the desired re-2djus;m-ni in
E.. The .;sps IL the order in which
10y -1oBii De taken are ihe-e:
FIR. az TIE powers should reach 4;
oag- 3 definae agreement - 20 the
aasant of rspsrztisns Germany shog!d
p1y annually. Americas economic eH-
pts beleye s5J0.OOO,OO0 i the limit
Of Ce-mzny's ability and that approx
na:e.y twelve billion i The total sum
tazi Germany can and saoUid Be made
% pav. Frzrce should be willing to
agree 70 renounce her claim 10 any sum
z5oye that.
Second once the repsrziicn sum i
f.zed. III ~orid viii be ready 70 con
-ide- an international Loan such as wss
rrspcsed by the inzernstional bankers
Committee ! year ago which J. p. Nor
-2a and other finznciers attended. This
l,-n would not necessarily require TIE
rCz-sn,se Of Eos=rnmenis but would
ned The assent Of the Allied powers
20 regard il as prior len on Ce-msnys
assets.
Third, such loan ~ould assist Ger
mary IN the purchase Of foodstuffs and
N9u.d tend 10 raise the value Of the
CesIrzn mark and thus keep German
c5pszl in Germany for seif-deEelopmeni
instead q outside Of Germany in the
Investment markets Of the world. The
Iaiied States government wouldn't sub
s--.5e 70 the loan but the America, in
ye=.o- you'd hive the s1me opportunity
10 bay the reparziion bonds al good
RE q Interest - he has i0d$ other
forr.za securities. The value Of such
z hsH, however, would b. enhanced
through the moral support Of America
sa5 particularly through such coniribu-
iicD o. the Unsed States my make 70
The easing Of Europe's burdens through
the yoz;yonemeni or cancellation Of in
iere-I on the zihed war debt.
Fogr-h, cancellation q the interes;
's0uld never b. I-0pO-ed without some
;hing in return namely, assurances that
Europe you'd make real efforf 10 pay
,l,c principal Of the ten billion war debt
zad RE only s-sursnce which would
b. convincing would be reduction Of
Iznd zrmzm-n-. The American govern
gaeri cannO; igacre the fact that there
z-c fIorn thr.e TO four million men under
zful- On the continent Of Europe and
that - per cent are troop Of Allied
power. Reduction Of land armament
means more money available f0T produc-
I've purpoyes and more FOX the meeting
Of payments on The principal Of .he var
debt.
= Tor cancellation Of the principal,
10 d.1bi eHi-;- here that steady pro-
p.-za34 hss been conducted BY Euro
ycsus 70 impress America With the
nd f,r renting the Allied Nsr debt
a. a Ipesns Of adjusting the repsrziions
probIen. But the -1siter Of repsrz.i0ns
srd the srsr den. af th@ Aliies are 10
b. treated separately and the American
eosefuneas bSyes that Europe Is by
iiis time nd d the illusion Of cancel
lsiion. American sentiment, it is point
81 Dui b. officials, would noi permit
1t 5gd thr most that can be foreseen Is
: willingness on the par Of the people
70 fo:ezs III, interes, as they have been
ding sincc The sfrlisiice. Some o. the
ua,ioa. Of Eirope-one or two Of the
.nsIier ones par;icularly-csn in feS
yczr- begin paving their interest and
principal. Some cannot. No general
rule can b. established for all a. local
situations IN each country vary. II may
BE- wise to fDrego the interest in some
oasc- al:ugether. In others il may be
necessary to cancel the interest for five
OF ten yeaIs, possibly some Of the inter
=. already accumulated since l9l8-and
start With a clean slate Of annual pay
raenis melting the principal from a def
iniie date, say 1925 or 1880.
- This doesn'f mean .he ran.